Sonoma County Office of Education

Business Services

EXTERNAL FISCAL SERVICES UPDATES

PAYROLL YEARLY REVIEW: JUNE 13, 2017

Year-End Reminders:

CalSTRS DBS Excess Contribution Refunds are due in part to AB 1469 that went into effect

July 1, 2014 (see Attachment #1)

CalSTRS employee and employer Defined Benefit (DB) contribution rates

continue to increase

CalSTRS employee and employer Defined Benefit Supplement (DBS) contribution

rates remain the same

CalSTRS annually transfers contributions on earnings in excess of one year of

service credit from each member’s DB account to the member’s DBS account

CalSTRS calculates the excess member and employer contributions and returns a

lump sum to either the last employer or to the employer where the member had

the lowest pay rate(s).

There are 3 Payrolls to process for June (see Attachment #2: “Submitting June 30th Payroll”)

New Fiscal Year Reminders:

Email the helpdesk and cc Carol Mahan your FY2017/2018 certificated contract days with a

list of addons that need updating

All districts should have a balance sheet outside of Escape for balancing payroll

Register to verify Employees’ Social Security Number (see Attachment #3: IRS Publication

15)

New Hire Reporting to EDD is a requirement (see Attachment #4)

Use the Employee06 for reporting

Initiate Pay

Before beginning payroll

Again before submitting payroll

Always address and account for all errors on the Pay22a Payroll Errors report prior to

submitting payroll

Retirement Errors: contact Carol Mahan for STRS and Maria Aguayo for PERS

Prior to submitting payroll run the Retire01, 02 and 09 reports (STRS and PERS qualifying

reports)

If the employee qualifies in June:

- For CalPERS - bring them into membership even if they won’t be paid

again until August/September

- For CalSTRS - do not bring them into membership, instead the monitoring

of days and hours starts over July 1

Payroll reports should be signed by either the immediate supervisor of the Payroll Tech or

by an administrator

Run Pay31 W2 Errors Report after each payroll to address W2 errors now instead of later

Can correct now Box 12 Out of Range Errors

Can correct now Address Errors

Monitor FIT, SIT, OASDI and Medicare Out of Range and Calculation Errors

- Work with Erin Graves to determine if errors can be corrected now or if

they can only be corrected at W2 calendar year end.

With first payroll in July, send contract/documentation for Superintendent’s, CBO’s and

Payroll Tech’s salary (email production@scoe.org)

Audit check for reasonableness and for any changes in salary

Retirement Reminders:

New Employee’s CalSTRS Retirement Verification (see Attachment #5)

Steps to take prior to hiring retiree and prior to paying the employee

Notify CalSTRS Retirees of Earnings Limits and Retirement Incentive Restrictions (see

Attachment #6: CalSTRS Employer Directives 2017-03 and 2016-06)

STRS Retirement Earnings Max. for FY2017/2018: $43,755

STRS Golden Handshakes retirees cannot return to work in any job capacity with

the school district or COE that granted the Retirement Incentive within 5 years of

the retirement date.

Revised Permissive Membership form and Retirement System Election forms

Permissive Election form (ES0350) Attachment #7 – use any time an employee is

performing creditable service, but is excluded from mandatory membership

Retirement System Election form (ES0372) Attachment #8– use when employee

is a member of one retirement system and is performing service that mandates

membership in another retirement system and wants to elect to remain in their

current retirement system.

- Employee has 60 days from hire date in the new position to make this

election

CalSTRS Retirees Working as Independent Contractor:

CalSTRS retirees are subject to the earnings limit that includes earnings paid to

the retiree as an independent contractor (see Attachment #6: Employer

Directive 2017-03 for Postretirement Earnings Limitations and Restrictions)

- When contracts for professional services are submitted:

Look-up membership status in CalSTRS SEW

Complete SCOE’s CalSTRS Retiree Earnings Paid Through Accounts

Payable form and send it, along with a copy of invoices, to SCOE’s

retirement desk (Carol Mahan)

o The invoice amount(s) will be included on the next

CalSTRS retirement report

Complete CalSTRS Form ES-732 Employer Certification of

Independent Contractor Status and retain in Employee’s File

New Employee’s CalPERS Retirement Verification (see Attachment #9)

CalPERS – Salary Schedules (see Attachments #10 & #11: CalPERS Circular Letters 200-056-

11 and 200-050-12)

CalPERS does not accept employment agreements in-lieu of salary schedules

CCR 570.5 has specific requirements for a Publicly Available Pay Schedule that

applies to all employers reporting compensation for CalPERS

PERS Change form for Separation when an employee ends employment for any reason (see

Attachment #12: CalPERS Circular Letter 200-015-16)

Sign up for CalPERS E-bulletins (see Attachment #13)

Miscellaneous Reminders:

Foreign Teachers:

Individuals admitted to the U.S. under an F-1, J-1, M-1 or Q-1 visa are generally

exempt from both social security and medicare taxes for 2 calendar years from

the calendar year of entry. After which they become Resident Aliens are are

liable for social security and medicare taxes.

