The State Retirement Agency understands that at various times in order to deal with budget constraints many of our participating governmental units have instituted furlough or temporary salary reduction plans. How you report your payroll data to the Retirement Agency is critical during the implementation of these plans so as to minimize impact on pension benefits. The information below should be used as a guide for reporting payroll under a furlough or temporary salary reduction plan.

Plans will vary from employer to employer. However, if you have instituted a temporary salary reduction plan the following guidelines apply:

• Report the full time equivalent salary and actual earnable compensation;
• Contributions should be based on the actual earnable compensation;
• Report furlough hours like LWOP; standard hours remain the same.

If you should have any questions, please do not hesitate to call Jennifer Warren, Payroll Manager at 410-625-5691.