As the deadline for performance evaluations approaches, it is crucial that PDQ’s are up to date in PeopleSoft HRMS. Please review your employees’ PDQs and make any necessary changes to ensure that the duties that populate into performance evaluations are accurate. If you need assistance, please don’t hesitate to contact Class/Comp.
Following recent discussions and consultations with state retirement officials, the University of Wyoming has made adjustments to be in full compliance with Internal Revenue Service (IRS) regulations regarding the rehiring of retired employees.
To be considered for re-employment, a retiree must first have a bona fide break in service as defined by the Internal Revenue Code (IRC).
“Employees who terminate their employment and desire to withdraw or roll over funds from retirement plans must first have a bona fide break in service,” says Eric Goldenstein, employee benefits manager with UW Human Resources. “This means that at termination, there cannot be a pre-existing arrangement to return to work or any promise of future employment with the University of Wyoming.”
Additionally, Wyoming Retirement System (WRS) participants must have at least a 30-day break in service per Wyoming statute before being rehired into a benefited position. Faculty members who resign from their positions, but continue to work on grant- funded projects and are paid through the UW Payroll Office, are considered to be employees without a bona fide break in service and cannot access retirement funds.
Ramifications of Non-Compliance
According to the UW Human Resources Office, each of the retirement plans sponsored by UW is subject to qualification by the IRS. This qualification is predicated upon compliance with the IRC and other federal law. Lack of compliance with these federal mandates threatens the qualified tax status of the plans.
“Failure to comply with the state statute, hiring a retiree receiving a WRS benefit with less than a 30-day break in service, will result in immediate cancellation of the retiree’s benefit and reinstatement as a contributing member of WRS,” Goldenstein explains.
Richard DelaCastro, UW’s director of Human Resources, offers the following guidance involving rehiring of retired employees:
“It is imperative that no verbal or written promises of future employment be made prior to an employee’s retirement. To avoid a claim that such a promise was made, a competitive process to fill an open position should be considered. If the appropriate break in service is not possible, the retiree either cannot be rehired or must delay receiving retirement benefits.
Amy and Deb were introduced from the HR Records Department. They discussed how an internal group they are a part of, are trying to streamline and better understand the paper flow as it originates with the departments and travels to Human Resources. A few examples of looking at the processes in place within HR were discussed. The elimination of a few steps with Term Forms, SNB and GA Job Data Change Forms has resulted in our internal paper flow moving a bit more smoothly. We invite you to start thinking of similar ways to streamline paper flow within your own departments. Be on the lookout for an upcoming email in the near future. Should you have any questions, feel free to contact Amy Ernst or Deb Rulf.