PSERS PENSION PLAN REPORTING/
GASB 67 FINANCIAL REPORTING
Presenters: Flavia Peynado and Carlton Lenoir
GEORGIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS
(GASBO)
AUGUSTA GA
Employee’s Retirement System of Georgia (ERSGA)
November 5, 2015
AGENDA

PSERS Pension Reporting

Pension Plan Financial Update

GASB 67/68


Annual Timeline

Financial Reporting for Pension
Plans

Pension Plan Responsibilities
Impact to Employers

Compliance Audits

Compliance File Reporting

Compliance Reporting – Status
Update
PSERS REPORTING

Employers’ Responsibilities




Deducting, collecting and reporting employee contributions
Reporting Period
 September to May
 No reporting for June, July and August
Monthly Reporting deadline
 All components due on the 1st of each report month
Required components
 Monthly Summary Report
 Monthly Employee Detail File
 Monthly Contribution Payment
 Pension Compliance File
PSERS REPORTING
Employer Reporting Website



www.ers.ga.gov > Employers> Login
Registration
 Completed Contact Form-must be on file at ERSGA
 Employer Reporting Quick Reference Guide
 Navigate to Employer Page
 Forms and Information
 Step by Step Guide to creating the User ID and Password
Employer Desktop
 Appears upon logging in
 Links to Employer Reporting functions
PSERS REPORTING
PSERS REPORTING
Check Member Plan Eligibility
Visit this page to verify the group to enroll new or re-hire
PSERS REPORTING
Upload Salary or Compliance Detail File
Visit this page to upload the Salary Detail or Pension Compliance file
PSERS REPORTING
Upload Salary or Compliance Detail File
PSERS REPORTING
Salary Detail File



Generating or Correcting File
 Contact your IT/Payroll Vendor
Common Salary Detail File Issues which cause a Rejected File
 Incorrect File Name
 Incorrect File Format
 Incorrect Member Count
 Incorrect Characters and Row Length
Data Issues
 Reporting members on LWOP
 Missing Eligibility/Employment Date
 Missing Termination Date
 Reporting Incorrect SSN
STATEMENT No. 67
FINANCIAL REPORTING FOR
PENSION PLANS
PENSION PLAN FINANCIAL UPDATE:
June 30, 2015






Plan Funded Ratios- PSERS 82.8% & ERS 72.8%
Membership
 PSERS – 35,488 (active); 79,468 (inactives); 16,994 (retirees)
 ERS – 60,419 (active); 84,791 (inactives); 47,180 (retirees)
Pension Benefits Paid (up 5.9% over 2014)
 PSERS $56,972,000
 ERS
$1,334,278,000
Net Plan Position
 PSERS $823,150,000
 ERS
$12,967,964,000
Money weighted return on investments (investment pool)
 (5.32%)
Investment rate of return – 3.7% ($609,626,000 investment income)
GASB 67 – ANNUAL TIMELINE

Timeline of Plan/Employer GASB related activities
GASB 67
and 68
January
Plan
Activities
Manual
employers
selected for
census data
audits
February
Mar
April
May
June
Plan Actuary
issues the
GASB 68
Reports --
Request
attestation
reports due 7/31 –
Request
employer
contribution
Confirmatio
ns--
Send GASB
68
employer
packets and
note
disclosures
to
employers
Conduct
GASB 67
webinars
GASB 68
reports
audited by
KPMG
Employer
Activities
Provide
census
data for
audit
GASB 67 – ANNUAL TIMELINE

Timeline of Plan/Employer GASB related activities (cont’d)
GASB 67
and 68
July
August
Plan
Activities
Sept
Oct
Plan
actuary
issues the
GASB 67
reports –
Issue Audit
Report
Provide
employer
contributio
ns to
auditor,
actuary
and SAO
Employer
Activities
Provide
attestation
reports to
plan
Provide
contribution
confirmation
letters to plan
Nov
Dec
Issue CAFR
GASB 67 – FINANCIAL REPORTING for
PENSION PLANS





