Employer NewsMarch 7, 2014
Attention: PNC Cash Concentration UserPlease click here to read this important message!
March 5, 2014
IMPORTANT MESSAGE FOR PNC CASH CON USERSDue to the upcoming implementation of the improved ACH payment system through PNC Bank, PSERS is requesting that all payments made through the existing system be made with an effective date of no later than March 31, 2014 as you will not have access to payments made with an April effective date after March 31. Payments with an April effective date should be made through the new ACH payment system which will be available April 1, 2014. Watch for more information on available training and the implementation for the improved ACH process.
2013 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 the 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 2013 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, 2014. Calls regarding the 2013 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.
Employer Contribution Rate for Fiscal Year 2014-2015
The employer contribution rate for fiscal year 2014-2015 will be 21.40%. The rate applies to salary and wages earned from July 1, 2014, through June 30, 2015. This rate was determined by PSERS’ actuary and reflects the rate caps established by Act 120 of 2010. The rate is subject to certification by PSERS Board of Trustees at its meeting on December 10, 2013. In addition, the employer contribution rate may change if pension legislation is enacted prior to June 30, 2014. The employer contribution rate for fiscal year 2014-2015 consists of 20.50% for pension costs and 0.90% for premium assistance payments. The projection for the employer contribution rate for fiscal year 2014-2015, prior to the rate caps being established with Act 120 of 2010 was 33.83%