Compensation Compliance Analysis Requests

April 17, 2026
Circular Letter: 200-018-26
Topic: Payroll

To: All Contracting Public Agencies and School Employers

Purpose

The purpose of this Circular Letter is to provide guidance on the newly enhanced compensation compliance labor policy review process through the Employer Account Management Division’s (EAMD) Audit Compliance and Resolution (ACR) Section. This enhancement aims to streamline the review process, ensure compliance with the Public Employees’ Retirement Law (PERL), and improve employer access to California Public Employees’ Retirement System (CalPERS) resources via myCalPERS by providing an online portal for submissions.

ACR Section Overview

The ACR Section is committed to delivering exceptional service to CalPERS stakeholders by providing expert guidance and innovative solutions for all compensation compliance documentation. This includes fostering trust, transparency, and compliance in employer reporting.

System Enhancement

Effective October 18, 2025, employers can utilize myCalPERS to submit compensation compliance analysis requests. This enhancement replaces the previous email submission process and introduces a dedicated employer landing page for streamlined submissions and tracking.

Prior to October 18, 2025

Employers submitted requests via email to MOU_Review@calpers.ca.gov, including:

  • Employer Name and Business Partner CalPERS Identification Number (CalPERS ID)
  • Relevant Written Labor Policies or Publicly Available Pay Schedules (PAPS)
  • Compensation compliance review details

After October 18, 2025

Employers can submit requests via myCalPERS by taking the following steps:

  1. Log in to the myCalPERS Business Partner Portal
  2. Select the Request Compensation Compliance Analysis left-side link
  3. Follow the prompts to submit a request
    1. You can find detailed directions in the myCalPERS Payroll Reporting (PDF, 4.14 MB) student guide (Unit 8, Scenario 3)
  4. Add new requests, upload documents, and track submission statuses

Employers will receive determination emails upon completion, with informal determinations uploaded to the employer’s document history.

Compensation Compliance Review Types

The enhanced system supports the following review types:

  • Multi-Item Labor Agreement/Policy Review
    • More than two compensation compliance analysis items
  • Section Labor Agreement/Policy Review
    • Two or fewer compensation compliance analysis items
  • Out-of-Class Validation Inquiry
  • PAPS Review
  • Compensation Settlement Agreement/Policy Review
  • Side Letter/Resolution Document Review
  • General Inquiry

Written Labor Policy Review

The ACR Section can:

  • Review Written Labor Policy language for compensation compliance
  • Work with employers to strengthen language
  • Provide suggested language
  • Explain why an item isn’t reportable
  • Review compensation-related settlement agreements and provide determinations on reportability
  • Provide informal determinations regarding compliance or non-compliance

Publicly Available Pay Schedules (PAPS)

Employers must ensure PAPS comply with Title 2 of the California Code of Regulations (CCR) sections 570.5 (Classic Members) and 571.1 (Public Employees' Pension Reform Act [PEPRA] Members), including:

  • Approval by the governing body
  • Identification of position titles, payrates, and time bases
  • Immediate accessibility for public review
  • Retention for public inspection for no less than five years

More information on PAPS requirements can be found in Circular Letter 200-003-20 (PDF).

Settlement Agreements

Retirement benefits may be reported to CalPERS through settlement agreements under Government (Gov.) Code sections 21198 or 20969.3. Employers must ensure compliance with statutory requirements for reporting benefits resulting from reinstatement decisions associated with an involuntary separation from employment. More information can be found in Circular Letter 200-047-19 (PDF).

Resources

You can find Information on compensation earnable, pensionable compensation, special compensation, written labor policy language, pay schedules, and Circular Letters on our Compliance in Compensation Reporting webpage.

To support accurate reporting, employers are also encouraged to review the following resources:

Questions

Questions related to compensation compliance and reporting can be sent via your myCalPERS business partner account by selecting the Request Compensation Compliance Analysis left-side link and following the prompts,  or you may call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377888-225-7377).

Brad Hanson, Chief
Employer Account Management Division