The following provides answers to some of the more frequently asked questions regarding membership and reporting requirements for PERS.
Q1. A member in an eligible position takes an extended unpaid leave of absence and does not have at least five months with 70 hours or more of compensated employment in a given 12-month period. Is this individual still eligible for membership?
A1. Yes. An unpaid leave of absence does not affect the eligibility of a position. If the position normally requires five months of 70 hours or more of compensated employment, then the position is still eligible. The employer should continue to report the employee on the transmittal using status code B.
Q2. An eligible position continues for more than a year without requiring the individual in that position to work at least 70 hours a month for five months or more each year. Is the individual in this position eligible for membership?
A2. The employer should review the requirements of the position. If this is no longer an eligible position, the employer should separate the employee from the transmittal. If this is still an eligible position, the employer should continue to report the employee on the transmittal.
Q3. An eligible position is filled with two individuals each working three hours a day. Are the individuals eligible for membership?
A3. Yes. Although separately the individuals do not work 70 hours a month for five months or more each year, the position requires that much work. Each of the individuals is eligible for membership and should be reported on your transmittal.
Q4. An employee works in an ineligible position from March 1 through November 10. On November 11, you redefine this as an eligible position. When do you begin reporting the individual in this position?
A4. With November's report using November 11 as the begin date. You would report all retirement information for work performed by the individual during November--the information for the eligible position plus the information for the ineligible position. All of an employee's work each month is considered as a single position.
Q5. During a review, it is discovered that a position that had been defined as ineligible has actually required the employee in the position to work 70 hours or more in at least five months in each of the last two years. What will happen in this case?
A5. The position will be declared eligible beginning from the first month of the first year in which employment was for at least 70 hours. The employee will enter membership beginning with that month. The employer must use the transmittal to report all compensation, contributions and hours of service back to the first date of eligibility.
Q6. An employee is hired as a "temporary" to fill in for someone who is on leave for two weeks. Is this employee eligible for membership and should he or she be reported?
A6. It depends. If you place this individual into the absent employee's eligible position, he or she is eligible for membership and must be reported. If you place this individual into an ineligible position that was created to fill such a need, he or she is not eligible for membership and should not be reported.
For school district PERS classified substitutes, DRS Notice 92-002 details the essential elements of an employer's determination and documentation of a position's eligibility.
Q7. An employer has created a position designed to fill temporary needs. An employee is regularly hired into this position, doing work on a short-term basis, "filling in" for employees who are absent or on leave. Should the employee in this position be reported?
A7. If the employer classifies and documents this work as a separate position, and if the position normally requires less than five months each year with 70 hours or more of compensated employment, then the position is ineligible and the employee should not be reported. If the employee is compensated for 70 or more hours for at least five months for two consecutive years, then the employee should be reported.
Q8. An individual who has been in PERS is appointed by the Governor to an elective position on an interim basis. Can the individual continue PERS membership during the time in the elective position?
A8. Yes, but membership does not continue automatically. Upon being appointed to office, the individual must make a written application to the Director of DRS to continue membership in PERS. When the application is accepted, membership will continue without loss of service credit.
Q9. An individual who has been in PERS is elected to office and takes office in January. Should the individual be reported on the January transmittal?
A9. No. The individual must first make a written application to the Director of DRS to continue membership in PERS. When the individual has received written acceptance from the Director of DRS, he or she should then be reported on the transmittal. Membership and reporting will be required retroactively to the first day of the term of office.
Q10. A person who has never been a member of PERS is appointed by the Governor to an elected position on an interim basis. Can the person be reported in PERS?
A10. Yes. Upon being appointed to office, the person must make written application to the Director of DRS for PERS membership. When the person receives written acceptance for membership from the Director, he or she should be reported on the PERS transmittal retroactive to the first day of the appointment.
Q11. Are newly elected judges and justices mandated into the JBM Program?
A11. Newly elected or appointed judges and justices can choose to participate in PERS. However, beginning January 1, 2007, if they choose PERS membership, they are mandated into the PERS JBM Program. On or after January 1, 2007, judges that are appointed to non-elective positions eligible for PERS are mandated into PERS and the JBM program. Refer to the PERS Plan Rules, Judges Benefit Multiplier Program for more information.
Q12. Who is eligible to participate in JBM?
A12. If a member of PERS and a justice or judge of the following courts, the individual is eligible to participate in PERS JBM: Supreme Court, Court of Appeals, Superior Court, District Court, or Municipal Court. A TRS Plan 1 member serving in the Supreme, Appeals or Superior Court is also eligible to participate.
Q13. An individual who has been in PERS is elected as a District Judge and takes office in January. Should the individual be reported on the January transmittal?
A13. No. Judges and justices that are elected or appointed to an elected position are exempt from PERS membership. They have the option to be in PERS and must first make a written application to the Director of DRS for membership in PERS. When the individual has received written acceptance from the Director of DRS, report the individual on the PERS transmittal, using the appropriate PERS JBM type code. Membership and reporting will be required retroactively to the first day of the term of office.
Q14. An individual is appointed to a non-elected position as a Municipal Judge and takes office in January. Should the individual be reported on the January transmittal?
A14. Yes, if the position is PERS eligible. Report as PERS JBM using the appropriate PERS JBM type code. If the position is not elegible, do not report the person. Monitor the position and document your eligibility decision on the Position Eligibility Worksheet