Determinations of Compensation

When a question exists as to whether a payment is subject to SERS’ withholding, including settlements and grievances, the employer should request, in writing, a determination from SERS.

This request should include complete information about the compensation.

SERS may request additional information to make a determination.

If you do not request a determination from SERS on a payment issued to an employee, and it is determined that the payment is not compensation for SERS’ purposes, any contributions that have been received on the payment are considered unauthorized and are refunded back to the employer once the employee’s account is adjusted through eSERS by the employer.

If it is determined that the payment is compensation for SERS’ purposes, a charge will be made to the employer for both the employee and employer contributions, plus interest.

Once the cost has been calculated and submitted, you have 30 days to send payment.