PAYROLL OFFICE LETTER NUMBER 86-12
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP89-00066R000700100013-3
Release Decision:
RIFPUB
Original Classification:
K
Document Page Count:
13
Document Creation Date:
December 27, 2016
Document Release Date:
August 5, 2013
Sequence Number:
13
Case Number:
Publication Date:
November 12, 1986
Content Type:
MISC
File:
Attachment | Size |
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Body:
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WTI United States
kt: Office of
4, Personnel Management Washington, D.C. 20415
NOV 1 2 1986
In Reply Refer To: Your Reie'rence:
AGENCY PAYROLL OFFICES ? PAYROLL OFFICE LETTER NUMBER 86-12
ATTN: CHIEF FINANCIAL OFFICER
On,Octoher,27, 1986, the President signed P.L. 99-556, the Federal Employees'
Retirement System Technical Corrections Act of 1986. This law contains
language which requires changes to the guidance we provided to you in. our
October 8,,1986, Payroll Office Letter on the Federal Employees Retirement
System (FERS).
Section 505 of P.L. 99-566, "Coordination with Pay Periods", changes the ,date
on Which agencies begin FERS withholdings and contributions from January 1,''
1987, to "the first day of the first applicable pay period beginning on or
after.January 1, 1987 or to the day before such first day, as appropriate.''
Please be aware that P.L. 99-556 does not revise the date of-coverage(CPDF-
effective date) for those employees to be automatically transferred-to-FERS.--
The effective date of FERS for coverage purposes remains January 1, 1987.
The purpose of this letter Is two-fold. First, it provides amended'
instructions pertaining to certain areas discussed in our October 8th letter;
and, second, it introduces the revised SF 2812 - Report of Withholdings and
Contributions for Health Benefits, Group Life Insurance and Retirement.,
Included in this letter are complete revisions to the INDIVIDUAL RETIREMENT
RECORDS and REPORTING REQUIREMENTS sections of our October 8th letter.
Generally, the passage of P.L. 99-556, eliminates the need for two separate
postings to the SF 2806 for 1986 and for a supplemental SF 2812 submission.
With the exception of these sections, the instructions in our October 8 letter
remain in effect. We suggest that both-letters be used in tandem.and that you
"X-out" the superceded material pertaining to SF 2812 reporting and SF 2806
posting procedures in the October 8th letter (that is, portions of pages .5 & 6;
all of page 7; the top Of page 8; and enclosures 3, 4, & 5).
Reporting Requirements
The implementation of FERS changes several of our benefit program reporting
requirements. A description of changes that will be made for two of- our basic
reporting needs is included below:
I. Report of Withholdings and Contributions for Health Benefits, Group Life
Insurance and Retirement (SF 2812)
Accounting and budgetary requirements necessitate that FERS remittances be
reported separately. Thus, withholdings, contributions, and deposits
CON 114-24-3
January 1980
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applicable to FERS employees must be reported on separate SF 2812 lines. A
revised SF 2812, reflecting this requirement, is being introduced in this
letter. FERS adds the following lines to the SF 2812:
SF 2812 Line CPDF
Name Code
FERS - regular
FERS - reserve
technicians
FERS - special L,M
FERS - deposits n/a
Withholdings & Contributions
Pertain to:
All FERS employees not
identified separately
Military reserve technicians
Law enforcements officers, fire-
fighters and air-traffic controllers
Deposits for all FERS employees
It should be noted that under FERS, unlike CSRS, redeposits of refunded
retirement deductions will not be permitted. Also, since annuities for
reemployed FERS annuitants will terminate upon reemployment, there will be
no salary offsets for them. Rather, employee withholdings and agency
contributions required for reemployed FERS annuitants will simply be
included on the SF 2812 lines with the withholdings and contributions of
non-annuitant FERS employees.
All CSRS withholdings and contributions will be reported on a single line
on the new SF 2812, which includes amounts for all of the applicable CPDF
codes (i.e., 1, 6, C, E, R and T).
The blank line under the FERS heading is in anticipation of the possible
need to further refine remittances for different categories of FERS
withholdings and contribution rates. We suggest that payroll offices make
provisions for this extra withholdings and contributions line in revising
their reporting and collection systems.
