Announcement Details

Distribute To









Content Type: ASC_Announcements
Created at by
Last modified at by
AnnouncementAutomatic Retirement Plan Enrollment for All Eligible Drop and Rehire-Retiree Employees

Act 558 of 2011 requires employers to pay the APERS match for all employees entering the Deferred Retirement Option Plan (DROP) and for rehired retirees.  In order to reduce the manual entry workload for agency personnel, retirement plan enrollment now occurs automatically for all eligible drop and rehired-retiree employees.  


Things you should know


·         Completion of the DROP personnel action (transaction PA40) combined with the selection DROP 1000 hrs in the IT0001 Organizational Assignment contract field creates (in IT0169) a record of the APERS DROP plan (R110) for the APERS employee.


·         Completion of the re-employment of retiree personnel action (transaction PA40) combined with the selection RehireRet 1000YR or RehireRet 80+HR in the IT0001 Organizational contract field creates (in IT0169) a record of the APERS Rehired-Retiree plan (R111) for the rehired retiree.


·         When processing a re-employment of retiree personnel action (transaction PA40), the new work-contract field RehireRet <20 WK is available for selection in Organizational Assignment (IT0001).  An employee who works less than 20 hours per week or less than 80 hours per month is ineligible for enrollment in the APERS Rehired-Retiree plan.


·         Exceptions to this automated process include business areas 0520, 0534, 0552, 0582, 0590, and 0700.  For these agencies, the variety of available retirement options requires a manual enrollment process. 


Here is how to change a retirement plan.


1.    Execute transaction code PA30.

2.    Enter the employee's personnel number.

3.    Select Savings Plans (IT0169).

4.    Select the Create icon.

5.    Change the start date to the appropriate date.

6.    Select the retirement plan from the drop-down list in the Benefit Plan field.

7.    If applicable, add the employee percentage by selecting the Regular contrib tab and entering 5.00 in the Percentage field.

8.    Select the Save icon.