Chapter 10: Account Activity

Overview

Summary

This chapter provides information about the DRS receivables management system. Refer to this chapter for:

  • The definition of a receivable
  • A detailed description of the Statement of Account Activity
  • Procedures for working with the statement
  • Information about employer invoices

Refer to Chapter 9 for information about the DRS edit reports and procedures for using them to correct reporting errors.

Refer to Chapter 12 for samples of the Payment Advice and Credit Redistribution forms and instructions for their completion.

What Is a Receivable?

A receivable exists when there is a legal obligation to pay DRS, and DRS has a legal obligation to collect the amount owed. This includes, but is not limited to, member and retiree overpayments, contributions and employer correction invoices. A receivable is also the accounting record of the amount owed, along with any adjustments and payments.

Adjustments are changes to the receivable, which affect the total amount due. An example of an employer-generated adjustment is a Transmittal Correction (TC). DRS can also initiate an adjustment, such as a correction to interest charges.

The DRS Receivable Management System (RMS)

What Is RMS?

On January 1, 1999, DRS implemented a new Receivables Management System that enhanced the information provided on your account activity statement. Your statement was improved to include Deferred Compensation, and depending upon your preference, either "detailed" or "summary" account information.

How Is Interest Calculated?

Interest accrues daily on outstanding debit balances for each receivable, and interest charges are posted once a month to each receivable.

As of January 1999, interest is charged on each past due receivable balance, rather than on the overall account balance. Interest is calculated daily on the daily balance and posted once a month on the balance of each receivable with a debit balance. Multiply the daily rate times the outstanding balance times the applicable number of days to determine the amount of interest due.

12% ⁄ 365 (days per year) = .0003288 daily rate

Interest will show as a line item adjustment to the receivable on which it is assessed. This is done to provide you an audit trail between the interest and the amount on which it was calculated. No interest will be applied to credit balances.

How do Adjustments to Interest Occur?

When interest on a receivable is charged erroneously, DRS will continue to adjust or remove interest as necessary. Adjustments to previously assessed interest are taken into consideration.

Requests to remove interest charges believed to be in error must be submitted in writing within 90 days and accompanied by sufficient documentation of the error. If a receivable is in dispute, no interest is charged on the disputed amount while the dispute exists. If the disputed amount is determined to be correct, interest will then be assessed on the disputed amount from the original due date of the receivable.

Insufficient Payments

If your payment is not sufficient to cover the receivable balance, all interest will be paid first. Any remainder of the payment is then applied to the invoice amount.

Open Item Receivables

An open item receivable is a receivable with a net balance other than zero. A receivable remains open until the balance equals zero. If an adjustment is made that changes the balance on the receivable, the adjustment is not a separate open item but is attached to the specific invoice. When the receivable balance is zero, and is shown as zero on your Statement of Account Activity, the receivable and all payments and adjustments will be closed. No further information for this receivable will show on your monthly statement.

Multiple regular transmittals processed in the same reporting period will be processed as one receivable. Any transmittal correction report will be considered an adjustment to the applicable receivable.

Payments

When are Payments Due? - When are They Past Due?

Payments are due the 15th of each month. Payments are past due if not received three business days after the due date. Interest will accrue beginning the 16th day on any past due receivable, at the close of the third business day after the 15th. Adjustments to interest assessed on past due receivables will be processed and displayed on your statement as adjustments to an invoice.

Insufficient Payments

If your payment is not sufficient to cover the receivable balance, all interest will be paid first. Any remainder of the payment is then applied to the invoice amount.

Payment Procedures

See Submitting the Payment Advice for payment procedures. See the List of Employer Forms for the three types of payment advice forms and descriptions of the forms. Refer to the ePay section of Using the DRS Web-Based Services for how to create a preprinted Payment Advice form or how to submit an electronic payment via the Internet.

Dates to Remember

Following are important dates to remember in the accounts management process.

Transmittal Reports and Receivables Payments
  • Due Date for regular transmittal reports is the 15th day of the month. In addition to regular transmittal reports, this applies to all contribution payments, and any other employer receivable payments due to DRS, with a Payment Advice Form.
  • Timely Date is three business days following the due date.
    • Transmittals not received by the timely date are subject to a penalty assessment.
    • Receivables not paid in full by the timely date are subject to interest accrual starting from the 16th of the month, regardless of the method of payment. See How Interest Is Calculated.
Deferred Compensation Program
    submitted to DRS before, on or soon after each payday. Reports that are received more than five days beyond an employer's payday will be considered late.
  • DRS will process DCP reports the day they are received if the money and the report are received together and can be reconciled.
Plan 3

DRS recommends that employers send the Plan 3 member contributions and the transmittal report as close to the first day of the month as possible. This allows the Plan 3 members contributions to be invested as soon as possible.

