1. PSERS PENSION PLAN REPORTING/ GASB 67 FINANCIAL REPORTING Employee’s Retirement System of Georgia (ERSGA) November 5, 2015 GEORGIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS (GASBO) AUGUSTA GA Presenters: Flavia Peynado and Carlton Lenoir

2. AGENDA  PSERS Pension Reporting  Pension Plan Financial Update  GASB 67/68  Annual Timeline  Financial Reporting for Pension Plans  Pension Plan Responsibilities  Impact to Employers  Compliance Audits  Compliance File Reporting  Compliance Reporting – Status Update

3. PSERS REPORTING  Employers’ Responsibilities  Deducting, collecting and reporting employee contributions  Reporting Period  September to May  No reporting for June, July and August  Monthly Reporting deadline  All components due on the 1st of each report month  Required components  Monthly Summary Report  Monthly Employee Detail File  Monthly Contribution Payment  Pension Compliance File

4. PSERS REPORTING  www.ers.ga.gov > Employers> Login www.ers.ga.gov  Registration  Completed Contact Form-must be on file at ERSGA  Employer Reporting Quick Reference Guide  Navigate to Employer Page  Forms and Information  Step by Step Guide to creating the User ID and Password  Employer Desktop  Appears upon logging in  Links to Employer Reporting functions Employer Reporting Website

5. PSERS REPORTING

6. Visit this page to verify the group to enroll new or re-hire Check Member Plan Eligibility

7. PSERS REPORTING Upload Salary or Compliance Detail File Visit this page to upload the Salary Detail or Pension Compliance file

8. PSERS REPORTING Upload Salary or Compliance Detail File

9. PSERS REPORTING Salary Detail File  Generating or Correcting File  Contact your IT/Payroll Vendor  Common Salary Detail File Issues which cause a Rejected File  Incorrect File Name  Incorrect File Format  Incorrect Member Count  Incorrect Characters and Row Length  Data Issues  Reporting members on LWOP  Missing Eligibility/Employment Date  Missing Termination Date  Reporting Incorrect SSN

10. STATEMENT No. 67 STATEMENT No. 67 FINANCIAL REPORTING FOR PENSION PLANS

11. PENSION PLAN FINANCIAL UPDATE: June 30, 2015  Plan Funded Ratios- PSERS 82.8% & ERS 72.8%  Membership  PSERS – 35,488 (active); 79,468 (inactives); 16,994 (retirees)  ERS – 60,419 (active); 84,791 (inactives); 47,180 (retirees)  Pension Benefits Paid (up 5.9% over 2014)  PSERS $56,972,000  ERS $1,334,278,000  Net Plan Position  PSERS $823,150,000  ERS $12,967,964,000  Money weighted return on investments (investment pool)  (5.32%)  Investment rate of return – 3.7% ($609,626,000 investment income)

12. GASB 67 – ANNUAL TIMELINE  Timeline of Plan/Employer GASB related activities GASB 67 and 68 JanuaryFebruaryMarAprilMayJune Plan Activities Manual employers selected for census data audits Plan Actuary issues the GASB 68 Reports -- GASB 68 reports audited by KPMG Request attestation reports - due 7/31 – Send GASB 68 employer packets and note disclosures to employers Request employer contribution Confirmatio ns-- Conduct GASB 67 webinars Employer Activities Provide census data for audit

13. GASB 67 – ANNUAL TIMELINE  Timeline of Plan/Employer GASB related activities (cont’d) GASB 67 and 68 JulyAugustSeptOctNovDec Plan Activities Plan actuary issues the GASB 67 reports – Provide employer contributio ns to auditor, actuary and SAO Issue Audit Report Issue CAFR Employer Activities Provide attestation reports to plan Provide contribution confirmation letters to plan

