Item 505 - Retirement System Account Code

A code used to describe an employee’s retirement system status. In the table below, employees exempt from Medicare tax include those in a continuous employment status since March 31, 1986, employees present under an F, J, M or Q immigrant status whose tax residency status is "nonresident" alien, or classes (e.g. students) otherwise deemed exempt.

Employees subject to Medicare tax include those appointed or rehired on or after April 1, 1986. Pursuant to Public Law 99-272 (which extended medicare taxation to state employees hired after March 31, 1986) contributions for the Medicare portion of the Federal Insurance Contributions Act (FICA) apply to earnings of employees not covered by social security.

 

Medicare Exempt Codes

Medicare Subject Codes

Plan Description

N

NM

NONMEMBERS. Those excluded from CalPERS, UC DC, and DPA PST Plans because of appointment type, class code or visa type. Code NM may also be used when an employee present under an F-1, J-1, M-1 or Q-1 immigration status has a tax residency status change to "resident" alien, and must pay medicare tax retroactive to January 1 of the respective calendar year.

n/a

NO

FICA TAX. This code allows for the withholding of social security and medicare tax exclusive of retirement. May be used in instances when an employee with an F-1, J-1, M-1 or Q-1 immigration status has a tax residency status change to resident alien and must pay FICA tax retroactive to January 1 of the respective calendar year. See note below.

TX

TY

UC DC PLAN. Discontinued 06/01/2005 per HR 2005-15. The Defined Contribution Plan was administered by the University of California for eligible program participants employed in bargaining units: 1, 2, 5, 7, 9 and 10, nonrepresented employees hired before 05/25/1996 and noncitizen employees present under an  F-1, J-1, M-1 or Q-1 immigration status in a "resident alien" tax status.  When the plan was discontinued, participating employees were moved to the DPA PST plan.   

TD

TM

DPA PST PLAN. Part-Time, Seasonal and Temporary (PST) Employee Retirement Program administered by the Department of Personnel Administration (DPA). Prior to 6/1/2005, this plan was available to eligible program participants employed in bargaining units 3, 4 and 8; non-represented employees hired after 5/24/1996, and noncitizen employees present under an F-1, J-1, M-1 or Q-1 immigration status in a "resident alien" tax status. Effective 6/1/2005 and pursuant to coded memo’s HR 2005-15 and HR/Appointments 2005-01, the plan now includes employees moved from the UC DC plan and incorporates eligible program participants employed in bargaining units 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11, non-represented employees, and noncitizen employees present under an F-1, J-1, M-1 or Q-1 immigration status in a "resident alien" tax status.

n/a

08

CalPERS-SS/MED. Those who are subject to CalPERS and Social Security/Medicare coverage. Includes employees with Item 825 visa Category = Z in appointments that qualify for CalPERS membership and individuals present under an F-1, J-1, M-1 or Q-1 immigration status whose tax residency status is resident alien for tax purposes in appointments that qualify for CalPERS membership. CalPERS rate 5%.

00

20

CalPERS-NONSURVIVORS. Those who elected Nonsurvivors coverage in 1959, 1961 or 1975. CalPERS rate 6%.

00

20

CalPERS-SURVIVORS. Those who elected Survivor Benefits in 1959 or 1961. CalPERS rate 6% plus deduction code 077 for Survivors Benefits.

00

n/a

CalPERS-SURVIVORS-NONCITIZENS. Employees present under an F-1, J-1, M-1 or Q-1 immigration status whose tax residency status is "nonresident" alien for tax purposes in appointments that qualify for CalPERS membership. Such employees are excluded from Social Security/Medicare. CalPERS rate 6% plus deduction code 077 for Survivors Benefits.

83

82

CalPERS-STATE SAFETY. Discontinued 07/01/1986 for R08 and MPP; discontinued 07/01/1989 for R09. CalPERS rate 6% plus deduction code 077 for Survivors Benefits.

