This is to inform you of a payroll adjustment concerning July 2020 payroll retirement deductions.

In response to the approved California State Budget 2020 – 21 and results of the Collective Bargaining Agreements, the State Controller’s Office (SCO), Personnel and Payroll Services Division (PPSD) had to immediately implement an unprecedented number of modifications to the Uniform State Payroll System.

These system changes included updates to the calculation of payroll to process salary reductions specific to the Personal Leave Program (PLP)/Furlough. With this change, a miscalculation occurred in the way that the gross subject to retirement deduction amount is calculated on an individual’s Employment History record. The result was a July payroll retirement withholding amount for less than what it should have been for employees who were subject to PLP or Furlough with payments issued between July 8 – 23, 2020.

The miscalculation affected the employee and employer share of the retirement deductions. Depending on the employee’s circumstances, the calculation varies.  The employee share amount ranges based on the gross subject to retirement amount but is estimated to be between approximately $.01 to $100, depending on the amount of retirement deduction.

PPSD has corrected the calculation and payroll will process accurately, beginning with all payments issued July 24, 2020 and forward.  PPSD will process retirement adjustments with the August 2020 payroll to correct the July 2020 payroll discrepancy.  The adjustment will be shown as deduction “PERS ADJ” on the earnings statements located on the Cal Employee Connect portal.  Please access the portal using this link Connect – Welcome. 

If there are any questions, please contact the Payroll Transactions Unit at PayrollTransactions@dor.ca.gov.