Retirement Nuts & Bolts and Pre-Tax Accounts Training for Campus HR Retirement Administrators

Slide 2 AGENDA Limits/Contributions Rollovers/Information Sharing Agreements Reports-A-Palooza Intra-MnSCU Hires General Retirement Q & A Eide Bailly: HRA & MDEA

Retirement Plans: Contribution Limits Gary Janikowski System Director, Personnel

Slide 4 MnSCU Retirement Plans Affected by IRS Limits MnSCU Tax-Sheltered Annuity (TSA) Program State’s Deferred Compensation Program Individual Retirement Account Plan (IRAP) Supplemental Retirement Plan (SRP)

Slide 5 Contribution Limits For all plans… IRS publishes limits annually State payroll system automatically stops deferrals once limits are reached

Slide 6 Tax-Sheltered Annuity (TSA) Program 403(b) Voluntary Plan MnSCU-sponsored No employer match Same investment funds as Individual Retirement Account Plan (IRAP) and Supplemental Retirement Plan (SRP)

Slide 7 TSA Limit Summary Participant Age/YOS:Limit for calendar year 2009: Under age 50$16,500 Age 50+$22,000 ($16,500 + $5,500) Those with 15+ YOS at MnSCU Institutions, regardless of age 1 $25,000 ($16,500 + $5,500 + $3000) 1 Note: TIAA-CREF must calculate this limit. This additional limit can only continue for a five (5) year period.

Slide 8 Deferred Compensation Program 457(b) Voluntary Plan State-sponsored Administered by Minnesota State Retirement System (MSRS) Employer match available as per bargaining contract/personnel plan as long as employee is not SRP eligible

Slide 9 Deferred Comp Limit Summary Participant Age/YOS:Limit for calendar year 2009: Under age 50$16,500 Age 50+$22,000 ($16,500 + $5,500) Those who are within three (3) years of normal retirement age 1 $33,000 1 Note: The MNDCP Service Center must calculate this limit.

Slide 10 Individual Retirement Account Plan (IRAP) Annual Earnings Contribution Limit  $245,000 Thus, the most that can be contributed in 2009 is $25,725: –4.5 % $245,000 = $ 11,025 –6.0% $245,000 =$ 14,700 $ 25,725

Slide 11 Annual Additions Limit (415 limit) The Annual Additions Limit is the total amount (both ER and EE contributions) that can be deferred by an employee For 2009, the limit is $49,000 This limit includes the Supplemental Retirement Plan (SRP) and the Individual Retirement Account Plan (IRAP)

Questions?

Rollovers/Information Sharing Agreements: IRS Guidance for 403(b) Plans Dirk Camiletti TIAA-CREF

Slide 14 Final 403(b) Regulations Effective Dates Issued July 26, 2007 The effective date under the final regulations was generally January 1, 2009

Slide 15 Final 403(b) Regulations Transfers to Unapproved Vendors Revenue Ruling permitted participant to do a direct transfer between 403(b) contracts even if the contract was not approved under the plan (“90-24 transfers”). After 9/24/07, transfers to contracts issued by unapproved vendors prohibited unless the vendor agrees to share information necessary for compliance with the employer –Information Sharing Agreement (“ISA”) needed. –Loans, hardships, termination of employment –Can’t rely on employee representation Transfers to unapproved vendors after September 24, 2007, must have an ISA in place by January 1, 2009.

Slide 16 Information Sharing Agreement Facts Information Sharing Agreements are: Agreements that are entered into between 403(b) Plan Sponsors, such as MnSCU, with non-approved TSA financial providers (e.g., MetLife, Thrivent Financial, etc.) to share information on current employee 403(b) accounts. MnSCU does not enter into Information Sharing Agreements.

Slide 17 Final 403(b) Regulations Information Sharing with Approved Vendors Employer and approved vendors must also share information related to tax compliance requirements to ensure plan’s operational compliance –No separate ISA required Vendors (approved or unapproved with ISA) cannot rely on employee representation –loans, hardships, termination of employment

Slide 18 Revenue Procedure Transitional Rules for Information Sharing “Grandfathered” Contracts – –No information sharing required –Vendors deselected prior to 2005 –90-24 transfer to unapproved vendor prior to 9/25/07 “Orphan” Contracts –“reasonable good faith effort” to share information required –vendors deselected after 2004 and prior to 2009 –90-24 transfers to unapproved vendor between 9/25/07 and 1/1/09

Slide 19 Revenue Procedure Transitional Rules for Interim Contracts Transfers to unapproved vendors after 9/24/07 –If no ISA on 1/1/09, re-exchange into contract of approved vendor or contract of unapproved vendor with ISA –Up until 6/30/09 to re-exchange –No information sharing required for interim contract –Alternatively, reasonable good faith standard available

Slide 20 Rollover Process Campus HR offices are not authorized to sign off on employee rollover and distribution requests under the MnSCU Defined Contribution Plan and Tax- Sheltered Annuity Plan. Please forward all such requests to the OOC for research and signature.

