TFFR Employer Guide

View pdf version of Employer Guide

ND Retirement and Investment Office
Administrative Office
PO Box 7100
Bismarck, ND 58507-7100

Office: 701-328-9885
Fax: 701-328-9897
Toll free: 800-952-2970
Website: www.nd.gov/rio

The TFFR Employer Guide is printed and distributed by the Retirement and Investment Office (RIO) to provide participating employers with a quick reference source for questions regarding TFFR reporting requirements. This booklet is not intended to encompass all aspects of TFFR reporting requirements. It will be updated periodically to reflect changes made to the plan (NDCC 15-39.1) by the Legislature. Detailed information can be obtained by contacting RIO. This publication can be made available in alternate formats.

Letter to Employers

August 2009

Dear TFFR Employer:

As a participating TFFR employer, you play a very important role in the retirement program available to North Dakota educators. Thank you for all your hard work to ensure the proper reporting of retirement information to TFFR.

Attached is your updated 2009 TFFR Employer Guide. Please review the latest updates and replace the sections in your existing binder. The TFFR Employer Guide is also available on our website at www.nd.gov/rio. We hope you find this information helpful as a tool for training and as a resource when questions arise.

The updated Employer Guide includes the significant changes to TFFR approved by the 2009 Legislature. A summary of 2009 legislative changes is on the reserse of this letter. The biggest change is a 0.5% increase in the employer/school district retirement contribution (from 8.25% to 8.75%) effective July 1, 2010. TFFR members and school board/employers should be aware of this increase as 2009-11 contracts are negotiated.

Without a doubt, TFFR faces funding challenges today. The financial markets have declined to unprecedented levels, and economic conditions continue to be challenging. This is predicted to reduce TFFR funding levels significantly in the next few years. At this time, we are closely monitoring the changing economic environment and evaluating options to offset investment losses in the TFFR portfolio. The Board plans to propose a funding improvement plan during the 2011 legislative session that will address the situation in a comprehensive and effective manner. Such legislation is likely to include contribution increases, and possible benefit changes for new hires.

TFFR has been helping North Dakota teachers prepare for the future for many years. Our purpose has always been to provide adequate and equitable retirement benefits to our state's educators. On behalf of the TFFR Board of Trustees and RIO administrative staff, we pledge to you our continued commitment to administer a financially secure retirement program and make service to North Dakota's public school teachers and employers our number one priority.

Sincerely,

Fay Kopp, CRA
Deputy Executive Director/
Retirement Officer

Implementation of 2009 Legislation

Effective July 1, 2009:

• Clarification to TFFR Statutes that licensed and contracted employees of Regional Education Associations (REAs) are included in the definition of "teacher" for TFFR participation and benefit eligibility purposes. This clarification does not change current TFFR practices.
  
  
• Clarification that non-contracted substitute teaching does not apply to the annual limit for re-employed retirees.
  
  
  • In staff subbing performed by re-employed retirees does not apply to the annual hour limit.
    
    
• Confidentiality provisions were modified to allow disclosure of retirement information in certain limited situations.
  
  
  • An employer may release limited information relating to an employer service purchase paid to TFFR on behalf of a TFFR member. The information is limited to the member's name and employer, the retirement program in which the member participates, the amount of service credit purchased and the total amount paid by the employer.

Effective July 1, 2010:

• Increase employer retirement contributions from 8.25% to 8.75% of active members and re-employed retiree's salary beginning July 1, 2010. The employer contribution will reduce to 7.75% once TFFR reaches a 90% actuarial funded status.
  
  
  • Member contributions remain at 7.75%, so this increase should not impact employer payment models and the factors used to calculate the grossed up retirement salary under Models 2 & 3.
    
    
  • Please contact your software provider for assistance in programming the employer contribution increase.

Table of Contents

General Information

• ND Retirement and Investment Office
• Teachers' Fund for Retirement (TFFR) Board of Trustees
• TFFR Mission and Goals
  • Mission Statement
  • Goals
• Type of System
• Employer Services

Terms and Definitions

• Administrative
• Briefly
• Compensated Hours (Total Hours) - Defined
• Contract
• Contributions (Employer)
• Contributions (Member)
  • Taxed Member Contributions - Defined
  • Tax-Deferred Member Contributions - Defined
• Covered Employment
• Dual Member
• Electronic Reporting - Defined
• Extracurricular Services
• Final Average Salary (FAS)
• Fiscal Year
• In-Staff Substitute Teacher
• Last Date Worked (Taught) - Defined
• Participating Employer
• QDRO
• Referee
• Regional Education Associations (REA)
• Reports
• Retired Teacher
• Retirement Date
• Rule of 85
• Rule of 90
• Salary (Contract/Additional)
  • Reportable
  • Non-Reportable
• Service Credit
• Special Teachers
• State Agencies or Institutions (North Dakota)
• Substitute Teacher - Defined
• Supervisory
• Teacher
• Teacher's Aide - Defined
• Teaching
• Tier 1 Member
• Tier 2 Member
• Time Certain Contracts
• Total Hours
• Vested Member
• Written Agreement

Employer Payment Plan Form

• North Dakota Century Code (NDCC)
• Internal Revenue Service (IRS)
• Employer Payment Plan Requirements
• Employer Payment Plan Models
  • Taxed Member Contributions
  • Tax-Deferred Member Contributions
  • Employer Contributions
  • Changing Models
• No Model
• Model 1
• Model 2 (All)
• Model 2 (Partial)
• Model 3
• Model 4 (State Agencies and Institutions)
• Employer Payment Plan (Comparison Model)
• Cost Analysis for Changing Employer Payment Plan Models

Reporting Information

• Employer's Report of Member and Employer Contributions
  • Electronic Reporting
    • Monthly Diskettes
    • Internet Reporting
    • Compatible Software Vendors
  • Paper (Manual) Reporting
  • Employer Reporting Notes
  • Errors on Employer Reports
  • Employer Summary Report - Reporting
  • Year End Reporting
    • Compensated Hours (Total Hours)
    • Last Date Worked (Taught)
• Changing Employer Information
• Penalty for Late Payments / Reports
• New Member
• Dual Membership
• Employing a Retired Teacher
  • General Rule - Annual hour limit
  • Exception A - Critical Shortage Area
  • Exception B - Benefit Suspension and Recalculation
• Teacher's Aide
• Substitute Teacher
• Reducing Salary/Hours to Pay for a Substitute Teacher
• Head Start Program Employees
• Summer School and Summer Programs
• Leave of Absence
• Member Who Terminates Employment (resignation, retirement, disability or death)
• Employer Service Purchase

Forms/Reports

• Certification of Member Employment
• Designation of Beneficiary Form
• Employer Payment Plan
• Employer Summary Report
• Employer's Report of Member and Employer Contributions (ERAC)
• TFFR Retired Member Employment Notification
• Member Action Form
• Notice of Termination
• Notification of School District Changes

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