In view of the revised starting date for FERS withholdings and
contributions, the "straddling" pay period, described in our October 8,
1986, Payroll Office Letter will no longer exist. As a result, there will
be no requirement for the supplemental SF 2812 reporting addressed in that
letter. Thus, the following are our guidelines for reporting retirement
withholdings/contributions and military service deductions on the SF 2812:
The SF 2812 for the first pay period beginning on or after
January 1, 1987, must be submitted on the new form.
o The SF 2812 for pay periods prior to the first pay period
beginning on or after January 1, 1987, will be submitted on the
existing form.
o OPM will no longer accept SF 2812's on the existing form for
payroll periods with beginning dates of January 1, 1987, or
later. Adjustments for pay periods prior to the first pay period
beginning on or after January 1, 1987, must be submitted on the
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-3-
existing form. If an adjustment covers multiple pay periods that
cross the effective date for FERS withholdings, the existing form
will be required for the amounts pertaining to pay periods
beginning before January 1, 1987. The corrected amounts pertaining
to pay periods beginning on or after January 1, 1987, must be
included in the next regularly scheduled SF 2812 on the new form.
II. Semi-annual Headcount Report
Headcount reporting procedures will be significantly revised. Rather than
being reported on the face of the SF 2812, headcount data will be reported
on a separate form. In addition, the revised headcount reporting form will
incorporate the current supplemental retirement and spouse equity inform-
ation. Health benefits enrollment information will still be reported on
the SF 2812-A. Please note that changes to the headcount process will be
effective with the March 1987 Headcount; the September 1986 Headcount,
which we are currently working on, should proceed in accordance with the
instructions in our September 3, 1986, payroll office letter.
Revised headcount reporting requirements are based on whether data is
needed on a payroll period or semi-annual basis. Thus, the SF 2812 will
contain only information that is needed on a frequent basis; other data
will be reported via the semi-annual headcount report. Enclosure #1
depicts the categories. Of retirement coverage that will be reported for
headcount purposes. As you can see, headcount reporting Will '?continue to
requite a more detailed level of retirement information, which is necessary
for actuarial costing purposes.
Individual Retirement Records (SF 2806)
Starting in 1987, agencies must maintain two employee withholding control
accounts: one for CSRS and one for FERS. It is important that agencies
accurately identify FERS employees and correctly post and annotate their FERS
SF 2806's. OPM will require all agencies to report the cumulative balance of
retirement withholdings posted to SF 2806's and the number of records so posted
as of the close of business on December 31, 1986, for employees transferred
from CSRS to FERS. Instructions for this reporting requirement will be issued
in the near future.
New SF 2806's will not be required for FERS employees at this time; instead,
the redesignated CSRS record must be annotated in the remarks column (4) as
follows: "Automatically Transferred to FERS, 1/1/87". In addition, agencies
must enter in the "Do Not Use" portion of the SF 2806 (under the employee's
date of birth and SS number) the following: "FERS RETIREMENT RECORD".
As stated above, the passage of P.L. 99-556 obviates the need for two separate
postings to the SF 2806. Thus, the 1986 postings to the SF 2806 for FERS
employees will be consistent with normal payroll office practice. That is,
withholdings will be posted to the SF 2806 based on salary payments made in
1986. An SF 2806 initiated for a new FERS employee (e.g., an employee hired on
or after January 1, 1987) must also be designated as a "FERS RETIREMENT
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RECORD". Please note that these posting instructions are only applicable to
FERS employees and not those remaining in the'CSRS. See Enclosure #2 for an
example of a SF 2806 for a hypothetical FERS employee which shows the entries
required by FERS.
Existing military deposit SF 2806 records for FERS employees must also be
redesignated as FERS military deposit records as of January 1, 1987. Military
deposit payments made by FERS employees on or after January 1, 1987, are to be
considered FERS deposits and must be posted to a FERS Military Deposit SF
2806. An allotment from pay for a military deposit is considered paid on the
payroll paid date and should not be prorated. Please refer to.FERS Retirement
Officers Bulletin No. 2 for additional information.
OPM is currently evaluating changes to the current SF 2806 as well as options
for the permanent FERS recordkeeping system and will provide agencies with
further guidance as final decisions are made. Please note that-the sick leave
balance for an employee automatically converted to FERS is not posted to the SF
2806. Further guidance will be issued concerning the posting of sick leave
balances for those employees who can elect FERS coverage beginning July 1, 1987.
Revised SF 2812,
A copy of the revised SF 2812 is presented as Enclosure #3. Except for some
minor changes, it is identical to the draft version distributed at our
September 23, 1986, FERS presentation to the Interagency Advisory Group. The
revised SF 2812 provides a mechanism to separately account for FERS income
streams for both financial accounting and actuarial costing purposes. Thus,
withholdings, contributions, and service deposits applicable to CSRS and FERS
employees will be reported on separate SF 2812 lines. Enclosure #4 contains
detailed instructions governing the reporting of retirement remittances on the
new SF 2812 as well as a hypothetical example of the completed form.
