Instructions for PMRB-20 Page 1 of 13 7/2005

INSTRUCTIONS FOR COMPLETING

THE REVENUE TRANSMITTAL FORM (PMRB-20) Municipalities use the Revenue Transmittal form to identify the source and purpose of money that is sent to PMRS for deposit with the plan. All remittances for a municipality are tracked in order to reconcile the “Total Reported Payment” portion of the Quarterly Report of Contributions (PMRB-21 form). In addition to instructing PMRS where to deposit the money, the Revenue Transmittal form also explains the source of payment (i.e. munic ipal or general fund monies, state aid, employee deductions, etc.). Completing the form will insure the correct allocation of remittances to the proper accounts and the accuracy of the GASB-25 Financial Statements. Municipalities are to use the Revenue Transmittal form when sending the following types of remittances to PMRS:

® Municipal Minimum Obligation (MMO) payment ® Employee deductions, municipal for member contributions ® New member application fee ® Lump sum purchase of past service

The following types of supporting documentation should be sent to PMRS with the deposit and Revenue Transmittal form:

® Quarterly Report of Contributions (PMRB-21) – if applicable ® Application for Membership (PMRB-1) ® Nomination of Beneficiaries (PMRB-2) ® Municipal Yearly Bill (MMO) ® Purchase of Service form of Payment Option (PMRB-7)

Below are detailed instructions with examples on completing the Revenue Transmittal form (PMRB-20).

Section: A & B – Municipal Plan Name & Municipal Code Number (PERC)

Procedure: A separate form must be completed for each individual plan for which there is a remittance. Do not complete a form if there is no remittance due (zero).

Comments: PMRS now uses the Public Employee Retirement Commission (PERC) codes to be consistent with the codes used on the Act 205 Actuarial Valuation Reports.

Section: C – Check Amount

Description: Total amount to be deposited into this plan.

Procedure:

The municipality may issue ONE check for multiple plans (Non-Uniform Police, Fire, or Authority) but must complete a separate Revenue Transmittal Form for each plan. Conversely, if a municipality must issue multiple checks for one plan, only one Revenue Transmittal Form needs to be completed and the total amount is listed as the “Check Amount”.

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SOURCE OF PAYMENT Section: D – Fund Money (Municipal, General, or Special)

Description: Funds provided from the municipality for pension plan costs.

Procedure: List the amount from the Municipal or General Fund in the space provided.

Comments: The General Fund can be reimbursed for this amount if the municipality receives State Aid in September.

Section: E – State Aid (Act 205)

Description: Monies allocated by the Auditor General’s Office by the last business day in September each year to he lp defray pension expenses in that calendar year.

Procedure:

First reimburse the Municipal or General Fund for any expenses previously paid such as MMO (Bill) or Municipal for Member Contributions. List balance of State Aid municipality received or, if the municipality has more than one pension plan, the amount allocated to this plan.

Comments:

The State Aid must be deposited into the pension plan within 30 days of receipt. If the municipality receives more State Aid than needed to pay the MMO, the excess must be deposited in the pension plan. Please inform PMRS of the amount of State Aid received or allocated to each pension plan. Example memo as follows: Amount of State Aid received $9999.99 Reimburse General Fund Plan A -1111.11 Reimburse General Fund Plan B -2222.22 $6666.66 Allocate State Aid to Plan A - ??.?? Allocate State Aid to Plan B - ??.?? $ 0.00

Section: F – Employee Deduction for Month of ______________

Description: The contributions withheld from the member’s covered compensation.

Procedure: All employee deductions (Contributions) including payment of past service purchase (Arrears) should be listed in this space. Please also state the month or period that the Employee Deductions (Contributions) were deducted.

Comments:

PMRS suggest that these contributions be remitted either monthly or quarterly at the convenience of the municipality. Some municipalities choose to remit every pay period. Please note that the money remitted to PMRS must agree with the totals of Contribution: (By Member) and Service Purchase on the Quarterly Report of Contributions Form (PMRB-21). Note – In the near future, an updated computer system will make remittance of contributions every pay period beneficial to the municipality’s pension plan. *

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Section F - Comments (continued)

*Once upgrades have been made to the PMRS computer system, the municipality will receive interest on contributions that are received prior to the end of the quarter. At the end of the quarter, the contributions are credited to the member’ accounts and the members begin to earn interest. If contributions are received after the end of the quarter, interest will be charged.