Your Statement of Account Activity

Summary

The Importance of the Statement

It is important to review your statement each month to verify that your contribution transmittal report and payment are equal. If you report correctly and make accurate payments, the statement will show a zero balance.

If the statement shows an outstanding receivable balance, you will need to reconcile your account. Any receivable with a balance, either a debit or a credit, will remain on your statement until it has been resolved. If the outstanding balance is a debit, interest will accrue, from the 16th of the month in which it is due, until it has been resolved.

Your Statement Includes:

Your Statement of Account Activity reflects the activity in your account between the last statement date and the current statement date. The current month will have detailed transmittal report information.

For each retirement system and plan, the statement includes:

  • the member and employer contribution amounts reported on your transmittal
  • DRS-recalculated member and employer transaction totals
  • DRS-rejected member and employer transaction totals
  • DRS-calculated amounts (member and employer contributions) which are reflected as the final CT invoice amount
  • invoices generated by DRS staff; such as an arrears billing
  • all payments and adjustments
  • the Deferred Compensation Program information and activity if you are participating

Examples of the transmittal report detail, the summary information and the credit redistribution are provided in the Statement of Account Activity examples.

Account Activity Process

You will receive a DRS Statement of Account Activity that includes account information for each retirement system and plan in which you participate. The statement provides details of all the activity in your account between the last statement date and the current statement date. The statement has a page break between each system.

The monthly transmittal report you send DRS provides the information used to determine your contribution billing amount. The amount due is the total of the employer and employee contributions—based on your employees' compensation and the contribution rates for the earning period(s) being reported. Mail the payment for this invoice—along with the payment advice form—to:


Department of Retirement Systems
P.O. Box 9018
Olympia, Washington 98507-9018

Note: The invoice amount is the result of processing the transactions submitted on the transmittal report. If DRS rejects or recalculates contributions, the invoice will reflect the adjustments made by DRS.

Creating the Statement of Account Activity

The following outlines the steps taken to create your monthly statement:

  1. By the 15th of each month, you must send the monthly transmittal report and contribution payments—along with the payment advice form—to DRS.
  2. DRS receives and posts payments daily.
  3. DRS processes the transmittal information. If any information is changed or rejected, the DRS transmittal processing system will create a "Transmittal Edit Messages" report that is sent to employers.
  4. DRS posts all invoice information.
  5. DRS applies interest charges on past due receivables.
  6. DRS prints the Statement of Account Activity showing the organization's transactions since the last statement date.
  7. DRS mails the statement within two weeks of the statement date.

Note: If you are participating in the Deferred Compensation program, information and activity on this program will be displayed on the last page of your statement. See the example.

Information Displayed on Your Statement

Following are descriptions for each area of your statement of Account Activity. (See the example.)

Message Area

The message area is for important announcements that affect employers.

Mailing Address

Your mailing address is printed directly below the message area. You should inform your Account Manager whenever this address changes.

Organization Number

Each employer has a unique organization number. This number is inclusive of all reporting group numbers assigned to your organization.

Statement Date

The statement date is the timely date—always the third business day following the due date. Transactions received or processed after this date will be shown on the following month's statement.

Account Manager

You may contact your Account Manager to discuss your statement. The name, telephone number and/or e-mail address of your Account Manager are shown below the statement date.

Due Date and Interest Disclosure

Information about the due date and the interest disclosure is shown in this area.

Reporting Group and Agency Number

This information is located below the Description column heading. A unique reporting group number identifies each retirement system within your account. Reporting group numbers for PERS, LEOFF, WSPRS and JRS are four characters. Reporting group numbers for PSERS and SERS are 5 characters, and for TRS are six characters. A page-break is created for each system you report. The agency number for employers who participate in the Deferred Compensation Programs (DCP) is listed here. A page break is created between system and agency number.

Statement Column Headings
Plan

This column shows to which plan each transaction was posted. Transactions are posted to Plan 1, Plan 2 or Plan 3. For organizations reporting more than one system (PERS, PSERS, SERS, TRS, and LEOFF), all active systems and plans will appear on the statement.

