PERAC Memo #46 - 2012: Anti-Spiking Review
Anti-Spiking Review
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PERAC Memo #46/2012 addresses whether retirement boards must complete the full anti-spiking worksheet when it is already evident that a member's regular compensation qualifies for one of the recognized exceptions (e.g., collectively bargained raises). PERAC clarifies that boards need not complete the worksheet in such cases, but must still verify and document that the compensation was reviewed for spiking and identify which exception applies. Boards are required to retain all supporting documentation in the member's file for potential future review by the calculation unit or during an audit.
Full Text
PERAC Memo #46/2012
M E M O R A N D U M
TO:
All Retirement Boards
FROM: Joseph E.
Connarton, Executive Director
RE: Anti-Spiking Review
DATE: September 18, 2012
Retirement boards have indicated that completing the anti-spiking worksheet can be time
consuming especially in cases where it is known that the member’s regular compensation
would meet one of the exceptions (e.g. the member’s pay raises are collectively
bargained). They have asked whether it is necessary to provide the worksheet in these
instances.
PERAC has determined that it would be acceptable for boards to verify that the member’s
regular compensation would meet one of the exceptions without completing the
worksheet. All retirement boards must verify that the regular compensation has been
reviewed for spiking and if one of the exceptions is met, which one. In all instances,
retirement boards should keep copies of any and all supporting documentation in the
members’ files in case the calculation unit has a question regarding the retirement benefit
or the retirement benefit is reviewed as part of an audit.
We trust the foregoing is of assistance. Any questions can be directed to the calculation unit.
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