Employer FAQs - Billing and Accounting

Important note: Information contained in these frequently-asked questions and answers is general in nature. In case of any conflict, the actual contract language between the employing municipality and PMRS along with PMRS law will prevail. Also, existing regulations, policies and procedures will apply in all cases.

How is the annual municipal pension bill determined?

In August of each year, PMRS sends a Minimum Municipal Obligation (MMO) worksheet to each municipality. The MMO must be completed by September 30 by the plan's chief administrative officer and then provided to the municipality's governing body. A copy is returned to PMRS to be processed and used to prepare the plan's bill for the upcoming year By completing the MMO worksheet, the municipality actually calculates its pension bill for the upcoming calendar year. Most cost components needed to calculate the MMO are provided by PMRS; however, the municipality must provide payroll information and follow the instructions provided on the worksheet. There are different types of worksheets, one for defined benefit plans; one for overfunded defined benefit plans; and one for cash balance plans.

When does a municipality receive its annual pension bill from PMRS?

In early January of each year, PMRS mails the annual pension bill to each member municipality. Defined benefit plans must pay their bills by December 15 to ensure that payment can be credited before the close of the calendar year to avoid any funding deficiency. Cash balance bills also are mailed in early January but the only item that appears on the bill is the $20 per year administrative fee for each plan member.

In cash balance plans, the municipal contributions to be credited to each employee's account are then remitted to PMRS on a monthly or quarterly basis. Also, in a cash balance plan any forfeited monies, e.g., an employee terminates and is not entitled to a benefit, are credited to the municipal account and may be used as a credit toward future municipal contributions.

How does a municipality remit payments to PMRS?

PMRS accepts ACH, Wire Transfer, and check. Each payment must be accompanied by a completed Revenue Transmittal Form (PMRB-20). Accurate representation of the source of the payment, i.e., Fund Money, State Aid, Employee Deduction, or Other, is very important. Municipalities also must indicate on the form where the money should be credited, i.e., Municipal Account, Members' Account, Administrative Cost, or Other. Revenue Transmittal Forms are provided by PMRS. 

- Information to initiate ACH or Wire Transfer
- A printable Revenue Transmittal form (PMRB-20)
- A sample that corresponds with instructions for completing the PMRB-20 form.

Why should the municipality complete the Revenue Transmittal Form (PMRB-20)?

The Revenue Transmittal Form instructs PMRS to credit appropriate account(s). The form is used to track all remittances for a municipality and to reconcile the "Total Reported Payment" portion of the Quarterly Report of Contributions (PMRB-21).  It also shows PMRS the source of payment, such as Municipal or General Fund Monies, Act 205 State Aid, Employee Deductions (Contributions) or Member′s Personal Check for Purchase of Service. Completing the form will insure the correct allocation of remittances to the proper accounts.

When should the municipality complete the PMRB-20?

The completed Revenue Transmittal Form should accompany all remittances sent from the municipality to PMRS. 

Examples of remittances include: 
  • payment of the Municipal Minimum Obligation (MMO)
  • employee deductions
  • municipal for member contributions
  • new member application fee
  • lump sum purchase of past service

A PMRB-20 form should accompany each of these remittances with supportingdocuments such as:

  • Quarterly Report of Contributions(PMRB-21) - if applicable
  • Application for Membership Form (PMRB-1) and Nomination of Beneficiaries Form (PMRB-2)
  • Municipal Yearly Bill (MMO)
  • Purchase of Service Form of Payment Option(PMRB-7), depending on the type of action being requested.

A 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. The "Check Amount" on the PMRB-20 form should show the actualamount to be credited to the individual plan, not the total check amount.

Conversely, if a municipality must issue multiple checks for one plan, only one Revenue Transmittal Form needs to be completed and the total amount of the checks should be added to the "Check Amount" field on the PMRB-20 form.

For detailed instructions on how to fill out the PMRB-20, please click here.