Individuals may also quality for a Tax Treaty Exemption if a treaty between the

U.S. and their home country actually exists.

Exchange and Sojourn Teachers:

CalSTRS has determined that the exclusion to membership found in ed code

22601: “Persons service as exchange teachers or sojourn teachers from outside

of this state are excluded from membership in the plan,” applies only to teachers

who are employed in an exchange/sojourn program, as part of a 2 year

agreement with the employer. It is the employer’s responsibility to determine

the basis of employment when considering what retirement plan or benefits to

offer their employees.

Exchange and Sojourn Teachers Continued:

- Set up Sojourn Teachers in Escape with Assignment Code 62

- Will need to manually override the Contribution Code to 0 (Non-

Member)

Allow 1 full week before requesting a stop payment (the speed of the US mail has slowed

down)

Always complete a Manual Payroll Request form when requesting a stop

payment or void for a paycheck.

Current Manual Payroll Request Form and Procedures on Escape’s Home Page,

Forms tab

Mark either “Cancel” (page 1) or “Reissue” (page 2) whichever applies

When a Reissue, indicate whether district will pick up or send AV

When employee picking up, employee must bring photo id

Manual Payrolls

When creating manual payroll you may need to override the retirement dates in

the Retirement section using the prior month’s Service Begin and Service End

Dates

The Contribution Code default is 03 Earnings Adjustment Prior Period (Manual

Payroll is similar to Supplemental and is considered current month)

- As appropriate change Contribution Code to either

1 Normal/Current

11 Normal/Current Tax Deferred or

0 Non-Member

When requesting a Cancel for a previously terminated employee, remember to

create or copy the terminated employee’s pay cycle

Carol Mahan and Maria Aguayo often process adjustments on the manual payroll

- Janelle Sarsfield will contact the district to find out whether the district

would like to pick up the check or to send AV

Attachment 3

Attachment 3

Attachment 4

Attachment 4

Attachment 4

Attachment 4

Attachment 6

Attachment 6

Attachment 6

Attachment 6

Attachment 6

Attachment 6

Attachment 6

Attachment 6

PERMISSIVE MEMBERSHIP • rev 02/17 • PAGE 1 OF 1

Permissive Membership ES 0350 rev 02/17

California State Teachers’ Retirement System

PERMISSIVE MEMBERSHIP ELECTION AND ACKNOWLEDGEMENT OF RECEIPT OF CALSTRS DEFINED BENEFIT PROGRAM MEMBERSHIP INFORMATION

P.O. Box 15275, MS 17 Sacramento, CA 95851-0275

800-228-5453 CalSTRS.com

Employees who are employed to perform creditable service, but who are excluded from mandatory membership pursuant to Education Code sections 22601.5, 22602, or 22604, are eligible to permissively elect membership in the California State Teachers’ Retirement System (CalSTRS) Defined Benefit Program pursuant to Education Code section 22515. This form enables eligible employees to make this election or decline to make this election. This form must be received by CalSTRS within 30 days of the date on which the employee signs and dates the form. Contributions may not be submitted to the system until CalSTRS has received the completed election form. If the employee elects membership in the CalSTRS Defined Benefit Program, the membership date shall be the first day of the pay period following the date on which the employee signs and dates this form.

Section 1: Employee Information, Election and Certification (to be completed by employee) NAME (LAST, FIRST, MIDDLE INITIAL) CLIENT ID OR SOCIAL SECURITY NUMBER

MAILING ADDRESS HOME TELEPHONE

CITY, STATE and ZIP CODE GENDER (circle one)

MALE FEMALE

E-MAIL ADDRESS BIRTH DATE (MM/DD/YYYY)

I elect membership in CalSTRS Defined Benefit Program I understand this membership election is irrevocable and applies to all future employment to perform creditable service with the same or another employer, and may be canceled only by terminating all such employment and receiving a refund of my accumulated retirement contributions from CalSTRS.

I decline membership in CalSTRS Defined Benefit Program at this time I understand I can elect membership in the Defined Benefit Program at any time while I am employed to perform creditable service.

