December 29, 2023

SCO Deduction Service Charge Rate Change

Action Required: Share the following information with all appropriate staff.

Description: The State Controller’s Office (SCO) has updated the 2023-24 deduction service charges to include cost adjustments that were unknown at the time the original rates were calculated, such as the General Salary Increase (GSI) and other salary adjustments recently approved.

The updated rates are effective July 1, 2023. Adjustments from the months previously collected (July 2023 to December 2023) will be processed as a one-time rate change in the January 2024 business month (business month remittances issue date February 1, 2024) as outlined in the “One-Time Rate Increase” column.

Updated 2023-24 rates in the “Updated 2023-24 Rates” column will be reflected within the February 2024 business month (business month remittances issue date March 1, 2024).

The SCO deduction service charges rates are as follows:

Deduction Type Original 2023-24 Rates Updated 2023-24 Rates 2023-24 Rate Variances One-time Rate Increase
 

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Miscellaneous $0.40 | $0.64 $0.42 | $0.66 $0.02 | $0.02 $0.54 | $0.78
Deferred Compensation $0.40 | $0.42 | $0.02 | $0.54 |
CSU Tax Sheltered Annuity $0.40 | $0.42 | $0.02 | $0.54 |
Health Benefits $0.40 | $0.42 | $0.02 | $0.54 |
Dental, Life, LTD, Vision & Legal Benefits $0.40 | $0.64 $0.42 | $0.66 $0.02 | $0.02 $0.54 | $0.78

The updated rates will also be posted on SCO website at the following address: Service Charge Rates (ca.gov)

Population Affected: All Deduction Clients


Personnel Letter #23-034: EXPANSION OF ETHNICITY CATEGORIES has been published on the State Controller's Office (SCO) website located at: http://www.sco.ca.gov/ppsd_sco_letters.html

You can go directly to this letter by clicking on the following address: https://sco.ca.gov/Files-PPSD-Letters/Pers/2023_e23-034.pdf. 

Please direct your questions to the appropriate contact(s) listed in the Personnel Letter. 

For your information, the State Human Resources Departments link on the SCO website offers various personnel/payroll related tools and resources.  This information is located at: http://www.sco.ca.gov/ppsd_state_hr.html.