Author: sbas

[http://www.hrinasia.com/wp-content/uploads/2016/10/Millennial-employees-India.jpg]
Active PERS Members CalPERS charging fees for members with Active appointments and no payroll earnings reported
In 2017, the California Public Employees’ Retirement System (CalPERS) introduced new functionality in their my|CalPERS system to track members with active appointments and no payroll earnings reported. Appointment dates tell CalPERS when to expect the reporting of compensation and deposit of contributions for a member and when reporting and contributions will end.
Every month, CalPERS expects the reporting of compensation and deposit of contributions for individuals with active appointment dates until the district inputs an ending appointment date in the my|CalPERS system. When there is an active appointment with no earnings reported, CalPERS considers this a “Missing Payroll” for the member and will assess a $200 fee for each month compensation data is not reported and contributions are not deposited.
* Active appointments with no payroll earnings reported often applies to:
* Employees on-leave but not identified as such in the my|CalPERS system * Substitutes, intermittent workers
* Please open the attached CalPERS Circular Letter, my|CalPERS Projected Contributions Detail Report. Within this letter are links to other documents that provide details and instructions on how to monitor and respond to member records that have active appointments with no earnings. Please use the links to review and use the additional information.
* CalPERS has features in their my|CalPERS system that allow districts to run reports for reviewing open-ended appointments with no earnings. Prior to this, the School Business Advisory Services Payroll Team was downloading and sending reporting information to districts for the district to resolve discrepancies. Resolution includes inputting an end appointment date or verifying no reportable earnings for the pay period for the member.
* The Payroll Team is available to help districts navigate within my|CalPERS system to locate and run the new Projected Contributions Detail Report to reconcile “Missing Payroll” data. Districts may use this report or go to the Retirement Appointment Reconciliation screen in the my|CalPERS system to address issues. We recommend districts reconcile potential “Missing Payroll” information prior to Submitting Payroll for the month to avoid CalPERS imposed fees of $200 for each occurrence.

* Attached is the updated Payroll Processing Overview document which outlines routine steps to complete a payroll with an added reminder to reconcile “Missing Payroll” data in the my|CalPERS system.

* For information about retirees, please refer to SBAS Communications email message “PERS – Retirees – Fees for non-compliant reporting.”
On June 26, 2020, CalPERS began permanently separating retirement appointments that meet certain criteria. Appointments that meet one of the following criteria will be permanently separated through a CalPERS monthly automated process:
* Employees with an active appointment with the start date of six months or greater with no payroll ever reported

* Employees with an active appointment who have not had payroll reported and posted within the last six months
* Employees who have retired and have an appointment that is active or on leave
LEAs will have the ability to correct or delete these permanent separations if necessary. Please refer to the CalPERS Circular 200-036-20 attached for further details.
For questions and assistance on how to access the reports or screens in the my|CalPERS system, please contact:
* Myron Porter mporter@sbceo.org<mailto:mporter@sbceo.org> 805-964-4711 x 5280
* Staci Hunter shunter@sbceo.org<mailto:shunter@sbceo.org> 805-964-4711 x 5254
Regards, School Business Advisory Services Team Santa Barbara County Education Office
Please do not reply to this email. This is an unattended mailbox.

[Banner, Header, Attention, Caution, Warning, Note]
Payroll Alert – CalPERS & CalSTRS New hire does not always mean new to a retirement system Classic vs. PEPRA member
Over the past few years, we have seen an increase in errors based on the placement of newly hired employees into the wrong retirement formula or benefit structure for either the California Public Employees’ Retirement System (CalPERS) or State Teachers’ Retirement System (CalSTRS).
Establishing employees in the correct retirement formula or benefit structure dictates many important factors such as contribution rates, types of compensation subject to retirement, and potential retirement allowance. Adjustments for erroneous reporting are time consuming and can result in fees or penalties and interest. Please use the following guidelines and refer to the examples below for every new hire:
* A new hire does not always mean the employee is a new member of CalPERS or CalSTRS. Districts often hire employees that are already members of CalPERS or CalSTRS.