I certify I have received information from my employer concerning the CalSTRS Defined Benefit Program and understand the criteria for membership in the program. I understand it is a crime to fail to disclose a material fact or to make any knowingly false material statements for the purpose of altering or receiving a benefit administered by CalSTRS and it may result in up to one year in jail and/or a fine of up to $5,000 pursuant to Education Code section 22010.

EMPLOYEE SIGNATURE DATE

Section 2: Employer Certification (to be completed by employer) I certify that the above-named part-time or substitute employee has been provided with CalSTRS Defined Benefit Program membership criteria as required pursuant to Education Code section 22455.5, and if applicable, informed of his or her right to elect into membership in the CalSTRS Defined Benefit Program.

OFFICIAL’S SIGNATURE DATE

OFFICIAL’S NAME TITLE

COUNTY (or other employing agency) DISTRICT

EMPLOYEE # * MEMBERSHIP DATE (MM/DD/YYYY) ASSIGNMENT (circle one)

Part-Time Substitute

* Effective January 1, 2017, permissive membership in the Defined Benefit Program shall become effective as of the first day of the pay period followingthe employee’s election.

Attachment 7

RETIREMENT SYSTEM ELECTION ● rev 02/17 ● PAGE 1 OF 1

Retirement System Election ES 0372 rev 02/17

RETIREMENT SYSTEM ELECTION AND ACKNOWLEDGEMENT OF RECEIPT OF RETIREMENT SYSTEM INFORMATION

California State Teachers’ Retirement System P.O. Box 15275, MS 17

Sacramento, CA 95851-0275 800-228-5453 CalSTRS.com

PLEASE READ THE ATTACHED INFORMATION AND INSTRUCTIONS BEFORE COMPLETING THIS FORM. PLEASE TYPE OR PRINT LEGIBLY IN DARK INK.

SECTION 1: MEMBER INFORMATION AND ELECTION (to be completed by employee)

NAME (LAST, FIRST, MIDDLE INITIAL) FULL SOCIAL SECURITY NUMBER A member of CalSTRS who becomes employed in a new position by the same or a different school district, a community college district, a county superintendent of schools, limited state employment or the Board of Governors of the California Community Colleges, as defined in Education Code sections 22508 and 22508.5, to perform service that requires membership in a different public retirement system will have that service credited with that other public retirement system unless he/she files a written election (within 60 days after the date of hire) to have that service covered by CalSTRS, pursuant to Education Code section 22508(a) or 22508.5(a).

I am a member of CalSTRS who has accepted employment to perform service that requires membership in a different public retirement system and am eligible to elect to continue retirement system coverage under CalSTRS.

I elect coverage in: (please choose one) CA State Teachers’ Retirement System (CalSTRS) CA Public Employee’s Retirement System (CalPERS) * A Different Public Retirement System identified here: __________________________________________________

OR

A member of CalPERS who is employed by a school employer, Board of Governors of Community College Districts or State Department of Education or who has at least five years of CalPERS credited service, as defined in Government Code section 20309, and who subsequently becomes employed to perform creditable service that requires membership in CalSTRS, will have that service credited with CalSTRS unless he/she files a written election (within 60 days after the date of hire) to have the service credited with CalPERS, pursuant to Government Code section 20309.

I am a member of CalPERS who has accepted employment to perform service that requires membership in CalSTRS Defined Benefit Program, and am eligible to elect to continue coverage under CalPERS.

I elect coverage in: (please choose one) CA State Teachers’ Retirement System (CalSTRS) CA Public Employee’s Retirement System (CalPERS) *

With my signature below, I certify that I have received information from my employer regarding my eligibility to elect membership for this position as described on this form. I fully understand that this election is irrevocable. I understand it is a crime to fail to disclose a material fact or to make any knowingly false material statements for the purpose of altering or receiving a benefit administered by CalSTRS and it may result in up to one year in jail and/or a fine of up to $5,000 pursuant to Education Code section 22010.

