OSPS E-News ~ Pension Bond Assessment Increase

[Announcements from OSPS to the users of the Oregon State Payroll Application]

Good afternoon,

 

This following message (and attached memo) is being forwarded on behalf
of the DAS Budget and Management Division.  Please share as appropriate
within your agency.

 

Thank you,

Sandy Ridderbusch, Manager

Oregon Statewide Payroll Services

DAS / State Controller's Division

155 Cottage Street NE, U-50

Salem, OR 97301-3969

(503) 373-0198

 

 

The pension bond assessment rate is going to increase from 5.95% to
6.33% for pay periods beginning November 1, 2011.  We expect the rate to
remain at 6.33% through June 30, 2013.  However, we will continue to
monitor the cash collected each month and reserve the right to adjust
the contribution rate at any time to ensure cash is available to pay
debt service when due.

 

During the budget development process a fixed dollar amount is included
in agency budgets rather than allowing the assessment to fluctuate with
payroll changes.  By doing so, we ensure the budgeted debt service, in
total, precisely matches known debt service requirements.  However,
during budget execution, we collect the POB assessment as a percentage
of payroll.  This allows the assessment to qualify as an allowable cost
for all federal program and grants where payroll charges are a part of
the grant funding.

 

OSPS has been notified of the rate change effective for payroll
beginning 11/1/2011, paid 12/1/2011.  They will implement it effective
that date.

 

                                    A brief history of the POB
assessment rate is:

 

                           Payroll Earned During
POB Assessment Rate

Nov 1, 2003 through 4/30/2004                                    -0- %
of PERS subject payroll

May 1, 2004 through 10/31/2004                                   7.39%
of PERS subject payroll

Nov 1, 2004 through 10/31/2005                                   6.71%
of PERS subject payroll

Nov 1, 2005 through 4/30/2006                                     6.45%
of PERS subject payroll

May 1, 2006 through 12/31/2007                                   6.20%
of PERS subject payroll

January 1, 2008 through 10/31/2011                             5.95% of
PERS subject payroll

November 1, 2011 until revised                                     6.33%
of PERS subject payroll.                       

 

If you have any questions or concerns, please notify your BAM analyst or
contact Mark Miedema (mark.miedema at state.or.us
<mailto:mark.miedema at state.or.us> ) at 503-378-4735.

 

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