Child pages
  • STRS Advance
Skip to end of metadata
Go to start of metadata

The purpose of the STRSAD program is to provide you with a file which contains the fiscal report for STRS. This file will be placed on magnetic tape or transmitted electronically to STRS by your DAS. The program provides you with a report to verify the fiscal figures for each employee.

When processing this program, the user has the option to run a projection. The user must then verify these figures before choosing to perform the actual advance. After verifying all amounts, the program can be run to create the file to be sent to STRS.

Fields Affecting STRS Advance

The following section outlines which fields are utilized to determine if the employee is considered an advance employee.

  1. Are the "Days Worked in Contract" equal to the "Work Days in Contract"? The answer must be yes in order for an employee's job to be advanced. Only those jobs which have been completely fulfilled on or before June 30th are advanced. Advancement is determined on a job-by-job basis. The days in contract and the contract days worked must be greater than zero in order for the job to be advanced.
    There are situations where an STRS employee may work extended days causing work days to remain on the contract following the last payroll in June. Rather than make adjustments to days worked in JOBSCN thereby forcing the job into advance mode, the software will calculate the work days remaining in the month of June provided the job calendars and payroll beginning and ending dates have been input correctly.
    If the days worked do not equal the work days in contract for the job, the job calendar is checked to determine if the number of work days needed to fulfill the contract will be met by July 1st. If the calendar indicates that the days worked will equal the work days in contract by July 1st, the job will be advanced. For jobs that still have work days remaining, but are placed into the STRS advance, wages that would have normally been brought into the payroll as regular wages (REG pay type) will be added as accrued wages (ACC pay type). This allows for proper handling of the advance earnings and work days for the job.
  2. Are the "Number of Pays Paid in Contract" less than the "Number of Pays in Contract"? The answer must be yes in order for an employee's job to be advanced.
  3. Is the employee flagged as a part-time or full-time employee in the `450' deduction record? This will determine what service credit the employee will receive for the year.
  4. How many service days does the employee have for the fiscal year? Service days can be obtained from the STRSAD.RPT report or by running the USPRPT/RPTSUM program for service day counts for the fiscal year. If the employee is full-time and worked at least 120 days, then the service credit is 100%. If the employee is full-time and did not work 120 days, or is considered part-time, the service credit calculation is as follows:
  • the employee worked at least 90 days and the employment relationship was in effect for 120 days and the total compensation is equal or greater than the state minimum, the service credit is 100%.
  • If the employee worked at least 90 days, but the employment relationship was not in effect for 120 days, the service credit is total days divided by 180.
  • If the employee did not work 90 days, the service credit is total days divided by 180.
  • If the employee worked at least 90 days and the employment relationship was in effect for 120 days and the total compensation is not equal to or greater than the state minimum, the service credit is the greater of the following two calculations:
    • total compensation divided by state minimum salary
    • total days divided by 180

The employment relationship is determined by counting the number of days from the first day school is in session for the reporting year or the Hire Date in BIOSCN (whichever is later) and the last day school is in session for the reporting year or the Termination Date in BIOSCN (whichever is earlier).

The relationship of the employee with the district is based on  “ALL” days in the calendars minus weekend days.

For districts with multiple buildings opening on different dates, the first day school is in session is considered the first day classroom instruction begins in any building. The last day school is in session is the last day any classroom instruction occurs in all buildings. The employee termination date field must be updated when an employee leaves the district. This field should not be confused with the termination date on job records. The STRSAD program will check the employee termination date, not the job termination dates.
If the values in these fields are incorrect for any employee, the district must use USPSCN to make the necessary corrections to the appropriate fields. Extreme caution should be used when making these changes since some of these fields could actually affect an employee's pay.

STRS Advance Calculations

The following example illustrates how the STRS calculations are made. A full-time employee has a contractual obligation of $26,000.25 per year. The employee is paid biweekly and thus has 26 pays in contract, 21 of which have already been paid as of June 30th. The employee has 180 work days in contract, all of which will have been served as of June 30th. The employee had not been docked during the contract period. The employee's daily rate is $144.45 while the pay per period is $1000.00. On June 30th the employee's contract amount paid would be 21 times the pay per period ($1,000) or $21,000.00.