Code

This column contains a two-letter code that identifies the invoice type. See the following section for explanations of invoice types.

Description

This column is used to describe each line item (transaction) on the statement.

Received or Posted Date

This column shows when payments or transmittal reports are received. This column also displays the creation date of DRS-generated invoices.

Due By Date

This is the date on which transmittal reports and all payments are due.

Report Period, Invoice or Payment Number

Invoice numbers will be unique, 8-digit numbers, except for CT invoice numbers, which will be reflected as month and year (051999). The payment number is the check number, the journal voucher number, or other payment document number. A single payment document may be used for more than one invoice.

Transmittal Report Information

This column displays the detailed member and employer contributions that equal the CT invoice amount for the current month, and summarizes the contributions for prior months.

Deferral or Reduction Amount (on the DCP statement only)

Payments and associated invoices received by DRS are reflected in this column.

Invoice or Payment Amount

The dollar amount of each transaction is shown. The invoice amount will usually be a positive amount, while payments will be reflected with a negative amount.

Balance Due

The balance due for each receivable is reflected in this column. The balance due can be either a positive or a negative amount.

Any receivable with a balance of $5.00 or more (positive or negative) will continue to appear on the statement until the balance is reconciled.

View the section on Working with Employer Invoices.

Invoices and Your Statement

You should receive all DRS-generated invoices before the applicable invoice type appears on your statement. If you do not receive the invoice before you receive your statement, contact an Account Manager. Invoices may be either a debit (money due DRS) or a credit (money due to your organization or your employee).

For non-taxed periods, most invoice types reflect adjustments to both member and employer contributions. For taxed periods, the adjustments were to employer contributions only.

View Working with Employer Invoices.

Procedures for Working with Your Statement of Account Activity

Summary

When working with the statement, be aware of the following points:

  • The CT invoice shown on your statement relates to a particular earning period. You may have reported several earning periods within a reporting period. While the earning period determines the contribution rate, the account information will be displayed on the statement by reporting period.
  • You can adjust a specific CT invoice amount by submitting a correction report before the next regular transmittal report. If you have rejected data, submitting a correction report before your next report is posted will alleviate the need to do a credit redistribution.
  • Re-reporting previously rejected information on next month's regular report, will show on the current month's invoice amount, which requires the use of the Credit Redistribution form to reconcile the outstanding balances.

Reviewing the Statement

Each month, when you receive the statement, you will need to reconcile your account by following these steps:

  • Make sure payments have been posted correctly. If you make payment to more than one system or plan, make sure the correct payment was posted to the appropriate system and plan.
  • Verify that the CT invoice and/or any invoice adjustments agree with the amount you reported. The following page shows an example of a correction report on the new statement. If the amount is different, review the corresponding edit message report and take the steps necessary to reconcile your account.
  • Verify that all invoices received by your office and the payments you have made are shown on the statement.
  • Check to see that all credit redistributions have been posted correctly.
  • Check the items (if any) on your Correction Report.

Reconciling Each Receivable

If your statement shows a receivable with a balance $4.99 or more, (a positive or negative amount) you need to take steps to reconcile the outstanding balance.

  • Gather the documents relating to the invoice. For example:
    • a copy of the monthly transmittal report you submitted
    • a copy of transmittal correction reports, if any were submitted
    • any DRS edit reports you received
    • a copy of the Payment Advice form you submitted
    • copies of any Credit Redistribution forms, if any were submitted
    • copies of any invoices you received
  • Verify that payments were posted as detailed on your Payment Advice form and that debits and credits were moved as detailed on your Credit Redistribution form. If there are discrepancies, contact your Account Manager.
  • Compare the Contribution Transmittal (CT) invoice and any correction report adjustments on your statement with the amount you reported on the transmittal(s). If the figures do not match, refer to your edit reports for an explanation of any differences.
  • If the difference in the CT invoice amount or any adjustments are the result of a reporting error—such as a plan error or a recalculation error—make the necessary corrections with a correction report or on your next regular report. (See Chapter 9 for instructions on how to correct errors shown on the edit reports.)
  • After you have determined the total dollar amounts that are out of balance, if any, report the necessary information on the transmittal report. Complete a Payment Advice form to submit any payments due, or complete a Credit Redistribution form to move credits.
  • Once your corrections, payments, and/or completed forms have been received and processed, your statement will reflect this activity in your account. Check the following month's statement to make sure the outstanding balance has been reconciled.
  • See Chapter 12 for a complete list of employer forms.

