State office warns: PERS reporting rules may require spreading lump-sum raises across payrolls

Melissa explained a technical PERS reporting issue that can complicate one-time or lump-sum raises. She said PERS’s statute requires monthly reporting of compensation changes, so when a raise is paid as a single lump payment the employer’s PERS report must still reflect the raise spread across the remaining payroll periods. She illustrated the approach with a numerical example: a $1,000 raise given on Jan. 15 with 10 pay periods left would be shown on PERS reports as $100 per month.

Questions from attendees probed edge cases: what happens if part of a raise was paid in December and the rest planned later; how to reconcile payroll reports when the employee leaves after a raise was approved; and whether partial payments (half now, half later) will be accepted. Melissa acknowledged the complexity, said many cases may require PERS guidance and asked schools to email specific scenarios to Cheryl (Cheryl’s last name was given as Lacombe) and copy Melissa so staff can share answers broadly.

Guidance and next steps: Melissa recommended schools consider doing pay addendums effective on the payment date to simplify reporting where appropriate. She and staff pledged to take specific examples to PERS and to update schools once they have definitive guidance. Melissa also said if a raise was budgeted but the employee left, unused funds generally cannot be carried forward under the statute and may need to be returned.

Where this stands: The office has not issued a binding rule change; schools should collect their payroll scenarios, contact Cheryl for case-specific guidance and expect follow-up from the office once PERS clarifications are obtained.