Slide 21 Case Study: Rollovers Eligible Rollovers IRAP & SRP –New Hire / In-Service –Post Termination TSA –New Hire / In-Service –Post Termination

Slide 22 Rollover Information With respect to rollovers….. Participants can rollover contributions from outside eligible plans into the MnSCU defined contribution plans. The rollover authorization form is available on the MnSCU HR web site at:

Slide 23 Legal Disclaimer This PowerPoint is for informational purposes only and the statements made during this presentation represent TIAA-CREF’s interpretation of applicable law. It is presented with the understanding that TIAA-CREF (or its affiliates, distributors, employees, representatives and/or insurance agents) is not engaged in rendering legal or tax advice.

Slide 24 Thank you for joining us! TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY. ©2009 Teachers Insurance and Annuity Association-College Retirement Equities Fund, New York, NY C45429

Questions?

Reports – A- Palooza Barb Biljan HRIS Lead Management Analyst, Personnel

Welcome to Reports-A-Palooza Reviewing reports that will help make selecting and coding retirement easier

The HR 7010 Report is a valuable tool to help manage retirement issues for employees. It is recommended that campuses run this report every payroll period. Reports-A-Palooza

Slide 29 HR Reconciliation Queries  Retirement Code Blank  Retirement Status Code Blank  Errors on Unclassified Retirement  Errors on Classified Retirement  Phased & AEP Errors Reports-A-Palooza

Slide 30 Blank reports mean no errors Any data returned is inaccurate or missing and should be corrected Export reports to Excel Reports A Palooza

Slide 31 Supplemental Retirement Reconciliation Queries SRP Code is blank SRP Code is Y, but Deduct Code is blank Reports-A-Palooza

Slide 32 Reports-A-Palooza SRP Annual Review Process Possible Newly Eligible Employees All SRP on all assignment data – includes classified & unclassified SRP deduction code information

Slide 33 Reports-A-Palooza End of Fiscal Year SRP Annual Review includes: Step-by-step process on website Includes eligibility information Flow chart for eligibility Missed deductions forms

Slide 34 Phased Retirement Query Annuitant Employment Program Query TRA Annual Reports Queries Reports-A-Palooza

Questions?

Intra-MnSCU Hires Mary Muenchow Director of Personnel

Slide 37 Intra-MnSCU Hires Past service Concurrent service Sometimes University of Minnesota service One campus or multiple

Slide 38 Intra-MnSCU Hires Affects both: IRAP SRP

Slide 39 Helps to Locate Other Service: SEMA4 Public Data Jobs Data in SCUPPS Multi-Campus Report New EE Retirement Checklist Call or Intra-MnSCU Hires

Slide 40 Records of Prior Service: SEMA4 Public Data Jobs Data in SCUPPS Intra-MnSCU Hires

Slide 41 New EE Retirement Checklist: Prior service date Concurrent work and location Retiree status information Intra-MnSCU Hires

Slide 42 Multi-Campus Report provides information about concurrent work at another campus Intra-MnSCU Hires

Slide 43 Basic rule for both IRAP & SRP: Once eligible, always eligible Intra-MnSCU Hires

Slide 44 Primary Retirement: Election process is for MnSCU service only! Intra-MnSCU Hires

Slide 45 Once per career choice for IRAP/TRA until this year: 7/1/09 New second election for newly tenured/permanent faculty Intra-MnSCU Hires

Slide 46 Three flow charts on the website help to determine coverage: IRAP for unclassified employees IRAP for Administrators SRP Intra-MnSCU Hires

Slide 47 Each Job Record Number has its own: Primary Retire Code Retirement Status Code SRP Eligibility Code SRP Deduction Code Intra-MnSCU Hires

Slide 48 When taking over Job Records, must review retirement and SRP coding for each Job Record Intra-MnSCU Hires

Slide 49 Intra-MnSCU Hires Remember that SEMA4 will recognize only one retire code per job record for one deduction per payroll period

Questions?

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