* CalPERS and CalSTRS have different formulas and benefit structures for retirement coverage that are dependent on specific dates, December 31, 2012 and January 1, 2013. See example below.
* Before adding any new employee into the Escape HR/Payroll modules, always verify retirement membership status and correct formula or benefit structure.

* Log into either CalPERS or CalSTRS software (see examples below) to validate:

* Member, Non-member, New member, or Retiree status. * Already a member – Validate original membership date, ID number, and Classic or PEPRA status. Input or compare this information to what is in the Escape system for correctness. * Non-member – Validate non-member status and monitor hours worked toward mandatory membership. * New member – Input applicable data into the CalPERS or CalSTRS system for membership. Obtain their membership ID number and input the number into the Escape system. * Retiree – All retirees must be identified in CalPERS or CalSTRS as a retiree; update retirement system records if necessary. All retirees must also be identified as a retiree in Escape with Member Type = R. See example below.
For questions about this subject or how to look up membership status and formula or benefit structure in the CalPERS or CalSTRS software, please contact the Payroll Team:
* Myron Porter mporter@sbceo.org<mailto:mporter@sbceo.org> 805-964-4711 x 5280
* Staci Hunter shunter@sbceo.org<mailto:shunter@sbceo.org> 805-964-4711 x 5254
* Richard Weger rweger@sbceo.org<mailto:rweger@sbceo.org> 805-964-4711 x 5242
* Sheng Xiong sxiong@sbceo.org<mailto:sxiong@sbceo.org> 805-964-4711 x 5252

Example – Retirement Formulas and Benefit Structures
CalPERS
CalSTRS
Member on or before 12-31-2012.
Formula sometimes called: 2% at 55 CLASSIC Pre 2013 (Escape system identifier) Old (Escape system identifier)

Members first hired to perform service that could be creditable to the DB plan on or before 12-31-2012.
Benefit structure sometimes called: 2% at 60 CLASSIC Pre 2013 (Escape system identifier) Old (Escape system identifier)
Member on or after 1-1-2013.
Formula sometimes called: 2% at 62 PEPRA New (Escape system identifier)

Member first hired to perform service that could be credited to the DB plan on or after 1-1-2013.
Benefit structure sometimes called: 2% at 62 PEPRA New (Escape system identifier)

Example – Escape system – New hire, already a member of PERS

Example – Escape system – Retiree designation

Example – My|CalPERS – Person Information – Appointment Details

Example – CalSTRS SEW REAP – Validate membership and Retirement Formula

Regards,
School Business Advisory Services Team Santa Barbara County Education Office
Please do not reply to this email. This is an unattended mailbox.

Terminated Employees – When to pay
Terminated employees may demand to receive their final pay within 72 hours. Employees, websites, or newspapers may cite the 72-hour payoff provision contained in California Labor Code Sections 201 or 202.
These labor code sections are not applicable to school districts per the exemption for “municipal corporations” contained in Labor Code Section 220 and related case law. The Regular and Supplemental payroll cycles are legal methods of paying salaries for terminated employees.
When calculating pay for terminated employees, it is not unusual to have some delay while collecting documentation that may include adjustments for hours not worked, sick leave or accumulated vacation. There may also be extenuating circumstances for making a manual payment (if so, be sure to end the employee’s Assignment in Escape and verify correct pay amount). Nonetheless, effort should be made to pay terminated employees on the Regular or Supplemental payroll.
For questions about this subject, please call the Payroll Team.
* Myron Porter mporter@sbceo.org<mailto:mporter@sbceo.org> 805-964-4711 x 5280
* Staci Hunter shunter@sbceo.org<mailto:shunter@sbceo.org> 805-964-4711 x 5254
* Richard Weger rweger@sbceo.org<mailto:rweger@sbceo.org> 805-964-4711 x 5242
* Sheng Xiong sxiong@sbceo.org<mailto:sxiong@sbceo.org> 805-964-4711 x 5252
Regards,
School Business Advisory Services Team Santa Barbara County Education Office
Note: This message was sent on behalf of the School Business Advisory Services Team. Please do not respond to this message. Replies will be routed to an unmonitored mailbox.
To unsubscribe, click here<mailto:sbasfinance@sbceo.org?subject=Unsubscribe>.