Attention School Employers: Please Distribute This Message To Your Superintendent, Business Manager, and Accountant Immediately.
January 13, 2016
2015 Premium Assistance Verification
The Premium Assistance Verification will commence this week as reports are being mailed to the Business Managers of Commonwealth School Employers. As in the past, these listings represent monthly Premium Assistance payments made to retirees as a reimbursement of premiums paid to your health insurance plan for their personal coverage. The Internal Revenue Service requires PSERS to verify that premiums were actually paid by retirees receiving this reimbursement. PSERS is requesting that employers verify premiums paid during the 2015 calendar year. In order to ensure there is no interruption in Premium Assistance to your plan participants, please complete and return the report to PSERS by March 31, 2016. Calls regarding the 2015 Premium Assistance verification should be directed to the Premium Assistance Unit at 1-866-483-5509.
Your assistance in verifying these payments is greatly appreciated.
January 4, 2016
Retirement Subsidy Update
PSERS has been advised by the Commonwealth Office of the Budget that the September and December retirement subsidy payments for public school employers have been approved. Additionally, PSERS understands that both subsidy payments will be paid on January 5, 2016 from the Pennsylvania Department of Education.
Public school employers have up to five business days after receipt of the Commonwealth Share of the employer liability to provide payment to PSERS. Payment of the Commonwealth Share must be remitted to PSERS by January 12, 2016.
December 15, 2015
December Retirement Subsidy Update
Due to the ongoing budget impasse, employers who receive a retirement subsidy have the option of only remitting their Net Employer Share. An email was sent to employers on December 16, 2015 detailing the Total Employer Share, Commonwealth Share, and Net Employer Share. If you have not received this email, please contact PSERS at RA-PSERSEMPACCT@pa.gov.
Employers who do not receive a retirement subsidy should remit their payments as in the normal course of business.
These payments are due by December 23, 2015.
PSERS recognizes that the Commonwealth Budget situation is fluid at this time. Please check the Employer News page of PSERS’ website for updates, as they become available.
Please note; All past due amounts may incur a 6% interest charge.
December 8, 2015
Employer Contribution Rate for Fiscal Year 2016-2017
The employer contribution rate for fiscal year 2016-2017 will be 30.03%. The rate applies to salary and wages earned from July 1, 2016, through June 30, 2017. This rate was determined by PSERS’ actuary and is the first time in 15 years that the rate is not artificially suppressed.
The rate was certified by the PSERS Board of Trustees at its meeting on December 8, 2015. The employer contribution rate may change if pension legislation is enacted prior to June 30, 2016. The employer contribution rate for fiscal year 2016-2017 consists of 29.20% for pension costs and 0.83% for premium assistance payments. Of the 29.20% portion of the employer contribution rate, 20.89% represents the interest on the unfunded liability.
Net Employer Share
PSERS has reviewed existing legal analysis and past practices and has concluded that school employers must pay their Net Employer Share of the employer contribution rate to PSERS during the budget impasse.& PSERS is aware that the Pennsylvania School Boards Association has rendered an opinion stating school employers do not need to submit any contributions to PSERS during the budget impasse. Nonetheless school employers must remit the Net Employer Share to PSERS as required by law by September 23, 2015.
Please note: All past due amounts may incur a 6% interest charge.
PSERS will provide to school employers, via email, the Net Employer Share amount due by September 23, 2015. The information will reflect the calculation of the Net Employer Share as follows:
Total Employer Share
Less: Commonwealth Share
Equals: Net Employer Share
The Net Employer Share is the amount to be remitted to PSERS. o:p>
PSERS will provide this information to school employers by September 16, 2015 so they can remit the Net Employer Share payment to PSERS by the September 23, 2015 payment due date.
Payroll-deducted member contributions are not impacted by the budget impasse and must be remitted as usual to PSERS, no later than 10 days after the close of the month for which deductions were withheld.
Questions concerning this message should be directed to your Employer Service Center Representative at 1-866-353-1844.
Employer Workshop Presentation
PSERS has concluded its annual workshop series. There were 418 employers represented at our workshops. The surveys show that we Fully Met the learning objectives for 73% of the attendees. We will continue to refine our process to hopefully obtain a higher rating next year.
If you were unable to attend, our primary focus was directed on leaves of absence and the creation of the proper Contract Records, the reporting of salary, contributions, and service units. The agenda consisted of:
Click here if you would like to view the presentation.
Implementation of Governmental Accounting Standards Board Statement No. 68 (GASB 68)
On Friday June 26th, PSERS provided,
through an email blast, to its employer contacts and business managers
information necessary to implement Governmental Accounting Standards
Board Statement No. 68 (GASB 68).
The attachments included in the email contained the following audited
and supplemental information:
- Schedule of Net Pension Liability Allocations by Employer
- Schedule of Allocations of Pension Amounts by Employer
- Schedule of Employers’ Proportionate Share of Deferred Outflows/Inflows
- Notes to Pension Liability Allocations, Allocations of Pension Amounts by Employer, and Employers’ Proportionate Share of Deferred Outflows/Inflows
- Sample Note Disclosures
- Reconciliation of Reported Covered Payroll
If you did not receive the information or have any questions regarding the GASB 68 information provided, please send an email to the following email address: RA-PSERSEMPACCT@pa.gov.