Employerpedia (Employer Resources)
Anonymously Retirement Errors (CARE) Line
CARE Line Toll-free number: 1.888.222.0549 | CARE Line Local number: 717.720.4602
The CARE Line is a toll-free number that can be used to call PSERS regarding pension-related issues of which PSERS should be made aware. Anyone can call this line to inform PSERS about retirees who have incorrectly returned to work for a Pennsylvania public school employer, money that has been inadvertently reported as retirement covered compensation, etc. When you call the CARE Line, you will reach a voicemail box where you can anonymously leave a message at any time of day or night without fear of retribution.
Messages from the CARE Line voicemail box are written down and deleted. PSERS does not trace the numbers from received phone calls. Callers are not required to identify themselves. The caller can use the toll-free number from a cell phone, home phone, or pay phone; PSERS will not know where the call was placed. PSERS understands that we all play a vital role in ensuring that the rules established by the Pennsylvania State Legislature are followed. With your help, we can ensure the pension laws are administered fairly and equally to all PSERS members.
RETURN TO SERVICE
Reporting Contributing Leaves to prevent members from being taxed twice on contributions while on contributing leaves, we request employers submit salary information applying the
following guidelines (PDF).
Contribution Rate Information
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
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 4, 2015
December Retirement Subsidy
The Net Employer Share of the employer contribution rate will be due to PSERS by December 23.
PSERS will provide to school employers via email, on or before December 16, the Net Employer Share amount that is due to PSERS.
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 school employers.
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.
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%.
Maximum Earnings Subject to Contribution
IRS Section 401(a)(17) of the Internal Revenue Code limits the amount of compensation that is subject to retirement contributions for active employees entering PSERS membership on or after July 1, 1996*.
- For employees who became PSERS’ members before July 1, 1996*, there is no maximum earning level beyond which retirement contributions should not be made. Contributions must be made on all qualifying earnings for these employees, regardless of how much they earn in a calendar year.
- For employees who became PSERS’ member on or after July 1, 1996, the maximum amount of earnings that qualify for retirement contributions may not exceed the limitation. The limit for a PSERS fiscal year is the IRS announced limit for the calendar year in which such fiscal year begins. If an employee earns more in a fiscal year than the limit, all salary that exceeds this limit should be reported in the EXSAL (Excess Salary) field on the employee’s Work Report Records for the remainder of that Fiscal year. No retirement contributions should be made on this excess salary. The salary limitation for the last 6 years is as follows:
If a determination period consists of fewer than 12 months, the compensation limit for that year will be multiplied by a fraction, the numerator of which is the number of months in the determination period and the denominator of which is 12. Example: For an employee who works for 5 months in 2006, the reportable compensation limit would be $91,667 ($220,000 x 5/12).
* If a refund or retirement exists, examine Contract Record table for first subsequent rehire date (Start Date) that occurred after the last refund/retirement.
i. If the rehire date is greater than or equal to 7/1/1996, the member is subject to the 401(a)(17) limitations. ii. If the rehire date is less than 7/1/1996, then the member is not subject to the 401(a)(17) limitations.
Military - 2013 Military Leave Legislation (PDF)
Pension Forfeiture - Pension Forfeiture Act - Act 2004-86 Information
Planning Calendar - 2017 Planning Calendar (PDF)
PNC CASH CON
This is to update you that effective on March 31, 2014 at 5:00 PM, you will no longer have access to make any payments in the current Cash Con system. Any payments posted prior to 5:00 p.m. will be processed as they currently are. Effective on April 1, 2014 you will make all payments through the improved Cash Con system. Please follow the instructions that were provided with the slide presentations that are currently available on the Employer News page of the PSERS website.
Retirees Returning to Employment - Return To Service Guidelines and Clarifications (PDF)
Retirement Information Requests
T-F Election Process, Membership & Qualification
Waiving Membership in PSERS - Revised Waiving Membership (PDF)
The Employer Reference Manual, Chapter 11: Reporting – Work Report Adjustments, explains the steps required to correct information previously reported to PSERS. The chapter also defines each of the fields and their proper usage. If you have questions after reviewing the information, contact the Employer Service Center.
Work Status Codes - Revised Work Status Codes (PDF)
Workers' Compensation Reporting - Rules for Workers' Compensation (PDF)
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 (PDF) if you would like to view the presentation.