 April | VOLUME #128
 The Division of Retirement and Benefits will be holding its
biannual Employer Conference October 5 through 7, 2016. The
Historic Westmark Baranof Hotel in Juneau will host the conference once again,
with seminars and workshops to be held both at the hotel and at Division
offices.
The
Division is excited to introduce several new products available to employers
beginning January 1, 2017, including:
- E-Reporting 2.0, with hands-on training provided.
-
Alaska Public Employees’ Deferred Compensation Plan (457)—now
available to ALL PERS employers.
- New and improved Voluntary Supplemental Benefits, including Life
Insurance, AD&D, Short- and Long-term Disability, and more.
- New online benefit education delivery plan.
We also invite employers to contact us regarding
topics they would like to see presented. Contact Kathy Lea, Chief Pension
Officer, at kathy.lea@alaska.gov or (907) 465-3226.
The Division is routinely asked for information regarding
termination studies and when a study has to be considered. In anticipation of
more frequent information being needed by employers during budget development,
we have produced two informational flyers that are available on our website.
The “Termination Studies” flyer is intended to provide
general information to employers regarding terminating groups, departments or
job classifications from participation in the Public Employees’ Retirement
System (PERS) and when a termination study may be required.
The “Actuarial Method Used to Calculate Termination Costs” flyer is intended to provide general information on how the plan actuary determines
the costs and what factors and assumptions are included. The information will
aid employers in understanding the results of a study they have requested.
Employers contemplating a reduction in force or contracting
out aspects of their operation that may involve a termination study start the
process by contacting their Regional Counselor for counseling and determination
of whether a study is needed. The Regional Counselors are:
Lisa Templeton - Aleutians,
Western Alaska, Kenai Peninsula
Natasha Golovatiuk & Brandon Roomsburg - Fairbanks and
Railbelt, Tok, Glennallen, Valdez
Dawn Bonnett - Southeast
Regional
Counselors can be reached by calling toll-free at (800) 821-2251 or in Juneau
at (907) 465-4460.
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1. Is the
positon or service covered for Social Security or Medicare under a Section 218
Agreement?
If the answer is “No,” then go to the next question.
If the answer is “Yes,” then withhold Social Security and Medicare, unless
Section 218 Mandatory and Optional Exclusions apply.
2. Is
the employee a qualified member of a public retirement system?
If the answer is “No,” then withhold mandatory Social Security and Medicare,
unless an exclusion from mandatory Social Security and Medicare applies.
If the answer is “Yes,” then go to the next question.
3. Is the employee covered by a Section 218
Agreement that provides Medicare-only coverage for employees hired prior to
April 1, 1986?
If the answer is “Yes,” then withhold Medicare for that employee, unless
Section 218 Mandatory and Optional Exclusions apply.
If the answer is “No,” then go to the next question.
4. Does the Medicare Continuing Employment
Exception apply?
If the answer is “Yes,” then do not withhold Social Security or Medicare.
If the answer is “No,” then withhold Medicare only, unless there is an
exclusion from mandatory Medicare.
This
information is meant as a guide only and is not a substitute for discussing Section
218 coverage situations with your State Social Security Administrator. Please
do not hesitate to contact us at melanie.helmick@alaska.gov or nimeri.denis@alaska.gov.
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