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 2007

Dear TFFR Employer:

As a 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 2007 TFFR Employer Guide. Please replace the sections in your existing binder. The Employer Guide is also available on our website at www.nd.gov/rio.

Please review the 2007 edition of the TFFR Employer Guide which summarizes the employer reporting process. 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 that were approved by the 2007 Legislature. Take special note that some of the changes take effect July 1, 2007, while others do not become effective until July 1, 2008. The reverse side of this letter highlights the TFFR changes approved in Senate Bill 2046.

TFFR has been helping North Dakota teachers prepare for the future for over 90 years. Our purpose has always been to provide adequate and equitable retirement benefits to our state's educators. While TFFR faces funding challenges today, recent legislative changes, along with a strong, healthy economy, should strengthen the TFFR plan, and help it to remain financially stable for decades to come.

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 2007 Legislation

Effective July 1, 2007:

• Employer retirement contributions of 7.75% required on all re-employed retiree’s
  salary (including extra curricular duties, professional development, and in-staff
  subbing). Non-contracted subs are not reported.
   
  • Employers must complete a “TFFR Retired Member Employment Notification Form” for every retiree employed (even if only compensated for extra curricular duties). Employers are required to provide TFFR the completed form each year within 30 days of the retiree’s employment or will be subject to penalty and withholding of school foundation payments from DPI.
     
  • Re-employed retirees can either be added to your monthly TFFR report or sent on a separate report. Payment of the 7.75% employer contribution can either be included with your regular monthly TFFR payment or sent in a separate check.
     
  • At fiscal year end, report last date taught and total hours (exclude extra curricular and professional development hours.) Note: Do not cap reported hours at 700 for re-employed retirees.
     
  • Please contact your software provider for assistance in programming the inclusion of retirees on your monthly report.

Effective July 1, 2008:

• Increase employer retirement contributions from 7.75% to 8.25% of active members
  and re-employed retiree’s salary beginning July 1, 2008. 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.
     
• New tier of reduced member benefits for new TFFR members (and returning
  refunded members) employed on or after July 1, 2008.
   
  Tier 1 Members include all current active, inactive, or retired members who have TFFR service
  credit on July 1, 2008. Tier 1 members who do not refund their service credit would maintain the current TFFR benefit structure and member contribution rates.
   
  Tier 2 Members include all new members and returning refunded members who are employed on or after July 1, 2008. Tier 2 members would have the following benefit changes:
  • Rule of 90, instead of Rule of 85
  • 5-year vesting, instead of 3-year vesting
  • Final average salary computed as a 5-year average, rather than as a 3-year average
     
• No direct impact on employers. However, employers should be able to communicate the Tier 1 and Tier 2 benefit structures to new employees. All TFFR materials are being updated to inform employees of the benefit plan changes.

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
• Consortium
• 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
• 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
• 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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