Section: G – Other (Please Explain)

Description: Miscellaneous remittances such as transfer of assets from a previous plan or for a Member’s personal check for payment of Lump Sum Payments of Past Service Purchase.

Procedure: List the amount remitted to PMRS and provide explanation.

Comments: Defined Contribution Plans requesting a transfer from the Municipal Reserve Account for Municipal for Member Contributions into the Members’ Accounts may also use this space.

CREDIT THIS PAYMENT TO Section: H – Municipal Account

Description: An account for each municipality to maintain contributions not yet allocated for active, vested and retired members.

Procedure:

Total “any amounts” to be credited to the municipal account and list in space provided.

Comments: Remittances to be credited to the Municipal Account include payment of Annual Bill (MMO), Excess State Aid, transfer of assets from previous plan.

Section: I – Members’ Account

Description: The account that is credited with the payroll deductions from active members, and any municipal contributions made to the members’ accounts, plus interest earned.

Procedure: Total “any amounts” to be credited to the member account and list in space provided.

Comments: Remittances to be credited to the Members’ Account include Employee Deductions (Contributions), Municipal for Member Contributions (typically Defined Contribution Plans), or Lump Sum Payments of Past Service Purchase.

Section: J – Administrative Cost

Description: The cost to maintain and administer members’ records.

Procedure: Record the total of any Annual Bill, Administrative Charges, and/or New Member(s) Fee paid.

Instructions for PMRB-20 Page 4 of 13 7/2005

Section: K – Annual Bill

Description: Defined Contribution Plans - “Annual Bill (MMO)” which consists of the Administration Cost only.

Procedure:

Defined Contribution Plans -List the amount due on Annual Bill. Defined Benefit Plans – Administrative cost from Annual Bill (MMO) does NOT need to be listed separately here. List total Annual Bill (MMO) under “H – Municipal Account”.

Comments: The Administrative cost on the Annual Bill (MMO) is calculated based on the current members on record as of July 15. Please do not change the Bill to reflect terminations or new members after that date.. Include a copy of the Annual Bill

Section: L – New Member (s) Fee

Description: $20.00 per member application fee.

Procedure: Please list names and social security numbers for each fee paid. Please attach a list for more than two members.

Comments: Application for Membership Form (PMRB-1) and Nomination of Beneficiaries Form (PMRB-2) must be included with the remittance.

Section: M – Other (Please Explain)

Description: Pertains to any miscellaneous amount.

Section: N & O – Signature and date of issuing Officer

Description: The original signature and date of the issuing officer must appear on each Revenue Transmittal Form (PMRB-20).

The form is now complete. Please keep a copy for your records and mail the check(s), the Revenue Transmittal Form (PMRB-20) and all supporting documents to PMRS: The Pennsylvania Municipal Retirement System P.O. Box 1165 Harrisburg, PA 17108-1165

Instructions for PMRB-20 Page 5 of 13 7/2005

EXAMPLES Below are examples of the most common municipal remittances and instructions on completing the Revenue Transmittal Forms (PMRB-20).

Defined Benefit Plan pays the Municipal Bill (MMO) Example #1 Defined Benefit Plan Pays Municipal Bill From General Fund This example shows the payment coming from the General Fund

Mailing Instructions: Please include a copy of bill with check and complete d Revenue Transmittal Form (PMRB-20).

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Example #2 Defined Benefit Plan Pays Municipal Bill From State Aid This example shows the payment coming from Act 205 State Aid. Many times the Municipal Bill is paid with a combination of funds from the General Fund and State Aid. Under “Source of this Payment” the amounts should be listed in the appropriate spaces. Under “Credit This Payment To” the total payment should be listed in the “Municipal Account”.

Mailing Instructions: Please include copies of bill and Auditor General’s State Aid Award Letter with check and completed Revenue Transmittal Form (PMRB-20).

