DRS Email 20-001, Programming Changes Complete for New TRS/SERS 2008 ERF Retirees

• Notice No.: 20-001
• Date: Jan. 17, 2020
• Applies to: All Employers
• Subject: DRS Email 20-001, Programming Changes Completed for New Return-to-Work Rules for TRS and SERS 2008 ERF Retirees

New legislation implemented last year changed how the 2008 Early Retirement Factor (2008 ERFs) are applied. Plans 2 and 3 Teachers’ Retirement System and School Employees’ Retirement System retirees who retired under the 2008 ERFs can return to work in nonadministrative positions for up to 867 hours in a calendar year without impacting their benefits.

Details regarding the new rules were communicated in DRS Email 19-013.

Which employees does this impact?

Certain 2008 ERF retirees who are under age 65 and currently working for you in a nonadministrative position. Specifically, it affects retirees who either:

• Retired from SERS
• Retired from TRS and are working in a SERS position

What is changing?

Type Codes for these retirees are changing. Beginning Feb. 1, 2020, Type Code 96 will be required to report data for earn period 02/2020 forward now that Employer Reporting Application (ERA) programming changes are complete as described in DRS Email 19-013.

Why is this necessary?

A Type Code is a two-digit number that identifies the type of employer an employee works for and the type of job an employee performs. Using Type Code 96 ensures that DRS doesn’t stop a retiree’s pension as a result of returning to work for you.

How will I know which of my employees are impacted?

If you report earnings data for these retirees for earn period 02/2020 or later, ERA will reject the earnings with this edit message:
Type Code 98 is no longer valid for this retiree. Submit a separation date and reenroll with Type Code 96 [462].

What am I required to submit?

You will need to submit the following data for each affected 2008 ERF retiree currently working for you in a nonadministrative position:

• End Date of 01/31/2020 under Plan 0, Type Code 98
• Begin Date of 02/01/2020 under Plan 0, Type Code 96
• Re-report rejected Type Code 98 earnings for earn periods 02/2020 and later using Type Code 96

If hired into a nonadministrative position and under age 65
Retired under 2008 ERF from	Type of position returning to	System/Plan	Type Code
TRS	Certificated nonadministrative	TRS 0	96
TRS	Classified nonadministrative	SERS 0	96
SERS	Certificated nonadministrative	TRS 0	96
SERS	Classified nonadministrative	SERS 0	96

If hired into an administrative position or over age 65
Retired under 2008 ERF from	Type of position returning to	System/Plan	Type Code
TRS	TRS-eligible position	TRS 0	98
TRS	TRS-ineligible position	TRS 0	99
TRS	SERS-eligible position	SERS 0	98
TRS	SERS-ineligible position	SERS 0	99
SERS	TRS-eligible position	TRS 0	98
SERS	TRS-ineligible position	TRS 0	99
SERS	SERS-eligible position	SERS 0	98
SERS	SERS-ineligible position	SERS 0	99