Tad Baker, section leader in membership account management, and Veronica Silva Gill, section leader in employee employer account management at CalPERS, told attendees that employers are the “gatekeepers” for early employment records and that accurate and timely certification affects members’ ability to purchase service credit.

Why it matters: late or inaccurate employer reporting can trigger arrears assessments, cause members to lose the opportunity to purchase service credit and expose employers to invoices, penalties or audit findings.

Baker described Service Prior to Membership (SPM) as service an employee performed for a CalPERS-covered employer before they became a CalPERS member; a member can purchase that service credit only if the employer certifies the period before the member retires. Employers have 30 days to certify SPM requests in myCalPERS; if the employer does not certify within that window the member must re-request the purchase.

Veronica Silva Gill explained arrears: an arrears occurs when an employee who meets CalPERS membership eligibility is not enrolled timely — by 90 days — into myCalPERS. CalPERS can assess employer-paid arrears or member-paid arrears depending on the facts. “Based on California Government Code 20283,” she said, CalPERS assesses arrears when membership was reported late; employer-paid arrears generate invoices for both employee and employer contributions plus a separate $500 administrative fee that “cannot be changed to the member.”

Gill described examples where CalPERS may determine member-paid arrears: if the employer reasonably could not have known the employee should be enrolled, such as when an employee has other CalPERS-covered employment the employer did not know about, or where the late appointment falls before July 1, 1994. She said CalPERS’ system automatically flags late appointments and generates notifications and that employers have a 30-day appeal window after a late-appointment notice to provide documentation before invoices are issued.

Baker and Gill urged employers to keep accurate hire dates, job classifications and hours; to train HR/payroll staff on CalPERS certification rules; and to encourage early member purchase of service credit so records can be certified in time.