Using the example employee from above, the calculation would be as follows:

Number of pays left = 26 - 21=5

Last payment amount = 26,000.25 - 21,000.00  - (1,000 * (5 - 1)) = 1000.25

Advance = (1,000 * .120 * (5 - 1)) + (1,000.25 * .120)

ADV = 600.03

The above calculations look somewhat complex, however, they are actually designed to reflect a simple approach to the calculation of the advance. Basically the advance is calculated as an amount for each pay remaining in the contract. In this way it can be assured that the advance and its subsequent repayment will balance exactly provided the user makes no changes to the employee's payroll records for the advanced job until the contract has been completed, (i.e. the last pay paid).

The following is an example to further illustrate how the advance is calculated. The same contract information from the employee on the previous page will be utilized.

Contractual Obligation

=

$26,000.25

Contract Amount Paid

=

$21,000.00

Contract Amount Docked

=

$0.00

Number of Pays/Pays Paid

=

26/21

Days in Contract/Contract Days Worked

=

180/180

Pay Per Period

=

$1,000.00

22'nd Pay in Contract

Pay Per Period

=

$1000.00

Retirement Deduction

=

$120.00

Contract Amount Paid

=

$22,000.00

 

 

 

23'rd Pay in Contract

Pay Per Period

=

$1000.00

Retirement Deduction

=

$120.00

Contract Amount Paid

=

$23,000.00

 

 

 

24'th Pay in Contract

Pay Per Period

=

$1000.00

Retirement Deduction

=

$120.00

Contract Amount Paid

=

$24,000.00

 

 

 

25'th Pay in Contract

Pay Per Period

=

$1000.00

Retirement Deduction

=

$120.00

Contract Amount Paid

=

$25,000.00

 

 

 

Last Payment in Contract

Obligation

=

$26,000.25

 

 

 

Contract Amount Paid

=

$25,000.00

 

 

 

 

 

-----------------

 

 

 

Gross for Last Pay

=

$ 1,000.25

 

 

 

 

 

Retirement Deduction

$1,000.25 * .120

=

$120.03

 

 

 

Total Advanced Amount

=

$600.03

Running the STRSAD Program

The program is executed by typing:

$ RUN OECN$PAY:STRSAD

at the $ prompt or from the menu system type

Menu>STRSAD
 
 
This program calculates the total amount to be 
deducted for the advanced payment to the State 
Teachers Retirement System. 
 
Main Menu Options: 
 
    1 - Projection of STRS advanced payments. 
        This option projects the STRS advanced 
        payments, fiscal YTD STRS deposits 
        and earnings for all employees.  NO STRS 
        reporting file is created. 
    2 - Actual STRS advance payment calculation 
        and STRS fiscal report generation. 
    3 - Exit program. 
 
Enter Option: _ 
              1 
 
Enter District code:<1111> ____ 
                           1111 
District code is "1111" 
 
Is this correct? (Y/N <Y>): _ 
                            
Enter starting date for the academic year: ________ 
                                           MMDDCCYY 
 
Enter ending date for the academic year: ________ 
                                         MMDDCCYY 
 
Enter Sort Option (S,N,? <S>): _ 
                               
Processing, please wait 
 
Report names are: STRSAD.TXT 
                  STRSAD.RPT 
    NONADV.TXT 
 
Processing Completed! 
 

The projection option (Option 1) of this program can be run as many times as necessary without making any changes to the USPS files. Option 2 will actually flag the appropriate jobs as advanced jobs based on the fields mentioned previously in this chapter. The job will remain in "advance mode" until the last payment in contract has been paid. At that time, the job's advance flag is turned off and the job is no longer considered in "advance mode".

Three reports are generated each time the projection or actual advance options are executed. The first report called STRSAD.TXT lists all advanced jobs for the district. The second report called STRSAD.RPT is the complete fiscal year-end report for all STRS employees, including all advanced employees. The third report called NONADV.TXT shows employees who will not be advanced.

