[DAS_Centralized_PERS_Services_Team] Change Coming to Domestic Partner Imputed Value - PERS Subject Wages for OPSRP Employees

[VIDAL Trudy * DAS]

HR and Payroll staff:

When Workday Payroll goes live on December 1, 2022, a change will be implemented for OPSRP PERS pension plan employees who elect domestic partner health insurance coverage. Per Oregon Revised Statute 238A.005(17), Department of Administrative Services, in consultation with the Department of Justice and the Public Employees Retirement System, determined that the domestic partner imputed value are PERS subject wages for OPSRP employees who cover the domestic partner by affidavit. The "imputed value" is the additional wage that is included in the monthly salary for the domestic partner insurance election for tax purposes required by the IRS.  The imputed value amount is visible on the employees' paycheck stub labeled "DT Tax."

Beginning with the January 3, 2023 paycheck, these additional imputed wages will be included in affected employees' PERS subject wages with their monthly paycheck. This payroll change has two effects:


  1.  The amount of wages that is considered "salary" for purposes of calculating retirement benefits will be higher, eventually increasing the OPSRP retirement benefit.
  2.  Because "salary" under ORS chapter 238A will be higher, the monthly member paid 6% IAP contribution (pre-tax) will increase and the taxable wage will likely decrease. This will likely decrease net monthly paychecks.

DAS will notify the affected employees of this change on October 5, 2022. This change is only for OPSRP employees. Tier 1 and 2 PERS pension plan employees are not impacted by this change. We know this is a complicated issue and are prepared to individually help you or your employees.  If you have questions, please email them to: FBS.CustomerQuestions at DAS.oregon.gov<mailto:FBS.CustomerQuestions at DAS.oregon.gov>.

Trudy Vidal, CPA
Financial Business Systems Manager
Enterprise Goods and Services
Department of Administrative Services
State of Oregon
Telephone:  971-719-3269

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