EMPLOYEE SIGNATURE DATE

SECTION 2: EMPLOYER CERTIFICATION (to be completed by employer and County Office of Education) With my signature below, I certify that I have provided information to the above employee regarding his/her eligibility to elect membership for this position, pursuant to Education Code section 22509. I certify the employee meets the qualifications to make a retirement system election, pursuant to Education Code sections 22508 or 22508.5, or Government Code section 20309. EMPLOYEE POSITION INFORMATION:

POSITION HIRE DATE POSITION EFFECTIVE DATE POSITION TITLE

SELECT ONE: Credentialed Classified State Service

EMPLOYER INFORMATION:

CO/DIST/STATE DEPT NAME CALSTRS REPORT UNIT CODE

SCHOOL/STATE OFFICIAL'S NAME TITLE PHONE NUMBER

SIGNATURE OF SCHOOL/STATE OFFICIAL DATE

COUNTY OFFICIAL'S NAME TITLE PHONE NUMBER

SIGNATURE OF COUNTY OFFICIAL *CalPERS Employer Code:

Attachment 8

RETIREMENT SYSTEM ELECTION INFORMATION AND INSTRUCTIONS ● rev 02/17 ● PAGE 1 OF 1

Retirement System Election – Information and Instructions The following instructions are to assist you and your employer in completing the Retirement System Election form (ES372). Please read the instructions and information for retirement system coverage before completing the form. Please type or print legibly in dark ink. INFORMATION A member of the CalSTRS Defined Benefit Program who becomes employed by a school district, a community college district, a county superintendent of schools, limited state departments, or the California Community Colleges Board of Governors to perform service that requires membership in a different public retirement system, may elect to receive credit under the CalSTRS Defined Benefit Program for such service by completing a Retirement System Election form (ES372) within 60 days after the hire date requiring membership in the other system, and CalSTRS must receive the completed form within 30 days of the signature date. If the CalSTRS member does not elect to continue as a member of CalSTRS, all service subject to coverage by the other public retirement system will be reported to that retirement system. (Education Code sections 22508, 22508.5 and 22509)

A member of CalPERS who is employed by a school employer, Board of Governors of California Community Colleges, or State Department of Education or has at least five years of CalPERS credited service and who accepts employment to perform creditable service that requires membership by the CalSTRS Defined Benefit Program, may elect to receive credit under CalPERS for such service by submitting a Retirement System Election form (ES372) to CalPERS, within 60 days after the hire date of employment requiring membership in the other system. If the CalPERS member does not elect to continue as a member of CalPERS, all CalSTRS creditable service will be reported to CalSTRS. (Government Code section 20309).

Education Code section 22509 requires that within 10 working days of hire, an employer must provide all employees who have the right to make this election with the information regarding their election rights and must make available written information about the retirement systems to assist the employee in making an election.

SECTION 1: MEMBER INFORMATION AND ELECTION Section 1 must be completed by the employee with assistance from the employer. Please complete all entries in Section 1.

EMPLOYEE NAME and SOCIAL SECURITY NUMBER – Enter employee’s full name, and full Social Security Number.

RETIREMENT SYSTEM COVERAGE: If you are a member of CalSTRS and have accepted employment to perform service that requires membership in a different public retirement system, mark the box next to the coverage you elect.

If you are a member of CalPERS and have accepted employment to perform service that requires membership in CalSTRS, mark the box next to the coverage you elect.

EMPLOYEE SIGNATURE – Sign and date the form. By signing this document, you certify that you have received information from your employer regarding your right to the Retirement System Election. You also certify that you understand this election is irrevocable, and that it is a crime to fail to disclose a material fact or to make any knowingly false material statements for the purpose of altering a benefit administered by CalSTRS which may result in up to one year in jail and a fine of up to $5,000. (Education Code section 22010)

Submit the signed and dated Retirement System Election form (ES372) to your employer. Retain a copy for your records.

For general membership information, contact CalSTRS by calling 800-228-5453, or write to CalSTRS at P.O. Box 15275, MS 17, Sacramento, CA 95851-0275.

SECTION 2: EMPLOYER CERTIFICATION Section 2 must be completed by the employer and the County Office of Education. Please complete the employer certification only after the employee has completed Section 1. Employees must qualify for membership before they canretirement system elect.

EMPLOYER:

POSITION HIRE DATE – Enter the date the employee was hired in the position.

POSITION EFFECTIVE DATE – Enter the first date that service was/will be performed by the employee in the new position.

POSITION TITLE – Enter employee’s new position title and check the box next to the applicable position type.

CO/DIST CODE/STATE DEPARTMENT – Enter the appropriate county and district codes. Example: Kern County, Edison Elementary would be 15-012, and CA Department of Education would be 59-174.

EMPLOYER CERTIFICATION – Print school or state official’s name, title and phone number, and sign and date the form.

Submit the completed form to the County Office of Education.

If you represent a state department, submit the form directly to CalSTRS and send a copy to the other public retirement system.

COUNTY OFFICE OF EDUCATION: Print the County official’s name, title and phone number, and sign and date the form.

Retain a copy for your and the employee’s files.

