Friday, April 28, 2017
(Washington, DC) - During a comprehensive review of the accuracy of the District’s retirement system, the DC Department of Human Resources (DCHR) recently discovered a systemic, longstanding error in the deduction and payment of Social Security, and in a few cases Medicare, taxes from the paychecks of hundreds of current and former DC employees. Affected employees received correspondence from DCHR today advising of the oversight and offering assistance in the resolution of the error.
Today, Ventris Gibson, DCHR Director, issued the following statement about the incident:
“In March of this year, as Director of the DC Department of Human Resources, I commissioned an agency team of HR professionals to complete a top-to-bottom review of the District’s retirement system. Last week, as part of that review, we discovered an error in our Social Security and Medicare tax deductions that affects hundreds of our employees. We are committed to working with affected employees to rectify their official records with the District, the Internal Revenue Service and the Social Security Administration. We are also engaging an external accounting firm to assist with further identifying and correcting the error and establishing processes and procedures that will minimize the likelihood of its recurrence. We are committed to providing affected employees with a transparent and expedient solution including assistance with tax preparation.”
The District is not unique in having these types of errors. In 2000, the Federal Erroneous Retirement Coverage Corrections Act (FERCCA) was signed into law providing the Federal Government the ability to correct retirement determination errors and protecting employees from long-term financial harm caused by errors in retirement savings.
For more information, please see our Payroll Concerns page.