To: Campus Unit Financial Leads, HR Officers and Secondary Contacts, Business Managers
From: Walter Miller, Director of Payroll Services
The employer retirement contribution rates have been communicated to us by the North Carolina Teachers and State Retirement System (TSERS). Effective July 1, 2019, the TSERS employer contribution rate increased from 18.86% to 19.70% and the Optional Retirement Program (ORP) employer disability and retiree health contribution rate increased from 6.41% to 6.57%. The new rates will be effective in payrolls beginning with Biweekly 06 (B06 payday September 27) and Monthly 03 (M03 payday September 30). This is an employer only adjustment and does not affect employee pay.
As the rate is effective July 1, 2019, retroactive adjustments are expected to be loaded into B07 and M04 to account for payrolls paid after July 1, 2019. The affected biweekly will include a one-time retroactive adjustment covering B26 through B05. The affected monthly will include a one-time retroactive adjustment covering M01, M02, and S02.
These charges will be distributed according to an employee’s current funding sources. If an employee is no longer at the University and funding sources are inactive, the charge will go to payroll suspense. For Summer Session 2 (S02) payments that were paid using the lump sum ePAR, the charge will not be applied to the combo code used on the lump sum payment. A deduction and taxes only Payroll Accounting Adjustment Tool (PAAT) action can be initiated by a PAAT Advanced User to adjust the distribution sources.
If you have any questions about PAAT, please email CA_Payroll@unc.edu.