Additional Payroll Retirement Contribution (2013)

State agencies reporting to SPRS

For state agencies reporting to the Standardized Payroll/Personnel Reporting System (SPRS), the 0.5 percent Additional Payroll Retirement Contribution (PRC) is reported as a new state-paid payroll retirement contribution deduction. It is to be paid as an addition to the state-paid amount of 7.5 percent in fiscal 2014 and fiscal 2015.

The PRC must be paid using each individual employee’s funding source (Program Cost Account or Index) that is used to pay the employee’s base salary (BSY). For SPRS agencies, the new state or agency-paid deduction is to be reported by-employee to ERS on the Daily Contribution file.

For state agencies reporting to SPRS, new state-paid deduction codes — PRE, PRC, PRR and PRS — have been created to track the Additional Payroll Retirement Contribution amount. The PRC amount is paid from agency budget.

SPRS agency examples

SPRS monthly example

Employee is paid $4000.00 BSY once a month, along with $80.00 of Longevity. (Note: The state retirement contribution (STR) is calculated as BSY plus Longevity times 7.5 percent. The PRC amount is not computed on the Longevity Pay.) The state contribution for retirement for the employee for the month is $306.00. The agency PRC amount is $20.00.

Monthly payroll – Paid on the first

SPRS twice-monthly example

Employee is paid $2000.00 twice a month. The state retirement contribution for the employee for the first and second half of the month is $150.75, respectively. The agency PRC amount for the first and second half of the month amount is $10.00, respectively.

First-half payroll – Paid on the 15th of the month

Second-half payroll – Paid on the first of the following month