Setting up Pay Type Limit Rules for ERS Tier 5 and Tier 6

Owned by Knowledge Assistant
Jun 28, 2023
2 min read
Description of Issue

The overtime limit for ERS (Employees’ Retirement System Members) Tier 5 and Tier 6 is an annual amount.  How do I setup the Pay Type Limit Rules?

Context
  • Payroll
  • New York
  • NY Employee Retirement RS2402 Report
  • NYSLRS Report
Cause

NYSLRS Overtime Limits are automated in EERP with the pay type limit functionality, which will move overtime earnings to a different pay code once the earnings limit is met.  The new pay code is excluded from the NYSLRS deduction codes to prevent contributions on those earnings and Crosswalked in the SLRS PAY Crosswalk Type to the NYSLRS Non-Pensionable Overtime Earnings Code NOT to report those earnings correctly in the NYSLRS Report.

Resolution
  1. Use the Duplicate option in the Pay Master program to create a new pay code for the non-pensionable overtime amounts.
  2. Update Crosswalk Type SLRS PAY to account for the new pay code(s) for the non-pensionable overtime.  Reference NYSLRS Reporting Setup.
  3. Use the Exceptions option in the Deduction and Benefit Master program to exclude the new pay code from all applicable NYSLRS deduction codes. 
  4. Use the Limit Rules option in the Pay Master program to create the rules that need to be enforced.  You'll need to create a record for the Tier 5 limit and a record for the Tier 6 limit because the limit amounts that need to be enforced are different. 


Populating the Limit Rules: 

  1. From the Payroll Earning Limit Rules screen, select Add
  2. Populate the fields as follows:
    1. Limit Code - Enter a unique code to identify the limit rule you're creating.  Example: NET5
    2. Short Description and Long Description Example: ERS Tier 5 and NYSLRS ERS Tier 5
    3. Frequency - Select Y - Calendar Year 
    4. Amount Type - Select F - Flat Amount
    5. Amount - Enter the overtime limit amount for the current Calendar Year.  This will need to be updated each time the Limit amount changes, typically at the start of each Calendar year. Example: 22028.01
    6. UOM - Select A - Amount
    7. Old Pay Type/New Pay Type - Enter the existing applicable overtime pay codes in the Old Pay Type column and the new applicable non-pensionable overtime pay codes in the New Pay Type column.  
    8. Non-Cash Gross Pay Type - Leave blank
    9. Limit Priority - Leave blank
  3. Select Accept 
  4. Repeat steps 1 through 3 for Tier 6.


Additional Information

Overtime Limits for Tier 5: https://www.osc.state.ny.us/retirement/members/overtime-limits-tier-5

Overtime Limits for Tier 6: https://www.osc.state.ny.us/retirement/members/overtime-and-earnings-limits-tier-6

Master Article - Setup for NYSLRS Overtime Limits