Submitting the Payment Advice

A Payment Advice form (see Chapter 12) must accompany all payments to DRS. Select the version you need from this list:

Here are some important items to understand before submitting the form:

  • Instructions are on the back of the form. If you need additional information, contact a DRS Account Manager.
  • Payments will be applied to the invoice number or reporting period you enter on the form. If you indicate the incorrect invoice number or reporting period, you could be subject to interest charges for a late payment.
  • Payments can be applied to future periods. To do so, indicate the appropriate invoice number or reporting period on the form to which you want to apply the payment.
  • Negative amounts can only be submitted by state agencies making corrections to prior journal voucher payments. Other employers must use the Credit Redistribution form.
  • The total amount you enter on the form should equal the total amount of your accompanying payment document (warrant, check or journal voucher). If the payment amounts differ, DRS will change the amounts on the form to match the payment amount.

Note: State agencies reporting through HRISD and community colleges, technical colleges, and universities reporting through CIS can submit electronic fund transfers without a Payment Advice form. This only applies to payments for the CT invoice.

  • If DRS receives money, but no Payment Advice form, the money will be applied to Plan 2.
  • If the payment amount causes an overage or an underage, DRS will apply the money to Plan 2.

See RMS-Payments for when payments are due. Refer to the ePay section of Using the DRS Web-Based Services for how to create a preprinted Payment Advice form or how to submit an electronic payment via the Internet.

Credit Redistributions

The Credit Redistribution form is used to reconcile receivable balances on your statement. Normally, you will use the form to move money from one receivable with a credit balance (a negative amount) to another receivable with a debit balance (a positive amount). When you submit the form, be aware of the following points:

  • Instructions are on the back of the form. If you need additional information, contact a DRS Account Manager.
  • The form can be sent to DRS at any time; you do not need to wait until you send your regular monthly payment. If the form is received at DRS by the due date, the credit redistribution should appear on your next month's statement.
  • Make sure you include your name and phone number on the form so your DRS Account Manager can contact you if there are any questions.
  • Negative amounts should not be entered on the form. Amounts you enter in the FROM column are posted as a debit and amounts you enter in the TO column are posted as a credit. Make sure you enter the system, plan, invoice number, payment number, and amount.
  • Credits can be moved from one system or plan to another.
  • If you move money from a receivable with a debit balance, you will increase the amount of the debit balance (the amount owed to DRS) and you will be charged interest.

Keeping Your Account in Balance - Plan Changes

If you report a member in the wrong plan, the reported transmittal information is moved into the correct plan when the transmittal is processed. (This does not apply to Plan 3.)

If you are a non-taxed employer, DRS recalculates the member and employer contributions based on the contribution rates that apply for each plan, and adjusts your invoice for each plan accordingly.

If you are a taxed employer, DRS recalculates the employer contributions only and adjusts your Contribution Transmittal (CT) invoices for each plan accordingly. Your statement will reflect these changes. To balance your account, you need to complete the Credit Redistribution form and send any monies due, with the Payment Advice form. (Refer to Chapter 9 for information about making the necessary corrections through the transmittal process.) DRS does not adjust payments you have sent. Consequently, you will need to take steps to balance your account. For example:

  • You are a PERS non-taxed employer reporting for the May 2004 reporting period. You report and pay contributions of $48,152.54 to Plan 1 and $106,516.07 to Plan 2. You reported employees' salaries of $20,205.19 in the wrong plan so DRS processes a plan change.
  • The statement will show your payments to Plan 1 and Plan 2 as indicated on the Payment Advice form. The CT invoice amounts will have been adjusted for the differences in contribution rates between Plan 1 and Plan 2. This results in a debit of $2,727.70 in Plan 1 and a credit of $2,454.93 in Plan 2.

Note: The Transmittal Edit Messages report will show how your reported contributions were adjusted. (See Chapter 9for details about this report.)

  • To balance the account, complete a Credit Redistribution form and a Payment Advice form.
    • Use the Credit Redistribution form to move $2,454.93 from Plan 2 to Plan 1. This will leave $272.77 still due to Plan 1.
    • Use the Payment Advice form to report the payment of the remaining balance of $272.77 to Plan 1

Note: You should deduct this money from the employee's gross salary to keep the employee's tax information coordinated with how their contributions are recorded at DRS.

