Question asked to CSMFO group list:
Can an auto allowance be PERS-able?
Some time ago, I recall the question of whether an auto allowance can be PERS- able being asked of the members. Unfortunately, I cannot find the responses to that survey in the resource room on the website or in my archived emails. Could those that responded to that survey please forward on their responses or, if you have information relevant to this subject matter and are willing to share, please do.
Responses received:
1. When we were audited for our Uniforms, I checked with PERS regarding Auto Allowance reporting and received an answer from PERS stating that Auto Allowance was not reportable. I do not have any documentation as this was a phone conversation.
I would suggest double-checking the PERS procedure manual – Section 3.5-Payroll reporting procedures and also pages 184-189 in California Public Employees’ Retirement Law book to see if this applies to your City.
2. Car allowances are not “pers-able”. Check PERS Optional Benefits Listing and they specifically disallow auto allowances.
3. Not that I know of… I just checked the PERS manual…
4. It is my understanding that auto allowance is not persable.
5. You may have already received a response. On the PERS website in the PERS Employer Manual is a list of "Special Compensation". If it is not on the list it cannot be PERSable. As I recall it is not on the list. Begins around page 5 of the following link: http://www.calpers.ca.gov/eip-docs/employer/er-forms-pubs/pubs/manuals/pm-payroll- reporting.pdf
6. We just had a PERS audit and the answer was no.
7. You can find most of this type of information in the Pers Payroll Reporting Manual. Auto-allowance is not persable. However, PERS could verify this if the employee is not satisfied with your answer. The only way to change this is to make it part of the employees salary and not seperate it out, or even mention auto allowance.
8. Before I left the last city that I worked for, auto allowance was not a PERSable item. Some cities get around that by simply adding the allowance into the employees salary. Problem with that is that over time, the employees feel like they’re not getting an auto allowance and ask that it be reintstated, as an add on to their salary, which already includes the allowance.
9. Per PERL § 20636.1. C (7)(C), Special Compensation does not include OTHER payments the board has not affirmatively determined to be "Special Compensation." § 571 which defines "Special Compensation" does not specifically mention Auto allowances therefore I would conclude that auto allowances are not PERS-able. Our city does not report car allowances as "PERS-able" earnings. The only way to make auto allowances PERS-able would if the employee's regular salary was adjusted upwards in lieu of an auto-allowance.
10. PERS does not consider Auto Allowance PERS-able pay.
11. Yes if it is formally approved by the elected body.
12. 20636 (4) “Payrate” and “special compensation” …do not include… (I) Compensation for additional services outside regular duties, such as standby pay, callback pay, court duty, allowance for automobiles, and bonuses for duties performed after the member’s regular work shift.
13. If it’s added to the base salary I believe it can be then converted to PERS compensation. Our City Manager is the only one that has a car allowance. It is considered as a separate item.
14. Auto Allowance is not Persable. I have a really great info sheet that details Persable items that I will fax you in a minute. Pers used to have this sheet as part of their manual but stopped including it. I have found it so useful that I transfer it to the new manual whenever they update it. I have been through 3 PERS audits during my time and it has never failed me.
15. Short answer – no. Only those types of pay defined in the California Public Employees Retirement Law qualify. You should have a copy somewhere in your City. It may go to your HR department.
16. My understanding is that the PERS regs specifically disallow an auto allowance from being PERS-able. Never inquired as to the “whys,” as it seems that if you earned it consistently over time and paid PERS on it, then there should be no problem, BUT, that’s not the case.
17. No they cannot. We were audited by PERS and they specifically told us we could not use Car Allowances as PERS-able wages.
18. Check your PERS contract. It will tell you what is PERSable and what is not.