[DAS_Centralized_PERS_Services_Team] Posting Personal Actions to PPDB Timely

[ELY Linda C * EGS]

Posting Personal Actions to PPDB Timely



As the DAS Centralized PERS Services Team strives to post all employee retirement benefit records timely, we see an opportunity for agency improvement regarding posting Personnel Actions in PPDB.  For PERS reporting purposes certain actions have more critical "timeliness" then others.  Actions such as new hires (PA Codes in the 100's), terminations (PA Codes in the 500's) and PERS Wages Job Class codes (PA Codes 238 and 268) have consequences if not posted prior to payroll's Run 2 for the month they are effective.  The consequences of not posting these actions timely can cost your agency money, as well as impact employee retirement accounts and benefits.



Since 1/1/2004, PERS' electronic reporting system has been capturing state employees' demographic and payroll data on a monthly basis instead of on an annual basis, as it did in years prior to 2004.  This is not a simple or perfect process.  DAS is able to capture and report personnel actions that are required by PERS statute which happen within the current payroll cycle.  For example, a new hire (PA Code 141) with an effective date of 6/5/2014, which falls within the 6/1/2014 to 6/30/2014 payroll cycle needs to be entered by June payroll cutoff Run 2.  If it is enter after June payroll run 2, DAS is unable to automatically pick up the code and report it to PERS.  After Run 2, it becomes a manual entry into the PERS system for the DAS Centralized PERS Services Team.  The only way the DAS team knows to do so is if the agency contacts us letting us know the code was entered late.



Here are some of the consequences of not entering these personnel actions timely:

*     Inaccurate or no reporting of employee demographic data to PERS.

*     Inaccurate demographic data can cause the payroll data for the affected month and possibly for months after, not to post to the PERS system.  This delay's crediting employee contributions to the employee's IAP account.

*     If the salary does not post within the same tax year, the agency can be responsible for prior year earnings the employee's account should have earned on the contributions.

*     If a new hire is not reported timely for an employee new to PERS, the employee's waiting time could be affected and it could affect when contributions should begin.  This can negatively impact other PERS participating employers.

*     If other state agencies or PERS participating employers do not report timely, it can impact when your agency should begin remitting contributions.  Your agency could have to pay employee, employer and prior year earnings for months or years that were not expected.

*     If a termination is not posted, PERS may believe the employee is entitled to more retirement service credits then they actually are and the employee's estimate for benefits could be incorrect.

*     If a termination is not posted, future employers may receive an inaccurate status check

*     If a termination is not posted and the employee request a benefit, it delays the processing of the payment.

*     If a PERS Wage Job Class Code is not reported timely, it could mean the agency is paying too much or too little in employer "match" dollars if the employee is moving from a general service to police and fire, or vice versus, position.

*     All of these could affect employees' PERS account accuracy and employees' ability to have all the information about their plan available timely to make decisions about retirement and to retire successfully.



Other consequences include manual work for your agency, the DAS Centralized PERS Services Team, and PERS staff to ensure PERS has the correct data.



The goal is to enter all personnel actions into PPDB by payroll cutoff Run 2 for the month they are effective.  Please remember that all new hire or terminations are reported to PERS, as well as PERS Wage Job Class Code and Name/Address changes.



A "best practice" is to not process any payroll until the appropriate personnel actions are entered into PPDB.



If you have questions about how entering personal actions into PPDB affect PERS reporting, please contact your DAS Centralized PERS Services Team analyst.  They will be glad to provide more detailed information.


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