As the employer, you have responsibilities for accurate and timely reporting of plan choice retirement data.
Provide members with an orientation informing them of their plan choice options.
Provide the Plan Choice Booklet with the Member Information Form (MIF) to new plan choice members immediately upon hire, and the MIF to newly hired existing Plan 3 members eligible to elect a new contribution rate.
Distribute all necessary forms and publications to employees. Refer to the New Hire Pyramid for resources available and ordering information.
Be sure to verify that members sign and date all required sections of the MIF, and submit the signed form to DRS if the member makes an irrevocable plan choice.
Report an employee's Plan decision; and for Plan 3 also their contribution rate option, and their investment program on the first available regular transmittal following the receipt of the MIF.
For applicable employees, monitor the 90 calendar day choice period and default the member if they do not make an election.
Deduct and report Plan 3 member contributions correctly based on a member's chosen rate option. DRS doesn't edit Plan 3 member contributions based on the compensation reported and accepts whatever the employer reports for member contributions.
Report Plan 3 member contributions as paid; employer contributions continue to be reported as earned.
If the Plan 3 rate changes following a member's birthday, employers must begin using the new rate effective the first day of the following month. (Rate options B and C)
Submit a transmittal correction as soon as possible for rejected data. Rejected Plan 3 member contributions create the potential for lost earnings on investments.
Deduct and report Plan 3 member contributions for new or existing Plan 3 members prospectively starting with the first available pay period after receipt of the signed MIF with required selections or the member defaults. Don't deduct contributions at the Plan 3 rate retroactively back to the date of hire.
Note: Until you receive the MIF or the member defaults:
–Report Plan 2 member and employer contributions from the first day of work for new members
–Report only employer contributions for newly hired existing Plan 3 members
Provide a Plan 3 member with the option to make up member contributions only if the employer errs reporting a Plan 3 choice.
Monitor Plan 3 deferral limits to ensure that a member's contributions do not exceed Internal Revenue Code limits [WAC 415-111-111].
Employers who have Plan 3 members are encouraged to submit the member data for each pay period. The sooner DRS receives Plan 3 member contributions and the transmittal report, the sooner member contributions are invested.
The employer may be liable for lost earnings if a member suffers a loss of investment due to an employer error. [WAC 415-111-110 (4)]
