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TFFR Employer Guide

Terms and Definitions

Note: The terms and definitions in this section relate to TFFR only.

Administrative
To manage, direct, or superintend a program, service, school district or other participating employer.

“Briefly”
Quarterly employer newsletter that provides reporting instructions and current topics of interest.

Compensated Hours (Total Hours)
The number of hours a member is employed and compensated for in a school year (not to exceed 700 hours). The calculation for compensated hours is as follows:
Days worked during the fiscal year × total hours worked each day.

Contract
A written agreement with any school board or other governing body of any North Dakota school district or special education unit; or a letter of appointment by a state institution, state agency, or other employer participating in the Fund. (Also see definition of written agreement.)

Contributions (Employer)
An amount paid by the employer which is equal to 8.25% of the retirement salary a member earns during a fiscal year (July 1 – June 30). Employer contributions are not refundable to the member. Effective July 1, 2010, employer contributions will increase to 8.75%. Employer contributions will reduce to 7.75% once TFFR reaches 90% actuarial funded status.

Contributions (Member)
An amount equal to 7.75% of the retirement salary earned by a member during a fiscal year (July 1 - June 30) to help finance the various TFFR benefits available. These benefits include retirement, disability, and survivor benefits, or a refund upon termination of employment.

Taxed Member Contributions
Member contributions that are withheld from member checks and taxed in the year withheld. The member contributions are deducted from a member's check after taxes have been calculated.

Tax-Deferred Member Contributions
Member contributions that are withheld from member checks or that are paid by the employer, and not taxed in the current year. These contributions will be taxed when the member starts receiving a monthly retirement check or receives a refund.

Covered Employment
Employment as a teacher, supervisor, administrator, or extracurricular services.

Dual Member
An individual employed in a position that is reportable to both TFFR and the North Dakota Public Employees Retirement System (PERS). If your school district reports to PERS and you have an employee that may be reportable to both systems, see page 31, or contact the Fund's administrative office for further instructions.

Electronic Reporting
Monthly reporting by compact disc, floppy diskette or internet.

Extracurricular Services
Outside of the regular curriculum of a school district or other participating employer which includes advising, directing, monitoring, coaching athletics, music, drama, journalism, and other supplemental programs.

Final Average Salary (FAS)
Final average salary calculated using the average of the highest three salaries for Tier 1 members and the highest five salaries for Tier 2 members. Final average salary is a key component in determining the monthly retirement benefit.

Fiscal Year
The accounting period from July 1 through June 30.

In-Staff Substitute Teacher
A licensed contracted teacher, including a re-employed retiree, who performs substitute teaching duties for the contracting district. These duties are reportable to TFFR. Non-contracted substitute teachers are not reportable to TFFR.

Last Date Worked (Taught)
The last official date the member was employed and was compensated for during the fiscal year. This date is used to determine a member's eligibility for retirement or refund benefits.

Participating Employer
The employer of a teacher, including a state institution, multidistrict special education unit, area career and technolgy center, regional education association, school board, or other governing body of a school district.

Qualified Domestic Relations Order (QDRO)
A court order relating to the division of TFFR benefits in divorce cases.

Referee
All game and desk officials including referees, umpires, line judges, score keepers, time keepers, ticket takers, ushers, and other judges or officials. Payments to judges or officials for other non-sporting events such as music, drama, and speech are also excluded from retirement salary.

Regional Education Associations (REA)
Educational cooperatives formed to improve services to ND students. Formerly know as joint powers agreements, or other cooperative service arrangements, REA's are participating TFFR employers.

Reports
Compact disc, floppy diskette, internet, or paper report.

Retired Teacher
A member who has retired from active teaching and is receiving monthly TFFR retirement benefits.

Retirement Date
The first or the fifteenth day of the month following the member's last date of covered employment. Actual payment of benefits will be on the first of each month and may be retroactive to the retirement date. Disability and death benefits are effective the first of the month only.

Retirement Salary
A member's reportable contract/additional TFFR salary plus member contributions paid by employer in lieu of a salary increase, if any.

Rule of 85
When age plus years of service equals 85 or more, Tier 1 members are eligible for nonreduced retirement benefits.

Rule of 90
When age plus years of service equals 90 or more, Tier 2 members are eligible for nonreduced retirement benefits.

Salary (Contract/Additional)

• Eligible Retirement Salary (Reportable)
  A member’s earnings in eligible employment for teaching, supervisory, administrative, and extracurricular services during a school year reported as salary on the member’s federal income tax withholding statements plus any salary reduction or salary deferral amounts under 26 U.S.C. 125, 132(f),401(k), 403(b), 414(h), or 457. Eligible salary may not exceed the annual IRS compensation limit under 26 U.S.C. 401(a)(17)(b).
   
  Once a member is contracted to perform teaching, supervisory, administrative, or extracurricular services, additional payments are considered eligible retirement salary unless conditioned on or made in anticipation of retirement or termination.

