The CalSTRS employer audits process is designed to promote accurate reporting of payroll information used to calculate benefits for our members. This important process is one way in which CalSTRS ensures correct benefits are paid and the fund is protected for our members.
When an employer is audited by CalSTRS, a sample of member accounts is reviewed to determine if the employer’s payroll reporting is in compliance with the Teachers’ Retirement Law. If a sampled member’s account is affected due to an employer’s adjustment because of an audit finding, a copy of the draft audit report’s related finding is provided to the affected sampled members. This allows the potentially affected members to provide further information or documentation to CalSTRS to review prior to issuing the final audit report. Sampled members included in the audit have appeal rights, as well. CalSTRS then works with the employer to ensure the member data is reported correctly and then provides education on how to report accurately in the future.