Employers should run an SSN verification report for all new hires, including independent contractors (1099 employees).

This tool is available to authorized users under the ‘Inquiry’ drop-down menu in STARS. If you do not see this menu option, contact your Employer Representative to learn how to add this access to your account.

Screenshot of the Colorado PERA STARS portal with the "Inquiry" dropdown menu open, highlighting the "SSN Verification" option with a red circle.

SSN Verification can be used to determine a number of membership factors. We’ve included a summary of three of these membership factors below. For a full overview, please refer to the Using STARS for SSN Verification fact sheet.

A table displaying employee retirement plan data, including SSN, employee type, service status, election info, effective dates, and PERS Choice eligibility.

#1 An individual’s membership status (active, retired, or other)

PERA membership status is used to determine whether contributions should be withheld from an employee’s pay and how withheld contributions should be reported to PERA.

Active PERA members must pay member contributions which are taken directly from their pay as pre-tax contributions. An employee’s PERA-includable salary and corresponding member contribution should be reported in Columns F and G of the contribution reporting Excel spreadsheet (or positions 46 – 63 of a flat text file).

A spreadsheet showing employee payroll information with columns for personal details, pay period, salary, contributions, and working retiree status.

PERA retirees who return to work for a PERA-covered employer are subject to a working retiree contribution equal to the member contribution rate currently in effect.

Working retiree contributions for PERA retirees who return to work as a W-2 employee should be withheld from the retiree’s pay and reported to PERA in a similar manner to active employees. The retiree’s PERA-includable salary and corresponding working retiree contributions should be reported in columns O and P of the contribution reporting Excel spreadsheet (or positions 116 – 124 and 88 – 94 of a flat text file).

A spreadsheet displays employee payroll information with columns for employer number, SSN, name, salary, deductions, pay period, and other payroll details.

Working retiree contributions for PERA retirees who return to work as an independent contractor (1099 employee) should not be withheld from the retiree’s pay. These contributions are collected by PERA directly in the form of a reduction to the retiree’s PERA benefit check. The PERA-includable salary for a retiree independent contractor should be reported in column O of the contribution reporting Excel spreadsheet (or positions 116 – 124 of a flat text file). Column P (working retiree contributions) should be left blank (positions 88 – 94 should be zero fill in a flat text file).

A spreadsheet with employee payroll information, including name, salary, contributions, pay pattern, working retiree status, and other financial details.

Please note that independent contractors (1099 employees) are not subject to PERA membership if they are active (non-retired) members of the PERA plan. In these cases, no contributions (employer or member) would be due to PERA.

# 2 An individual’s PERA membership date (pre- or post-7/1/2019)

PERA membership date is used to determine an employee’s PERA-includable salary (compensation subject to PERA contributions).

For individual’s whose PERA membership began prior to 7/1/2019, PERA-includable salary does not include contributions made under an Internal Revenue Code Section 125 (cafeteria) or Section 132 plan.

For individual’s whose PERA membership began on or after 7/1/2019, PERA-includable salary does include contributions made under an Internal Revenue Code Section 125 (cafeteria) or Section 132 plan.

#3 An individual’s PERAChoice (DB/DC) eligibility [State & Local Government Divisions only]

An employee may be eligible for PERAChoice if they are:

PERAChoice eligibility is dependent upon an individual’s PERA membership status. If an individual has made PERA contributions in the last 12 months, they must return to the plan in which they previously participated.

If your new hires are eligible for choice, you should direct them to review the PERAChoice booklet. This booklet will provide them an overview of both the Defined Benefit (DB) plan and Defined Contribution (DC) so that they may make an informed choice as to which plan they would like to participate in.

New employees have 60 calendar days from their date of hire to make a choice between the two plans. If a choice election form is not completed and returned to PERA within 60 days of the employee’s first day of employment, the individual will automatically be enrolled in the PERA DB plan.

If your PERAChoice eligible new hires have questions regarding the plans and/or their choice, you should direct them to contact PERA’s Customer Service Center at 800-759-7372.

Legislative and Administrative

Recent Topics