SERS Buy Back Service Credit Changes for 2019

In the December 4, 2018 Employer Bulletin, SERS stated that effective January 1, 2019, SERS will no longer accept new pre-tax payroll deduction plans for purchasing service credits.  Payroll deduction plans set up before January 1, 2019, must continue to be administered as pre-tax plans. The rules for those employees with a pre-tax service credit purchase plan will not change after 1/1/19. This means that the employee will not be able to increase, decrease or stop the deductions unless the employee completes the purchase or terminates employment.

SSDT has talked to SERS regrading this change. It has been determined that those plans set up as of 1/1/19 (which are after-tax) can be handled as a regular deduction and no special changes to USPS will be necessary.

In summary, SERS Buy Back’s set up prior to 1/1/19 should continue to be pre-tax and set up as SERSBB deductions types in USPS. Those setup after 1/1/19 should be after-tax and set up as a regular (post-tax deduction).

For eFinancePLUS customers, a new deduction for SERS buy back would need to be set up and the taxation tab would need to indicate that the deduction is not exempt from taxes (see below).

Note: STRS has said that legal is looking into their buy back program and that STRS is still handling Buy Back of Service credit as pre-tax even in 2019.

 

NEOnet SOC1 Audit now available

The Auditor of State has released NEOnet’s SOC1 audit for the period of 4/1/17 – 3/31/18. The full report is available on our website under the About Us section or by clicking this link.

 

New London to Begin Conversion to State Software Redesign

Beginning in January, New London Local Schools will begin the conversion process to State Software Redesign. They will be our first district to begin this process. If all goes well, they will be live on the software prior to July 1, 2019.  We are excited to begin this journey. New London’s treasurer, Jim Hudson, will have the unique perspective of being a part of both the Redesign and eFinancePLUS (eFP) conversion as he is also treasurer of Cloverleaf Local Schools who has been live on eFP for a year and a half. Upon the success of New London going live on Redesign, NEOnet will begin converting other interested districts.  If you are interesting in being involved in the next round of conversions (beginning in July), please contact Kim Fassnacht at fassnacht[at]neonet[dot]org.

December
2018
Fiscal Update