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Employer News

June 10, 2016

Governmental Accounting Standards Board Statement No. 68 (GASB 68) Information Provided to Employers

PSERS has provided, through an email blast, to its employer contacts and business managers information necessary to comply with Governmental Accounting Standards Board Statement No. 68 (GASB 68).  PSERS has endeavored to provide as much information as possible to its employers as they report in accordance with this GASB Standard.  The email contained explanations of what was provided and what the employers’ responsibilities are.  Additionally there were three attachments. 

The attachments included in the email contained the following audited and supplemental information: 

Audited

o   Schedule of Employer Allocations

o   Schedule of Pension Amounts by Employer

o   Schedule of Amortization of Employers’ Deferred Outflows/Inflows

o   Notes to Schedule of Employer Allocations, Schedule of Pension Amounts by Employer, and Schedule of Amortization of Employers’ Deferred Outflows/Inflows

Supplemental (Unaudited)

o   Sample Note Disclosures

o   Reconciliation of Reported Covered Payroll

o   Schedule of Employers’ Changes in Proportion

o   Schedule of Separately Finance Specific Liabilities

Additional GASB 68 Resources can be found on the PSERS Employer GASB 68 Information

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  


March 31, 2016

Employer Workshop Schedule

The Public School Employees’ Retirement System’s (PSERS) Employer Service Center (ESC) invites you to attend our annual Employer Workshop.  The workshops begin April 22 and run through June 3, 2016.

The workshop is recommended for business managers, payroll staff, human resources staff, and anyone else responsible for reporting information to PSERS.  The primary focus of this year’s agenda will be retirement-covered compensation.  The topic was selected based on your questions to your ESC representative and the questions PSERS must pose to you when calculating a purchase of service or retirement benefit.  This workshop will not be educating you on the specific rules related to retirement-covered compensation, but address some of the problem areas.  Our Employer Reference Manual, specifically Chapter 8, defines the specific rules governing retirement-covered compensation.  If you are new to this topic or the position that requires you to report information to PSERS, we recommend that you familiarize yourself with the information in Chapter 8 prior to your attendance at the workshop.  If you have any questions prior to the workshop, please don’t hesitate to contact your ESC representative.

This workshop will aid you in the reporting of salary to PSERS based on the Retirement Code.  Unfortunately, time will not permit us to discuss each situation in depth, but hopefully answer the questions and address the problems you are encountering.  Whether you have an in depth knowledge of PSERS rules or not, we invite you to attend and pick up some helpful information.

We are looking forward to seeing as many of you there as possible.  If you have not responded to your ESC Rep yet, please do so as soon as possible.  If you weren’t planning to attend, but your schedule changes that would permit you to attend, please come.  We always enjoy the personal interaction.

The actual agenda and a list of locations, dates, and times are listed below. 

Workshop Schedule


March 3, 2016

Attention School Employers:  Please Distribute This Message To Your Superintendent, Business Manager, and Accountant Immediately.

PSERS has been advised by the Commonwealth Office of the Budget that the March 2016 and June 2016 retirement subsidy payments to public school employers are scheduled to be paid in the normal course of business, as the School Employee Retirement line item was fully funded in the enacted Pennsylvania General Fund budget signed December 29, 2015. As such, the payments are scheduled for March 16, 2016 and June 16, 2016 from the Pennsylvania Department of Education. 

Public school employers have up to five business days after receipt of the Commonwealth Share (retirement subsidy payment) of the employer contributions to provide the Total Employer Contribution payment to PSERS. The Total Employer Contribution is the Total Employer Share made up of the Commonwealth Share and School Share. Please note, all past due payments may incur a 6% interest charge.

For reference, two links to the Governor’s Budget Office can be found below.  The first is the Enacted Budget for 2015-2016; the second is for the line item detail.  In the second link, please note page 4, that line number 175 under Education (continued from page 3) is for $1,725,000,000.  This amount represents the full year’s Retirement Subsidy funding for public school employers.

http://www.budget.pa.gov/PublicationsAndReports/CommonwealthBudget/Pages/default.aspx#2015-16Enacted

http://www.budget.pa.gov/PublicationsAndReports/CommonwealthBudget/Documents/2015-16%20Enacted%20Budget/Web%20Tracking%20Run%20-%20Enacted%202015-16.pdf

Any questions regarding the information PSERS has provided can be sent to RA-PSERSEMPACCT@pa.gov or you may contact your Employer Service Center Representative at 1-866-353-1844.

Respectfully,

Public School Employees’ Retirement System


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.


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.


Member Contributions

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).  PSERS has endeavored to provide as much information as possible to its employers as they prepare for this implementation.  The email contained explanations of what was provided and what the employer’s responsibilities are.  Additionally there were three attachments. 

The attachments included in the email contained the following audited and supplemental information: 

Audited

  • 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

Supplemental (Unaudited)

  • 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.   


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