OSPS E-News ~ New PERS System and Changes

Fri Jan 23 15:51:24 PST 2004

 We understand that agencies are curious and maybe a bit frustrated about a
number of issues related to the PERS pension  system implementation.  We
will tell you what we know at this time.   We learned today that PERS plans
to issue an employer bulletin customized to the needs of those whose payroll
is processed through OSPA.  They have also promised to provide a training
session in Salem very soon.  As soon as we are provided with this
information by Karen Chavez, manager of MERS, we will pass it along.  

For now, here are a few things to consider.   

PERS EDX System Access

It is necessary for each agency to determine the appropriate person(s) to
have access to the PERS Employer Data Exchange (EDX) system.  PERS recently
sent agencies a form to designate a "web administrator".  That person will
be given  system access by PERS and will then be authorized to grant access
to other agency system users.   If you have not returned your "Web
Administrator Agreement" to PERS, you should do so right away.  

Those who did return the authorization and access form might be wondering
when they will receive their user IDs and passwords.  PERS tells us that the
dissemination of this information has been delayed but they will be sent out
very soon - likely within a week.  

At the end of this message, there is a copy of an advisory previously sent
to agency payroll, fiscal and HR personnel on December 24 regarding system
access and segregation of duties.  

Reporting

Just as in the past, OSPS will continue to provide reports to PERS
containing demographic, wage and contribution data.  

At present, we are finalizing our testing with PERS.  There have been a few
unexpected issues that have come up and we have been working with PERS on a
daily basis to solve these problems.  Once testing is complete, we will be
sending an actual batch covering December payroll Runs 1 and 2 into the
production region of the PERS EDX system. 

Once we send an actual batch to PERS EDX and it is processed, agencies will
be notified that their agency batch has been processed and notified of any
exceptions that have to be cleared.  If there are no exceptions, you will
simply receive a verification of the record posting.   These notifications
will be made to the person designated as the "web administrator" at your
agency.  

PERS EDX System Use by Agencies

Agencies have always had the responsibility to clear exceptions and correct
errors or conditions that prevented posting of contributions to individual
accounts.  Agencies have previously used the PERS RIMS system to research
employee status and determine eligibility.   In the new PERS environment,
those tasks will be carried out through the use of the EDX system.  The
primary difference is that the tasks related to errors and exceptions will
be done on a monthly basis rather than only at the end of the year.   This
is a change to your workflow and it will take time to integrate this into
your routine.  Eventually, when you realize that the nightmare of year end
reconciliation has been replaced by the monthly process, you will very
likely be pleased with the changes. 

 Training

Many agency payroll and HR representatives attended the meetings with PERS
that OSPS hosted on December 2 and 3.  Many agency payroll, fiscal and HR
representatives attended PERS training on the use of the EDX system.  Some
were face-to-face trainings and some were over the internet.  

If you did not attend the meetings or a training,  or if your agency didn't
enroll for a web administrator to secure access to the PERS EDX system, you
might be feeling a bit in the dark and you need to try and get up to speed
on this right away.  You might start by going to the PERS website.  There
are educational materials, enrollment forms for training, contact
information and much more.  This is the way that PERS intends to communicate
in the future - you should get used to using this website for information
just as you use the OSPS website.
http://www.pers.state.or.us/er/index.asp
<http://www.pers.state.or.us/er/index.asp> 

Last but not least, if this message doesn't answer all of your questions,
please forward them to  <mailto:osps.help at das.state.or.us>
mailto:osps.help at das.state.or.us  We will collate these questions and give
them to Karen Chavez at PERS.  This will help her design good training or
informational materials for you.  

New PERS Benefit System 

With the planned January 1, 2004 implementation of the new PERS benefit
system (EDX), we recognize that agencies have been asked to identify the
specific staff in their agencies who will have access to make changes in the
EDX system.  When making these decisions, it is important to evaluate
internal control considerations.  In accordance with OAM 10.10.00, which
outlines management's responsibilities for Internal Control, agencies need
to ensure proper controls are in place when authorizing access to the EDX
system and assigning duties.  

One of the principles of internal control is segregation of duties.  It is
important to segregate duties for authorization, record keeping, and
reconciliations (to the extent possible) to reduce opportunities for any
individual to be in the position to both perpetrate and conceal errors or
fraud in the normal course of duties.

Just as no one person has access to make changes to both the State's
Personnel System (PPDB) and the State's Payroll System (OSPA), the same
internal control concept would apply to granting access to EDX.  If you
assign an individual to make changes to the PERS benefit system, you need to
consider what other duties (system access) that individual has.  While we
realize the level of segregation of duties will vary depending on the size
of the agency, all agencies need to ensure that proper controls are in
place.  Use the following guidelines as you consider how to best apply the
principles of internal control in OAM 10.10.00:

*	For small agencies:  If you grant access to an individual to make
changes in the PERS benefit system and that same person has access to OSPA
(due to limited fiscal staff), you need to ensure that someone else will
complete the reconciliation between OSPA and EDX.  As with any
reconciliation, you should have an independent person verify the
reconciliation through review and approval.  In granting access to the PERS
EDX system, you should also consider existing access to the State's
Personnel System and how assigned duties may be properly segregated.  

*	For medium-size agencies:  If you grant access to an individual to
make changes in the PERS EDX system, you should assign a different person to
have access to OSPA (if staffing levels allow).  At a minimum, you need to
ensure that someone other than the individual with access to EDX will
complete the reconciliation between OSPA and EDX.  As with any
reconciliation, you should have an independent person verify the
reconciliation through review and approval.  In granting access to the PERS
EDX system, you should also consider existing access to the State's
Personnel System and how assigned duties may be properly segregated.  

*	For large agencies:  If you grant access to an individual to make
changes in the PERS benefit system, assign a different person to have access
to OSPA.  In addition, you need to ensure that someone other than the
individual with access to EDX will complete the reconciliation between OSPA
and EDX.  As with any reconciliation, you should have an independent person
verify the reconciliation through review and approval.  If you grant access
to an individual to make changes in the PERS EDX system, assign a different
person to have access to PPDB, the State's Personnel System. 

If you have questions related to internal control as you make decisions
about granting access to EDX,  please call Sharon McKeehan (503-378-6777
ext. 230) or Jean Gabriel (503-373-7277 ext. 253).

A link to the OAM table of contents is provided for quick reference to OAM
10.10.00: 
 <http://scd.das.state.or.us/oam/scdpolicy/tableofcontent.htm>
http://scd.das.state.or.us/oam/scdpolicy/tableofcontent.htm 

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