The employee exit process can be time-consuming. Let us make it easier for you. We’ve compiled a few of the most common questions that come up when employers are closing out recently terminated employee records.
Can I report my employee’s last day in pay (LDIP) during the termination process?
Yes, when it comes to reporting LDIPs, the sooner, the better! We request that our employers report LDIPs as soon as your employee leaves their position. If your employee is retiring or switching jobs, this process allows them to get access to their funds more quickly and saves you a call from us!
What exactly is severance pay?
Severance pay is compensation paid to an employee when an employer terminates employment. Severance includes, but is not limited to, retirement bonuses and commutation of unused sick or personal leave. It is Indiana law to report your employee’s severance. To view Indiana’s regulations regarding severance pay, click here.
Remember to submit severance pay in the appropriate fields on your wage and contribution file uploads. If this does not happen, a member’s annual salary is affected, resulting in a miscalculation of the member’s benefit. For a quick review on this step, refer to the ERM Wage and Contribution Manual along with our Employer Reporting and Maintenance (ERM) Wage and Contribution (W&C) File Layout Specification.
What is the difference between LDIP and the last check date?
LDIP stands for last day in pay, which is the last day the member physically worked for your unit, whereas the last check date represents the last check received by the member from the unit. Often, the last check date’s pay period range includes the last day in pay reported for the member.
Reporting this information late can result in members seeing a delay or a miscalculation of their retirement benefit. Following these guidelines will make your exiting process less of a hassle and speed up the process! If you have any questions about entering a termination life event into ERM, give our Employer Advocate team a call at (888) 876-2707.
INPRS CAFR
The 2020 INPRS Comprehensive Annual Financial Report (CAFR) is now available. Download the book here or select a specific section of the CAFR from one of the links below.
INPRS 2020 CAFR Sections
Introductory Section
Financial Section
Investment Section
Actuarial Section
Statistical Section
Sign up for a Webinar!
Do your employees want to learn more about their investment options, how their plan works, or ways to budget? We can help! INPRS offers convenient webinars on topics important to your employees, including:
- Understanding Your PERF/TRF Plan
Positive Money Habits
PERF/TRF Retirement Benefits
Asset Allocation & Investment Basics Education
1977 Police and Fire Fund webinar
Let your employees know about these education opportunities by sending them this information in your upcoming all-staff email or have a viewing party together! Have them visit here to register for a webinar.
Clean up your ERM dashboard
It is crucial for you to update your contacts in ERM as often as possible. By doing so, you can make sure the right people on your team are notified about issues or requests regarding your submission unit or member accounts. Remember, you cannot delete a previous contact with your unit, but you can make a previous employer contact inactive and disabled in ERM.\
As always, you can always contact the Employer Advocate Team at (888) 876-2707 for assistance.
For more information about your pension and navigating to find specifics