Additional payments should be clearly documented and authorized on individual employment contract, mater contracts, extra-curricular schedules, board minutes, or other written documentation. For example:  

• Advisor/Chaperone/Director/Monitor - activity funds; cheerleading; class; concession stand; drama/class plays; FCCLA/FFA; intramural sports program; lunchroom; math club; music programs; newspaper; pep club; photography club; playground; science club; speech team; student council; yearbook staff; etc.
• Adult education program
• Coaching and assistant coaching duties
• Curriculum development/writing
• Driver's education
• Drug free school program
• Grant writing (certain conditions only)
• Indian education program
• Information Technology coordination and services
• In-service/workshops/professional development (not reimbursement for expenses or tuition)
• In-staff subbing
• Mentoring
• REA, joint powers agreement, consortium type work
• Summer school/summer programs

(The above list is not all-inclusive. Contact the administrative office for additional information.)

• Ineligible Retirement Salary (Non-Reportable)
  According to state statutes, salary does not include:
  
  • Fringe benefits or side, non-wage benefits which accompany or are in addition to a member's employment including insurance programs, annuities, transportation allowances, housing allowances, meals, lodging, and expense allowances, or other benefits provided by a member's employer.
  • Insurance programs including medical, dental, vision, disability, life, long-term care, workers compensation, or other insurance premiums or benefits.
  • Payments for unused sick leave, personal leave, vacation leave, or other unused leave.
  • Early retirement incentive pay, severance pay, or other payments conditioned on or made in anticipation of retirement or termination.
  • Teacher’s aide pay, ticket taking pay, referee pay (see definition), bus driver pay (route or extracurricular), janitorial pay.
  • Amounts received by a member in lieu of previously employer-provided benefits or payments that are made on an individual selection basis.
  • Recruitment bonuses.
  • Other benefits or payments not defined above that the Board determines to be ineligible TFFR salary.

Note: It is the employer's responsibility to understand the IRS reporting requirements and be familiar with what is taxable income for federal and state tax purposes.

Service Credit
The proportion of compensated hours to 700 hours per year. A member cannot receive more than 1.000 year of service credit each year.

Special Teachers
Licensed special education teachers, guidance counselors, speech therapists, social workers, psychologists, librarians, audiovisual or media coordinator, technology coordinators, and other staff members licensed by the Education Standards and Practices Board (ESPB) provided they are under contract with a school district or other participating employer to provide teaching, supervisory, administrative, or extracurricular services.

State Agencies or Institutions (North Dakota)
Department of Public Instruction (DPI), ND Center for Distance Education, ND School for the Blind, ND School for the Deaf, ND Youth Correctional Center, and the ND State Board for Career and Technical Education (CTE).

Substitute Teacher
A certified teacher that temporarily replaces the regular contracted licensed teacher. Substitute teachers include teachers performing in-staff subbing as well as teachers from outside your district performing subbing duties, long or short term. Contracted substitute teaching, including in-staff subbing, is reportable to TFFR. Non-contracted substitute teaching is not reportable to TFFR.

Supervisory
To have general oversight or authority over students or teachers, or both, of a school district or other participating employer.

Teacher
All persons currently licensed to teach in North Dakota by the ESPB and contractually employed (including third party agreements) in teaching, supervisory, administrative, or extracurricular services by any state institution, special education unit, multi district special education unit, area career and technology center, regional education association, school board, or other governing body of a North Dakota school district. All public school teachers are required to be members of TFFR.

Teachers include:

• Superintendents
• Assistant superintendents
• Certified business managers
• Special teachers
• Superintendent, assistant superintendents, and supervisors of public instruction except for non-teaching employees of DPI who elected to transfer their plan membership to PERS
• Professional staff of the ND High School Activities Association who were members of the Fund on 7-1-95
• Executive director and professional staff of the ND Education Association (NDEA) who were members of the Fund on 7-1-95
• County superintendents
• Assistant county superintendents
• Principals
• Assistant principals
• Professional staff of the ND State Board for Career and Technical Education, except employees of CTE who elected to transfer their plan membership to PERS
• Professional staff of the ND Center for Distance Education
• Professional staff of an interim school district
• Certified staff of teacher centers if previously a member of the Fund
• Employees of institutions under the control and administration of the State Board of Higher Education who were members of the Fund on 7-16-89

Teacher's Aide
A person that provides assistance to a licensed teacher or is under the direction of a teacher or administrator.

Teaching
To impart knowledge or skills to students or teachers, or both, by means of oral or written lessons, instructions, and information.

Tier 1 Member
All active, inactive, and retired members with TFFR service credit on file on July 1, 2008.

Tier 2 Member
All new members and returning refunded members who are employed on or after July 1, 2008.

Time Certain Contracts
A contract that states a specific term of employment (basketball season, track season, football season, range of dates; i.e. October 1 to November 31, etc.).

Total Hours
See Compensated Hours

Vested Member
The retirement plan status attained by a teacher who has earned three years of service credit, for Tier 1 members; or who have earned five years of service credit, for Tier 2 members.

Written Agreement
A teaching contract, school board minutes, or other official document evidencing a contractual relationship between a teacher and participating employer.

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