These general guidelines describe the four status types URS uses to categorize all new hires, and elected or appointed officials at the time they take office. Effective July 1, 2011, employers are required to certify all employees’ status electronically (within 30 days of hire and before reporting any contributions to the Retirement Office). This web-based certification process guides you, the employer, to the employee’s appropriate classification and assists you in determining Tier 1 or Tier 2 participation. By providing this information electronically, employers can minimize reporting errors that could require future correction adjustments. In many cases, it also eliminates the need for faxing or mailing paper forms to our office. Consider the following criteria every time a new employee is hired, elected or appointed:
1. Eligibility Certification — if an employee qualifies for membership in one of the retirement systems, as explained in this section, the employer must certify the eligible employee online.
2. Exempting from Retirement Coverage — if an employee qualifies for membership and his/her position qualifies for exemption, they may elect to exempt from either Tier 1 retirement coverage or Tier 2 Defined Contribution vesting requirements by completing the appropriate exemption form. The employer should certify the employee’s status online and complete and sign Section A of the Request for Exemption form before handing it to the employee for completion and forwarding to our office. (Please note that a qualified Tier 2 employee can exempt from the four-year vesting requirement but not from the retirement coverage overall)
3. Post-Retirement Employment — if an employee is retired from URS covered employment, the online certification process will identify the employee as post-retired and provide instructions for employers on form completion and reporting requirements. Please refer to the Post-Retirement Employment section for more information.
4. Ineligible — if an employee doesn’t meet requirements for any of the above three categories, certify the employee as ineligible.
All employees, including elected officials and appointive officers, must be certified within 30 days from hire or change in status. There is no choice of whether or not eligible employees should participate in URS unless employees qualify to exempt from retirement coverage or from the four-year vesting requirements under the Tier 2 DC Plan. Employee exemption is not automatic. It is the employer’s responsibility to inform the employee of their right to exempt from URS, certify them in that category online, and provide the employee with the appropriate exemption form for:
» Completion,
» Signature, and
» Forwarding to URS before the effective exemption date.
In addition to notifying our office of new members, employers are required to update employees’ eligibility status when there are changes affecting their contribution reporting requirements. Employers must provide these notifications as soon as administratively possible and not later than 30 days after members’ effective status change.