Generally, the revisions to the SF 2812 are summarized, as follows:
1. The Retirement section has been broken-down into two Parts; the Civil
Service Retirement System and the Federal Employees Retirement
System.
7.
The detail information by age categories, previously requested for
Option B ("Additional") life insurance, has been removed from the
SF 2812,
3. Headcount information has been removed from the face of SF 2812 and
will be reported on a separate form to be introduced at a later date.
Additional information necessary to the implementation of FERS will be
furnished to you as soon as it is finalized. In the near future, for instance,
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we will be forwarding instructions on ourmodified reconciliation
requirements. It the meantime, if you have substantive questions on the
matters discussed in this letter, we may be reached on 202-632.-7450.
Sincerely,
John D. Webster, Assistant Director
for Financial Control and Management
Retirement and Insurance GroUp
Enclosures (4)
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ENCLOSURE #1
PAGE 1
CATEGORIES OF WITHHOLDINGS AND,CONTRIBUTIONS'THAT WILL
:
BE REPORTED ON REVISED SF 2812 AND HEADCOUNT
--Headcount SF 2812 Each Pay Period
Semiannually Withholdings Contributions Total
Basic Life Insurance
Standard Life Insurance
Additional Life Insurance
Family Life Insurance
Post-Retirement Life
Insurance
Total Life Insurance
Yes #
Yes
Yes
Yes
Yes'
No
Health Benefits (Excluding Yes
Spouse Equity Withholdings)
Health Benefits Spouse
Equity Withholdings
Additional Health Bene-
fits Contributions
Total Health Benefits
CSRS 7% With,7% Cont
CSRS 7 1/2% With,
7 1/2% Cont
CSRS 1.3% With,7% Cont
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
Yes
H B spouse equity withholdings-will
be combined with regular H B with-
holdings in a single field of the
SF 2812. In the headcount, however,
these two categories of employees.
pill be reported separately. .
Yes
Yes (1,R)* #
Yes (6,T)* #
Yes (C)* /,k
CSRS 1.8% With,7 1/2% Cont Yes (E)* #
CSRS Salary Offsets from Yes
Reemployed Annuitants
CSRS Military Deposits
CSRS Civilian Service
Credit
Total CSRS
Yes
Yes
Yes
DELETED
Yes
Yes
Yes
All four categories of regular CSRS
withholdings will be combined in a
single field of the SF 2812.
(The related agency contributions
also will be combined in a single
field.) In the headcount, however,
these four categories of employees
will be reported separately.
No
Yes
No
Withholdings for military deposits
and those for civilian service
credit will be combined in a single
field of the SF 2812. In the
headcount, however, the two
categories of employees will be
reported separately.
No
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ENCLOSURE 1,,1 PAGE 2
CATEGORIES OF WITHHOLDINGS AND CONTRIBUTIONS THAT WILL
BE REPORTED ON REVISED SF 2812 AND HEADCOUNT
FERS - Regular
1.3% With,14.8% Cont
(Ordinary employees)
FERS - Technicians
1..3% With,14.8% Cont
(Military Reserve Technicians)
--Headcount SF 2812 Each Pay Period
Semiannually Withholdings Contributions Total
Yes (K), # -Yes Yes No
FERS 7 Special
1.8% With,30.0% Cont
(Law Enforcement and Fire-
fighters)
Yes (N) #
Yes (M) #
FERS - 1.8% With,30.0% Cont Yes (L) #
(Air Traffic Controllers)
Yes
Yes
Regular FERS withholdings from
these two categories of FERS
employees will be combined in one
field of the SF 2812. (The related
agency contributions also will be
combined in one field.) In the
headcount, however, these two
categories of employees will be
reported separately.
FERS - Other (For future use) Yes (None) #
(This will be a blank line
on SF 2812 and headcount form)
Yes
FERS Military Deposits Yes Yes
Total FERS Yes No
Total Retirement (CSRS No Yes
phis FERS)
Grand Total for SF 2812 Yes Yes Yes Yes
# Not Only the count of employees, but also the dollar amounts of employee
withholdings and agency contributions will have to be reported on the
headcount for this line item.
Yes
No
No No
Yes Yes
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ENCLOSURE #1 PAGE 3
CATEGORIES OF WITHHOLDINGS AND CONTRIBUTIONS THAT WILL
BE REPORTED ON REVISED SF 2812 AND HEADCOUNT
CPDF retirement code value 1 is used if no withholdings occur for SS-OASDI
and 7% is withheld for CSRS (with matching contributions).
CPDF retirement code value R is used if withholdings occur for SS-OASDI and
7% is withheld for CSRS (with matching contributions).
