Presentation on theme: "Company LOGO By: Public Employees Retirement Association of New Mexico New Employee Orientation."— Presentation transcript:
Company LOGO By: Public Employees Retirement Association of New Mexico New Employee Orientation
Public Employees Retirement Association of New Mexico PERA Pension Plans State Division Municipal Division Judicial Magistrate Legislative Volunteer Firefighter Disability (all divisions except Volunteer Firefighter)
Public Employees Retirement Association of New Mexico Vesting and Account Options TEXT Vesting 5 or more years of employment with a PERA affiliate. ERA service does not count toward vesting but does count toward the requirements for retiring. Options for your Contributions at Termination* Receive member contributions and interest as a cash refund, or ollover contributions into an IRA, or Partial rollover / partial cash refund, or Leave contributions on deposit for deferred retirement. * Employer contributions are never available for refund, even after you are vested.
Reciprocity Service credit earned under the different retirement plans in New Mexico may be used to count toward retirement eligibility. Even though you are using service credit from other plans (Educational Retirement Act (ERA), the Judicial Retirement Act (JRA) or the Magistrate Retirement Act (MRA)), the service credit you earned under each plan will be calculated using the formula for that plan and you may not receive your whole pension amount at the time of retirement. When you qualify to receive the reciprocal portion, you will see the increase reflected in your pension check. When you are retiring with reciprocity service, you retire under the plan of your last employer. So if you worked for an ERA employer in the past and now you are working for a PERA employer, you would be retiring with PERA. Whenever you contact PERA to review your account or provide a calculation for retirement or the purchase of service credit, it is important to notify PERA of all the service credit you may have. This will allow PERA to contact ERA to verify your service credit and include your ERA service credit in all the calculations. If you have service credit under more than one PERA coverage plan or under ERA, JRA or MRA, you should be aware that different provisions regarding service credit apply. Subject to certain statutory restrictions, the Act allows PERA members to use service earned under ERA, JRA and MRA as well as that earned under PERA in determining retirement eligibility and calculating pension benefits. Any PERA member who was employed under two or more of these Acts should contact PERA to determine his or her eligibility for reciprocal service credit under this Act. 4
Public Employees Retirement Association of New Mexico Earning Service Credit TEXT Service – The years and months (service credit) you have worked to qualify for a PERA pension. Hire Date – Hired on or before the 16 of the month, you should get service credit for the month Termination Date – Termination on or after the 15 of the month you should get credit for the month Salary Earnings - You must earn at least half of your salary every month to earn service credit for that month. Also, you must work at least 80 hours in a month to earn service credit for that month.
Public Employees Retirement Association of New Mexico Type of Service Credit Withdrawn Military Prior Affiliation Free Military Time in the past where you withdrew your member contributions and forfeited the corresponding service credit. Non- intervening – Active military service you have when you enlisted into the military. A member must be vested in order to purchase Military Service Credit. Service with an employer where you worked before the employer became affiliated with PERA. A member must be vested in order to purchase Prior Affiliation Service Credit. Intervening – Time as a reservist when you were called into active military service while working for a PERA- affiliated employer.
Public Employees Retirement Association of New Mexico Purchase Formula for Permissive Service TEXT Examples of the two most common types permissive service are: Military service Service with a new PERA affiliated-employer (Prior Service) Example cost calculation for permissive service: Member works under State Plan 3 Employee Contribution Rate 8.92% Employer Contribution Rate15.09% *Average Monthly Salary$1,800 Employee contribution rate X average monthly salary* 8.92% x $1,800 = $ Employer contribution rate X average monthly salary* 15.09% x $1,800 = $ $ $ = $ the cost per month of permissive service credit The member is responsible for paying to PERA the employer and employee contribution portions. * Average Monthly Salary is the average of the highest 36 consecutive months of reported earnings to PERA.
Public Employees Retirement Association of New Mexico Air Time and Co-op When? How Much? How Long? Anyone Else? Vested PERA members are able to purchase Air Time / Co-op service credit not associated with any hours worked for a PERA employer. PERA members vested with 5 or more years of service credit can purchase up to 12 months of air time or 60 months of co- op service. Air time and co-op may be purchased at one time or in monthly increments, any time prior to retirement. The purchase agreement is good for 60 days from when the member is informed of the cost. Effective July 1, 2007 Magistrate and Judicial members who are vested under their respective acts, may purchase up to 12 months of air time service credit.
Public Employees Retirement Association of New Mexico Purchase Examples for Air Time or Co-Op TEXT The following are 3 examples of the cost to purchase “Air Time”/ Co-op service credit using different ages and different retirement plans. Date of Estimate August 2, 2008 Date of Birth July 1, 1973 Hourly Rate of Pay $12.50 Months of Credited Service 60 months / 5.0 years Retirement Coverage PlanState General Plan 3 Cost per Month of Air Time $ Cost for 12 Months of Air Time $7, Date of Estimate August 2, 2008 Date of Birth September 15, 1958 Hourly Rate of Pay $21.00 Months of Credited Service 216 months / 18.0 years Retirement Coverage PlanMunicipal Plan 3 Cost per Month of Air Time $1, Cost for 12 Months of Air Time $21, If you are interested in an estimate of the cost for “Air Time,” service credit you may call PERA and provide your birth date and hourly rate of pay to a customer service representative, who can give a cost estimate over the phone. To request a purchase agreement for “Air Time,” please send a written request to PERA and provide a copy of your last pay stub and date of birth. For co-op service purchase, please provide school transcripts and information from your employer for the work phases. PERA Request Forms are available on-line at Date of EstimateAugust 2, 2008 Date of BirthMay 17, 1963 Hourly Rate of Pay$18.50 Months of Credited Service 228 months / 19.0 years Retirement Coverage PlanMunicipal Police Plan 5 Cost per Month of Air Time $1, Cost for 12 Months of Air Time $22,051.35
Public Employees Retirement Association of New Mexico Retirement Types Normal Retirement Pension Normal Retirement Pension Deferred Pension Disability Pension Working until you qualify to retire with age and service. Stopping work after you have vested and leaving your employee contributions on account until you reach age and service requirements then applying for your pension. * Duty – becoming sick or injured because of your job * Non-duty – becoming sick or injured not related to your job.