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Defined Contribution Plan Pays the Municipal Bill (MMO) Example #3 Defined Contribution Plan Pays Municipal Bill From General Fund This example shows the payment coming from the General Fund.

Mailing Instructions: Please include a copy of bill with check and a completed Revenue Transmittal Form (PMRB-20).

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Example #4 Defined Contribution Plan Pays Municipal Bill From State Aid This example shows the payment coming from Act 205 State Aid. Under “Source of This Payment” the amount should be listed in the appropriate spaces Under “Credit This Payment To” the amount should be listed in the “Administrative Cost” and again in the space provided for “Annual Bill”.

Mailing Instructions: Please include a copy of bill and Auditor General’s State Aid Award Letter with check and completed Revenue Transmittal Form (PMRB-20).

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Employee Contributions Example #5 Employee Contributions (Deductions) to Members Account This example shows Employee Pension Deductions being deposited in their Pension Plan.

Mailing Instructions: Please include a check and completed Revenue Transmittal Form (PMRB-20).

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Example #6 Employee Contributions Paid by Municipality to Members Account (Municipal for Member Contributions) This example shows Member Contributions being paid by the municipality. This generally occurs with Defined Contribution Plans . Under “Source of this Payment” the contribution should be listed in the appropriate spaces. Defined Contribution Plans that include both Municipal for Member Contributions and Employee Deductions (Contributions) can show each in the corresponding spaces on one Revenue Transmittal Form. Under “Credit This Payment To” the amount for both the Municipal for Member Contributions and the Employee Deductions (Contributions) are credited to the Members’ Account. Example: Source of Payment: $1,000 Fund money and $500. Employee . Credit Payment to: $1,500 members’ account. Both contributions can be remitted monthly but quarterly is also permissible. Some municipalities choose to remit for each payroll period. Note: when the PMRS computer upgrade is completed in early 2006, deposits of member and municipal contributions after the end of the quarter will cause the municipal account to be charged interest.

Mailing Instructions: Please include a check and a completed Revenue Transmittal Form (PMRB-20).

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Example #7 New Member Administrative Fee From General Fund

This is an example of a remittance for a New Member Administrative Fee From General Fund. Please list the names and social security numbers of the new members. If there are more than two members, attach a list of the new members. Application for Membership Form (PMRB-1) and Nomination of Beneficiaries Form (PMRB-2) must be included with the remittance for each new member.

Mailing Instructions: Include a Membership Applications Form (PMRB-1) and Beneficiary Nomination Form (PMRB-2) for each new member. Inc lude the check and a completed Revenue Transmittal Form (PMRB-20).

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Example #8 Lump Sum Purchase of Past Service

This example shows a buyback of time in a Lump Sum. It is a miscellaneous transaction therefore should be recorded as “Other (Please explain)” under “SOURCE OF THIS PAYMENT” and the appropriate “Member Account” under “CREDIT THIS PAYMENT TO”. A completed Purchase of Service Form of Payment Option (PMRB-7) must also accompany the remittance.

Mailing Instructions: Please include a Purchase of Service Form of Payment Option (PMRB-7) with the check and a completed Revenue Transmittal Form (PMRB-20).

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Example #9 Defined Contribution Plan Employee Contributions (Deductions) to Members Account and Transfer of Municipal for Member Contributions from Municipal Reserve to Members Account This example shows a Defined Contribution Plan depositing the Employee Contributions (Deductions) to the Members Account and requesting a transfer of Municipal for Member Contributions from Municipal Reserve to the Members’ Account. Employee Contributions can be remitted on a monthly or quarterly basis, however, the transfer of Municipal for Member Contributions to the Member Account is done quarterly. A completed copy of the Excess Contribution Credit Letter must also accompany the remittance.

Mailing Instructions: Please include a completed copy of Excess Contribution Credit Letter with check and a completed Revenue Transmittal Form (PMRB-20).

These are the most common daily transactions PMRS receives. We unde rstand that there may be unusual situations such as side funds (asset transfer from previous plan), auditor general funding, and others that you may have questions about. If you are not sure how to complete the Revenue Transmittal Form, please call the Accounting Division at 1-800-622-7968.