  • See Chapter 12 for a complete list of forms.
  • Send the forms and your payment to DRS. Once the materials have been received and processed, your statement will show the activity in your account.
Keeping Your Account in Balance - Nontaxed Recalculations

The employer and employee contributions due to DRS are determined by multiplying the employee's compensation times the applicable contribution rates for the earning period reported. If reported contributions are not within $0.10 (plus or minus) of the correct amount, DRS recalculates contributions. Your statement will show this adjusted total. DRS does not adjust payments you have sent.

When non-taxed contributions are recalculated, DRS adjusts the CT by the amount of both the employee and the employer contributions when applicable. As part of the Transmittal Edit Message report, you will receive Transmittal Reconciliation Information showing how contributions were adjusted. For example:

  • You are a LEOFF employer reporting for the May 2004 reporting period. You report a Plan 1 employee's compensation correctly but make an error in reporting and paying contributions. You report and pay $96 in employee contributions instead of $90 and report and pay $99 in employer contributions instead of $93.
  • Your CT invoice amount in Plan 1 for May 2004 will show a difference of $12 ($6 in employee contributions plus $6 in employer contributions). This difference will result in a credit balance of $12.

Note: The Transmittal Reconciliation Information will show how your reported contributions were adjusted. (See Chapter 9 for details about this report.).

  • If the difference is a credit, you should short your payment for the next month's transmittal invoice and complete a Credit Redistribution form.
  • If the difference is a debit, you will need to submit the additional payment along with a Payment Advice form to DRS.
  • Once the adjustments have been received and processed, this activity will show on your statement. You should check the statement to verify the adjustments were posted correctly.

Note: The preceding discussion explains how to balance a receivable in response to a calculation error for a single employee. If you have calculation errors for a number of employees, the same steps can be followed to reconcile the account balance.

Keeping Receivables in Balance - Taxed Contributions

The employer and employee contributions due to DRS are determined by multiplying the employee's compensation times the applicable contribution rates for the earning period reported. If the contributions are reported incorrectly based on the reported compensation, employer contributions are processed differently by DRS than the member contributions.

Taxed Employer Contributions Reported Incorrectly

Employer contributions reported incorrectly are recalculated by DRS to the correct amount based on the reported compensation. If the contributions are within $0.10 either plus or minus of the correct amount, DRS makes no adjustment. If the contributions are not within $.10 either plus or minus of what should have been reported, DRS recalculates the contributions. DRS does not adjust payments you have sent.

Taxed Member Contributions Reported Incorrectly

Taxed member contributions are not recalculated by DRS. You will receive a warning message on your "Transmittal Edit Messages" report that informs you the contributions were reported incorrectly. DRS will flag the member's account as discrepant. Having a discrepant transaction could prevent a member from withdrawing contributions, or could have the wrong amount of interest applied to his or her account. Because these transactions have a negative impact on the member, you should make the appropriate corrections immediately. (See Chapter 9 for information on correcting member account information.)

  • You are a LEOFF employer reporting for the May 2004 reporting period. You report a Plan 1 employee's compensation correctly but make an error in reporting and paying contributions. You report and pay $96 in employee contributions instead of $90 and report and pay $99 in employer contributions instead of $93.
  • Your CT invoice amount in Plan 1 for May 2004 will show a credit difference of $6 for the recalculated employer contributions.

Note: The Transmittal Reconciliation Information will show how your reported contributions were adjusted. (See Chapter 9 for details about this report.)

  • To balance your account, you need to complete the appropriate corrections for the member contributions. (Refer to Chapter 8 for information about making the corrections through the transmittal process.)
  • If the corrections result in a credit, you should short your payment for the next month's transmittal invoice and complete a Credit Redistribution form.
  • If the corrections result in a debit, you will need to submit the additional payment along with a Payment Advice form to DRS.
  • Once the adjustments have been received and processed, this activity will show on your statement. You should check the statement to verify the adjustments were posted correctly.

Note: The preceding discussion shows how to balance a receivable account in response to a calculation error for a single employee. If you have calculation errors for a number of employees, the same steps can be followed to reconcile the account balance.

Working with Employer Invoices

Summary

This section provides information about the following employer invoices:

  • Invoice for an Employer Correction (EC): This invoice is created when a member account adjustment results in an employer obligation or credit.
  • Invoice for Excess Compensation: An Excess Compensation Invoice is sent to an employer when twice the retiree's regular salary or certain types of cash outs are included in a retiring employee's Average Final Compensation period.
  • Penalty Invoice: This invoice is sent when a transmittal is received late.
Unique Invoice Numbers

With the exception of Contribution Transmittal (CT) invoices and the Transmittal Correction (TC), each invoice will be identified with a unique, eight-digit number to simplify account reconciliation.

