Pay types are important when determining service credits for members of a Defined Benefit Plan (DBP) and calculating their high-five average salaries.
Employers are required to identify the type of PERA eligible earnings on their Salary Deduction Report (SDR). Each pay type is required to be reported separately using a two-digit code. Only one code may be entered per line. If an employee has earnings from multiple pay types, such as regular wages (Pay Type 01) and retroactive wages (Pay Type 05), report each amount on two different lines of the SDR or submit a separate SDR for each type of pay.
Pay Code
Pay Type
Description
01
Regular
PERA-eligible salary earned by a member in the current pay period for regular activity (wages, overtime, and paid days off). Members of a DBP receive one service credit for each month Pay Type 01 is reported.
02
Compensatory
Periodic payments of unused, accrued overtime or holiday compensatory time. No additional service credits for this pay type; however, the pay increases the salary for the applicable period.
04
Grievance
Contact PERA before use
05
Retroactive
Additional wages for one or more pay periods outside the current period. No additional service credits for this pay type; however, the pay increases the salary for the applicable period.
