Payroll – Page 7

August 27, 2021October 5, 2021

PERS – Active members – Fees for missing payroll data

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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.

PERS-Projected-Contributions.pdf
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pr.processing.overview.orgs_.8.29.2019.pdf
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CalPERS-200-036-20.pdf

August 27, 2021October 5, 2021

Payroll Alert: New employee – not new to PERS or STRS

[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.

August 19, 2021October 5, 2021

Terminated Employees – When to pay

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>.

August 10, 2021October 8, 2021

Collective Bargaining Agreement & Retroactive Pay, COLAs, One-time payments

When a district’s governing board takes action to provide increases to employee benefits or compensation such as a retroactive cost-of-living-adjustment (COLA), bonus, or an off-salary-schedule payment, it is important to notify School Business Advisory Services (SBAS).

1. Important reminders:
* Before settling negotiations, please be aware there may be differences in the types of compensation subject to retirement contributions for certificated and classified employees. Please see example below and attached documents. * Obtain necessary board approval before inputting current or retroactive benefit or pay adjustments. * Districts are responsible for erroneous retirement reporting and may be required to assist with corrections.

1. Notify your District Financial Advisor (DFA) – Submit a Public Disclosure of Proposed Collective Bargaining Agreement (Public Disclosure) Public school districts are required to provide notification of salary settlements to their reviewing agencies and publicly disclose proposed collective bargaining agreements before entering into a written agreement.
Please submit your Public Disclosure form to SBAS at least 10-working days prior to the date that the Governing Board will take action on the proposed agreement. During the 10-day window, your DFA will review information in the document for completeness, transparency and reasonableness.
Contact your DFA if you have questions about the Public Disclosure form or process.
* Nicole Evenson nevenson@sbceo.org<mailto:nevenson@sbceo.org> 805-964-4711 x 5271 * Makenzie Johns mjohns@sbceo.org<mailto:mjohns@sbceo.org> 805-964-4711 x 5259 * StephenWilliams sgwillaims@sbceo.org<mailto:sgwillaims@sbceo.org> 805-964-4711 x 5273

1. Notify the School Business Advisory Services Payroll Team – Proactively review items that include:
* Benefits – how to make changes to the caps * Retroactive pay – which Addons, Bargaining Units, and Pay Cycles to include * Salary schedules – copying and applying percentage changes, inputting end and start dates * Guidance on whether compensation is subject to retirement contributions for the California Public Employees’ Retirement System (CalPERS) or California State Teachers’ Retirement System (CalSTRS) * How to properly code compensation for CalPERS and CalSTRS reporting
For example, an Off-Salary-Schedule payment is:
Retirement system Sometimes called a Classic member Generally hired on or before 12-31-2012 Sometimes called a PEPRA member Generally hired on or after 1-1-2013 CalPERS 2% at 55 2% at 62
Subject to retirement under specific conditions, (a) the amount cannot exceed 6% of the salary schedule and (b) can only be given when a pay increase has not been granted in the same fiscal year. Not subject to retirement. CalSTRS 2% at 60 2% at 62
Subject to retirement, but the compensation must be coded to the DBS (not DB) plan. Not subject to retirement.
* Before inputting a retroactive payroll, watch the Escape Webinar identified below. Please note that Escape does not update Webinars each year; therefore look for presentations in the current and previous year(s).

Payroll Contacts in SBAS
* 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

Helpful Resources
CalPERS employer references pages:
* Compliance in Compensation Reporting www.calpers.ca.gov/page/employers/policies-and-procedures/compliance-in-compensation-reporting
* Special Compensation Reportability Table www.calpers.ca.gov/page/employers/mycalpers-technical-requirements/special-compensation-reportability-table
CalSTRS employer helpful references:
* One-Time Off Salary Schedule Payments www.calstrs.com/sites/main/files/file-attachments/eic21-6.pdf?1628097632
* CalSTRS Employer Support Portal – Teachers’ Retirement Law Aids employersupport.calstrs.com/
* CalSTRS Creditable Compensation employersupport.calstrs.com/GetFile/8c975bc9-1b6d-4889-8cef-6932f92cf8e7

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>.

