Date: March 31, 2011
To: Employees Enrolled in PERS and PFRS
From: Vivian Fernández
Vice President Faculty and Staff Resources
Subject: PERS and PFRS Payroll Deduction Correction – Follow-up

This is a follow-up to the earlier email regarding the over-deduction taken for PERS and PFRS contributions. We have received many emails inquiring as to the amount of the over-deduction, and why the correction will take 5 pay periods, rather than one.

Deductions are calculated by determining the total amount of contributions due for the quarter, and then dividing that among the first six pay periods in that quarter. The error occurred this pay period when the system divided by five pay periods instead of six. The average over-deduction was about $20.

Example:
The average PERS deduction for someone with a base annual salary of $43,500 is approximately $600 per quarter. That amount should have been divided over 6 pay periods so that $100 would have been deducted from each paycheck. Instead, the system divided by 5, which resulted in a deduction of $120, which is a difference of $20.

Once the error was identified, a system self-correction was initiated. As a result, the remaining amount of the quarterly contribution will be divided among the next 5 paychecks. In the example above, the self-correcting deduction would be $96, instead of $100, or a difference of $4 per paycheck. If you would like to know the exact amount of the over-deduction, you can compare your last paycheck’s PERS or PFRS deduction to the April 1st deduction.

Again we apologize for the inconvenience. Please be assured that we are taking steps to ensure that this will not happen again.