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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