Salary and Absences Not Reportable to PSERS

The pension department works diligently to ensure that all reportable salary and days are reported accurately and timely to PSERS. We understand the critical nature of reporting as accurately as possible as salary, days worked and contributions can impact the members pension balance and payment. What is initially reported to PSERS on your behalf is based on what has been entered in to the School District’s system on your behalf. For instance, your first day of work with PSERS reflects what was entered by the respective area of Talent. If the date was incorrect, and the pension department is notified of the discrepancy, we typically make corrections in 7 work days or less on the pension side.

Since pension contributions on these payments and absences are not reportable, you should not see a pension deduction for the days the absence is coded nor for any of the payments listed below. However, if you have days worked or a payment that is required to be reported to PSERS in the same pay as any of the below payments/absences, then the pension will be deducted on what is reportable to PSERS. If a contribution is deducted and should not have been, once the pension department is aware or notified, a reimbursement is given to the employee in the very next one to two paychecks. Please see the below payments and days not reportable to PSERS:

Payments

• Reimbursement for expenses incidental to employment
• Bonuses
• Severance payments
• Payment not based on the standard salary schedule
• Payment for unused vacation and sick leave
• Compensation for attending seminars and convention
• Any other payment that the Board determines is for the purpose of enhancing final average salary
• Longevity payments
• Tax-Sheltered Annuity is not retirement-covered compensation and is considered a fringe benefit if it is paid in addition to the member’s base salary (a “non-salary reduction”) and is not added to the member’s base salary
• Back pay that is merely a damage award or settlement payment
• Approved Leave of Absence Salary/Wages Expenses or payments made to members as reimbursement for expenses incidental to their employment
  • Car allowance (for lease or purchase of vehicle) Note: Car Allowance may also be a fringe benefit if the employer pays the expense directly. Whether considered expenses or a fringe benefit, the income is non-retirement-covered compensation
  • Mileage reimbursement
  • Dues
  • Conference or seminar fees (including registration, housing, and meals)
  • Meal reimbursement
  • Cell phone charges

• Fringe benefits – Fringe benefits are excluded from retirement-covered compensation. This includes payments for a life insurance policy, premiums for health and welfare benefits, group life insurance, and union dues.
  • Payment to an employee in lieu of a benefit the employee is eligible to receive, or any reimbursement received by the employee.
  • Payment in lieu of an employer-sponsored vision and dental plan
  • Payment in lieu of an employer supplied cell phone
  • Payment in lieu of health care coverage
  • Special payments for health and welfare plans based on the hours employed
  • “Signing bonuses” if the amount is not included in the base salary the following year
  • Payments for “perfect attendance” or similar behaviors
  • Payments to Independent Contractors, or persons compensated on a fee basis
  • Compensation for attending seminars and conventions, and salaries paid to employees serving as PIAA officials. (They are considered independent contractors contracted through PIAA.)
  • Non-published side agreements for additional compensation
• Any payments (remuneration or a profit derived from one’s office) received by a school employee for school service that is not based on the standard pay schedule for which they are rendering service
• Payments or a profit derived from one’s office that may be negotiated in a collective bargaining agreement for the express purpose of enhancing the compensation factor for retirement benefits
• Payments due for settlements or an arbitration or court cases when the settlement involves less than full reinstatement, back pay, and benefits.
• Interest payment included with settlements or arbitration of a court case.
• Work performed as a student is generally not eligible for purchase, because such service is often tied to conditions that make the service not part of a true employer/employee relationship.
  • As part of a financial aid package (e.g., work study, etc.)
  • In exchange for a tuition or housing waiver s part of the student’s curriculum
  • In exchange for academic credit
  • As a Graduate or Resident Assistant
• Salaries paid to substitutes employed through a contracted substitute service are not retirement-covered compensation.
• Salaries paid to PSERS retirees hired for employment due to an emergency or shortage of personnel. An emergency is characterized as an increase in workload that creates a serious impairment of service to the public or a shortage of appropriate subject-certified teachers or personnel.
• Salaries paid to PSERS retirees hired for an extracurricular activity.

Absences

• Active Reservist, Military Leave (Paid and Unpaid)
• Approved Leave without Pay
• Leave Not Available
• Educational Leave
• Furlough
• Illness in Family, without pay
• Illness in Family, half pay (unpaid half of day)
• Invalid Leave Coded
• Left SDP
• Personal Leave Excess
• Personal Leave Prep Payback
• Sick Leave No Pay
• Suspend with Pay
• Suspend without Pay
• Unapproved due to Strike
• Unauthorized Leave without Pay
• Up to 89 Day Leave without Pay
• Vacation Excess
• Wage Continuation
• Workers Compensation

Please refer to the Purchase of Service page for more information on whether any of the absences allow for additional contributions to make up for the time you were coded any of the above absences. This is also known as purchase of service. Payments not reportable are not eligible for additional contributions. For questions about the decision to make certain payments and absences non-reportable, please contact PSERS directly at 1-888-773-7748.