Contribution Reporting

Payroll Submission

The new Employer Portal is now open and available to all employers!  The link for the new Employer Portal is https://members.psprs.com.  The portal is used to submit your contribution files to PSPRS.  Employers can also look up new members to determine tiers and contribution rates, and can use the Portal to notify PSPRS when a new employee is hired or when an existing employee terminates, goes on a leave, or returns to service.

The following "how to" tutorials may be helpful as you enter demographic information and contribution information:

In order to view invoices that are generated when contribution files are submitted, you must be registered to use Wells Fargo's E-Bill Express.  If you have not yet registered, please contact our office at finance@psprs.com to get registered.

Contribution Submission Changes Effective July 1, 2017

As of July 1, 2017, PSPRS requires a new file format that includes new and additional data elements in payroll and contribution files submitted through the Employer portal from employers. These additional requirements are due to recent Arizona pension reforms and changing governmental accounting standards, and apply to all plans.

In addition to the reference above, a contribution code matrix has been developed to help employers better understand the new contribution codes.  An Excel Contribution File Template is also available for employers who wish to submit the new files using Excel.

On July 1, 2017, PSPRS is also implementing a web-based ACH electronic payment option at no cost to employers. Every time a payroll/contribution file is received, PSPRS will email a contributions invoice to the employer, who can then log in to a secure website and pay by ACH, electronic check or credit card. 

As part of PSPRS' enhanced online tools available through the Employer Portal, employers have the ability to electronically provide employee demographic information changes (including notification of new hires, leaves, terminations, etc.) to PSPRS and to perform system-wide employee lookups to facilitate the hiring process. Demographic updates will be provided to PSPRS using the demographic module and employee lookups will be performed using the employee lookup module.  Employers will have two options when using those modules--one member at a time, or via batch process using a file.  Information about the file layouts is available in this File Specification document.  Employers can also download Excel templates that can be used to create the demographic file and employee lookup file.


Employers who are still testing files:  
While most employers are now using the new Employer Portal to submit contribution files, if you still need PSPRS to test a file, please submit the file through the following link:

https://members2.psprs.com/EmployerPayrolls/NewFileUpload.aspx?ID=Ag78165i87.  

PSPRS staff will manually run those files through the new validation process and communicate with each employer the results to ensure accurate submission of the data.  Once files have been tested, employers will still need to submit them through the new Employer Portal, found at https://members.psprs.com.

Contribution Reporting

Employers who participate in our Plans are required by law to enroll and report pensionable wages on all eligible employees.  Accurate reporting of member contributions is critical to ensure that your members receive proper credited service, as well as establish appropriate salary information in determining their future pension benefit.  Employer payroll departments are required to calculate and withhold contributions on member’s pensionable wages.  Both employee and employer contributions must be reported using our Employer Payroll Portal.  Employers are encouraged to remit contribution payments using electronic funds transfer; however, the System will accept contribution payments made by check.  For those employers who wish to remit contribution payments by check, they must do so by mailing payments to:

PSPRS/CORP/EORP
P.O. Box 17670
Phoenix, AZ  85011-0670

By law, contribution payments are to be made no later than 10 days after the end of each employer's pay period.  Failure to remit payments on a timely basis will result in assessment of penalties and interest as provided by state statute.  Contributions withheld from member’s paychecks are done on a pre-tax basis.

Contribution Rates by Plan - PSPRS, CORP or EORP

Contribution rates for employee and employers are either established by statute and/or may be actuarially determined each fiscal year, which begins each July 1st.  In order to properly report wages and withhold contributions, employers and local boards will need to determine an employee's Membership Tier by Plan (PSPRS, CORP or EORP) and the employer will also need to Determine the Pensionable Wages (see table below).  To view the funding levels and contribution rates by Plan, see the Actuarial Valuations page.

PSPRS Membership Tiers

Tier 1 Members

Tier 2 Members

Tier 3 Members

Hired into a PSPRS position before January 1, 2012

Hired into a PSPRS position on/after January 1, 2012

Hired into a PSPRS position on/after July  1, 2017

PSPRS Employee and Employer Contribution Rates

  • PSPRS (Fiscal Year 2018/19)
  • PSPRS (Employee Rates for Fiscal Year 2017/18)
  • PSPRS (Employer Rates for Fiscal Year 2017/18)
  • PSPRS (Fiscal Year 2016/17)

PSPRS Membership Tier 1 - Contribution Rate Changes

As a result of 2011 S.B. 1609, employee contribution rates were gradually increased starting in FY 2011/2012 from 7.65% up to 11.65% until approximately April 2017. However, as a result of subsequent court rulings, employee contribution rates were rolled back to 7.65% for employees whose PSPRS membership date is prior to July 20, 2011. For Tier 1 Members with a membership date on or after July 20, 2011 and through December 31, 2011, the employee contribution rate will remain based on the Tier 2 Membership since these members became a member after the effective date of the legislation pursuant to SB1609 (2011).  For Tier 1 Members that qualified, the excess contributions, plus interest, have been returned to the employers and will need to be issued back to the employees from the employers. 

