CONTRIBUTION ADJUSTMENT

In instances where the reported contribution amount was incorrect, whether over or understated, the employer should initiate actions to correct the amount of reported retirement contribution at the earliest possible date and make the necessary adjustment on the next remittance. A

contribution adjustment may be required due to a reporting error or salary adjustment.

Example C: ¹⁸

Contribution Adjustment

Name: John Doe

Reported Contribution: $67.69 Actual Contribution: $57.69 Effective Date: 6/20/2006 Current Pay Period Ending: 8/29/2006 Pays: 26

In this example of a contribution adjustment, the employer incorrectly reported and submitted remittance for John Doe. The correct amount of bi-weekly pension contributions should have been $57.69 per pay period. However, due to a reporting error, the actual contribution amount reported and remitted was $67.69 per pay period. Therefore, a retroactive adjustment is required.

The actual reported payroll data is as follows:

However, whether due to a calculation error or a data entry error, the actual data should have been reported as follows:

6/20/2006 $50,000 $57.69 80 80 100% $1,923.07 $50,000 7/4/2006 $50,000 $57.69 80 80 100% $1,923.07 $50,000 7/18/2006 $50,000 $57.69 80 80 100% $1,923.07 $50,000 8/1/2006 $50,000 $57.69 80 80 100% $1,923.07 $50,000 8/15/2006 $50,000 $57.69 80 80 100% $1,923.07 $50,000

Page Total: $288.45

18 Adjustment examples do not reflect all the required data elements of the Prior Period Payroll Adjustment Form.

When submitting payroll adjustment forms, please complete all data elements for each applicable pay period.

Pay Period

6/20/2006 $50,000 $67.69 80 80 100% $1,923.07 $50,000 7/4/2006 $50,000 $67.69 80 80 100% $1,923.07 $50,000 7/18/2006 $50,000 $67.69 80 80 100% $1,923.07 $50,000 8/1/2006 $50,000 $67.69 80 80 100% $1,923.07 $50,000 8/15/2006 $50,000 $67.69 80 80 100% $1,923.07 $50,000

Page Total: $338.45

In this example, both the reported contribution data and actual contribution remittance were greater than the actual contribution amount. Therefore, an adjustment for the difference must be made to the cash remittance on a future payroll remittance as follows:

CASH REMITTANCE AS PER REVENUE CONTROL TRANSMITTAL $1,950.00 PAYROLL DATA AMOUNTS AS PER EMPLOYER MEDIA (diskette and upload)

(a) Employee contributions attributed to current pay period, as reported on current media (DO NOT REPORT RETROACTIVE ADJUSTMENTS) $2,000.00 (b) Sum of contributions for previously omitted and current period payroll data requiring SRA-714 (attach SRA-714 for each adjusted member record) $ 0.00 (c) Sum of prior period employee contribution adjustments ($ 50.00) (Attach SRA Prior Period Employee Contribution Adjustment form) TOTAL ADJUSTED PAYROLL DATA AMOUNT (sum of a, b and c) $1,950.00 Of course, as with any payroll adjustment, the cash remittance must be supported by the proper documentation. In addition, total remittance reflected on the Remittance Reconciliation Form for Payroll Data should match exactly to the amount reflected on the Revenue Control

Transmittal as follows.

REVENUE CONTROL TRANSMITTAL

Agency Name:________________________________________

TYPE CODE SYSTEM LOCATION PPE DATE AMOUNT SRA USE X XXXXXXXX 08/29/2006 $1,950.00 ONLY

___________ ________ ____________ _________ ________

___________ ________ ____________ _________ ________

___________ ________ ____________ _________ ________

___________ ________ ____________ _________ ________

Total Check Amount $1,950.00

Example D: ¹⁹

Contribution Adjustment

Name: John Doe

Reported Contribution: $87.50 Actual Contribution: $100.00 Effective Date: 9/06/2006 Current Pay Period Ending: 10/31/2006 Pays: 20

The employer incorrectly reported and submitted remittance for John Doe. The correct amount of bi-weekly pension contributions should have been $100.00 per pay period. However, due to a reporting error, the actual contribution amount reported and remitted was $87.50 per pay period.

