[DAS_Centralized_PERS_Services_Team] PERS Retro Corrections

[TOBIASSON Shauna M * DAS]

Payroll Partners,


This is a reminder that not all payments to employees are PERS subject.  It is especially important to consider this when coding adjustments and retroactive payments on OSPA.  The PERS contributions being paid by the employee (MPPT) has complicated this process. Payroll staff have an increased responsibility to ensure they are using codes that are either subject or non-subject based on the type of payment and the employees PERS tier.



Prior to MPPT, payroll would process the adjustment and contributions would be charged based on the coding of the adjustment. If payments processed on the PERS file were determined by  CPERS to not be PERS subject, we would work with the agency to correct.  As an example, payroll made a settlement payment for 2015 when employers paid the contributions (EPPT) using the SAD code on P050. The behind the scene calculation included a vacation payoff for an OSPRP member. CPERS received the year to date correction form sent by the agency and saw that the vacation portion of the payment should not have been subject for OPSRP. CPERS would apply the payment correctly (partially subject and partially non-subject) in the PERS system. This would create a credit on the agency's PERS statement for the non-subject portion that would be credited back to the agency during the annual invoicing process.   The employee's net pay would not be affected.



Now that contributions are being paid by the members, the entries payroll makes in OSPA actually withhold the contributions from the employee. Using the same example as above but for 2019, CPERS received the year to date correction form from the agency and saw that the vacation portion of the payment should not have been subject for OPSRP.  The employee was charged contributions on something they were not eligible for, and they are due a refund for those contributions. CPERS would apply the payment correctly (subject and non-subject) in the PERS system. This would create a credit on the agency's PERS statement for the non-subject portion that would be credited back to the agency during the annual invoicing process.  The employer receives the funds back from PERS, but the employee does not. The agency has to make an adjustment in OSPA to pay the contributions back to the employee.



Using the same circumstances as the example above, here is what should happen:

The portion of the settlement payment for subject wages should be coded on the P050 using a subject settlement pay code (for example, SAD). The VAP portion of the settlement should be coded on the P050 using a non-subject retro code (for example, VAP or ZSN). This would not charge the OPSRP employee for the contributions on the vacation portion of the payment. Note- payroll codes can be found here: https://www.oregon.gov/das/Financial/Payroll/Documents/PayLeaveCodes-alpha.pdf.



CPERS & OSPA are currently partnering to create a retroactive adjustment guide that will assist you in making retroactive adjustments in OSPA; it will include guidance on P060 adjustments. We will send this out as soon as it is complete.



In the meantime, we are here to assist. The CPERS Analyst assigned to your agency can assist you with better understanding PERS subjectivity and how to make retroactive entries. In addition, you may find information on what types of payments are subject based on the PERS plan here: https://www.oregon.gov/pers/EMP/Documents/Misc-Documents/Payment-Categories.pdf



Please don't hesitate to contact us if you have any questions!



Sincerely,

Shauna Tobiasson | Senior CPERS Analyst | DAS-EGS-CPERS
Shauna.m.tobiasson at oregon.gov<mailto:Shauna.m.tobiasson at oregon.gov> | Cell: 971-719-3173
Website: http://www.oregon.gov/DAS/Financial/payroll/Pages/index.aspx
"With the new day comes new strength and new thoughts." -Eleanor Roosevelt

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