Download - MnSCU Retirement Plans

The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator.

MnSCU Retirement Plans

Basic Training for Campus HR Administrators

Planned Modules:

• Module 1: Retirement Plan Concepts

• Module 2: Eligibility for Primary Plans

• Module 3: Reporting in SCUPPS

• Module 4: SRP: Eligibility and Coding

• Module 5: Forms Completion & Processing

• Module 6: Phased Retirement Programs

• Module 7: Voluntary Retirement Programs

• Module 8: Retirement Plan Distributions

Objectives: SRP Eligibility and Coding

• Statutory language

• Discussion of coverage

• Who is eligible?

• Bargaining Contract/ Personnel Plans contribution limits

• Certifying eligibility/coding processes– Resources/reports to help determine eligibility

– SCUPPS SEMA4 data transfers

• Contribution adjustments

• Resources

MnSCU Retirement Plans

Minnesota State Colleges & UniversitiesRetirement Plans

Mandatory PlansParticipation is determined

by bargaining unit/employee unit

Voluntary PlansOpen to all employees

Defined Benefit Defined Contribution 457(b) Deferred Compensation Plan

403(b) Tax Sheltered

Annuity Plan

TSA

Minnesota State

Retirement System

MSRS

Teachers Retirement Association

TRA

401(a) Individual Retirement

Account Plan IRAP

401(a) Supplemental Retirement

Plan

SRP

SRP: Statutory Origins

• Why do we have SRP?

• Minnesota Statutes, Chapter 354C outlines these provisions:– Coverage and eligibility

– Salary deductions and matching employer contributions

– Additional deductions and contributions as allowed under other law

SRP Coverage

• SRP is a MnSCU-specific retirement plan

• Coverage by SRP (mandatory plan):– Unclassified position (Administrator, IFO,

MSCF, MSUAASF, unclassified MAPE/MMA, or unclassified in Commissioners Plan)

– Same as eligibility for IRAP; see classification list at:

http://www.hr.mnscu.edu/Classification/UnclassifiedCodes.html

• Unclassified “rule 10” positions are not covered by SRP

SRP Eligibility

• Service is aggregated across all MnSCU institutions

• Service is aggregated across all eligible unclassified appointments

• Predecessor entity employment counts:– Former State University System, Community

College System, or Technical College System

SRP Eligibility (cont’d.)

• Completed two fiscal years of full-time, unclassified eligible service within MnSCU

• Exclusive of summer session for faculty

• Faculty must have 1.0 FTE or greater

• Administrators and professional employees must have an assignment of at least ten months at 100% time within the fiscal year

• Unpaid leaves don’t count (with exception of unpaid military leave)

• “Once in, always in”

• Does not need to be consecutive service

SRP Eligibility (cont’d.)

• Retirees are not eligible for SRP coverage

• Retirees for this purpose are defined as those who are currently drawing an annuity from a defined benefit plan or those who have started a distribution from their defined contribution plan

SRP Contribution Limits

• Statutory language (minimum; M.S.354C)– 5% ee contribution after $6,000 in paid salary

per fiscal year contribution continues until $15,000 is paid in fiscal year

• “paid” vs. “earned” concept

– 5% er match

– $15,000-$6,000 = $9,000 salary payment

– $9,000 @ 5% = $450

• Statutory language (maximum)– $2,700 (M.S.356.24)

SRP Contribution limits

• Bargaining Agreement/Personnel Plan language determines maximum limit

• Maximum limit is $2,700 for ee with a $2,700 er match

• Only plan at maximum is MnSCU Administrator’s Plan

• Different limits in different fiscal years

• List is on the HR web site:http://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP_Historical_Deduction_Rates.pdf

SRP Contribution limits (FY2009)

Unit: Contract/Plan Salary limit

Contribution Amt.

MSCF (unit 210) $56,000 $2,500

IFO (unit 209) $51,000 $2,250

MSUAASF (unit 211 $50,000 $2,200

Administrators (unit 220)

$60,000 $2,700

Unclassified MAPE (unit 214)

$40,000 $1,700

Unclassified MMA (unit 216)

$40,000 $1,700

Unclassified Commissioners Plan (unit 217)

$40,000 $1,700

SRP Coding Processes

On each Job Record, there must be:

• An effective date

• An SRP eligibility code,– And, if eligibility is yes, then

• An SRP deduction code


Effective Date Tips:

• Newly eligible are always effective July 1st

• Correcting or Changing the SRP deduction code for an employee who is already eligible:– Always the 1st day of the June payroll that

generates a paycheck on or after July 1st

– Example: this year, June 10th is the first date of the June payroll period paid on July 2nd


• SRP Eligibility Codes are available on the MnSCU HR web site:

http://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP_Eligibility%20_Codes.pdf

• SRP Deduction Codes are available on the MnSCU HR web site:

http://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP_Historical_Deduction_Rates.pdf


• Review currently eligible employees also:– Compare current deduction code with current

bargaining unit, change if needed

– Run Reconciliation Reports in Hyperion

• Subsequent unclassified job assignments (e.g., switch from faculty to administration, MAPE to faculty, etc.)– Use deduction code for the bargaining unit of

the active assignment on October 1

– Any movement after 10/1 does not change SRP


• Multiple active part-time assignments in different unclassified bargaining units– If both assignments are in the bargaining unit,

use deduction code for the bargaining unit that has the greater SRP contribution limit

– If one or more assignments are in a single bargaining unit, and the remaining assignments are as 218, use the deduction code for the bargaining unit position


SRP Decision Making Flowcharthttp://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP%20Flowchart.pdf


Special Issues for MAPE, MMA and Commissioner’s Plan employees:

• Deferred Compensation Plan employer match or SRP coverage – – cannot have both

• Change Salary Authority fields in SEMA4

• Must be changed on both employee Job Data panel and in Position Management

• SEMA4: On Demand Reports > Payroll > FIHU1650 MnSCU_DC_Match_Supp


• All data and new coding must go thru SCUPPS to SEMA4 interface process

• Follows normal deadlines

• Be certain to run and review the HR7010 report

SRP Contribution Adjustments

• Missed Deductions must be made up:– Under 60 days old

– Over 60 days old; ER must pay for ER and EE contributions plus interest

– Under 60 days old, but no future paychecks

– All forms are on the MnSCU HR web site

• If not paying by electronic fund transfer, – Remittance Voucher form that should be sent

with the check, on the MnSCU HR web site

SRP Resources

• SRP Step by Step Process, on the web

• Hyperion Queries:– Links within the Step by Step Process

– Also Reconciliation Reports

SRP Resources

• Expand Institutional FTE on Job Panel in SCUPPS, shows multiple institutions

• Run the multi-campus report

• “Welcome to SRP” letter to newly eligible employees, on the MnSCU HR web site

Module 4: SRP: Eligibility & Coding

Questions?