Therefore, a retroactive adjustment is required. The actual reported payroll data is as follows:

Pay

9/5/2006 $40,000 $87.50 70 70 100% $2,000.00 $40,000 9/19/2006 $40,000 $87.50 70 70 100% $2,000.00 $40,000 10/3/2006 $40,000 $87.50 70 70 100% $2,000.00 $40,000 10/17/2006 $40,000 $87.50 70 70 100% $2,000.00 $40,000

Page Total: $350.00

However, whether due to a calculation error or a data entry error, the actual data should have been reported as follows:

9/5/2006 $40,000 $100.00 70 70 100% $2,000.00 $40,000 9/19/2006 $40,000 $100.00 70 70 100% $2,000.00 $40,000 10/3/2006 $40,000 $100.00 70 70 100% $2,000.00 $40,000 10/17/2006 $40,000 $100.00 70 70 100% $2,000.00 $40,000

Page Total: $400.00

In this example, both the reported contribution data and actual contribution remittance were less than the actual contribution amount. Therefore, an adjustment for the difference must be made to the cash remittance on a future payroll remittance as follows:

CASH REMITTANCE AS PER REVENUE CONTROL TRANSMITTAL $4,050.00 PAYROLL DATA AMOUNTS AS PER EMPLOYER MEDIA (tape, diskette, C-SET)

(a) Employee contributions attributed to current pay period, as reported on current media (DO NOT REPORT RETROACTIVE ADJUSTMENTS) $4,000.00 (b) Sum of contributions for previously omitted and current period payroll data requiring SRA-714 (attach SRA-714 for each adjusted member record) $ 50.00 (c) Sum of prior period employee contribution adjustments $ 0.00 (Attach SRA Prior Period Employee Contribution Adjustment form) TOTAL ADJUSTED PAYROLL DATA AMOUNT (sum of a, b and c) $4,050.00 Of course, as with any payroll adjustment, the cash remittance must be supported by the proper documentation. In addition, total remittance reflected on the Remittance Reconciliation Form for Payroll Data should match exactly to the amount reflected on the Revenue Control Transmittal as follows.

REVENUE CONTROL TRANSMITTAL

Agency Name:________________________________________

TYPE CODE SYSTEM LOCATION PPE DATE AMOUNT SRA USE X XXXXXXXX 10/31/2006 $4,050.00 ONLY

___________ ________ ____________ _________ ________

___________ ________ ____________ _________ ________

___________ ________ ____________ _________ ________

___________ ________ ____________ _________ ________

Total Check Amount $4,050.00 HOURS WORKED/STANDARD HOURS ADJUSTMENT

It’s important that each employer report the correct Hours Worked and Standard Hours each pay period. In the Pension Systems the reported hours determine the amount of creditable and eligibility service awarded. If it is determined that an employer incorrectly reported payroll hours, then a retroactive adjustment is necessary. For each affected pay period, the employer should submit an adjustment.

Example E: ²⁰ Hours Adjustment

Name: John Doe

Current Pay Period Ending: 8/29/2006 Pays: 26

In this example of an hours worked/standard adjustment, the employer incorrectly reported the hours worked for John Doe. The actual reported payroll hours are as follows:

Pay

In the reported data above, although the hours worked reflects a part time employee, the remaining data does not reflect part time employment. The employer, to correct the previously reported data, should make an adjustment as follows:

Pay

This adjustment does not require an adjustment to the contributions remittance. However, the difference in the reported data would make a difference in the amount of creditable service the member earns.

Example F: ²¹ Hours Adjustment

Name: John Doe

Effective Date: 9/5/2006 Current Pay Period Ending: 10/31/2006 Pays: 20

In this example of an hours worked/standard hours adjustment, the employer incorrectly reported the hours worked for John Doe. The actual reported payroll hours are as follows:

Pay

9/5/2006 $25,000 $62.50 40 80 100% $1,250.00 $50,000 9/19/2006 $25,000 $62.50 50 80 100% $1,250.00 $50,000 10/3/2006 $25,000 $62.50 60 80 100% $1,250.00 $50,000 10/17/2006 $25,000 $62.50 50 80 100% $1,250.00 $50,000

Page Total: $250.00

In the reported data above, although the hours worked reflects a part time employee, the remaining data does not reflect part time employment. The employer, to correct the previously reported data, should make an adjustment as follows:

Pay 9/19/2006 $25,000 $62.50 40 80 50% $1,250.07 $50,000 10/3/2006 $25,000 $62.50 40 80 50% $1,250.07 $50,000 10/17/2006 $25,000 $62.50 40 80 50% $1,250.07 $50,000

Page Total: $250.00

21 Adjustment examples do not reflect all the required data elements of the Prior Period Payroll Adjustment Form.

When submitting payroll adjustment forms, please complete all data elements for each applicable pay period.

It’s important to realize that SRA has no way of determining whether the payroll data each employer submits is correct. Again, we rely upon each employer to submit accurate and timely payroll data.

FAILURE TO REPORT PAYROLL DATA FOR ONE OR MORE EMPLOYEES