Attached is CalPERS Circular Letter 200-041-21 New Compliance in Compensation Reporting Webpage. The new webpage has helpful information for employers to report accurate member compensation information in compliance with Public Employees’ Retirement Law.
* 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
Regards, School Business Advisory Services Team Santa Barbara County Education Office
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200-041-21-PERS-Compliance-Webpage.pdfReminder-STRS-Exception to the 180-day waiting period to re-employ a retiree
Employment of a CalSTRS retiree in a CA Public School System before their mandatory 180-day wait period is over
*CalSTRS and CalPERS have different processes and required documentation*
Please note: Existing CalSTRS processes remain in place under COVID-19
Retirees of the California State Teachers’ Retirement System (CalSTRS) 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 the California public school system. There can be an a very narrow exception to this regulation.
Attached, please find CalSTRS Employer Directive 2021-03 Postretirement Earnings Limit and Disability Allowance Earnings Limit for the 2020-21 and 2021-22 Fiscal Years, and Disability Retirement Earnings Limit for the 2021 Calendar Year.
The directive reminds districts of the retiree earnings limitation which is $47,713 for the 2020-21 fiscal year and describes conditions and limitations retirees are subject to. The retiree earnings limitation increases to $48,428 for the 2021-22 fiscal year. Also included are the required steps to request an exemption from the mandatory 180-day waiting period before a retiree may return to work in a California public school.
To request an exemption from the mandatory 180-day waiting period, CalSTRS requires the district to provide:
* A resolution that includes specific information and findings. See attached Employer Directive, pages 4-6 for details. * The resolution must be approved by the district’s board (not placed on a consent agenda) before the member commences service. See attached Exemption to the Separation From Service Requirement, sample Resolution pages 3-4. * A completed Request for Separation-From-Service Requirement Exemption (SR 1897) form. See attached. * Reminder: If CalSTRS approves the “Separation-From-Service Requirement Exemption” the retiree remains subject to the retiree earnings limitation of $47,713 for 2020-21 and $48,428 for 2021-22. * Districts (not the County Office) submit required documents to CalSTRS for approval before the retiree returns to work. * Scan and submit documents to postretirement@calstrs.com<mailto:postretirement@calstrs.com> and list the member’s Client ID on the forms.
Please note, the most common reasons a request is denied:
* The member is not of normal retirement age when the service is to be performed (60 for a 2% at 60 member, 62 for a 2% at 62 member), or that the board resolution is missing an item as described in the Circular. Follow the sample resolution closely – the language should be no more and no less than provided in the sample. Including the retired member’s name in the resolution is helpful. * The board resolution must be passed before the member commences service, and all documentation must be received by CalSTRS prior to the member commencing service. The request does not have to be approved by CalSTRS prior to commencing service, but then the member runs the risk of denial and the compensation earned must be reported. * By law, STRS has 30 days to provide a determination. The employer may submit, but STRS cannot approve, a request prior to a retirement date entered in the STRS system.
Always check the CalSTRS website for the latest information and forms on this subject. For questions, please contact CalSTRS Postretirement at postretirement@calstrs.com<mailto:postretirement@calstrs.com> or leave a voicemail at 1-916-414-5967.
Regards,
School Business Advisory Services Team Santa Barbara County Education Office
Arrears-Summer Savings and ACH-Direct Deposit timing
Reminder Summer Months and Direct Deposits
A reminder of what can take place with direct deposits during the summer months of June, July, and August. Although infrequent, the following circumstances can occur:
* An employee with the combination of:
* Paid on both a Regular and Arrears/Summer Savings payroll during the same month, and * Newly ACH/Direct Deposit information input into the system
* Timing and results: * Activation of an ACH/Direct Deposit is usually a two-step process that takes place over two-months. * First month is a “pre-note” to validate a combination of banking institution and account data. * Second month is a live deposit of an employee’s paycheck into the designated bank account. * Regular and Arrears/Summer Savings payroll processing takes place one day apart in June, July, and August. * This sets in motion the two-step activation of an ACH/Direct Deposit in two days, not two months if an employee is receiving payment on both payrolls and has new ACH/Direct Deposit data.
* Example of the outcome: * Production of the July Regular payroll occurs on Monday and production of the July Arrears/Summer Savings payroll takes place on Tuesday. * Timing to produce these back-to-back payrolls results in the employee receiving a paper check for the July Regular payroll and an ACH/Direct Deposit for the July Arrears/Summer Savings payroll.
Please be aware of these circumstances and results when inputting new ACH/Direct Deposit information for an employee paid on both a Regular and Arrears/Summer Savings payroll during the same month.
For questions about payroll ACH/Direct Deposits, please contact Richard Weger at rweger@sbceo.org<mailto:rweger@sbceo.org> or 805-964-4711 x 5242.
Regards, School Business Advisory Services Team Santa Barbara County Education Office
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Reminder-July Supplemental Payroll closes July 6 at Noon
Reminder July Supplemental Payroll Closes promptly at 12 p.m.(Noon) on July 6
* Payroll production for the July Supplemental will begin without delay on Tuesday, July 6, at Noon. * Following the scheduled deadline allows for sufficient time to complete all steps necessary to issue payroll on time. * Please plan accordingly to input data, resolve all errors, and submit your payroll before or by Noon on July 6. * Reminder: Payroll production takes place for all organizations at the same time. If one organization has a payroll processing error, this halts production for all districts and charters using the payroll module. This is why it is important to audit and resolve all errors as data is input into the system instead of waiting until the last minute. * Reminder: All payments made on the July Supplemental Payroll automatically accrue to the prior year.
For questions about the July Supplemental payroll, 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
* 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
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June 28 last day to Submit Payroll Manual/Cancel warrants
Reminder June 28 at 10 a.m. Last day to input and process Payroll Manual and Cancel Warrants for the Fiscal Year
* Monday, June 28 at 10 a.m. is the last day to input and submit Payroll Manual and Cancel warrant data for the fiscal year. * After the 10 a.m. deadline, do not input any Payroll Manual or Cancel warrant data. * Information input after the deadline will be deleted. * Payroll Manual and Cancel warrant input and processing resumes on July 1.
For questions about Payroll Manual and Cancel warrant processing, please contact:
* Staci Hunter shunter@sbceo.org<mailto:shunter@sbceo.org> 805-964-4711 x 5254
* Myron Porter mporter@sbceo.org<mailto:mporter@sbceo.org> 805-964-4711 x 5280
Regards, School Business Advisory Services Team Santa Barbara County Education Office
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Payroll – Sorting Warrants for new fiscal year
Attached, please find instructions for Sorting Payroll Warrants – Annual Maintenance. The instructions may also be found in Escape, SBCEO Resources, Payroll, Sorting Warrants.
Sorting methods for paper payroll warrants and direct deposit-ACH forms do not roll forward each year and must be manually reset for each issue date in the new fiscal year.
* Please complete this annual task after Rolling Assignments and no later than the last working day in June. This year, the last day to Roll Assignments is Tuesday, June 29 and the last day to proactively set warrant sorting is Wednesday, June 30.
If you have questions about this procedure, 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
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>