Public Employees Retirement Association of New Mexico Disability Retirement Eligibility Eligibility Benefits Benefits When to apply for a Disability Retirement When to apply for a Disability Retirement Duty: eligible from the first day of employment Non-duty: member must be vested (have 5 years of PERA service) to apply Disability benefits will be calculated using the terms of the member’s coverage plan. Members have the right to appeal the denial of a claim. * Apply while still employed, the criteria is can you do your job. * Apply after your have terminated your employment, the criteria is can you do any job.
Public Employees Retirement Association of New Mexico Retirement Plans and their Pension Factors State Plan 3 State Hazardous Duty Plan 2 State Police & Adult Corr. Plan 1 Municipal Plan 3 Municipal Detention Officer Plan 1 Municipal Police and Fire Plans 4 Municipal Police Plan 3 Municipal Fire Plan 3 State Hazardous Duty Plan 1 Municipal Police Plan 5 Municipal Fire Plan 5 State Plan 2 Municipal Plan 2 Municipal Police Plan 2 Municipal Fire Plan 2 State Plan 1 Municipal Plan 1 Municipal Police Plan 1 Municipal Fire Plan 1 3.5% Pension Factor (20 Year Plans) 3.0% Pension Factor 2.5% Pension Factor 2.0% Pension Factor
Public Employees Retirement Association of New Mexico Age and Service Requirements 49%42%35%28% Age 62 or older with 14 or more years of service credit, or 59.5%51%42.5%34% Age 61 or older with 17 or more years of service credit, or 28%24%20%16% Age 64 or older with 8 or more years of service credit, or 38%33%27.5%22% Age 63 or older with 11 or more years of service credit, or 70%60%50%40% Age 60 or older with 20 or more years of service credit, or 75%62.5%50% Any age with 25 or more years of service credit, or 3.5% Pension Factor (20 Year Plans) 3.0% Pension Factor 2.5% Pension Factor 2.0% Pension Factor 17.5% 15% 12.5% 10% Age 65 or older with 5 or more years of service credit. Legislators, judges, magistrates and volunteer firefighters have different age and service requirements as well as benefit calculation provisions.
Public Employees Retirement Association of New Mexico Retirees Returning to Work for a PERA Employer Beginning January 1, 2007, PERA affiliates who re-employ PERA retirees became responsible for paying both the employee and employer contribution amounts on salaries earned by the re-employed retirees. This includes retirees who were previously employed and are already on payroll. Exclusions The ONLY retirees who are excluded from the provisions of retirees returning to work are: Chiefs of police; Undersheriffs; Elected officials; Senior Citizens in a federal or state-funded training program administered by NM Aging & Long Term Service Department; Retirees hired to work for the legislature during legislative sessions; and Retirees from the Educational Retirement Board. PERA affiliates must make employer and employee contributions on behalf of ALL OTHER retirees. This includes a retiree who is hired as a temporary or part-time employee and includes retired elected officials returning to work in any capacity. No other exclusions are permitted, such as for exempt employees. A retiree who returns to work as an independent contractor is excluded from membership Different rules apply to retired judges and magistrates. A judge retiring under the Judicial Retirement Act or magistrate retiring under the Magistrate Retirement Act will have his or her pension suspended if he or she returns to work for a PERA affiliate. The retired judge’s or magistrate’s pension resumes when they terminate employment with a PERA affiliate. 90-Day Break in Service Still Applies The statutory provision that retirees must not be employed by a PERA-affiliated employer for 90 consecutive days from his or her retirement date before being eligible to return to work for a PERA affiliate still applies. If a retire returns to work with a PERA-affiliated employer before the 90-day waiting period elapses, the retiree must remove him or herself from retirement. The retiree will then become an employee and makes PERA contributions. Any pension amounts received must be paid back to the fund. The employee must apply for re-retirement at the end of his or her employment to begin receiving a pension. Reporting Forms An Application for a Re-employed PERA Retiree is to be used effective January 1, A Termination Notice for a Re-employed PERA Retiree is to be used upon termination from employment. The termination notice will allow PERA to track employment of re- employed retirees and verify that contributions have been made.
Public Employees Retirement Association of New Mexico Information Sources Where Do I Go? Website / Santa Fe Office Albuquerque Office (mailing address) P. O. Box 2123 Santa Fe, NM (physical address) 33 Plaza La Prensa Santa Fe, NM or in Santa Fe (505) Fax 2500 Louisiana Blvd. N.E., Suite 420, Albuquerque, NM (505) voice (505) fax