We’ve been busy as bees this summer preparing for the new Employee Information at Termination or Retirement (EITR) tool. You might recall we announced this new tool in the June Newsletter. This makes it the fourth new employer reporting tool after the release of LTD starts and stops (2014), Member Validation tool (2014) and LTD Policy Validation tool (spring 2015). We appreciate your patience and support as we enhance employer online services. Read on for more information.
The Contact Confirmation for Employers form will be ready for you on the File Pick-up section in October. Read on to find out what you need to do.
Re-employment rules are changing
New: enrolment rules for retired members are changing
Enrolment rules for re-employed retired members are changing. Effective October 1, 2015, retired members returning to work for a Teachers’ Pension Plan employer must continue to receive their pension payments. Retired members no longer have the option of suspending or re-paying their pension payments and re-starting contributions to the plan.
Protecting member data online is important, so we regularly review our records to ensure we maintain security. To do this, we need your help. Keep your Web Services users current. It’s easy and only takes minutes. Read on for details.
Age 71 deadline coming up
Reminder: November 30 is the last day employees aged 71 are eligible to contribute to the plan
Do you have employees turning 71 this year? There are a few things to consider. Under the Income Tax Act and its regulations, an employee must start receiving their pension no later than the end of the year in which they turn 71. This means your aged 71 employees must start collecting their pension no later than December 1 of the same year. It’s also your responsibility to ensure you don’t collect contributions from these employees after November 30.
For example: You have an employee born in 1944 who will turn 71 in 2015. You must stop collecting contributions for this employee effective November 30, 2015, and your annual report must not include service, salary or contributions beyond that date.
Your aged 71 employees can keep working without interruption, but you must terminate their employment for pension purposes. Submit final salary, service and contributions up to November 30 to the plan on or shortly after November 30.
We send your employees a pension estimate and Retirement Application Package in the year they turn 71. Ensure we have their current contact information.
Have you started using the new calculation method for pensionable service? Ensure you’re using the new method by January 1, 2016. It will make it easier to consistently calculate pensionable service and save you time, with less follow-up from us to verify data. Keep reading to learn three more reasons why the changes will benefit you.
Throughout the year, we review our records to identify members who have not had service posted to the pension plan for two years and have not been terminated. If you have members in this situation, you will receive an email from us indicating a report for your organization has been posted to the Employer website. Read on to find out what you need to do.
Remitted contributions don’t match your Payroll Report? Here’s some help
Electronic remitting (E-Remit) is our standard process for remitting contributions to the plan. Ensuring your remittance matches the data on your Payroll Report saves you time and effort later. We know balancing your remitted contributions and salary to the data on the Payroll Report is easier said than done. That is why there’s a form called Balancing Help on the secured Employer section of our website. The form includes total remittances to date and a guideline for balancing remitted funds to payroll data.
Here’s how to access the form
Log on to the secured Employer section of the plan website with your username and password.
Click E-Remit under the Financial Reporting section of the Resources box.
Click Balancing Help to download the PDF.
Why this is important
Balancing remittances to your Payroll Report ensures the pension plan has correct information for members’ pension benefits and pension adjustment statements.
Accurate data is critical in calculating benefits for members on retirement or termination.
If we receive unbalanced data, we might request you research and fix errors from several previous pay periods.
Highlights from the spring 2015 Employer Advisory Council
In May 2015, our Employer Advisory Council met to network, discuss common experiences and hear more about what the Pension Corporation is working on. The overarching themes for the meeting were administration and member/employer services. For details of the discussions, check out the Employer Council Communiqué located on the secure Employer website. Once there, you can review the member list to see which employers belong to the group.
Interested in joining the employer forum? There’s also a Small Employer Forum for employers with fewer than 1,000 employees that meets in the fall. The next meeting is November 4, 2015, at the Executive Airport Plaza Hotel & Conference Centre in Richmond, BC.
Next meeting November 3, 2015, at the Executive Airport Plaza Hotel & Conference Centre in Richmond, BC.
More information For further details about the council and forum, including how to become a member:
Go to the Employer Consultation portlet on the Secure Employer website
Phone: 250 356-9701 (Victoria) or 1 855 356-9701 (rest of Canada)
Updated financial guidelines
Making a statement—check out the new and updated financial statement guidelines
You asked and we listened—we’ve created a new set of guidelines to help with your public sector accounting needs. To comply with accounting standards, specific information about the pension plan must go into your financial statement notes; employer financial statement guidelines can help. Your accounting methods will determine which to use based on the pension information you need. Find the guidelines in the Resources area on the Employer logon home page of the secure Employer website:
Financial Reporting Standards (FRS) notes
Accounting Standards for Private Enterprises (ASPE) notes
Public Sector Accounting (PSA) notes
These documents align with the Chartered Professional Accountants Canada Handbook.
Did you know the Teachers’ Pension Plan is no. 9 on the top 100 Canadian pension funds list according to the Benefits Canada magazine annual ranking?
The magazine features “Top 100 Pension Funds Still Got Some Spark,” an in-depth article on the strengths of defined benefit plans. Find it in on the StraightTalk page of the plan website under What’s New.
You told us we’ve done a great job reducing the number of emails we send you. Well, we found another way to minimize your inbox. We’re excited to give you all the information about the free member seminars—Your Pension, Your Future and Thinking About Retiring—in the Newsletter. Read on for details.
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