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Committee defers decision on plan document and Tier 5 implementation to December after DFA raises payroll‑system concerns
Summary
Trustees agreed to pause final action on a plan‑document change tied to Tier 5 implementation following concerns from the Department of Finance Administration about statewide payroll upgrades. The committee voted to revisit the item at the December meeting; no formal legislative action was approved at this session.
The Defined Contribution Committee agreed on Oct. 17 to postpone final consideration of a plan‑document change tied to Tier 5 payroll reporting until its December meeting after staff reported concerns raised by the Department of Finance Administration (DFA).
A staff member advising the committee said DFA — which administers the statewide payroll system — is in the middle of a major system upgrade scheduled to go live July 1 and has raised concerns about meeting a March 1 reporting deadline tied to Tier 5 implementation. The staff member said PERS and vendors are working on a temporary or interim solution with DFA and remain optimistic a workable approach can be found, but details remain unresolved.
The committee chair asked whether a formal committee action was required to pause; staff answered it was not necessary but recommended a December follow‑up to finalize details once the interim solution is clarified. The committee then approved a motion to defer discussion and adoption until the December Defined Contribution Committee meeting. The motion was seconded and carried by voice vote.
Trustees discussed contingency needs if DFA cannot implement the March 1 interface on its timetable. Staff said PERS was proceeding with Tier 5 readiness on its side while working on an interim process with DFA and would provide an update in December. Committee members asked that staff report whether legislative action would be required if DFA cannot meet the timeline.
Ending: The committee voted to pause final action on the plan document and to reconvene the matter in December; staff will continue developing an interim solution with DFA and will update trustees at the next meeting.
