Pension Shortage (Payroll Deduction)

A shortage in a staff member's pension account occurs when the District does not deduct the proper pension contribution from the staff member's salary.  The District will be notified by the New Jersey Division of Pension & Benefits (NJDPB) of the amount of any shortage. 

The District is responsible for payment of any shortages at retirement.  No retirement will be paid until purchase arrears and shortage obligations have been satisfied.  The District should contact the NJDPB as soon as possible if a staff member's Quotation of Retirement Benefits indicates an arrears balance or shortage.

Recommended Procedures for Creating the Pension Shortage deduction

1. Create two new Agency Vendors - one for Pension Shortage and one for C.I. Shortage.  Make both payable by check and consider either setting the Agency Pay Frequency to manual.  
2. If Shortage deductions do not already exist for Pension and CI, create them.  Choose Shortage on the "Type of Pension Deduction" drop-down (you can copy the original Pension and CI deductions to new shortage deductions if you want - just make sure to choose Shortage from the drop-down)
3. Go to the Shortage Deductions and make the vendor on the shortage deductions to the vendors you created in step #1 above.
4. Once the deduction and agency vendor are properly setup, on the Create Payments screen you will see the deductions and you can create the payments and process the checks.