SUBMIT THE FORM: The Retirement System Election form (ES372) must be submitted to the retirement system elected by the employee and a copy submitted to the retirement system that would normally cover the service. For additional requirements, please see the Information section.

Mail completed forms to:

CalSTRS also accepts the form via fax, at 916-414-5476, or by secure messaging via the Secure Employer Website (SEW)

CalSTRS P.O. Box 15275, MS 17 Sacramento, CA 95851-0275

CalPERS P.O. Box 942709 Sacramento, CA 94229-2709

Attachment 8

California Public Employees’ Retirement SystemP.O. Box 942709 Sacramento, CA 94229-2709 888 CalPERS (or 888-225-7377) TTY: (877) 249-7442 | Fax: (916) 795-4166 www.calpers.ca.gov

Employer Account Management Division

PERS-CASD-801 (6/16) Page 1 of 4

Dear Member,

You are being provided with the background, explanation, and instructions for the Reciprocal Self-Certification Form (PERS-CASD 801).

With the implementation of The Public Employees’ Pension Reform Act of 2013 (PEPRA) on January 1, 2013, CalPERS requires that employers determine the applicable retirement benefit formula for new employees. The Reciprocal Self-Certification form allows you to provide essential information to your employer and will be used by your employer to enroll you into CalPERS membership. This information will assist in identifying your retirement benefit level1.

Reciprocity among public retirement systems is to allow members to separate from one public employer and enter into employment with another public employer within a specific time limit without losing valuable retirement and related benefit rights.

Within 10 business days of employment you must complete, sign, date, and submit to your employer the Reciprocal Self-Certification form. When completing the form, reference the attached list of qualifying Public Retirement Systems in California. If applicable, list your previous membership date(s) in the qualifying Public Retirement System and your permanent separation date(s); OR indicate that you are not a current or past member of a qualifying Public Retirement System.

The completion of the Reciprocal Self-Certification Form does not establish reciprocity and is not a request to establish reciprocity. In order to request that reciprocity be established, visit the CalPERS website, www.calpers.ca.gov and download the publication When You Change Retirement Systems. It is the responsibility of the employee to complete and send the form, Election to Coordinate Retirement When Changing Retirement Systems to CalPERS.

Sincerely,

Membership Management Section

Enclosures: List of Qualifying Public Retirement Systems in California, Reciprocal Self-Certification form

1 A new member is defined in the Public Employees’ Retirement Law (PERL) under Government Code section 7522, the Public Employees’ Pension Reform Act of 2013 (PEPRA), as any of the following: •A new hire who is brought into CalPERS membership for the first time on or after January 1, 2013, who has no priormembership in any California Public Retirement System. •A new hire who is brought into CalPERS membership for the first time on or after January 1, 2013, who has a break in serviceof greater than six months with another California Public Retirement System that is subject to Reciprocity. •A member who first established CalPERS membership prior to January 1, 2013, who is rehired by a different CalPERS employerafter a break in service of greater than six months.

Attachment 9

List of Qualifying Public Retirement Systems in California

PERS-CASD-801 (6/16) Page 2 of 4

Name of County/Agency/System: Qualification(s): Alameda County^ City and County of San Francisco* City of Concord* City of Costa Mesa* Safety Employees only City of Fresno Miscellaneous and Safety Retirement systems City of Los Angeles Non-Safety only City of Oakland Non-Safety only City of Pasadena Fire and Police Only City of Sacramento* City of San Clemente* Non-Safety only City of San Diego City of San Jose Contra Costa County^ Contra Costa Water District County of San Luis Obispo East Bay Municipal Utility District East Bay Regional Park District Safety Employees only Fresno County^ Imperial County^ Judges’ Retirement System Kern County^ Legislators’ Retirement System Los Angeles County Metropolitan Transportation Authority

Non-Contract Employees’ Retirement Income Plan, formerly Southern California Rapid Transit District

Los Angeles County^ Marin County^ Mendocino County^ Merced County^ Orange County^ Sacramento County^ San Bernardino County^ San Diego County^ San Joaquin County^ San Mateo County^ Santa Barbara County^ Sonoma County^ Stanislaus County^ State Teachers’ Retirement System Tulare County^ University of California Retirement System Ventura County^

*=Also CalPERS-covered agency ^=1937 Act Counties

Attachment 9

California Public Employees’ Retirement SystemP.O. Box 942709 Sacramento, CA 94229-2709 888 CalPERS (or 888-225-7377) TTY: (877) 249-7442 | Fax: (916) 795-4166 www.calpers.ca.gov

PERS-CASD-801 (6/16) Page 3 of 4

RECIPROCAL SELF-CERTIFICATION FORM Complete the following information and return this form to your Personnel Office within 10 business days:

Employee Name

(Last) (First) (Middle)

Social Security Number or CalPERS ID Number:

Check the applicable statement: _____ I have not been a member of CalPERS or of a qualifying Public Retirement System in California. _____ I was a member of CalPERS or a qualifying Public Retirement System in California and terminated my

membership by withdrawing my funds. _____ I am retired from CalPERS. _____ I am retired from another Public Retirement System in California. _____ I am an active member of CalPERS. I have funds on deposit with CalPERS. _____ I am an active member of another Public Retirement System in California. (Complete the box below).