CT and TC invoices will be identified by the reporting period of the transmittal report (052015 for May 2015).

Nontaxed and Taxed Employers

For nontaxed periods, employers are responsible for both member and employer obligations and credits. For taxed periods, employers are only responsible for employer obligations and credits.

List of Invoice Types

A | C | D | E | L | M | O | P | S | T | X

A

AA-Audit Adjustment
Identifies a DRS internal correction to an employer's account.(ex.Billing the ER when a retiree is not reported and a benefit is paid in error.) 

C

CP-Copy Expense
Identifies invoices for photocopies provided to you by DRS.
CT-Contribution Transmittal
Identifies the contribution transmittal invoice based on information reported by the employer on the regular monthly transmittal. If your reporting is correct, the CT total on your statement will match the total contribution amount reported on the transmittal. If contributions are recalculated or rejected, the CT total will reflect the DRS adjustment. If there is a reporting error, the error will be reflected on the edit report. See Chapter 9 for details about DRS edit reports.

D

DC-Member Contributions
Identifies member contributions for Plan 3 based on information reported on the transmittal report. See the figure 5 example of a statement containing Plan 3 information.
DI-Interest on Retroactive Contributions
(ex. Dolan case in King County.)

E

EB-Employer Billing
Identifies employer contributions due as a result of a Plan 1 retiree having worked in excess of 867 hours. Only applies to reporting retiree return to work hours prior to January 1, 2012. See an example of the Retiree Return to Work invoice.
EC-Employer Correction
Identifies adjustments to a member's account, and includes plan transfers, system transfers and other kinds of adjustments. For earning periods prior to 1/1999, AB was used.
EN-New Agency
Identifies contributions for current employees that are due for periods prior to employer participation in a WA State Retirement System. This amount of employer and member contributions is referred to as previous service cost.
EO-Employer Overpayment
Identifies member contributions due because of contribution transmittal corrections after a refund of contributions was issued to a member.

L

LS-Lost earnings revenue-self-directed
LW-Lost earnings revenue - WSIB

M

MS-Miscellaneous
Identifies when chargeable services have been provided by DRS.

O

OS-Optional Service
Identifies employer contributions due because a member purchased optional service; e.g., substitute teachers. For earning periods prior to 1/1999, PS was used.
OA-Old Age Survivor Insurance Invoice

P

PA-Penalty Assessment (Transmittal Deficiencies)
Identifies a penalty fee for late transmittal reporting by your organization.
PS-Prior Service
For earning periods prior to 1/1999, identifies employer contributions due because a member purchased optional service earned before an employer began participating in a retirement system. OS-Optional Service has replaced this code.

S

SC-SCERS
This code identifies invoice amounts for pension payments to retirees of the Statewide City Employees' Retirement System (SCERS). DRS administers SCERS payments since SCERS became insolvent on January 1, 1972. Since that date, certain employers have been billed for payments to retirees or their beneficiaries still receiving benefits from that system.

T

TC-Transmittal Correction
This code identifies an invoice that may result when you submit a correcting transaction on your transmittal correction report.

X

XC-Excess Compensation
Excess compensation (XC) invoices result when certain types of payments are reported during the period of time used to calculate the member's retirement benefit. (See a sample of an Excess Compensation Invoice.) These invoices typically occur for PERS Plan 1 and TRS Plan 1 retirees and can occur for Plan 2 or 3 retirees if they receive overtime payments that are greater than twice the regular daily or hourly rate of pay.

Adjustments to Member Accounts

General Information

Several invoice types reflect adjustments to member accounts that result in an employer obligation or credit; i.e., EC, EN, EO, and OS. The adjustment can be the result of a plan transfer, a system transfer, an error in reporting or some other activity.

If payment is due, you will receive an invoice for the amount due. See a sample employer invoice. The invoice will provide the reason for the bill and the code used on your Statement of Account Activity. If you have questions, contact the individual whose name is shown on the invoice. You will need to complete a Payment Advice form to submit with your payment.

If a credit is due to you, you will receive an Employer Credit document. The credit document will explain the reason for the credit. If you have questions, contact the individual whose name appears on the credit document. You will need to complete a Credit Redistribution form to apply the credit to an appropriate system, plan, or billing month.

