CalPERS Payroll and Membership Training

Public Agency

Payroll

CalPERS

Payroll and Membership

Training

• Using the CalPERS Website

• Membership

• Payroll

• PEPRA

Agenda

Employer Bulletin & Public Agency & School Reference Guide

Public Agency Reference Guide

Membership

CalPERS Membership Qualifications

What is the time base of the appointment?

Are they a current member of CalPERS?

Is the position excluded from your contract?

Appointment Time Base and Tenure

• Immediate Membership on Hire Date

- Permanent Full Time on date of hire

- Part-time, 20 hours per week, one year or longer

- Temporary Full Time, in excess of 6 months

- GC 20305

Current Member of CalPERS

• Immediate Membership on Hire Date

- Contributions or Service Credit on account

- Once a member, always a member

- GC 20305(a) (1)

Excluded Membership

• Contract Exclusions

• Independent Contractors

• Notice of Exclusion (AESD-139)

Irregular Time Base – Monitored Positions

Temporary

Substitute

Seasonal

On-Call

Emergency

Intermittent

Notice of Exclusion

Definition of a New Member

• Never been a member of any public retirement system

• Moved between public retirement systems and had a six months break

in service

• Moved between public employers within the same retirement system

and had a six month break in service

• All schools are considered to be one employer

Definition of a Classic Member

• Members who are not “new members” are a “classic members”.

• Classic members will retain all existing benefit levels

• Classic members will be tested against the “new member” definition

upon each new appointment

Person Search

Person Search

• Update my|CalPERS of any changes to employees’ employment status

- Unpaid Leave of Absence

- Permanent Separation

- Address Change

- Position Change

Employer Responsibilities

Appointment Updates - Employee Status

• Employees must be enrolled within 90 days of qualifying

for membership

• If they are not enrolled in a timely manner it may result

in you paying both member and employer contributions

• Administrative fee of $500.00 plus both contributions with interest

Timely Enrollment of Employees Into CalPERS

Arrears Receivable Notice Report

Reciprocity

Member Reciprocal Self-Certification Form

Reciprocity

CalPERS or CalSTERS Right of Election

School positions are divided into two basic types:

• Certificated: An employee in a position requiring certification qualifications by or

pursuant to the Education Code. Credentialed employees (e.g., teachers,

administrators, health care, library media workers, etc.) are all in certificated positions.

• Classified: An employee in a non-certificated position

(e.g., office workers, custodial staff, cafeteria workers, etc.).

Employees in certificated positions are eligible for membership in CalSTRS,

while classified employees may be eligible for membership in CalPERS.

CalPERS or CalSTRS Right of Election

Payroll

Service Credit Benefit Factor Final Comp

The Importance of Correct & Timely Payroll

= Monthly Retirement Allowance

Two of the three factors used in calculating your monthly Retirement

allowance are from your payroll.

• If you report incorrect pay rates and earnings

for your employees, you may cause:

- Service credit accrual discrepancies

- Delays in member retirement processing

- Inaccurate retirement estimates

- Incorrect payment of benefits

- A delinquency fee for late payroll reporting

Inaccurate Payroll Reporting

Compensation Earnable

Payrate – Classic

Special Compensation Categories - Classic Members

1. Available to all members in a group or class

2. Contained in a written labor policy or agreement

3. Part of normally required duties

4. Performed during normal hours of employment

5. Paid periodically as earned

6. Historically consistent with pay for the job classification

7. Not paid exclusively in the final compensation period

8. Not final settlement pay

9. Not creating an unfunded liability over and above the

CalPERS actuarial assumptions.

The Nine Criteria - Must meet all nine

California Code of Regulations § 571(b)(1)

Pensionable Compensation

New member’s pensionable compensation limited to:

