Each time a Plan 3 member changes employers the member has up to 90 calendar days to select a new contribution rate option. Plan 3 members may change their investment program at any time.
Employers should not deduct member contributions until they receive the Member Information Form (MIF) but must report employer contributions from the first day of work. Employers should notify new employees that they will need to complete the MIF to continue their Plan 3 deductions and provide them with a copy of the form.
Employers cannot make up Plan 3 member contributions for periods missed while the member was selecting a contribution rate option (i.e., during the 90 calendar days allowed for choosing a contribution rate option and investment program).
To report a new hire who previously established membership in Plan 3, employers must report the following to DRS:
In all cases, upon receiving the MIF, the employer includes the information listed above on the next transmittal report based on the employer's payroll cutoff schedule. Forward the original MIF to DRS only if Section 2 is completed.
A Plan 3 member, who separates from employment and returns to work for the same employer, may select a new rate option only if the member worked for a different employer during their separation period. If the member is rehired in a short enough time frame to cause the employer to question their opportunity to have worked for a different employer, the employer should ask the member “Did you work for another employer between your termination and new hire dates?” Review the rehire's job application for interim employment. Use this information to determine if the employee has the option to choose a new contribution rate.
A Plan 3 member working for more than one employer in eligible positions may establish a different rate option and investment program with each employer.