Institutions of higher education, including technical colleges, under the direction of the Board of Regents or Board of Directors of each technical college, respectively, are required to set and comply with employment classifications that require a regular full-time faculty member or employee to participate in the retirement plan attached to the position’s employment classification. The employment classification assigns positions to URS or to an alternate plan. Alternate plans may include any public or private retirement system, organization, or company designated by the Board of Regents.(for institutions of higher education) or the Board of Directors of each technical college (for each technical college).
Employees who are hired into a position assigned to an alternate plan but who have prior service credit with URS may elect to continue participation in URS, if they have not previously participated in another retirement system or plan with the same institution. These elections must be made when the employee initially begins employment and must be timely and properly executed to ensure that contributions are made to the appropriate retirement plan. Once contributions are submitted to a retirement plan, the employee cannot be allowed to make a participation election for the duration of the employee’s employment with that employer, regardless of position changes, promotions, or a termination and rehire. If an employee is hired who was previously employed with the institution, the election is unavailable, and the employee must be enrolled in the retirement plan in which the employee previously participated.
Institutions of higher education must certify faculty members or other employees hired after January 1, 1979, in the retirement plan attached to their employment classifications, in accordance with a valid participation election as described above, or, if previously employed with the institution, to the retirement plan in which the employee has previously participated. Once an employee has participated with any plan of the employer, IRS regulations prohibit employees from making a participation election throughout the duration of the employee’s employment with that institution. Employees not covered by URS should be certified ineligible.
Institutions of higher education are responsible during the employee onboarding process to:
a. Provide information to new employees on retirement options available;
b. Ascertain whether the employee has prior URS service credit and, if applicable, educate the employee regarding the eligibility for and timing of a one-time irrevocable election to continue participation with URS;
c. Ascertain whether the employee has previously been employed with an participated in a retirement plan with that institution; and
d. Enroll the employee in a plan so that the employee’s retirement participation will be in compliance with law and Board Resolution 2019-03.
1. If employees participate with an alternate plan, certify them ineligible through the online certification process (This process applies to both Tier 1 and Tier 2 participants).
2. If employees participate with URS and meet the eligibility requirements, certify them eligible through the online certification process.