Greetings to you all!
This edition of the MPERA Fiscal Year End Update has some very important information, such as finalizing your payroll schedule, fiscal year-end cut-offs, the upcoming contribution rate increases for PERS and GWPORS, and the update on HPORS going to a combined rate of 38.33% rather than MPERA receiving the 10.18% statutory appropriation separately. Also included is a reminder to check your ERIC reports for 457(b) enrollments and deferrals, as well as making sure all your employees’ addresses are up to date.
PAYROLL SCHEDULES
You are now able to finalize your payroll schedule for Fiscal Year 2024, and the deadline for finalizing is June 15. If you require assistance, check our website for the training video, or contact our employer call center at 1-844-304-5452 or in Helena at 406-444-3994.
FISCAL YEAR END CUT-OFFS
All June 2023 payroll reports and contributions are due to our office no later than July 10, 2023, (five working days after June 30). Please note the following regarding your payroll:
- Report all employees – All employees should be reported on your payroll.
- Report according to your regular payroll schedule – Your payroll report needs to be submitted according to your regular payroll schedule. If you run your PERS reports first, contact the Employer Reporting call center if you have extra reports so that they can determine if an Off Cycle date needs to be set up in your schedule.
- Payouts without termination – Do not withhold retirement contributions from lump sum payouts of vacation, sick and compensatory leave paid if the employee has not terminated employment.
- Reporting employees who have no hours for the summer – If you have employees who do not work through the summer, you can set the employee on a Seasonal Leave status when you report their last earnings of the fiscal year. Note: When you set the employee out on leave status, ERIC will not expect payroll details for the employee.
CONTRIBUTION RATE CHANGES
Effective July 1, 2023, the PERS employer contribution rate for PERS members and working retirees, increases 0.1% for all employers. This additional employer contribution rate increases 0.1% every year from fiscal year 2014 through fiscal year 2024. Member contributions will not change.
| Central Payroll and Montana University System (MUS) | ||
| FY 2023 | FY 2024 | |
| State and MUS Contribution Rate | 6.90% | 6.90% |
| Employer additional contribution rate | 2.17% | 2.27% |
| Total | 9.07% | 9.17% |
| City, County and Other Agency | ||
| FY 2023 | FY 2024 | |
| Local Govt Contribution Rate | 6.80% | 6.80% |
| ER additional contribution rate (paid by employer) | 2.17% | 2.27% |
| Total Contribution for Local Governments Employers | 8.97% | 9.07% |
| State Contribution for Local Governments | 0.10% | 0.10% |
| Total | 9.07% | 9.17% |
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School Districts and High Schools
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| FY 2023 | FY 2024 | |
| School District Contribution Rate | 6.80% | 6.80% |
| Employer additional contribution rate (paid by employer) | 1.90% | 2.00% |
| Total Contribution for School District Employers | 8.70% | 8.80% |
| Employer additional contribution rate (paid by the state) | 0.27% | 0.27% |
| State Contribution for School Districts | 0.10% | 0.10% |
| Total | 9.07% | 9.17% |
GWPORS employer contribution rates will increase for fiscal year 2024.
| Game Wardens' and Peace Officers' Retirement System (GWPORS) | |
| Employer | 10.56% |
| Member | 10.56% |
HPORS employer contribution rates will now be a single 38.33% rate instead of MPERA receiving a 28.15% payroll withholding and billing monthly for the 10.18% from statutory appropriation.
| Highway Patrol Officers' Retirement System (HPORS) | |
| Employer | 38.33% |
| Employee Contribution Rate hired prior to 7-1-1997 | 13.00% |
| Employee Contribution Rate hired on or after to 7-1-1997 or Elected GABA | 13.05% |
457(b) ONLINE ENROLLMENT
457(b) enrollment and the deferral process are available online at Empower ™. As a result, it is vital to use an ERIC report to update your payroll software with new enrollments, deferral changes and stops.
You can find that report in ERIC on the left Navigation panel, under employer reporting. Just click on 457 SDA File and if there are any new deferrals or changes, they will show up there.
UPDATING EMPLOYEE ADDRESSES
Be sure all your employee addresses are up to date. MPERA will be sending Annual Statements later this summer and we rely on you to send us accurate information.
OKTA LOGIN INSTRUCTIONS
The ERIC reporting system has transitioned to Okta software for login security, authentication, and registration services. For login instructions, please visit our website: NewOktaAcctInstructions.pdf (mt.gov).