Employers FAQs

1. Are 2009-2010 earnings subject to the Social Security 218 changes?
2. Should we withhold contributions on health savings account (HSA) premiums?
3. Is That Educator Certificate “Expired” Or Just “Inactive”?
4. How long must I wait after my PSRS/PEERS retirement before I begin working after retirement full-time at a covered employer?
5. What is Social Security Form SSA-1945? When do I need to use it?
6. Do I withhold Social Security, Medicare or both from earnings of a PSRS retiree?
7. When does a member become eligible for PSRS Membership?
8. What should we do when an employee leaving our district would like to get back his or her PSRS or PEERS contributions?
9. How do I calculate an Annual Base Salary for a Part-Time PSRS Member?
10. What kind of system is PSRS/PEERS?

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1. Are 2009-2010 earnings subject to the Social Security 218 changes?
   Maybe.  Payrolls that are ran on or after July 1, 2010 for an employee who is required to remit to Social Security, require the member to remit two-thirds the normal PSRS contribution rate even if the payroll is for the 2009-2010 school year (9% for 2009-2010).  For more information please visit the Office of Administration’s Frequently Asked Questions.
   
   
2. Should we withhold contributions on health savings account (HSA) premiums?
   Well that depends on who’s paying the premium amount and how the amounts are paid.
   • If the premium amount is being paid by the Employer, and is deposited directly into the member’s HSA account then yes, contributions are due and the premium amount should be included in the insurance amount reported to PSRS/PEERS.
     
     
   • If the Employer is paying the member more, such as the difference between insurance premiums in a “regular” and “high-deductible” plan, then it should be added to the member’s compensation reported to PSRS/PEERS, and contributions will be calculated through the compensation. This amount should be included in the “Employer-Paid Insurance” field in EMERS.
     
   • Member elected deferrals from salary to a HSA plan are included in the retirement compensation amount reported to PSRS/PEERS which is subject to contributions.
     
     
   • Other member contributions to a HSA plan are not included in retirement compensation or insurance amounts reported to PSRS/PEERS, therefore they are not subject to contributions.
3. Is That Educator Certificate “Expired” Or Just “Inactive”?
   The legal counsels of DESE and PSRS agreed and determined that any educator certificate, with the exception of Provisional, Temporary and Vocational (VOC1) authorizations, that has an expiration date on or after August 28, 2003 is actually “inactive.”  Therefore individuals with “inactive” certificates are considered to be certificated for purposes of determining PSRS eligibility.  Please contact DESE at (573) 751-0051 if you still have questions regarding educator’s certificates, and please contact your Employer Services Representative for questions about PSRS/PEERS eligibility.
   
   
4. How long must I wait after my PSRS/PEERS retirement before I begin working after retirement full-time at a covered employer?
   The rules are different depending on whether you are a member of PSRS or PEERS. For more information visit the appropriate link below.
   Rules for PSRS Members
   Rules for PEERS Members
   
   
5. What is Social Security Form SSA-1945? When do I need to use it?
   Form SSA-1945 is a Social Security form that employers must give to all new participating employees not covered by Social Security before their employment begins. The employee must sign the form and return it to you. This form explains to the new employee the potential effect that the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) provisions in the Social Security law may have on workers who also receive a pension based on their work in a job not covered by Social Security (like work covered under PSRS).
   
   You, as the employer, are required to maintain the original and send a copy of the signed form to PSRS/PEERS.
   
   Please visit www.socialsecurity.gov/form1945/ for more information.
   
   
6. Do I withhold Social Security, Medicare or both from earnings of a PSRS retiree?
   Please contact: Office of Administration, Division of Accounting State Social Security Unit at (573) 751-2971.
   
   
7. When does a member become eligible for PSRS Membership?
   When they have a valid Missouri Educator Certificate and are working for an employer in our System at least 17 hours a week on a regular basis that normally requires at least 600 hours of service in a school year. If you have questions regarding the date of the certification, please contact the Missouri Department of Elementary and Secondary Education (DESE).
   
   
8. What should we do when an employee leaving our district would like to get back his or her PSRS or PEERS contributions?
   Have the member call our office at (800) 392-6848 and ask for a refund. Make sure you list their termination date and final pay in EMERS. We cannot pay a withdrawal until we have that information from the district.
   
   
9. How do I calculate an Annual Base Salary for a Part-Time PSRS Member?
   The Annual Base Salary for a PSRS member is the same, regardless of whether the employee is full-time or part-time. That is because for PSRS members, the base salary is the full-time annual salary for the position, not what the part-time person earns. If you don't know the full-time salary for a given position, you can calculate it as follows:

   Hourly Rate of Pay for the Part-Time PSRS Member

   X

   Number of Hours a Full-Time Employee in this Position Would Work During the School Year

   =

   Annual Base Salary for the Position

   
   
10. What kind of system is PSRS/PEERS?
    PSRS and PEERS operate as tax qualified plans under section 401(a) of the Internal Revenue Code. PSRS and PEERS are defined benefit plans that provide disability and service retirement benefits to members, and survivor benefits to qualified beneficiaries. Funding for the Systems comes from a combination of member contributions, employer contributions and investment earnings.