53

54

CalPERS NON-UNIT R08 PEACE OFFICER/FIREFIGHTER COVERAGE. Those appointed as Management Personnel Plan (MPP) Public Safety Directors and Lieutenants and Unit R09 class codes 8830, 8831 and 8832. CalPERS rate 8% plus deduction code 077 for Survivors Benefits. Effective 07/01/1986 for MPP; effective 07/01/1989 for R09.

Codes 53 and 54 are effective 01/01/2000. Codes 87 and 89, respectively may only be utilized for transactions effective 12/31/1999 or earlier.

Note: Unit R09 class codes 8980 and 8981 are abolished and no longer available for use with codes 53 and 54.

51

52

CalPERS-UNIT R08 PEACE OFFICERS. Those appointed to Unit R08 classifications. CalPERS rate 2.36% plus deduction code 077 for Survivors Benefits (effective 04/04/1994). CalPERS rate 0% plus deduction code 077 for Survivors Benefits (effective 07/01/1996).

Codes 51 and 52 are effective 01/01/2000. Codes 86 and 88, respectively may only be utilized for transactions effective 12/31/1999 or earlier.

T

n/a

STATE TEACHERS' RETIREMENT SYSTEM. Those faculty/administrators in eligible CSU employment on 10/01/1959. No new members permitted. Individuals who move from one campus to another with no break in service retain STRS membership. STRS rate 8%.

 

System
Audits:

Audits 259-060 thru 259-420

The automated audits for this item are too numerous to publish here. If you receive messages 259-060 through 259-420 that are not clear to you, call CSU Audits for assistance. Transactions that receive audit messages 259-070 and 259-489 must always be sent to CSU Audits for processing. When submitting a transaction to CSU Audits, attach a copy of the message or write the message on the PPT.

Audit
Instructions:

  1. When the campus receives a ’Notice of Change’ form from CalPERS, it is normally for informational purposes only unless employer actions are identified. Do NOT prepare a PPT document. CalPERS will concurrently notify SCO-PPSD of the appropriate action via a RST (R01 transaction). CSU Audits will process the R01 to correct the employee's database record.

  2. If Account Code 00 or T is entered in Item 505, write MESSAGE 259-423 on a PPT and route to CSU Audits (unless noncitizen).

  3. If Account Code 08 is entered in error in Item 505, and it should be 00, write ’MESSAGE 259-422’ on a PPT and route to CSU Audits.

  4. If account code equals 08, NM, TD or TM, but should be changed to N, enter N in Item 505, and EOF.

  5. If an employee is a STRS member (other than through CSU employment), and qualifies for CalPERS, the employee must be placed in CalPERS. Employees who do not meet the CalPERS eligibility must be enrolled in the DPA PST Plan.

  6. If Account Code is code 53 or 54, and the Job Code (Item 876) is related to Public Safety, an error message will generate, even when correcting a transaction.  Attach a copy of the message, or write the message on a PPT, and route to CSU Audits.   

  7. If Account Code is NM, you must enter OUTSIDE PERS in Item 215 for all A52 and A54 transactions.

  8. In instances when an employee is initially appointed or reappointed and the appointment does not appear qualifying for CalPERS (Item 505 = 08), use Item 215 to enter justification:

  1. If employee is being reappointed and has funds on deposit at CalPERS, enter 'FUNDS ON DEPOS' in Item 215.

  2. If employee is initially appointed and has outside CalPERS and is less than full-time, enter 'OUTSIDE PERS' in Item 215

More Info:

For additional membership requirements, refer to:

 

Note: When account code 'NO' is keyed, a retirement system id flag of "9" is generated which denotes non-retirement system member by election.  The retirement system id flag identifies an employee's retirement system status and is used by CalPERS. Since this account code is exclusively for FICA withholding purposes on a retroactive basis under specific circumstances, its use is not anticipated to impact an employee's retirement system status with CalPERS.

 

 

Last Updated: July23, 2009