PSPRS Membership Tier 2 - Defined Contribution (DC) Requirement

One of the significant changes in SB 1428 (2016) applied to Tier 2 Members who work for employers in a position that do NOT pay into Social Security.  The requirement was that in addition to their contribution to the traditional Defined Benefit (DB) plan, unless they opted to NOT pay into the Defined Contribution (DC) plan, they are required to contribute 3% of their salary to the DC plan, which is also matched by the employer.  This change could also impact employees that currently pay into Social Security, but later transfer into a non-Social Security position - unless the employee opted to not pay into the DC plan, they will be required to pay into the DB and DC plan.

CORP Membership Tiers

Tier 1 Members

Tier 2 Members

Tier 3 Members

Hired into a CORP position before January 1, 2012

Hired into a CORP position on/after January 1, 2012

Hired into a CORP position on/after July 1, 2018

CORP Employee Contribution Rates

Tier 1 and Tier 2 Members

CORP Non-Dispatcher

CORP Dispatcher

8.41%

7.96%

CORP Employer Contribution Rates

  • CORP (Fiscal Year 2017/18)
  • CORP (Fiscal Year 2016/17)


EORP Membership Tiers

Tier 1 Members

Tier 2 Members

New DC Plan (EODCRS)

Hired into an EORP position before January 1, 2012

Hired into an EORP position on/after January 1, 2012

Newly appointed or elected officials on/after January  1, 2014

EORP Employee Contribution Rates

Tier 1 Members

Tier 2 Members

New DC Plan (EODCRS)

7.0% for those hired before July 20, 2011

13.0% for those hired on or after July 20, 2011

13.0%

See EODCRS

EORP Contribution Rate Changes

As a result of 2011 S.B. 1609, employee contribution rates were gradually increased starting in FY 2011/2012 from 7% up to 13% until approximately April 2017. However, as a result of subsequent court rulings, employee contribution rates were rolled back to 7% for the Tier 1 Members For, Tier 1 Members with a membership date on or after July 20, 2011 and through December 31, 2011, the employee contribution rate will remain based on the Tier 2 Membership since these members became a member after the effective date of the legislation pursuant to SB1609 (2011).  For Tier 1 Members that qualified, the excess contributions, plus interest, have been returned to the employers and will need to be issued back to the employees from the employers.  

Determining Pensionable Wages

In order to properly report wages and withhold contributions, employers need to understand what is considered compensation.

Compensation for PSPRS Members

What is included as pensionable compensation

What is NOT included as pensionable compensation

  • Base salary
  • Shift differential pay
  • Military differential pay
  • Holiday pay
  • Overtime pay
  • Sick time used
  • Vacation time used
  • Compensation time used
  • Pay earned by third party contracts between public agencies
  • Longevity payments, as long as it is paid at least every 6-months
  • Lump sum payments of accrued unused vacation time
  • Lump sum payments of accrued unused sick time
  • Lump sum payments of accrued unused compensatory time
  • Uniform allowances, car allowances or other fringe type benefit payments

 

Compensation for CORP Members

What is included as pensionable compensation

What is NOT included as pensionable compensation

  • Base salary
  • Shift differential pay
  • Military differential pay
  • Holiday pay
  • Sick time used
  • Vacation time used
  • Compensation time used
  • Lump sum payments of accrued unused vacation time
  • Lump sum payments of accrued unused sick time
  • Lump sum payments of accrued unused compensatory time
  • Uniform allowances, car allowances or other fringe type benefit payments

Compensation for EORP Members

What is included as pensionable compensation

What is NOT included as pensionable compensation

  • Gross Salary
  • Lump sum payments of accrued unused vacation time
  • Lump sum payments of accrued unused sick time
  • Lump sum payments of accrued unused compensatory time
  • Uniform allowances, car allowances or other fringe type benefit payments

Alternate Contribution Rate (ACR)

Legislation passed in 2011 which requires employers to pay an Alternate Contribution Rate (ACR) when they employ a PSPRS, CORP or EORP retiree.  This rate is strictly charged to the employer as a way to lessen any potential actuarial impact caused by hiring a retiree in a position that would normally be filled with a contributing employee.

The ACR is individually set for each participating employer group and determined each year during the System’s annual actuarial valuation. The ACR is the result of combining the amortized unfunded liabilities for both the cost of pension and health, with a minimum amount of 8% in PSPRS and 6% in CORP.  Employers can access this information from the Contribution Requirement section in their annual Individual Actuarial Valuation Report.  

Employers must report ACR data and payments using their normal payroll reporting processes to the System.  This would include uploading data through the Employer Payroll Portal.  Employers who submit late ACR payments are subject to interest being charged against those payments.

For more information on contribution reporting and payment remittance, please contact our Active Members Department.