14. GASB 67 – FINANCIAL REPORTING for PENSION PLANS  Effective for Pension Plan financial reporting beginning June 30, 2014 fiscal year – Designed to improve financial reporting by state and local pension plans  Replaced Statements 25 and 50 – Defined benefit plan reporting and note disclosures for DC Plans and Pension Disclosures  Established standards for financial reporting and the required approach to measure the pension liability of employers/non-employer contributing entities  Approach: Accounting ratio of net plan assets available for benefits to total pension liabilities  2014  ERS – 77.99%  PSERS – 88.29%  2015  ERS - 76.20%  PSERS -87%

15. GASB 67 – FINANCIAL REPORTING for PENSION PLANS  GASB 67 changed pension reporting for plans administered through trusts – ERS and PSERS are administered through Trusts  Both plans are also cost-sharing multiple-employer pension plans  GASB 67 also required that investment expenses be moved from admin expense to an offset v. investment income

16. GASB 67-PENSION PLAN RESPONSIBILITES  New Notes Require defined benefit pension plans to include descriptive information:  Type of benefits provided  Classes of Plan member covered  Composition of the pension plan Board of Trustees  Pension Plan Investment Policy  Pension Plan Investment Allocation  Required Supplementary Information  10 years of sources of changes in the net pension liability  Components of Net pension Liability  Contributions to the Plan  Assumptions used in calculation of actuarially determined contribution

17. GASB 67-PENSION PLAN RESPONSIBILITES  Measurement of Pension Liability  Requires that the actuary complete a valuation of the total pension liability every two years  If the valuation is not done as of the plans fiscal year end, roll forward procedures are required to update values as of year-end  Allocation to Employers – For GASB 68  Each Governmental employer must include their share of the net pension liability in their financial statements  PSERS – Special Funding Situation  ERS Continue to report pension expense (now calculated by plan)  ERS Deferred inflows and outflows of resources  Source of the calculations above: Census Data from Employers

18. GASB 67 – IMPACT TO EMPLOYERS  How Census Data impacts employer allocation  Total pension Liability, contribution revenues, and contribution receivables are dependent on the completeness and accuracy of census data  What Census Data items are significant:  Date of Birth  Date of Hire  Years of Service  Eligible Compensation  Class of Employee  Date of termination  Employment Status

19. GASB 67 – IMPACT TO EMPLOYERS Tools the plan uses to ensure the accuracy and completeness of the significant census data:  Over 200 payroll edits within Pension System  Direct access to employer payroll data  Trained Employer reporting staff  Compliance Audits  Compliance File Reporting

20. GASB 67 – COMPLIANCE AUDITS Manual Employers  Control between the employer and the plan that ensures that all eligible employees are being reported to the plan  It brings a heightened awareness to the importance of accurate and timely enrollment  Each January employers are randomly selected by the plan – five year cycle  Employers are asked to send payroll registers (one month from the previous fiscal year), and new hire list and terminations  Audit to ensure accuracy of enrollment, hire dates, service in the plan, pensionable pay, contributions and terminations

21. GASB 67 – COMPLIANCE FILE REPORTING File Uploaders  Control between the employer and the plan that ensures that all eligible employees are being reported to the plan  It brings a heightened awareness to the importance of accurate and timely enrollment  The compliance file should contain employee pay records for individuals on the “plan covered” payroll but for whom a deduction was not taken  For many employers the file may be blank because those covered by the plan are enrolled – nonetheless – control is in place.  Others in the file can include non-employees, substitutes working less than 60% time, and rehired retirees.  PSERS Employers – file is due monthly on the 1 st of the month

22. GASB 67 – COMPLIANCE FILE UPDATE  192 PSERS Employers  162 have been approved to send production compliance files  26 BOE using MUNIS that are in testing  4 BOE with in-house payroll systems in testing  Please contact Diane Clark if you are one of these employers  Diane.Clark@ers.ga.gov Diane.Clark@ers.ga.gov

23. CONTACT INFORMATION Flavia O. Peynado, Operations Manager Flavia.Peynado@ers.ga.gov Carlton W. Lenoir, Deputy Director Carlton.Lenoir@ers.ga.gov Laura Lanier, Plan Controller Laura.Lanier@trsga.com