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How do you Refund a STRS Purchase Service Credit deduction check back to a retired employee from a prior calendar year? How do you receipt the deduction check into USAS

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I have a district that received a refund of a STRS purchase service credit / deduction.  STRS figured her buyback wrong and issued a check to the district. The pre-tax deduction was withheld in 2012 and the staff member retired June of 2013. How do they process the refund?  Do they need to issue a corrected W-2 for 2012? How do they receipt the deduction check in USAS?  Thank you!
 
Edited Mar 21, 2014 03:20 PM
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asked March 20, 2014 09:45 AM

 

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Jill:

  This may not be an answer... but it leaves more questions in my mind.  If it's a pre-tax deduction (deducted from the employee)... what possible relationship could it have with the District of employment - at this point?  When one retires... the "pension" and everything that "governs" it... is a "contract" between the retiree and the retirement system.  They should have (in my opinion)... just given it back to her... and not the District... since there were probably no expenditures in USAS, related to it.   If I were the District... I would try to ascertain from STRS what possible logic is there in doing that - course the answer most likely may be - "we've always done it that way"... or "there's no other way to do it in our system".  Just a thought.

Jeff C.
 
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answered March 20, 2014 11:07 AM
Jill: Thought about it a little more. They (STRS) may argue that since the original W2 - came from the employer... the only one that can issue a W2-C for that year... is the employer.
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Mar 20, 2014 11:14 AM

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