When Option 2 of the STRSAD program is utilized, the tape file is created and is called STRSAD.yy06 (yy = year). The ANNSTRSSND can then be used to submit the information to STRS.

Balancing/Checking STRS Reporting

In addition to performing the advance calculations it is also important that the user examine the FYTD reported totals for each employee as shown on the STRSAD reports. The information reported is utilized to calculate a retiree's benefits, therefore it is vital that this data be correct.

Utilizing the STRSAD.RPT report, it is suggested that you carefully check each employee's service credit listed to insure that it is correct. This data is calculated from the information found in the "450" deduction record pertaining to "Service Days" and "Full/Part-time Status".

At the bottom of the STRSAD.RPT is a total labeled `TOTAL TAXED + NON-TAXED'. The amount shown should equal the amount deposited with STRS during the past fiscal year plus the amount of the current advance. If this is not correct, you should examine each employee's reported contributions to identify the error(s).

There are also totals at the bottom of the STRSAD.RPT which will assist you in completing the STRS recap sheet once you have checked all figures for accuracy. The totals for regular and rehired retirees are separated on this report since the STRS recap sheet will require these to be reported separately.

Processing Additional Pay Types on Advanced Jobs

The following Pay Types can be processed on a job that is in the advance mode using USPSCN/UPDCAL_*.

  • MIS - miscellaneous pay
  • DCK - dock pay
  • OT - overtime pay
  • SHP - shift premium
  • TRM - termination pay
  • POF - pay off of total accrued wages
  • NC1 - non-cash life insurance premium
  • BCK - retro pay

In USPSCN/UPDCAL_CUR, use the Modify feature to include the desired Pay Type with the existing pay information for the advanced job.

In USPSCN/UPDCAL_FUT, use the Add feature to include the desired Pay Type in a future payroll for the advanced job.

If the DCK (dock) Pay Type is used on a job in the advance mode, a warning will be issued indicating that the advance calculations will be off for this job. This is because the dock takes away earnings. This will need to be considered when balancing at the conclusion of the advance.

If attempting to pay a BCK (retro) payment on a job that is flagged as being in STRS advance, this warning will be issued.

If the BCK pay type was originated by NEWCNT or was in JOBSCN before running the actual option of STRSAD, the warning can be ignored. The software would have taken the retro amount into consideration when the advance calculations were done.

If the BCK pay type is being added in UPDCAL after running the actual option of STRSAD, doing so may cause the advance calculations to be out of balance when all jobs are out of the advance mode. In this instance, if the district wishes the BCK amount to be applied to the current contract, the warning can be ignored and corrections will need to be filed with STRS for this employee or employees as needed. If the BCK amount should not be applied to the current contract, the BCK type should be removed from UPDCAL.

If the TRM (termination) Pay Type is used on a job in the advance mode, it must have a number of Units entered, in order for the system to calculate the pay off amount for the job.

Using the POF (pay off total accrued wages) Pay Type may cause the payback to be off by a few pennies. The STRS Advance Flag will be turned off on the job record after the CHKUPD program is executed successfully.

The following Pay Types cannot be processed on a job in the advance mode.

  • REG - regular wages
  • IRR - irregular pay

These Pay Types affect the contract amount for the job and are considered new earnings. A new job would have to be set up for these Pay Types.

Non-Modifiable Fields While in Advance Mode

The following fields found in USPSCN/JOBSCN cannot be modified while the job is in advance mode.

USPSCN/JOBSCN 1 of 3

  • Contract start
  • Contact stop
  • Job status
  • Pay plan
  • Retirement code

USPSCN/JOBSCN 2 of 3

  • Obligation
  • Amount
  • Amount paid
  • Amount due
  • Amount earned
  • Amount docked
  • Equal pays flag
  • Hours per day
  • Pay unit
  • Pay per period
  • Unit amount
  • Number of pays
  • Number of pays paid
  • Work days
  • Days worked
  • No labels