CPDF retirement code value 6 is used if no withholdings occur for SS-OASDI
and 7 1/2% is withheld for CSRS (with matching contributions).
CPDF retirement code value T is used if withholdings occur for SS-OASDI and
7 1/2% is withheld for CSRS (with matching contributions).
CPDF retirement code value C is used if withholdings occur for SS-OASDI and
1.3% is withheld for CSRS (with 7% contributions).
CPDF retirement code value E is used if withholdings occur for SS-OASDI and
1.8% is withheld for CSRS (with 7 1/2% contributions).
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LAST NAME FIRST NAME MIDDLE NAME
DATE OF BIRTH
SOC. SEC. NO
AGENCY
PAYROLL OFFICE
LOCATION
PAYROLL OFFICE NO.
MO.
DAY
YR.
Smith
Smith John M.
1
1
60
220! 20
2220
ABC
Central
Washington. D,C,
66116600
DO NOT USE
ANNOTATION TO REFLECT FERS RETIREMENT
3
FERS RETIREMENT RECORD
RECORD REQUIRED FOR ALL EMPLOYEES
COVERED BY FERS
(RECORD EACH NAME CHANGE -
STRIKE OUT PREVIOUS NAME)
SERVICE HISTORY
FISCAL RECORD
EFFECTIVE
DATE
(1)
ACTION
(2)
BASE PAY
(3)
DO
NOT
USE
REMARKS
(4)
YEAR
(5)
CALENDAR YEAR
SALARY
DEDUCTIONS
(6)
ACCUMULATIVE
TOTAL SALARY
DEDUCTIONS
(7)
REMARKS
VP
1-1-84
Career Cond Appt
14,000 ?
GS-5 Accountant
1984
182,00
182.00
1-13-85
Executive Order 99
14.560
1985
189.28
371.28
1986
189.28
560.56
AUTOMATICALLY
TRANSFERRED TO
FERS 1-1-87
40 For ill
strative ur oses
4% com a
ability
SUBTOTAL OF CSRS DEDUCTIONS
THROUGH CALENDAR YEAR 1986
TO BE CERTIFIED IN THE
FUTURE TO OPM.
increas
was used for 1985
ANNOTATION TO
1986 d
uctions are sosted
in the
REFLECT TRANSFER
usual
ner i.e. throu
the last
TO FERS
od with a said dat
within
1986).
,
Standard Form 2806 Previous edition usable INDIVIDUAL RETIREMENT RECORD U.S. OFFICE OF PERSONNEL MANAGEMENT
Rev. 2-80 2806-107 NSN 754C-00-634-4255 GPO : 198 5 0 - 464-835
(CIVII. SERVICE RETIREMENT SYSTEM) F.P.M. SUPPLEMENT 831-1
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HILI1SOI3Na
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LINIUIAMUKt. ff.5
REPORT OF WITHHOLDINGS AND CONTRIBUTIONS FOR
HEALTH BENEFITS, LIFE INSURANCE AND RETIREMENT
Interagency Report
No. 1064-OPM-AR
Address (Including Department, Bureau, Location and ZIP Code)
Payroll Office Number
Report Number
Month Reported on Statement of
Transactions
Date Payroll Paid
Telephone Number (Including Area Code)
From
PAY PERIOD
To
To:
OFFICE OF PERSONNEL MANAGEMENT
ATTN: FUNDS CONTROL BRANCH
POST OFFICE BOX 582
WASHINGTON, DC 20044
Benefit Category
LIFE INSURANCE
Basic Life
Withholdings
El Check
Attached
I Agency Account Charged
[]Credit to OPM Receipt I
Account (24X8135.8)
I certify that the items listed herein are correct and the amount is available to
be credited to the OPM receipt account.
Signature of Authorized Administrative or Certifying Officer
Date
Contributions Total
Standard?Option A
Additional?Option B
Family?Option C
Post-Retirement
Total Life insurance
HEALTH BENEFITS
RETIREMENT
CSRS
All Categories'
Salary Offset?
Reemployed Annuitants
Military and Civilian
Service Credit
Regular
Military Reserve Technicians
Special2
Military Deposit
Total Retirement
Grand Total
Office of Personnel Management
FPM Supplement 831.1
Previous Editions Not Usable
'Employees with CPDF Retirement Codes of 1, 6, C, E, R or T.
2Emptoyees with CPDF Retirement Codes of L or M.
