Ending Payroll Verification: Termination Date or Last Day?

You have an employee (or employees) retiring, and it’s time to fill out the Ending Payroll Verification (EPV) form. At the top of the form, you’ll be asked to either list an employee’s “Termination Date” or their “Last Day of ASRS Membership” - do you know which to choose? And what the difference is? It’s a common question we receive from employers and one that can cause future issues for retirees if filled out incorrectly.

The vast majority of the time, the “Termination Date” is the correct option to fill out. For most, the nature of retiring means to stop working and start collecting their pension, even though some may later return to work in retirement. For these people, entering a “Termination Date” on the Ending Payroll Verification form is the correct choice – the member must terminate employment to begin retirement, and to be eligible to return to work later on.

However, in rare instances an employee plans to begin retirement without any termination of employment. It’s only in these situations that you would use the “Last Day of ASRS Membership” option instead of “Termination Date.” If an employee has reached normal retirement criteria (not early retirement), would like to begin collecting their pension benefit, but also wishes to continue to work for an ASRS employer, they may – as long as their EPV form indicates their “Last Day of ASRS Membership” and they reduce their hours to below the 20/20 criteria for membership. The employee’s official “Last Day of ASRS Membership” would be the last day before their work hours would be reduced to meet the 20/20 guidelines.

For more information regarding the Ending Payroll Verification form, view our User’s Guide by Clicking Here. In addition to providing more details about the above, it will also provide everything from a high-level overview of the process to details about how to handle Refunds or Survivor Benefits.

Written by Nathaniel Brengle, Communications

This article appeared in "Employer Relations News" (Q1-2018), a digital publication of the ASRS.

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