Penn State Intercom......November 29, 2001

Reminder: SERS
election deadline near

The Office of Human Resources would like to remind participants in the State Employees' Retirement System (SERS) that it is important to act on recent changes to the retirement code.

An important aspect of the recent state retirement legislation involves the election of the new Class AA. Election forms were mailed earlier this year to all active SERS members. Class AA service is not automatic. Members must elect Class AA service by filling out the election form by Dec. 31.

Class AA will increase the current 2 percent multiplier to 2.5 percent. It also will result in an increase in the current contribution rate of 5 percent to 6.25 percent. The new contribution rate will be effective the first pay in January. SERS members are urged to consider the long-term benefit of the increased retirement benefits. The additional contributions also will increase the lump sum available when the member leaves service.

For more information contact the local SERS field office at (800) 633-5461.

Time to choose is running out

Faculty and staff are reminded that benefit changes for 2002 must be submitted no later than Nov. 30. "Open Enrollment 2002" can be accessed from the Employee Benefits Web page at http://www.ohr.psu.edu/benefits/benefits.htm. It is important to remember that contributions to either of the flexible spending accounts (health care or dependent care) must be renewed each year even if the contribution amount per pay will not change.

TDA limits to change

Recent federal tax legislation increases the amount that individuals may voluntarily contribute to a tax-deferred annuity. The limit for all participants will be 100 percent of salary or $11,000, whichever is less. Participants who are age 50 or older or who will reach age 50 in 2002 may contribute an additional $1,000. Faculty and staff who are making maximum contributions in 2001 must complete a new salary reduction agreement in order to begin contributions at the new higher level. Salary reduction agreements are available for download and printing at http://www.ohr.psu.edu/benefits/vsra.htm.

Attention MPDP members

As the holiday break approaches, it is important to make sure that Maintenance Prescription Drug Plan (MPDP) members have enough medication to last through the holidays.

To allow the pharmacy staff adequate time for processing, submit requests for refills to the University Health Services Pharmacy by Dec. 7. The fastest way to get refill information to the pharmacy is by using the automated refill system. Call (814) 865-9321 or (800) 821-7285 and select option 3. Callers should have their seven-digit prescription number handy and follow the directions. The seven-digit prescription number can be found in the upper left hand corner of the prescription label.

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