Section 16: Employer Billing

The System generates three different types of bills based on the member’s pensionable (billable) earnings: estimated bill, final bill and monthly bill.

Employer Contribution Rate

Each year an employer contribution rate (ECR) is calculated by our research and valuation department and adopted by the Retirement Board. The ECR consists of four components: the Normal Rate, the Expense Rate, the Group Life Insurance Rate and the Excess Benefit Plan Rate.

The Normal Rate represents the annual cost of accruing active member benefits as well as actuarial gains and losses. The active member component includes the cost of benefits accruing on account of retirement, withdrawal, disability, death (except for the first $50,000 of death benefits which are funded by the group life insurance rate) and the cost-of-living benefit provided during retirement. The Normal Rate is calculated in accordance with the Aggregate Actuarial Cost Method. The Aggregate Method is a reasonable and appropriate actuarial funding method for an ongoing plan and is designed to provide that sufficient assets are accumulated to pay current benefits as well as accrue assets that will be needed to pay future benefits. 

The Expense Rate is a pay-as-you-go rate representing the administrative cost of the Retirement System for the fiscal year and is set during the budget process.

The Group Life Insurance Rate is a pay-as-you-go rate representing the expected benefit payments on account of the first $50,000 of member death benefits for the fiscal year. Contributions collected have been more than sufficient to cover payments over the past several years, resulting in an accumulated Group Life Insurance Fund balance.  

The Excess Benefit Plan Rate is a pay-as-you-go rate representing the Excess Benefit Fund’s need for contributions to cover expected benefit payments in excess of the Internal Revenue Code Section 415 limits for the fiscal year. These payments are made exclusively from the Excess Benefit Plan. This fund was established in accordance with the Excess Benefit Plan which received final IRS approval in August 2001.

Salary information is accumulated through the employer reporting process. The ECR is applied to the member’s billable earnings to determine the employer contribution. Billable earnings are any earnings useable in a member’s pension calculation. All earnings are billed in the year they are paid to the member, including retroactive salary adjustments. In the case of school districts, the employee’s mandatory contribution and employer contribution are deducted by the state Education Department from state aid and paid directly to NYSTRS. Employers who do not receive state aid or whose state aid is insufficient to cover amounts due are required to make direct payments to NYSTRS on the billing dates referenced below.

The estimated and final bills are calculated using the ECR.

All billing information can be accessed by visiting the Employer Billing area of the Employer Secure Area (ESA). Billing information is currently displayed for a period of three years in ESA, so you should print or save any bill you want for your records.

Estimated Bill

The estimated bill is produced in August each year. If all monthly files have been submitted to NYSTRS prior to the bill’s production, the estimated bill should be an accurate estimate of the final bill, which is produced in October. In this case, the district will receive a detailed summary of the estimated bill. However, if any monthly files are outstanding when the bill is produced, the estimated bill is calculated by projecting a 3% increase over the previous year’s billable earnings and applying the appropriate ECR. When the bill is available in ESA, an email notification will be sent.

State aid payments are calculated using the estimated bill. For an employer to be able to budget accurately, it is imperative that NYSTRS receives all monthly files promptly.

Final Bill

The final bill is published in October. The amount due in the final bill includes any necessary adjustments to the estimated bill's third installment. The final bill and a detailed breakdown by member are available in ESA.

Questions regarding your estimated or final bill or the detailed member-level breakdown should be directed to our Employer Reporting unit at 800-348-7298, ext. 6220.

Questions regarding the payment of bills should be directed to our Finance department at 518- 447-2820.

Please note: Accurate reporting is essential for annual billing. Please be sure all monthly reports are submitted by the 10th of the following month, and that District Specific Issue Reports (DSIRs) are answered promptly. Please also verify that all contracts have been submitted to NYSTRS for review and all payments are being reported using proper pay codes. If a contract review results in pay code corrections, please ensure the corrections are sent to NYSTRS promptly.

Monthly Bill

The monthly bill and bill detail are both available in ESA. The purpose of a monthly bill is to make any necessary billing adjustments to school year(s) for which a final bill was generated. If there are adjustments to earnings, required contributions, or member contributions, you will be billed or refunded based on the ECR in effect for the school year in which the adjustment was made.

Understanding Bill Types in ESA

When viewing the “Monthly, Estimated and Final Billing” section of the Employer Secure Area (ESA), you may see one or more of the following, depending on your billing status:

• Bill: A summary page showing the total amount due for the current billing period. This is displayed, along with a Bill Detail, when a new billing event occurs.
• Bill Detail: An itemized list that breaks down the total Bill by member showing specific adjustments, earnings and contributions.
• Statement: A summary of unpaid balances carried forward from the previous month. A statement may appear with a new bill and bill detail, or when there is no new bill, but a prior balance or credit remains. These are generated by the Finance department and include a breakdown and explanation of the balance due.

Note: Interest will be charged on any necessary billing adjustments, as we are required to give members interest on their contributions starting the year the service was rendered.

If you receive a refund check from NYSTRS, your Monthly Billing Detail will reflect the specific information for that check. If a refund includes member contributions, employers should refund the member. See Section 17: Refunds for more information.

If an adjustment is made resulting in an overpayment, a credit will be issued. Credits will be applied to any outstanding balance due. Any remaining credit will be applied toward the first installment due of the Estimated bill.

Questions regarding adjustments reflected on your monthly bill should be directed to the Employer Reporting Unit at 800-348-7298, ext. 6220.

Billing Calendar