[DAS_Centralized_PERS_Services_Team] Change in how you complete a PERS Salary Breakdown Form

[ELY Linda C * HRSD PERS]

PERS Forms
Salary Breakdowns (SBD) versus  Salary Certification forms (Sal Certs)

Over the years there have always been some questions on the difference between the Salary Breakdown and Salary Certification forms and what they are used for.  This has also caused confusion on how to complete these forms correctly.

A Salary Certification has been historically used when the member has submitted their retirement or benefit application and PERS staff needs this information to correctly calculate the member's benefit.

Salary Breakdowns (SBD) have been historically used during an eligibility study to verify whether an employee has met the retirement plan's qualification criteria for a specific year.  In general, an employee must work at least 600 hours in a year to qualify for both IAP contributions and retirement service credits for that year.  A plan eligibility study is generally triggered by a specific event; the employee believes there may be a problem on their account, has requested a benefit estimate or has requested a Data Verification.  In these cases a SBD can be requested for specific year's the employee has worked for your agency.  The SBD is used to verify the hours worked each month in the year being requested.   More recently, PERS staff has begun using the reported salary amounts during their preliminary review for Data Verification requests.

Electronic PERS reporting and recent legislation have impacted how PERS administers the plan requirements.  Many old processes have been reviewed and updated.  One such recent change is in how the SBD is to be completed.

In the past, employers were asked to enter the hours worked and salary earned (but generally not paid) for each month the employee worked in the specific year being requested.  The change is that, while you will still enter hours worked for the month they were worked, you will enter the salary in the month it was actually paid.

Example:

*         In this scenario the employee was hired 2/15/2002.

*         The hours worked in February are entered into the "Hours" field for February.

*         However, the salary earned in February was paid in March, and is entered in the "Salary" field for March.

*         Additionally, since both February and March salary was paid in March, the total salary for both months is entered in the "Salary" field for March.

Year: 2002
                                                                    Salary Breakdown data:
Pay Period End

Pay date

Monthly Wages

Month

Hours

Salary

Contributions

12/31/2001

1/1/2002

$0.00

January

0

$0.00

$0.00

1/30/2002

2/1/2002

$0.00

February

80

$0.00

$0.00

2/28/2002

3/1/2002

$1,200.00

March

176

$3,700.00

$222.00

3/31/2002

3/29/2002

$2,500.00

April

168

$0.00

$0.00

4/30/2002

5/1/2002

$2,500.00

May

176

$5,000.00

$300.00

5/31/2002

5/31/2002

$2,500.00

June

160

$0.00

$0.00

6/30/2002

7/1/2002

$2,500.00

July

176

$2,500.00

$150.00

7/31/2002

8/1/2002

$2,500.00

August

184

$5,000.00

$300.00

8/31/2002

8/30/2002

$2,500.00

September

168

$0.00

$0.00

9/30/2002

10/1/2002

$2,500.00

October

184

$2,500.00

$150.00

10/31/2002

11/1/2002

$2,500.00

November

168

$5,000.00

$300.00

11/30/2002

11/29/2002

$2,500.00

December

176

$.00

$0.00





$23,700.00

TOTAL

1896

$23,700.00

$1,422.00


Due to these changes, starting September 1, 2012, we will no longer accept salary breakdown and salary certification information submitted on forms other than the ones we provide to you.

If you have questions, please contact the DAS Centralized PERS Services Team.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://omls.oregon.gov/pipermail/das_centralized_pers_services_team/attachments/20120808/2ae75ec9/attachment.html>