55.36 - PERSI Enrollment for Temporary Hourly Employees
July 21, 2009 (formerly APM 50.36)
A. General. Temporary Hourly (TH) employees who are not full-time students are required to participate in the Public Employees Retirement System of Idaho (PERSI) when criteria from Idaho Code Chapter 13 Title 59, are met--e.g. when an employee is anticipated to work half time or greater for five consecutive months or longer.
B. Process. At the time an individual is hired into a TH position posted in the Applicant Tracking System (ATS), the departmental administrator should state whether the employee is expected to work half time or greater for five months or longer. If so, Employment Services advises the administrator to authorize PERSI enrollment at the time of initial employment processing and to advertise the appropriate applicable benefits. If the administrator does not anticipate that the employee will work half time or greater for five months or longer, the employee is not enrolled in PERSI initially. Employment Services monitors hours worked. If hours actually worked exceed the PERSI enrollment threshold, Benefit Services notifies the department(s) and the employee regarding the options available approximately four months from the date of hire. [rev. 11/06]
C. Procedure. Benefit Services will notify the department(s) and the affected employee when the individual has completed four months of service at 40 hours or more per bi-week (or 20 hours per week). When these criteria are met, the employee and department have the following two options: [ed. 11-06]
C-1. Procedure Option 1 -- Authorize PERSI Enrollment for the TH Employee. Option 1 assumes that the cost of PERSI enrollment can be absorbed by the budget(s) from which the employee is paid, and that the employee is agreeable to enrolling into PERSI. The following actions are necessary for Option 1:
i) Employee Contributions. When the TH employee enrolls into PERSI, he or she will begin paying an employee retirement contribution. For current rates of contribution contact Benefit Services at (208) 885-3697.
ii) Employer Contribution. When the TH employee enrolls into PERSI, the budget(s) which support the employee will be charged an increased fringe benefit cost to cover the employer’s share of PERSI contributions and the cost of annual leave and sick leave which will start accumulating based on hours worked. For current contribution rates contact (208) 885-3697.
iii) Retroactive Contributions. Since PERSI contributions are due from the date of employment for newly enrolled employees, it is necessary retroactively to collect the first five month's contributions from both the employee and employer. Employer and employee obligations are processed as follows:
a) Retroactive employer contributions. Upon PERSI enrollment, five months of employer contributions will be deducted immediately from the budget(s) from which the TH employee is paid and remitted to PERSI.
b) Retroactive employee contributions. The employee may elect to have five months worth of employee PERSI contribution deducted from his or her next biweekly paycheck, or the employee may elect to have double contributions deducted from his or her paycheck for up to six months without interest being charged.
C-2. Procedure Option 2 -- Avoid PERSI Enrollment for the TH Employee. Option 2 assumes that PERSI enrollment is not desired by either the employee, or the department, or both. It is necessary either (1) to reschedule the employee's hours so that he or she regularly works less than 40 hours per biweekly period or (2) terminate the employment of the individual.
D-1. PERSI Enrollment Obligation is based on Total UI Employment. When TH employees work for multiple budgets and/or departments and/or other state agencies, the cumulative hours worked in all departments apply toward the 40 hours per bi-week threshold for PERSI. Accordingly, the employing departments must be aware of the potential PERSI enrollment obligation and be prepared to absorb the additional pro-rata fringe benefit cost. Departmental administrators should check with each TH employee to determine whether or not he or she works additional hours for other departments.
D-2. Comparison of the Effect of PERSI Enrollment Fringe Benefit Rates. For current rate comparison information contact Benefit Services at (208) 885-3697.
D-3. Questions. For questions or additional information regarding retirement plan participation requirements for temporary employee PERSI benefits, or for information or questions regarding retirement benefits, please call Benefit Services at (208) 885-3697. [rev. 11-06]