If you need help completing a Payment Advice or Credit Redistribution form, contact an Account Manager.

Responding to All Types of Invoices
If payment is due:
  • Complete a Payment Advice form, applying payment to the correct system, plan, and invoice number. For example, if you received the invoice sample, you would complete a Payment Advice form to apply payment of $45.56 to PERS Plan 1 for Invoice #123456.
  • Send the completed form, your payment and the Payment Advice form to the address shown on the invoice.
If you are entitled to a credit:
  • Use the Credit Redistribution form to move the credit to another receivable with an outstanding obligation or take the credit by shorting your next payment. If you have questions, contact an Account Manager.
Points to Remember

When working with a DRS invoice, be aware of the following points:

  • You may send the payment of an invoice amount along with your regular monthly contribution payment, or you may send the payment separately.
  • You must complete a Credit Redistribution form to move a credit to a receivable with an outstanding obligation.
  • You should receive an invoice before you see the billing on your statement. You may receive more than one invoice or credit during a given month. Your statement will show each billing as a separate invoice. Do not report any of the invoiced adjustments on your monthly transmittal report.

Excess Compensation Invoice

An Excess Compensation Benefit Invoice is sent to an employer when a retiring member's Average Final Compensation (AFC) includes a cashout of over 240 hours of annual leave or other payments in excess of regular salary or overtime. The employer must pay the present value of all present and future benefits attributable to excess compensation. These billings are sent only to employers of PERS Plan 1 or TRS Plan 1 members.

If you have questions about an invoice you receive, contact the individual whose name and telephone number are printed near the bottom of your invoice.

Penalty Invoice

General Information

The monthly transmittal report must be received at DRS by the 15th of the month to ensure member account information is updated and interest is applied in a timely manner. Three business days are allowed for postal delivery. DRS charges the employer for late reporting if the monthly transmittal is not received by the third business day after the 15th. DRS applies a fixed fee for each day a report is late.

State law permits DRS to assess an additional fee to employers for late or inaccurate reporting (RCW 41.50.110(5)). At this time, deficiency charges are not applied for inaccurate reporting; i.e., rejected transactions, warnings, or system-corrected errors. However, a penalty assessment fee is applied for late reporting.

Contesting Penalty Charges

If you disagree with any of the charges appearing on the Penalty Invoice, you may contest any charge by writing to DRS at:


Manager, Employer Information Processing
Department of Retirement Systems
PO Box 48380
Olympia, WA 98504-8380

In your letter, please indicate the reporting period (or periods) you wish to contest. Submit any evidence you have to support your belief that the deficiency has been charged in error. For example, show proof of when your report was mailed to DRS.

Your request for reconsideration of a Penalty Assessment charge must be submitted within six months of the date that DRS issued the Penalty Invoice. After the six-month period, DRS will not be able to reverse the charge(s).

DRS encourages you to pay the Penalty Invoice by the due date, even if you are contesting some or all of the charges. If you make payment on time and a decision is then made to reverse any charges, credit for the appropriate amount will be reflected on your statement. If you do not make payment while contesting a charge, the payment may become past due.

Retiree Return to Work (RRTW Invoice)

  • These invoices are sent only to employers of PERS Plan 1 or TRS Plan 1 retirees.
  • A RRTW invoice is sent to an employer when the retiree exceeds 867 hours of work, counted from the beginning of the fiscal/calendar year to the last reported earn period on the invoice.
  • If the retiree is working for more than one employer, the hours are combined when calculating the member’s 867 limit; however, each employer will be billed employer contributions only for the compensation reported by that employer.
  • Employer contributions are also billed on compensation reported as lump sum cash outs using N, P, and R status codes. However, while hours associated with cash outs are reported, the hours aren’t included in the 867 hour limit calculation.
  • After receiving the initial invoice for exceeding the 867 limit, employers will receive monthly invoices for any subsequent hours reported.
  • The RRTW invoice is calculated using the system/plan from which the member retired, not the plan in which the retiree is working.
  • Your Statement of Account Activity will reference the RRTW Invoice amount as a line item with the code EB. EB identifies an Employer Billing for employer contributions and expense as a result of a TRS Plan 1 or PERS Plan 1 retiree having worked in excess of 867 hours.

View a sample Retiree Return To Work invoice

If you have questions about an invoice you receive, contact the DRS Accounts Receivable Unit.

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