I understand that by accepting employment in a specific retirement system, I am subject to the applicable laws and regulations of that system. I also understand that completing this form does not constitute a request to establish reciprocity. I must complete and return the form Election to Coordinate Retirement When Changing Retirement Systems to CalPERS.

I hereby certify that the foregoing information is true and correct and any information found to be incorrect may require corrections to my account in the California Public Employees’ Retirement System including, but not limited to, my date of membership. CalPERS may make any necessary corrections to my account to ensure I am properly enrolled and eligible to receive the correct retirement benefits.

_________________________________________ _________________ Employee Signature Date

TO BE COMPLETED BY EMPLOYER ONLY:

The employer must retain this form in the employee’s file for auditing purposes.

Name of Most Recent Reciprocal System: Membership Date: Separation Date:

Name of Prior Reciprocal System: Membership Date: Separation Date:

Name of Prior Reciprocal System: Membership Date: Separation Date:

Name of CalPERS Agency: CalPERS Business Partner ID: Employees’ CalPERS Original Hire Date:

Designee of Employer: (Print Name) (Title) Employees’ CalPERS Membership Eligibility Date:

Designee’s Signature: (Date)

Attachment 9

PERS-CASD-801 (6/16) Page 4 of 4

RECIPROCAL SELF-CERTIFICATION FORM INSTRUCTIONS (EMPLOYER)

1. Employers must provide the Reciprocal Self-Certification Form to all employees upon hire.

2. Employers must sign and date the Reciprocal Self-Certification Form.

3. The employer will enroll the employee into my|CalPERS utilizing the information provided on theReciprocal Self-Certification Form. If the employee indicates they are an active member of aqualifying Public Retirement System in California, be sure to complete the data fields in theReciprocity panel in my|CalPERS.

4. The proper retirement benefit formula will be automatically determined by my|CalPERS. If youbelieve the retirement benefit formula is incorrect, you may contact CalPERS at 1-888-225-7377.

5. It is the responsibility of the employer to retain the completed Reciprocal Self-Certification Form inthe employee’s employment records for auditing purposes. You do not need to send a copy of theform to CalPERS.

Attachment 9

Privacy NoticeThe privacy of personal information is of the utmost importance to CalPERS. The following information is provided to you in compliance with the Information Practices Act of 1977 and the Federal Privacy Act of 1974.

Information Purpose

The information requested is collected pursuant to the Government Code (sections 20000 et seq.) and will be used for administration of Board duties under the Retirement Law, the Social Security Act, and the Public Employees’ Medical and Hospital Care Act, as the case may be. Submission of the requested information is mandatory. Failure to comply may result in CalPERS being unable to perform its functions regarding your status.

Please do not include information that is not requested.

Social Security Numbers

Social Security numbers are collected on a mandatory and voluntary basis. If this is CalPERS’ first request for disclosure of your Social Security number, then disclosure is mandatory. If your Social Security number has already been provided, disclosure is voluntary. Due to the use of Social Security numbers by other agencies for identification purposes, we may be unable to verify eligibility for benefits without the number.

Social Security numbers are used for the following purposes: 1. Enrollee identification2. Payroll deduction/state contributions3. Billing of contracting agencies for employee/

employer contributions4. Reports to CalPERS and other state agencies5. Coordination of benefits among carriers6. Resolving member appeals, complaints,

or grievances with health plan carriers

Information Disclosure

Portions of this information may be transferred to other state agencies (such as your employer), physicians, and insurance carriers, but only in strict accordance with current statutes regarding confidentiality.

Your Rights

You have the right to review your membership files maintained by the System. For questions about this notice, our Privacy Policy, or your rights, please write to the CalPERS Privacy Officer at 400 Q Street, Sacramento, CA 95811 or call us at 888 CalPERS (or 888-225-7377).

