By Carolyn Cozart on Mar 27, 2013
The Middle Class Tax Relief and Job creation act of 2012 P.L. 112-9 made significant changes to the Federal Retirement System in regards to how to determine an employee’s coverage. Starting in 2013 the employee’s contribution rate for (most) newly hired employees (or rehired employees with less than five years FERS service) will to pay significantly higher employee contributions. In addition, members of Congress and Congressional employees will pay a higher rate and will accrue retirement benefits at the same rate as regular employees.
Federal customers using PeopleSoft Human Resources, Payroll for North America, HR Base Benefits and Payroll Interface products will need to read the Position Paper which will identify the upcoming changes. The Position Paper can be found on My Oracle Support, Document ID 1541096.1.