Purpose
The purpose of this bulletin is to inform agencies of the purpose and functionality of the new V Earnings Codes (Additional Pay Earnings Codes V01 – V17) in PayServ 9.2.
Affected Employees
All employees who are enrolled in one of the following Pension Plans with a status “Elect”, and a contribution rate within the limit for the current plan year, are impacted:
- New York State Employees’ Retirement System (NYSERS)
- New York State Police and Fire Retirement System (NYSPFRS)
- New York State Teachers’ Retirement System (NYSTRS)
- New York City Employees’ Retirement System (NYCERS)
- New York City Teachers’ Retirement System (NYCTRS)
- New York City Board of Education Retirement System (NYCBERS)
Background
V Earnings Codes (V Codes) are used to track the pensionable earnings of which an employee is legally allowed to contribute. Each V Code has a set limit period (calendar or plan year) and a year-to-date maximum contribution. When employees are paid, the contribution balance is calculated and evaluated using the applicable V Code. Once the employee’s earning balance reaches the year-to-date maximum limit for the V Code, the system will no longer take contributions from those earnings. The V Codes and the balances are reset at the beginning of each limit period.
V Codes do not add to the employees’ gross earnings or taxable gross and should not be factored into the employees’ rate of pay for calculating payments such as Overtime, Lost Time, Pre-Shift Briefing, Overpayments, etc.
Effective Dates
All V Codes listed are in effect at this time.
OSC Actions
OSC has created 17 V Codes:
| Earn Code | Earn Code Description | Earn Code Max* | Limit Description | Limit Period | Limit Type |
|---|---|---|---|---|---|
| V01 | RTR Memo CompLmt PAFBT3/ERSBEF | 285,000.00 | NYSLRS (ERS & PAF) Pensionable Earnings Tiers 1-4 | Calendar Year | IRS 401(a)(17) Limit |
| V02 | RTR Memo CompLmt ERSBT5 | 285,000.00 | NYSERS Pensionable Earnings (No OT) Tier 5 | Plan Year (4/1 - 3/31) | IRS 401(a)(17) Limit |
| V03 | RTR Memo OT Lmt ERSBT5 | 20,763.51 | NYSERS Overtime Earnings Tier 5 | Calendar Year | Tier 5 OT Limit |
| V04 | RTR Memo CompLmt ERSBT6 | 225,000.00 | NYSERS Pensionable Earnings (No OT) Tier 6 | Plan Year (4/1 - 3/31) | Governor's Salary |
| V05 | RTR Memo OT Lmt ERSBT6 | 17,301.00 | NYSERS Overtime Earnings Tier 6 | Calendar Year | Tier 6 OT Limit |
| V06 | RTR Memo CompLmt PAFBT5 | 285,000.00 | NYSPFRS Pensionable Earnings (No OT) Tier 5 | Plan Year (4/1 - 3/31) | IRS 401(a)(17) Limit |
| V07 | RTR Memo OT Lmt PAFBT5 | 0 | NYSPFRS Overtime Earnings Tier 5 | Calendar Year | 15% of Employees Salary |
| V08 | RTR Memo CompLmt PAFBT6 | 225,000.00 | NYSPFRS Pensionable Earnings (No OT) Tier 6 | Plan Year (4/1 - 3/31) | Governor's Salary |
| V09 | RTR Memo OT Lmt PAFBT6 | 0 | NYSPFRS Overtime Earnings Tier 6 | Calendar Year | 15% of Employees Salary |
| V10 | RTR Memo CompLmt TRSBEF | 285,000.00 | NYSTRS Pensionable Earnings Tiers 1-4 | Plan Year (7/1 - 6/30) | IRS 401(a)(17) Limit |
| V11 | RTR Memo CompLmt TRSBT5 | 285,000.00 | NYSTRS Pensionable Earnings (No OT) Tier 5 | Plan Year (7/1 - 6/30) | IRS 401(a)(17) Limit |
| V12 | RTR Memo OT Lmt TRSBT5 | 20,158.75 | NYSTRS Overtime Earnings Tier 5 | Plan Year (7/1 - 6/30) | Tier 5 OT Limit |
| V13 | RTR Memo CompLmt TRSBT6 | 225,000.00 | NYSTRS Pensionable Earnings (No OT) Tier 6 | Plan Year (7/1 - 6/30) | Governor's Salary |
| V14 | RTR Memo OT Lmt TRSBT6 | 17,067.00 | NYSTRS Overtime Earnings Tier 6 | Plan Year (7/1 - 6/30) | Tier 6 OT Limit |
| V15 | RTR Memo CPLT NYT/NBE/NYEBT6 | 225,000.00 | NYC Plans Pensionable Earnings (No OT) Tier 6 | Calendar Year | Governor's Salary |
| V16 | RTR Memo OTLmt NYT/NBE/NYEBT6 | 17,301.00 | NYC Plans Overtime Earnings Tier 6 | Calendar Year | Tier 6 OT by Calendar Year |
| V17 | RTR Memo CP NYT/NBE/NYEAFT/BEF | 285,000.00 | NYC Plans Pensionable Earnings Tiers 1-4 | Calendar Year | IRS 401(a)(17) Limit |
* Earn Code Max limit is subject to change each limit period/plan year.
Agency Actions
V Codes will appear for informational purposes (RTR Memo) in PayServ on the paycheck view and in the NHRP501 Master File for agencies that receive it. They will not appear to employees on paystubs or in New York State Payroll Online. Agencies do not need to take action for contributions to be tracked or stopped.
Questions
Questions regarding this bulletin may be directed to the Payroll Retirement mailbox. Include “Bulletin No. PIP-018” in the Subject line of all emails pertaining to this bulletin.