Thls form is authorized for Meal reproductfon
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Standard Form 2812
Rev. January 1987
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ENCLOSURE #4
PAGE 1
GUIDELINES FOR REPORTING ON THE REVISED SF 2812
There has been some basic revisions to the top. portion of the SF 2812. For
example, we have determined that the following items are no longer necessary,.
and, therefore have been deleted:
o Voucher Number
o Check Date and Number
Please make sure that the grand total amount of the SF 2812 equals the amount
of the check remitted to OPM Or the amount credited to OPM Treasury receipt
account as appropiate.
Several new benefit categories have been added to the revised SF 2812, the
following is a list of each line on the revised SF 2812 whether each is new,
existing, or modified; and the data to be reported.
NEW, EXISTING DATA TO BE
Category OR MODIFIED- REPORTED
1. Basic Life EXISTING NO CHANGE
2. Standard -. Option A EXISTING NO CHANGE
3. Additional 7 Option B MODIFIED AGE GROUP BREAKDOWN
? DELETED (DATA WILL
? BE COLLECTED ON THE
SEMI-ANNUAL HEAD-
COUNT REPORTS)
4. Family - Option C EXISTING NO CHANGE
5. Post-Retirement EXISTING NO CHANGE
6. TOTAL LIFE INSURANCE NEW TOTAL OF BASIC; OPTIONS
A, B, AND C; AND POST
RETIREMENT
7. HEALTH BENEFITS EXISTING ? NO CHANGE
8. CSRS - All categories NEW CPDF CODES 1,6,C,E,R, & T
9. Salary Offset - EXISTING NO CHANGE
Reemployed Annuitants
10. Military and Civilian MODIFIED MILITARY DEPOSITS AND
Service Credit CSRS WITHHOLDINGS FROM
REEMPLOYED ANNUITANTS
NOW COMBINED
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ENCLOSURE #4
PAGE 2
GUIDELINES FOR REPORTING ON THE REVISED SF 2812
Category
11. FERS- Regular
12. Military Reserve
Technicians
13. FERS - Special.
14. Military Deposit
15. TOTAL RETIREMENT
16. GRAND TOTAL
NEW, EXISTING
OR MODIFIED
NEW
NEW
NEW
NEW
MODIFIED
EXISTING
- DATA TO BE
REPORTED
CPDF. CODE K
CPDF CODE N
CPDF CODES ..L and M
FERS MILITARY DEPOSITS-'
TOTAL OF,CSRS AND FERS
CATEGORIES:
TOTAL LIFE INSURANCE,
TOTAL HEALTH BENEFITS,
AND TOTAL RETIREMENT
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ZNULLMUKt V4
REPORT OF WITHHOLDINGS AND CONTRIBUTIONS FOR
HEALTH BENEFITS, LIFE INSURANCE AND RETIREMENT
PAGE 3
Interagency Report
No. 1064-OPM-AR
Address (hieluding Department Bureau, Loeetion and ZIP Code)
AEC Agency
Central Office
Washington, D.C. 20001
Payroll Office Number
66 01 6600
Report Number
87,,2
MmthReponedrmStaterneMof
Transactions
01-87
Date Payroll Paid
1-27,87
Telephone Number (hcluding Area Code)
202-632-0000
From
1-487
PAY PERIOD
To
1-2.7-87
OFFICE OF PERSONNEL MANAGEMENT
ATTN: FUNDS CONTROL BRANCH
POST OFFICE BOX 582
WASHINGTON, DC 20044
Ei I23 Credit to OPM Receipt
Attached Account (24X8135.8)
lAgencyAcamMCMrgW
I 6670100
certify that the items listed herein are correct and the amount is available to
be credited to the OPM receipt account.
Signature of Authorized Administrative or Certifying Officer
es
Benefit Category
Withholdings
Contributions
me
1-Z3/2.7
Total..
LIFE INSURANCE
Basic Life
Standard?Option A
Additional?Option B
Family?Option C
Post-Retirement
Total Life Insurance
3 560.35
17 453.23
HEALTH BENEFITS
RETIREMENT
CSRS
All Categories1
Salary Offset?
Reemployed Annuitants
Military and Civilian
Service Credit
FERS
Regular
Military Reserve Technicians
Special2
Military Deposit
Totnl Retirement
56,789.45
J50,386.32
17,008.49
230,313.14
73,797.94
380,699.46
429,778.51
4,843.38
1,300.00
1,800.00
100.00
497 821.89
542 110.43
Grand Total
704,997.66
789,432.06
Mos of Penalise aAanagannard
FP ful Sopotonoon 0314
Previous Editions Not Usable
lEmployees with CPDF Retirement Codes of 1, 6, C, E. R or T.
2Employees with CPDF Retirement Codes of L or M.
This form is aotharized tor toctit reproduction
1.039_932.32
1,494,429.72
Standard Form 2812
? Rev. January 1087
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