Attention School Employers: Please Distribute This Message To Your Superintendent, Business Manager, and Accountant Immediately.
The Pennsylvania Budget Impasse and the Payment of Quarterly Employer and Monthly Member Contributions to PSERS
As you know, school employers are directly reimbursed by the Commonwealth of PA (Commonwealth Share) for no less than 50% of the employer contribution rate. School employers are then required to pay 100% of the employer contribution rate (Total Employer Share) to PSERS.
Due to the ongoing budget impasse, retirement
subsidy reimbursements for the Commonwealth Share of the employer
contribution rate may not be made to school employers by the next
scheduled payment date of September 16, 2015. According to past
practices, PSERS will not require school employers to remit payment for
the Commonwealth Share of the employer contribution rate until such time
that the Commonwealth provides retirement subsidy reimbursements to the
When the Pennsylvania budget is passed and the Commonwealth Share reimbursement has been distributed, school employers will then have 5 business days to remit the Commonwealth Share to PSERS.
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.
Employer Contribution Rate for Fiscal Year 2015-2016
The employer contribution rate for fiscal year 2015-2016 will be 25.84%. The rate applies to salary and wages earned from July 1, 2015, through June 30, 2016. This rate was determined by PSERS’ actuary and reflects the rate caps established by Act 120 of 2010. The rate was certified by the PSERS Board of Trustees at its meeting on December 9, 2014. In addition, the employer contribution rate may change if pension legislation is enacted prior to June 30, 2015. The employer contribution rate for fiscal year 2015-2016 consists of 25% for pension costs and 0.84% for premium assistance payments. The projection for the employer contribution rate for fiscal year 2015-2016, prior to the rate caps being established with Act 120 of 2010 was 33.49%.