May 2016

Attachment 9

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Circular Letter # 200-056-11 August 19, 2011 Page 2

CCR Section 571, Subdivision (b) Amendment – Special Compensation

This amendment clarifies existing law by ensuring greater transparency and disclosure of special compensation items in written labor policies or agreements. The labor policy or agreement must include:

the conditions for payment of the item of special compensation eligibility requirements and amount for each special compensation item

The written labor policy or agreement cannot reference another document in lieu of disclosing the details of the special compensation. In addition, the written labor policy or agreement must be duly approved, posted or immediately accessible and available for public review, retained for not less than five years, and include an effective date.

CCR Section 571, subdivision (b) applies to all schools and public agencies reporting compensation to CalPERS.

Conclusion

These regulations benefit the public, employers, members, and CalPERS staff by clarifying existing law, ensuring consistency in the reporting of compensation and enhancing disclosure and transparency of public employee compensation.

We have attached CCR sections 570.5 and 571 for your convenience.

If you have any questions, please call the CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377).

DARRYL WATSON, Chief Customer Account Services Division

Enclosure California Code of Regulations 570.5 and 571 (PDF, 12 KB)

Attachment 10

California Public Employees’ Retirement System P.O. Box 942709 Sacramento, CA 94229-2709 Reference No.: (888) CalPERS (or 888-225-7377) Circular Letter No.: 200-050-12 TTY: (877) 249-7442 Distribution: IV, V, VI, X, XII, XVI www.calpers.ca.gov Special:

Circular Letter October 25, 2012

TO: ALL CALPERS EMPLOYERS

SUBJECT: STATUTORY AND REGULATORY REQUIREMENTS FOR PUBLICLY AVAILABLE PAY SCHEDULES

The purpose of this Circular Letter is to remind CalPERS employers that only those pay amounts that meet the definition of compensation earnable can be used when calculating retirement benefits.

Compensation earnable is defined in statute and further clarified by California Code of Regulations (CCR) Section 570.5. Specifically, this Circular Letter seeks to address the requirements related to publicly available pay schedules.

Compensation Earnable & The Requirement For Publicly Available Pay Schedules The Public Employees’ Retirement Law (PERL) Government Code Sections 20636 and 20636.1 define compensation earnable for State, School, and Public Agency members. In order to meet the definition of compensation earnable, an amount of pay must either constitute payrate or special compensation as defined in the statutes. Section 20636(d) further requires that payrate and special compensation schedules, ordinances, or similar documents be public records available for public scrutiny.

Section 20636(b)(1) (applicable to Public Agency members) and 20636.1(b)(1) (applicable to School members) require pay amounts to be paid pursuant to publicly available pay schedules. For example, section 20636 (b)(1) states:

“Payrate means the normal monthly rate or pay or base pay of the member paid in cash to similarly situated members of the same group or class of employment for services rendered on a full-time basis during normal working hours, pursuant to publicly available pay schedules. “Payrate,” for a member who is not in a group or class, means the monthly rate of pay or base pay of the members, paid in cash and pursuant to publicly available pay schedules, for services rendered on a full-time basis during normal working hours, subject to the limitations of paragraph (2) of subdivision (e).” (Emphasis added.)

CCR 570.5 was adopted April 13, 2011, with an effective date of August 10, 2011. CCR 570.5 sought to clarify the requirement of publicly available pay schedules.

Attachment 11

Circular Letter No.: 200-050-12 October 25, 2012 Page 2

After CCR 570.5 was adopted, CalPERS sent Circular Letter #200-056-11 dated August 19, 2011, notifying all employers of the requirements of CCR 570.5.

Importance of Correct Reporting Due to the importance of correct payroll reporting in administering the PERL and member benefits, CalPERS is sending this additional Circular Letter to remind all employers of the criteria for reporting compensation earnable.

CCR 570.5 outlines the required elements necessary to meet the definition for a publicly available pay schedule as follows:

(a) For purposes of determining the amount of “compensation earnable” pursuant to Government Code Sections 20630, 20636, and 20636.1, payrate shall be limited to the amount listed on a pay schedule that meets all of the following requirements:

(1) Has been duly approved and adopted by the employer’s governing body in accordance with requirements of applicable public meeting laws;

(2) Identifies the position title for every employee position;

(3) Shows the payrate for each identified position, which may be stated as a single amount or as multiple amounts within a range;

(4) Indicates the time base, including, but not limited to, whether the time base is hourly, daily, bi-weekly, monthly, bi-monthly, or annually;

(5) Is posted at the office of the employer or immediately accessible and available for public review from the employer during normal business hours or posted on the employer’s internet website;

(6) Indicates an effective date and date of any revisions;

(7) Is retained by the employer and available for public inspection for not less than five years; and

(8) Does not reference another document in lieu of disclosing the payrate.

