The Legislature passed Engrossed House Bill (EHB) 2391 during the final days of the 2007 session. This means new members of the Teachers' and the School Employees' Retirement Systems on or after July 1, 2007 must choose between Plan 2 or Plan 3.
We anticipate the Governor will sign this bill on or before May 12. In recognition of the short timeline, we are providing you with the changes that must be made by July 1, 2007. The plan choice requires:
Report new employees (who have never established membership) in Plan 2 until they inform you which plan they are choosing. Member and employer contributions are deducted at the Plan 2 rate until a plan choice is made or the member defaults into Plan 3.
Members who do not provide their plan choice within the 90-day period default into Plan 3 and must be reported with rate option A, and the WSIB Investment Program.
The Employer Handbook, Chapter 8, MRL - Plan Choice Record, provides details including the technical requirements that support reporting the plan choice code and choice date information to DRS.
When reporting a Plan 2 member that is choosing Plan 2, all information must be reported in Plan 2, including the 2C plan choice code and the choice date.
When reporting a Plan 2 member that is choosing or being defaulted into Plan 3, all information must be reported in Plan 3, including the 3C or 3D plan choice code and the choice/default date.
We are in the process of preparing the necessary publications and forms to support this new choice option. Next month, we anticipate you will be able to view online versions of our plan choice booklet including an updated MIF. We expect to be distributing paper versions in June.
Summary information about this legislation is currently available on our Web site and may be useful in explaining the impact to your employees.
Our statewide employer workshops in May and June will provide you with information to help you understand the impacts of this new plan choice option and provide you with the opportunity to ask questions. We expect the workshops and email communications will ensure a smooth implementation of the new reporting requirements. We encourage Human Resource and Payroll staff to register for a workshop - just visit our Web site to register.
We will inform you when the Governor has signed this bill. Thank you for your ongoing support.
Should you have questions call Employer Support Employer Support Services at (360) 664-7200, (option 2), or 1-800-547-6657, (option 6 then option 2).