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Office of the New York State Comptroller

State Payroll Services

Payroll Liaison Q&A

 

July 2012

Q. Who should agencies contact with questions pertaining to Deficit Reduction?

A. All questions about Deficit Reduction may be e-mailed to Beverly Bessette in Payroll Earnings.

 

May 2012

Q. Under what circumstances should an agency stop deductions for:

  • ERS Normal Contributions?
    A. When an employee reaches his/her cessation date, contributions would cease.
  • What if an agency knows when the 10 year anniversary is?  (bypass Article 19 cessation file)
    A. It is best that you wait to receive our letter of determination regarding the cessation date, before you cease the contributions.  We will notify you three months in advance.
  • ERS Loans?
    A. In general, loan deductions should cease upon receiving written notification from the Retirement System that the member's loan has been paid in full.
    If a member is on an authorized leave of absence, they are also given the option of suspending the repayments on their loan for up to one year from the date their leave became effective, or until they return to the payroll, whichever occurs first.  In instances where a member requests the employer submit faxed verification of their authorized leave to the Retirement System's Loan Unit, they are making this request because they are exercising their option to suspend their repayments. A stop notice will not be sent out to the employer unless the member is still being reported on the payroll (sick leave at half-pay, WC, etc.) The employer would be able to stop loan deductions after providing us with the necessary documentation via fax. 
  • ERS Arrears?
    A.
    If a member has terminated employment arrears deductions would be stopped.  In cases with 414h arrears the state employer is told how many payments to take and they stop when payment is completed.  Stop letters are also generated either though the batch letter process or manually to inform employers when to stop taking arrears deductions.


Q. Should an agency stop Loan & Arrears deductions at Termination?

A. If a member has been terminated from employment, I would assume that the employer would no longer be reporting salary and service to the Retirement System and would, therefore, not have any funds to deduct the loan repayment from. If the member has been terminated and is receiving payment for a past pay period that they have worked, then the loan deduction should be taken.

In instances where a retired member of the Retirement System returns to their former employer's payroll on a part time basis, no loan deductions should be taken from their payrolls.

Q. Should an agency stop Loan & Arrears deductions for post-termination lump sum payments (accrued vacation pay)?

A. Unless the member advises you to do otherwise, no loan payments should be taken from time not actually worked (such as a lump sum vacation payment).  

Q. Should an agency call for a new ERS registration number for new full-time employees even though the employee has not returned the registration form? (in order to avoid future arrears)

A. The sooner the better.  As long as the employee is mandated to membership, you can call us to register the member.  We can always complete the registration process, except for the beneficiary portion, using our access to State payroll.  Once the registration case is completed, the employee will be notified that he/she has been registered and that he/she should complete a beneficiary designation form as soon as possible.