All eight (8) requirements must be met in one salary schedule for each member’s pay, in order for CalPERS to approve the pay amount as payrate and reportable compensation earnable.

No Applicable Pay Schedule If an agency cannot provide a document meeting the requirements for a publicly available pay schedule, then CalPERS must determine that the pay amount fails to meet the definition of payrate. CCR 570.5 (b)(1)-(4) outlines the process by which

Attachment 11

Circular Letter No.: 200-050-12 October 25, 2012 Page 3

CalPERS may determine a member’s payrate when there is no publicly available pay schedule provided.

CCR 570.5 (b) states:

(b) Whenever an employer fails to meet the requirements of subdivision (a) above, the Board, in its sole discretion, may determine an amount that will be considered to be payrate, taking into consideration all information it deems relevant including, but not limited to, the following:

(1) Documents approved by the employer’s governing body in accordance with requirements of public meeting laws and maintained by the employer;

(2) Last payrate listed on a pay schedule that conforms to the requirements of subdivision (a) with the same employer for the position at issue;

(3) Last payrate for the member that is listed on a pay schedule that conforms with the requirements of subdivision (a) with the same employer for a different position;

(4) Last payrate for the member in a position that was held by the member that is listed on a pay schedule that conforms to the requirements of subdivision (a) of a former CalPERS employer.

It is important that all employers comply with the compensation earnable provisions and corresponding regulations of the PERL. Where employers fail to comply, pay amounts will be determined to not constitute payrate and accordingly CalPERS will be unable to use such pay amounts when calculating members’ retirement benefits.

It is therefore critical that employers review their pay schedules to verify that all members’ pay amounts are included within a publicly available pay schedule. For assistance or questions related to the development of a publicly available pay schedule, please direct your inquiries to the CalPERS Compensation and Employer Review Unit.

If you have any questions, please contact the CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377).

KAREN DeFRANK, Chief Customer Account Services Division

Attachment 11

California Public Employees’ Retirement System P.O. Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (or 888-225-7377) Circular Letter No.: 200-015-16 TTY: (877) 249-7442 Distribution: V, VI, XII, XVI www.calpers.ca.gov

Circular Letter May 4, 2016

TO: PUBLIC AGENCIES, SCHOOL EMPLOYERS, NON-CENTRAL STATE AGENCIES, AGRICULTURAL DISTRICTS, SENATE RULES COMMITTEE, AND ASSEMBLY RULES COMMITTEE

SUBJECT: REPORTING PERMANENT SEPARATION DATES IN my|CALPERS

The purpose of this Circular Letter is to reiterate the importance of reporting permanent separation dates in my|CalPERS. With the integration of our membership, health, payroll, and benefit systems in my|CalPERS, an employee’s permanent separation date must be reported consistently and uniformly by all Business Partners.

Permanent Separation Dates Permanent separations should be reported once an employee ends employment with your agency, for any reason, so that accurate membership details are captured in the employee’s my|CalPERS account. Accurate reporting of permanent separation dates will ensure that benefits are administered timely and accurately, especially for those employees nearing retirement.

Please note that if an employee does not return from a leave of absence, a permanent separation date needs to be reported to the employee’s my|CalPERS account.

Permanent separations must be reported as the day after the last day an employee works for your agency, which is often the day after the last day on payroll. The permanent separation date will frequently be the same day as a member's retirement date or start date of a new appointment. All transactions within my|CalPERS, including health and retirement, rely on the permanent separation date to be reported in this manner. Therefore, it is imperative that all Business Partners follow this important business rule to avoid transaction errors due to automatic system validations.

System Enhancements my|CalPERS will be updated with enhancements which are reliant on correct appointment information within my|CalPERS. As a result, it is important that the correct membership appointment details are maintained by employers in my|CalPERS.

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Circular Letter No.: 200-015-16 May 4, 2016 Page 2

Scenarios The following scenarios show examples where entering a permanent separation date on the employee’s my|CalPERS account is required. Process a permanent separation if an employee:

• Retires from your agency• Does not return from a leave of absence• Has a health only appointment and cancels their health coverage• Voluntarily terminates their employment• Is a substitute teacher who will not return to your agency• Becomes deceased

Circular Letters For more information on permanent separation dates, refer to Circular Letter #200-002-13 and Circular Letter #200-070-11.

If you have any questions, please contact the CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377).

Renee Ostrander, Chief Employer Account Management Division

Attachment 12

Attachment 13