Last August, Councilman Jason Williamswrote to us regarding certain earnable compensation paid to NOPD officers that was not reported to MPERS and for which employee and contributions were paid. Heindicated that the compensation was paid from May 2014 to August 2016 and that the error was associated with the switch to the ADP payroll system.
Over the past year, MPERS staff has worked with City staff to identify the unreported earnable compensation. Apparently, a computer programmer with the City of New Orleans ran a report that identified this information. However, we haven’t received the report, nor has the City indicated that it intends to pay any contributions related to any unreported earnable compensation.
Significantly, for any unreported earnable compensation paid before September 2015, the three-year prescriptive period for collecting the contributions based upon that compensation has run. Additionally, La. Const. art. VII, §14 prohibits the payment of the contributions associated with wages earned more than three years in the past due to the liberative prescriptive period for unpaid wages found in La. Civ. C. art. 3494. So, the City could not legally pay the contributions attributable to the prescribed periods.
Most of the unreported unearnable compensation would have been paid prior to September 2015. Also, our auditors have performed census data tests for NOPD for the unprescribed period and likely would have identified some unreported earnable compensation. Nevertheless, if an MPERSmember knows of anyunreported earnable compensation and unpaid employee and employer contributions paid from September 2015 onwards, they should report it our office immediately.