You may have already been notified, but we wanted to make sure that you heard that the pension deduction increases will be seen in the February 2nd paycheck. The increase was effective on October 1, 2017 but the Comptroller’s Office was not able to implement the change until now.
SEBAC provided the following question and answer about this increase:
Question: What additional percentage will be taken out of my paycheck this fiscal year to make up for 6 pay-period delay in the 1.5% pension deduction increase?
Answer: With a caveat, we can give the percentage. The caveat is that the money is computed individually, so that people who receive different amounts each week (based on part-time schedule, overtime, etc…) owe 1.5% of what they actually got paid during those 6 check dates. Since there will be 12 pay periods to collect that 1.5%, the Plan will collect 6/12ths of that or .75% every week, but that will match up to exactly .75% of current earnings only for people who make the same amount bi-weekly every weekly check. For each employee, what will actually be deducted each pay period is 1/12th of what they owe for the 6 pay periods where the 1.5% deduction was missed. The deduction will return to its current amount at the end of this fiscal year.
ebenson January 18th, 2018
Posted In: Retirement, SEBAC