This is an article from SERS Staff.
On Feb. 9 and Feb. 15, the School Employees Retirement System of Ohio (SERS) sent out Special Notices to school treasurers and business officials that contain information about a recalculation of the Health Care Surcharge for FY2020. The Feb. 9 edition explains why a recalculation was necessary, and the Feb. 15 edition addresses what school employers need to do. If you did not receive these emails, you can find them on SERS’ website.
Following the FY2020 Health Care Surcharge billing in August of 2020, SERS realized that contributions were $3.7 million below estimates of what should have been collected to meet SERS’ health care funding objectives. The impact of the COVID-19 pandemic altered schools’ payroll experience and caused it to be much different from normal year projections.
To ensure that SERS receives the necessary funding for health care, the decision was made to recalculate the FY2020 Surcharge. SERS’ actuary determined that a minimum compensation amount of $23,000 would allow SERS to meet its funding goals.
Each district’s new FY2020 Surcharge bill will be compared to the contributions already received by SERS. Districts whose new total is higher than their previous contribution will receive an additional bill to cover the difference, and those whose total is lower will receive a refund of the difference.
This is not additional Surcharge funding for FY2020, but it is action taken to address the under-collection of health care employer contributions for that period. The correction maintains SERS’ historic collection of Health Care Surcharge funding amounts.
SERS understands the negative effects the recalculation may have on some employers, especially those whose revised contribution is higher than the amount they already paid, and we apologize for the inconvenience. Beginning this year, we have implemented an additional review of the proposed Surcharge collections in July before invoices are sent to make sure this situation does not occur again.
We will work with individual employers to establish a payment arrangement if necessary and desired. There will not be any penalties or interest applied if payment is received before July 1, 2021. If you have any questions, please contact SERS’ Employer Services staff by email at firstname.lastname@example.org or by phone toll-free at 877.213.0861.