Effective for Pension Plan financial reporting beginning June 30, 2014 fiscal
year – Designed to improve financial reporting by state and local pension plans
Replaced Statements 25 and 50 – Defined benefit plan reporting and note
disclosures for DC Plans and Pension Disclosures
Established standards for financial reporting and the required approach to
measure the pension liability of employers/non-employer contributing entities
Approach: Accounting ratio of net plan assets available for benefits to total
pension liabilities
2014



ERS – 77.99%
PSERS – 88.29%
2015


ERS - 76.20%
PSERS -87%
GASB 67 – FINANCIAL REPORTING for
PENSION PLANS



GASB 67 changed pension reporting for plans administered
through trusts – ERS and PSERS are administered through
Trusts
Both plans are also cost-sharing multiple-employer pension
plans
GASB 67 also required that investment expenses be moved
from admin expense to an offset v. investment income
GASB 67-PENSION PLAN RESPONSIBILITES

New Notes Require defined benefit pension plans to include
descriptive information:






Type of benefits provided
Classes of Plan member covered
Composition of the pension plan Board of Trustees
Pension Plan Investment Policy
Pension Plan Investment Allocation
Required Supplementary Information




10 years of sources of changes in the net pension liability
Components of Net pension Liability
Contributions to the Plan
Assumptions used in calculation of actuarially determined contribution
GASB 67-PENSION PLAN RESPONSIBILITES

Measurement of Pension Liability



Requires that the actuary complete a valuation of the total pension
liability every two years
If the valuation is not done as of the plans fiscal year end, roll
forward procedures are required to update values as of year-end
Allocation to Employers – For GASB 68





Each Governmental employer must include their share of the net
pension liability in their financial statements
PSERS – Special Funding Situation
ERS Continue to report pension expense (now calculated by plan)
ERS Deferred inflows and outflows of resources
Source of the calculations above: Census Data from Employers
GASB 67 – IMPACT TO EMPLOYERS



How Census Data impacts employer allocation
Total pension Liability, contribution revenues, and contribution
receivables are dependent on the completeness and accuracy
of census data
What Census Data items are significant:

Date of Birth

Date of Hire

Years of Service

Eligible Compensation

Class of Employee

Date of termination

Employment Status
GASB 67 – IMPACT TO EMPLOYERS
Tools the plan uses to ensure the accuracy and
completeness of the significant census data:
Over 200 payroll edits within Pension System
 Direct access to employer payroll data
 Trained Employer reporting staff
 Compliance Audits
 Compliance File Reporting

GASB 67 – COMPLIANCE AUDITS
Manual Employers

Control between the employer and the plan that ensures that all eligible
employees are being reported to the plan

It brings a heightened awareness to the importance of accurate and
timely enrollment

Each January employers are randomly selected by the plan – five year
cycle

Employers are asked to send payroll registers (one month from the
previous fiscal year), and new hire list and terminations

Audit to ensure accuracy of enrollment, hire dates, service in the plan,
pensionable pay, contributions and terminations
GASB 67 – COMPLIANCE FILE REPORTING
File Uploaders






Control between the employer and the plan that ensures that all eligible
employees are being reported to the plan
It brings a heightened awareness to the importance of accurate and
timely enrollment
The compliance file should contain employee pay records for individuals
on the “plan covered” payroll but for whom a deduction was not taken
For many employers the file may be blank because those covered by the
plan are enrolled – nonetheless – control is in place.
Others in the file can include non-employees, substitutes working less than
60% time, and rehired retirees.
PSERS Employers – file is due monthly on the 1st of the month
GASB 67 – COMPLIANCE FILE UPDATE






192 PSERS Employers
162 have been approved to send production compliance files
26 BOE using MUNIS that are in testing
4 BOE with in-house payroll systems in testing
Please contact Diane Clark if you are one of these employers
Diane.Clark@ers.ga.gov
CONTACT INFORMATION
Flavia O. Peynado, Operations Manager
Flavia.Peynado@ers.ga.gov
Carlton W. Lenoir, Deputy Director
Carlton.Lenoir@ers.ga.gov
Laura Lanier, Plan Controller
Laura.Lanier@trsga.com