Results 1 to 4 of 4

Thread: Distribution of Paper Materials

  1. #1
    P2F2 Member
    Join Date
    Jan 2011
    Location
    Minnesota
    Posts
    93

    Distribution of Paper Materials

    We recently had legislation pass that provided legislative intent to develop procedures to discontinue the distribution of paper materials, including benefit payments to our retirees and well as receiving payments for post-retirement insurance benefits. We were just curious if any other systems have a similar policy and if they’d be willing to share what they’ve implemented.


    Thanks!

    Derrick Hohbein, CPA
    Chief Financial Officer
    North Dakota Public Employees Retirement System
    400 E Broadway Suite 505
    Bismarck, ND 58501
    701-328-3945
    dhohbein@nd.gov

  2. #2
    P2F2 Member
    Join Date
    Jan 2011
    Location
    Minnesota
    Posts
    93
    Hello,

    We require ACH for all retirement benefit payments, except final payments upon death to an estate. If a member does not have a bank account, we can set them up with a prepaid card that we will load with their payment through US Bank, called a Focus Card. This process has eliminated the tedious process of following stale checks not being cashed, and the need to re-issue them.

    We were in the process of looking into a member “portal” that would provide members access to their direct deposit notices, and any other communication that is currently mailed, but the project has been put on hold for the time being. The idea would be to eliminate the expense of mailing these documents out each month.


    Thanks,



    TINA M LAUSIER, CPA, MBA, CGMA | Fiscal Officer
    Retirement Plan Services
    Milwaukee County
    901 N 9th Street, Suite 210 | Milwaukee, WI 53233
    (414) 278-4145 | fax (414) 223-1387

  3. #3
    P2F2 Member
    Join Date
    Jan 2011
    Location
    Minnesota
    Posts
    93
    Derrick –
    At State Teachers Retirement of Ohio, we began requiring all benefit payments be made by ACH several years ago. We did this as a means to reduce costs rather than by legislative action. We also created a rule that exceptions can be made by staff in unique situations that are for our benefit. There are also payments such as rollover payments to nonbank financial institutions that we must still issue a paper warrant/check. We have found that the on line retirement and withdrawal applications are very popular but do not work for everyone. We recently offered members the option to receive both the member annual statement of benefits and the benefit recipient 1099R, 1095B and QEBA W-2 tax forms through their online account instead of by paper. I do not think it is practical or even possible to completely eliminate paper materials due to some legal and regulatory requirements. We had very little push back when we eliminated benefit payments by paper check (other than foreign residents) and that has saved us a considerable amount of money in printing, postage etc. The only time we print a remittance advice is when the recipients address changes, their net amount changes or in January when we provide all their prior YTD amounts.
    These are just a few of the thoughts about our experience transitioning to paperless transactions. There are many more things we have done with employer transactions, accounts payable, member communications and associate payroll.
    Let me know if we can provide more specific details or answer other questions about this topic.

    Leo Wilhelm, CPA
    Finance Manager
    State Teachers Retirement System of Ohio
    275 E Broad St
    Columbus, Ohio 43215
    614-227-4010

  4. #4
    P2F2 Member
    Join Date
    Jan 2011
    Location
    Minnesota
    Posts
    93
    There have been several initiatives to automate and provide paperless systems within our plan.

    1. We automatically enroll members, who elect to be paid via EFT, to suppress their remittance advice (pay stub). They are able to retrieve a copy from their online account. If they still chose to have a paper copy mailed, they must “opt-in”.
    2. Currently, 75 percent of our remittance advice payments are suppressed.
    3. Members are able to update their addresses, withholding elections, and direct deposit information directly online without submitting in a paper form.
    a. However, we do have protection measures to validate the member initiated the change. When addresses and Direct Deposit information is updated online, we send a paper letter via snail mail to the old and new address to communicate to the member that we received the request to change. This prevents the members’ online account from being used to change information unbeknownst to the member.
    4. We are currently updating our system to accommodate a more “paperless” system. The system will allow members to submit an application for retirement or disability online, allow them to change/update their beneficiaries, allow them to estimate their benefits, retrieve 1099 and W-2 copies, as well as update their payment information.
    5. We have entertained the idea of mandatory 1099 and W-2’s information to be solely electronic, unless the member opted in for a paper copy. However, IRS code currently requires the member to “agree” to receive an electronic copy only.

    Please let me know if you further questions.
    Melissa Roth

    Senior Disbursements Manager
    California State Teachers Retirement System.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •