State Controller Office Payroll Adjustments

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

Immediately upon reaching labor agreements in response to the 2020-2021 Budget, the State Controller’s Office (SCO), Personnel and Payroll Services Division (PPSD) began implementing an unprecedented number of modifications to the Uniform State Payroll System.

Among the system changes, SCO updated the calculation of payroll to process salary reductions specific to the Personal Leave Program (PLP) and/or the Furlough programs.  A miscalculation occurred in the way that the gross subject to retirement deduction amount is calculated on an individual’s Employment History record. As a result, the July payroll retirement withholding amount was 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 contact the assigned CalHR labor relations officer if you have any questions.