• Normal monthly rate of pay or base pay

• Paid in cash to similarly situated members of the same group

• Paid for Services Rendered during Normal Hours

• Pursuant to a publicly available pay schedule

• Excludes bonuses, overtime, pay for additional services

outside of normal working hours and other types of pay

• Retirement boards have the authority to exclude other forms of

compensation inconsistent with the statutory definition

Month Pay Rate Member Earnings Service Credit Earned

July $0.00 $0.00 0.000

August $0.00 $0.00 0.000

September $2,600.00 $2,275.00 0.088

October $2,600.00 $2,275.00 0.088

November $2,600.00 $2,275.00 0.088

December $2,600.00 $2,275.00 0.088

January $2,600.00 $2,275.00 0.088

February $2,600.00 $2,275.00 0.088

March $2,600.00 $2,275.00 0.088

April $2,600.00 $2,275.00 0.088

May $2,600.00 $2,275.00 0.088

June $2,600.00 $2,275.00 0.088

TOTALS $26,000.00 $22,750.00 0.880

$26,000.00 ÷ 12 months = $2,167.00 incorrect final comp

Incorrect Payroll Reporting

Month Pay Rate Member Earnings Service Credit Earned

July $0.00 $0.00 0.000

August $2,600.00 $569.00 0.022

September $2,600.00 $2,275.00 0.088

October $2,600.00 $2,275.00 0.088

November $2,600.00 $2,275.00 0.088

December $2,600.00 $2,275.00 0.088

January $2,600.00 $2,275.00 0.088

February $2,600.00 $2,275.00 0.088

March $2,600.00 $2,275.00 0.088

April $2,600.00 $2,275.00 0.088

May $2,600.00 $2,275.00 0.088

June $2,600.00 $1,706.00 0.066

TOTALS $28,600.00 $22,750.00 0.880

$28,600.00 ÷ 12 months = $2,383.00 correct final comp

Correct Payroll Reporting

Employees working less than 40 hours per week

• Working overtime hours and paid overtime rates

• Only Report the overtime hours up to 40 hours

• Only report the “straight-time” rate

• Only report the “straight-time” earnings

• GC 20635.1

Proper Reporting of Overtime Pay Rates

Payroll

Payroll

• Must report payroll, but no contributions, or service credit earned

• Hourly pay rate, no benefits

• Must not exceed 960 hours in a fiscal year

• Performed for a limited duration, extra help

• As of 1/1/2013 must have 6 month break in service

• Independent Contractor vs. Retired Annuitant

Retired Annuitant

Deadlines

Fees

Waivers

Additional Payroll Information

Administrative Fees and Interest Assessment

- Gov. Code §20536, and 20537

- Regulations §565, 565.1- 565.5

Deadlines and Fees

Missing Payroll or Late Payroll

Earned Period Reports

– Due within 30 calendar days of reporting period

• Administrative fee of $200.00 billed

– Earned Period Report not submitted when due

– Will be assessed monthly until payroll report submitted

Incomplete and /or Inaccurate Reports

• my|CalPERS provides notice of errors

– Errors in Employer’s staging area

– $200.00 administrative fee assessed if errors not corrected

and posted within 60 days of notice

– Fee is billed monthly until entire payroll report is corrected and posted

– Contracting Agency billed

Underpayment of Contributions

Employer and Member

• Within each Fiscal Year

- Payments of less than 90% when due, will be billed for

underpayment to equal 100%

- Interest assessed if bill is not paid within 30 calendar days

- Interest receivable is interest bearing until paid

- Contracting Agency billed

Employer and Member

• End of Fiscal Year

– If pay <99% when due, billed for underpayment to 100%

– Interest receivable is interest bearing until paid

– Contracting Agency billed

Underpayment of Contributions

Fee Waivers

• Future Fee Waiver Request

– Submit Request (Payroll Reporting Schedule page)

– Each Request must be for one Earned Period Report

– Future Fee Waiver requests for more that one Earned Period

Report will be rejected

– Legitimate reason for waiver

(i.e., out of the Employer’s control)

Additional PEPRA Info

• Prohibit the purchase of air-time

- Additional Retirement Service Credit (ARSC)

• Prohibit retroactive benefit increases- Excludes COLA’s

- Includes optional benefit provisions that are service based

• Prohibit pension holidays- Requires the combined employer and employee contributions to cover the

annual normal cost

Other Provisions

Service Retirement Eligibility

• Classic Members and all Safety Members

- Age 50 with

- 5 Years of Earned Service Credit

• New Members

- Age 50 Safety

- Age 52 Miscellaneous

- 5 Years of Earned Service Credit

Circulars

• 200-055-12 released December 3, 2012- Summary of General Provisions

• 200-060-12 released December 11, 2012- Benefits and Contributions for new school members

• 200-062-12 released December 27, 2012- Details of pensionable compensation items for new members

• 200-063-12 released December 31, 2012- Instructions for certifying impairment of MOU’s

- Forms for Member self-certification of reciprocity

• 200-002-13 released January 4, 2013- Reporting Permanent Separation Dates and Validating Participant Appointment Details

in my|CalPERS

50

Resources

• Beneficiary Designation

• CalPERS Special Power of Attorney

Forms

• Report an Imminent Death or Terminal Illness

• Death of an Active Member (Complete PERS-BSD-738)

Call CalPERS

Immediately

Additional Employee Support

Resources

• Public Employees’ Retirement Law (PERL)

• Public Agency and School Reference Guide

• State Reference Guide

• Circular Letters

• CalPERS Employer Bulletin

• CalPERS Web site – www.calpers.ca.gov

• my|CalPERS Online Services, Calculators and Tools

• CalPERS Customer Contact Center (888-225-7377)

• Follow us on Twitter: http://twitter.com/CalPERS

• Find us on Facebook: http://facebook.com/myCalPERS

• View videos on YouTube: http://youtube.com/CalPERSNetwork

Social Networking

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