• Self Audit Home
• What to expect
• What you will need
• Instructions
• Step 1 Eligibility
• Step 2 Reporting
• Questionnaire

• Step 1 Eligibility
  • A) Verifying employees who are eligible for membership
    • 1 Compile a list
    • 2 Use the appropriate tools
    • 3 Determine if any employees are independent contractors
    • 4 Determine if any employees are retirees
    • 5 Determine if any employees are substitutes
  • B) Determining employees who are not eligible for membership
    • 1 Compile a list
• Step 2 Reporting
  • A) General Reporting
    • 1 Select your test sample
    • 2 Complete a worksheet
    • 3 Verify reportable compensation for your retirement plan
    • 4 Identify lump sum payments
    • 5 Identify excess compensation
    • 6 Verify correct reporting of cash outs for active employees
    • 7 Verify correct reporting of cash outs for retiring employees
    • 8 Research discrepancies and make corrections
  • B) Reporting Retirees Returning To Work
    • 1 Verify that retirees returning to work are reported correctly
    • 2 Frequently asked questions about retirees returning to work
  • C) Reporting Substitutes
    • 1 Verify correct reporting of substitutes
    • 2 Substitutes in school districts or educational service districts
    • 3 Retirees working as substitutes

Employer Self Audit

What to Expect When DRS Auditors Come to Perform an Audit

Different retirement plans have different Average Final Compensation (AFC) and Final Average Salary (FAS) periods.

For PERS 1 and TRS 1 :

The AFC is your employee's monthly average of their highest-paid 24 consecutive months that employers have reported.

For PERS 2 and 3, TRS 2 and 3, and SERS 2 and 3:

The AFC is your employee's monthly average of their highest-paid 60 consecutive months that employers have reported.

PSERS Plan 2:

The AFC is your employee's monthly average of their highest-paid 60 consecutive months that employers have reported.