For Santa Clara County Districts

District Business & Advisory Services

Nimrat Johal: Director- DBAS: 408-453-6599 Cathy McKim: Manager-DBAS: 408-453-6588

Bulletin: 14-002

Date: July 1, 2013

To: District Fiscal Directors

District Payroll and Personnel Directors

Charter School Administrators

From:Ann Redd-Oyedele

Re: Indirect Cost Rate Increase- Effective July 1, 2013

Payroll Related Changes for Fiscal Year 2013-14

Workers Compensation & State Disability Changes

State Unemployment Insurance (SUI) Change

The purpose of this bulletin is to communicate the Indirect Cost Rates and Payroll Related changes for Fiscal year 2013-14. Changes are based on approved changes at this time. Any additional changes will be communicated as soon as they are received.

Indirect Cost Rates for Fiscal Year 2013-14

  • See the attached Restricted Indirect Cost Rates for use with State and Federal programs, as allowable. Source:

CalPERS – Rate Changes

  • Section 401(a)(17) of the Internal Revenue Code (IRC) provides dollar limitations on annual compensation that can be taken into account under qualified retirement plans. The compensation limit for the 2013 calendar year is $255,000.

Source:

  • The Pers Employer Contribution rate for FY 2013-14 will be increased to 11.442% from 11.417% in 2012-13.
  • Reminder of recent changes: CalPERS retirees of at least normal retirement age can work up to 960 hours per year without impacting their retirement benefits
  • Effective January 1, 2012, limit this to:
  • Filing a position requiring specialized skills that has been vacated by a leave of absence for aperiod of up to one year
  • Temporarily filling a vacant position requiring specialized skills
  • For up to one year during recruitment for permanent employee and deemed as an emergency to prevent stoppage of publicbusiness

CalSTRS – Changes

  • Per STRS - Any notification of changes will be received the last week of June.
  • All Post retirement earnings limit exemptions ended June 30, 2012. Postretirement Earnings Limit for the 2013-14 is $39,903. The earnings limit for 2013-14 is $108 lower than the previous fiscal year. The earnings limit applies to earnings received for service performed on behalf of the California public school system. The limit is adjusted annually by the Teachers’ Retirement board and is equal to one-half (or 50percent) of the median final compensation figure for members who retired for service during the fiscal year ending in the previous calendar year.
  • The disability retirement earnings limit for the 2013 calendar year is $27,450. The limit applies to all earnings regardless of whether they are earnings from the public or private sectors. The limit is adjusted annually by the Teachers’ Retirement Board, if necessary, by the amount of change in the California Consumer Price Index

Source:

  • The CalSTRSboard will adopt contribution rates for the balance of Fiscal Year 2013-14 at its September meeting. Each year, the board adopts employer contribution rates for members who participate in the Reduced Workload Program and for members who are on a compensated leave of absence to serve as an elected officer of an employee organization during the new fiscal year. The rate changes are as follows:

New Rate for
FY 2013-14 / Old Rate for
FY 2012-13 / Education Code
Section
CalSTRS 2% at 60 Benefit Structure
Employer Contribution Rate:
Reduced Workload Program / 10.276% / 10.299% / 22713
CalSTRS 2% at 62 Benefit Structure
Employer Contribution Rate:
Reduced Workload Program / Not Eligible until 2018 / N/A / 22713
CalSTRS 2% at 60 Benefit Structure
Employer Contribution Rate:
Elected Officer of Employee Organization / 10.276% / 10.299% / 22711
CalSTRS 2% at 62 Benefit Structure
Employer Contribution Rate:
Elected Officer of Employee Organization / 8.25% / N/A / 22711

Source:

State Unemployment Rate- Change

  • The State Unemploymment rate for fiscal year 2013-14is set at 0.05 percent. The rate for fiscal year 2012-13 was set at 1.10%. .

Source:

Special Note:

  • Workers Compensation for Districts participating in the Santa Clara School Insurance Group (see Bulletin 14-003)to be updated in the QSS Business System effective July 11, 2013.
  • State Disability rates are district specific and Districts should notify their District’s Advisor as soon as you become aware of the change.

Please distribute this information within your District as deemed appropriate.