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Employer Update
  for Employers of Maine Public Employees Retirement System

 

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APRIL 2009

 Effective Now                               New Group Life Insurance Application for Coverage

 It is no longer necessary to submit applications for coverage for employees who are not eligible to participate in the group life insurance program.  It is necessary that all employees who are eligible for coverage complete an application within the first 31 days of becoming eligible. If the employee does not complete an application within the first 31 days, evidence of insurability is the only way to obtain coverage. You can find the new application for coverage on our website, www.mainepers.org.

 
Refunding
"Contributions Taken in Error"		   Interest on
Late Teacher and PLD Payrolls

Sometimes employers mistakenly deduct retirement contributions for an employee. We refer to these contributions as CTE (Contributions Taken in Error). Beginning immediately, MainePERS will return all CTE contributions directly to the employee who overpaid the contributions. Employers no longer will have to manage this refunding process.
Effective with July payroll, the interest rate on late filing will be 7.75%. This is the same rate MainePERS charges for other employer and member accounts receivable. MainePERS appreciates that employers are almost always timely in submitting reports and instances of assessing interest on a late payroll are rare.

Attention PLD Employers:

PLD Actuarial Valuation Reports   School Consolidation
All PLD employers should have received their Statement of Consolidated Plan Cost or Actuarial Valuation Report (green or white sheet) for the year beginning July 1, 2009. You can find the Actuarial Valuation Report of the Consolidated Plan, as of June 30, 2008,
on the employer tab of our website at www.mainepers.org.		 Will school consolidation have an impact on your PLD, including the relationship between your city/town and its school department's support staff? If so, please contact Stephanie Fecteau, PLD Plan Administrator (Stephanie.Fecteau@mainepers.org or call 512-3305)
to discuss issues that may affect your PLD's plan. Some issues to consider are creating a new PLD for the RSU/AOS, Social Security coverage under a Federal Section 218 Agreement, Group Life Insurance coverage, and the impact of consolidation to your PLD's IUUAL.
Important Information for Teacher Employers
Grant Funded Teacher Rates Announced

The Employer Contribution Rate for grant and federally funded teacher salaries for the upcoming fiscal year (FY10) is 17.78%. The new rate applies beginning with the July 2009 payroll report, due on or before August 17, 2009.

Beginning with the new fiscal year in July, MainePERS no longer will collect contributions for retiree health insurance. Schools will make those payments directly to the Office of State Employee Health and Benefits. You can expect to receive information from that Office about the rate and procedure for making payments.

Please share this rate information with staff, especially those responsible for reporting payrolls and defined benefit plan contributions to MainePERS.
Added Requirements for Paper Payroll Reports
   

MainePERS new employer payroll reporting system, scheduled for implementation in early 2010, will support electronic payroll reporting and web-based employer "self-service." This feature will allow employers to key payroll information directly to MainePERS over a secure link, rather than completing paper reports. Our goal is to transition paper filers to web-based or electronic reporting, unless there are exceptional circumstances that would make it impossible.

In preparation for MainePERS' new reporting software, paper payroll reports will include the following additional elements, effective with payrolls due in September, 2009.
  • Plan Participation Status
    • A = Actively participating
    • Y = Employer Paid Employee Contributions
  • Rate Schedule Number
    • If Personnel Status Code is 53, Rate Schedule Number will be 000053
    • For all other PSC codes and when Plan Participation Status is A, Rate Schedule Number will be 000001
    • For all other PSC codes and when Plan Participation Status is Y, MainePERS will assign Rate Schedule Number
  • Plan Code
    • Usually reported as a two (2) digit alphabetic code, is changing to a five (5) digit alpha-numeric code.

If you upload your Monthly Payroll Reports via the EPF method, it is not necessary for you to make changes to your electronic file. The data elements, above, are already being reported.

Vacation/Sick Leave Forms
for Disability Retirees		   Electronic Reporting
Increases

MainePERS has eliminated the cover memo that used to accompany employer termination packets for Disability Retirees. Employers will find the information in the top section of each form. For assistance, contact Retirement Services at 512-3100.
SAD 16 and Dresden Schools join
the electronic payroll filing ranks this month.

Congratulations!
 
Coming Next Year                            MainePERS Switching to
            Employer Direct Bill for Group Life Insurance

In early 2010, as part of our new software system, MainePERS will begin monthly billing of employers for group life insurance premiums. GLI premiums no longer will come in on the payroll report. Employers will receive a bill at the beginning of the month for the prior month.
MainePERS will directly bill an employee who is on a leave of absence.

The new system's Employer Self Service function will allow employers to view premium payment history, submit adjustments, payments, group life applications and coverage changes.