 September | VOLUME #133
You are invited to the 2016 Division of Retirement and Benefits
Biennial Employer Conference. This conference is an opportunity for employers
to learn from one another and to meet the service providers who provide
valuable information and education about the plans. We are committed to
providing outstanding information that is of value for all attendees.
This year our focus is on new products and opportunities that
will be available to employers in 2017, including:
- a new reporting tool,
- a Deferred Compensation Program
for employers interested in lower rates to their employees and less
administrative burden, and for employers who participate in the Alaska
Supplemental Benefits Plan, and
- an introduction to the new
product line-up and the new Voluntary Supplemental Benefits provider.
Registration for the 2016 employer conference is now open. Click here to register for the conference.
We have negotiated a reduced rate at the Baranof Westmark Hotel
& Conference Center for conference attendees. Contact the Baranof
Westmark Hotel directly to make room reservations. If you are reserving a
hotel room online, please use the group code shown on the Employer Conference
website.
Join us!
If you have any
questions, please contact Kathy Lea, Chief Pension Officer, at kathy.lea@alaska.gov or
(907) 465-3226.
The Division has submitted for public notice,
regulation changes regarding retirement compliance audits and the State Social
Security Administrator duties. A copy of the proposed regulation changes is
available on the Alaska Online Public Notice System and on the Division of
Retirement and Benefits website.
Oral or written comments also may be submitted at a hearing to be held on September
22, 2016 in the Atwood Conference Center, Room 104, Robert Atwood
Building, 550 West 7th Avenue, Anchorage. The hearing will
be held from 3:30 p.m. to 5:00 p.m. and might be extended to accommodate those
present before 4:00 p.m. who did not have an opportunity to comment. You
may also call the hearing on a conference line at (800) 315-6338, access code:
82190.
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Employers are advised of excess salary limitation on the Public
Employees' Retirement System and Teachers’ Retirement System defined benefit
plans set by the Internal Revenue Service (IRS) for each year when reporting
salaries to the plans. 26 U.S.C. 401(a)(17) defines the maximum salary
requirements. The maximum for contribution reporting for 2016 is $265,000.
Contributions from employee accounts must stop once the maximum salary level
has been reached. Excess contributions cannot be accepted by the plans and will
result in a refund to members through adjustments via the payroll process.
If an
employer determines a member will likely exceed the salary limits for the year,
they should inform the member. Ceasing contributions to the PERS and TRS will
increase members' taxable income for the year.
The
Division is currently reviewing member accounts to identify any members who may
have exceeded the limits in past years. Members identified in this process will
be refunded any excess contributions taken in years past with interest. The
refund represents taxable income and employees will be issued a Form 1099 for the
tax year in which the refund and interest are received.
You can find the
salary limits for current and prior years for PERS and TRS on our website.
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State political
subdivisions have the option of joining the State’s original Section 218
Agreement (pursuant to Section 218 of the Social Security Act) via a
modification. These political subdivisions are commonly known as Section 218 or
voluntary employers because they have voluntarily chosen to enroll their
employees in Social Security.
Prior to 1983, Section
218 employers could terminate coverage in part or entirely. However, on or
after April 20, 1983, neither employers nor the State could terminate Section
218 coverage. Section 218 coverage may be terminated only if an entity is
legally dissolved and is no longer in existence.
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