July 20, 2021October 5, 2021

Payroll Rates & Limits 2021-2022 updated

Attached is the updated Payroll Rates and Limits for 2021-2022. The only change is the UI rate.
The Unemployment Insurance (UI) contribution rate for State Fiscal Year (SFY) 2021/2022 and 2022/2023 will be 0.5%. The 0.5% rate will be effective July 1, 2021 through June 30, 2023. This new rate is a result of Assembly Bill 138 which amended section 823 of the California Unemployment Insurance Code.
The Local Experience Charge (LEC) Rate for SFY 21/22 was not impacted, so please use the LEC rate found on your Notice of Contribution Rate and Local Experience Charge Rate Statement (DE 56).
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>

Rates-Limits-2021-2022.pdf

July 6, 2021October 8, 2021

Reminder-PERS-Exception to the 180-day waiting period to re-employ a retiree

Employment of a CalPERS retiree in a CalPERS covered position before their mandatory 180-day wait period is over
*CalPERS and CalSTRS have different processes and required documentation*
Please Note: For information on the impact of COVID-19 refer to the attached CalPERS Circular – Governor’s Executive Order N-08-21 .
Retirees of the California Public Employees’ Retirement System (CalPERS) are subject to a 180-day wait period upon retirement before returning to work no sooner than the 181st day under limited conditions as a retired annuitant in a CalPERS covered position. There can be an exception to this regulation.
If a district has a critical need for a CalPERS retiree to return to work before the retiree’s 180-day wait period is over, the steps outlined below should be followed:
Step 1 District The Santa Barbara County Education Office (SBCEO) requires the requesting district to pass a resolution and forward the document to School Business Advisory Services. The resolution should include:
* Robust and thorough documentation and solid explanations as to why it is necessary or critical for the retiree to return to work before the 180-day window period is over.

* The hiring circumstances, special knowledge, skills and expertise required of the individual, a salary schedule, and employment contract. Step 2 SBCEO CalPERS requires passage of a resolution by SBCEO with supporting documentation on behalf of a district to allow an exception.
* SBCEO prepares a resolution based on documents provided by the district and submits the resolution with supporting information to CalPERS. Step 3
CalPERS CalPERS completes a compliance review either approving or denying the request and sends their response to the SBCEO. The SBCEO forwards the response to the district.
Important Notes
* The retiree should not return to work until resolutions are passed and CalPERS gives approval.

* Retirees with a Golden Handshake or another type of retirement incentive do not qualify for this exception.
Contact Nicole Evenson (nevenson@sbceo.org<mailto:nevenson@sbceo.org> or 805-964-4711 x 5271) to coordinate proceedings, SBCEO and district board meeting dates, and required resolutions with supporting backup.
Before proceeding with the process for an exception to the 180-day wait period, refer to the latest version of the CalPERS Public Agency & Schools Reference Guide (see path below) for information including limitations, conditions, steps and sample resolutions. Some of this information is attached for convenience but should be checked for updates that may occur after this message was sent.
Pursuant to Gov. Code section 7522.56(d), retired annuitants returning to work temporarily in a CalPERS covered position are subject to a limitation of 960-hours per fiscal year. This limit applies to the total accumulated hours worked from all of the (not each) CalPERS employers the retiree may work for. However, under the Governor’s Executive Order N-08-21, the work hour limitation continues to be suspended until further notice.
For the latest information:
* Go to the CalPERS website www.calpers.ca.gov<www.calpers.ca.gov> * Go to the Employers tab. * Under Forms & Publications, locate and select the Public Agency & Schools Reference Guide, see example below. * Within the Guide, find the Employment of a Retiree section (listed in the table of contents) and read thoroughly the information regarding qualification, sample resolutions and steps to follow. Embedded in the Guide are links to Circular Letters, Checklists and Resolutions. * Reminder → CalPERS requires a resolution from the SBCEO for an exception on behalf of a district. The SBCEO requires a similar resolution from the requesting district. * Within the Employment of a Retiree section, look for the paragraph identified as Sample 180-Day Exception Resolutions (Schools), see example below. * Open the school resolution templates, read the instructions, and use the applicable extra help or vacant position resolution as a model. Warning: Do not change the language in the template. Doing so will delay the compliance review. * Resolution for G.C. sections 7522.56 & 21229 is for extra help * Resolution for G.C. sections 7522.56 & 21221(h) is for a vacant position
Go to Employment of a Retiree section From this paragraph, select “Sample Resolution Schools”

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>

PERS-200-046-21-Governors-Exec-Order-N-08-21.pdf