Each month, the Statement of Account allows you to review contribution amounts due, apply payments, and allocate amounts to specific line items. Sometimes, the statement of account may include corrections, adjustments, or Debit/Credit Memos that affect your current balance. Understanding what these items are and why they appear can help ensure your monthly reporting is completed accurately and confidently.
The main difference between a correction and an adjustment is timing. Corrections apply to the current reporting month and are typically created to fix issues identified during the current reporting month. Adjustments apply to prior reporting months and reflect changes made after the original reporting period has already been completed.
Corrections
A correction is an adjustment made to fix an error in a previously submitted wage report. Corrections are typically caused by changes to a member’s status from a prior reporting month or by wage reporting errors. For example, a correction may be needed if a member goes out on an unpaid leave of absence; wages were reported incorrectly due to transposed numbers, or wages that should have been reported were omitted.
Corrections may appear as either credits or dues on your Statement of Account. These adjustments are applied during the current reporting month to correct information that was previously reported incorrectly or requires an update.
Adjustments
An adjustment is made when changes are needed to a previously completed reporting month. Like corrections, adjustments are often caused by member status changes or wage reporting errors.
Adjustments may also occur when wages need to be moved to a different actuarial department. For example, if an employee transfers from a general department to a police department after reporting has been completed, LAGERS may need to move the reported wages to the correct department. Because contribution rates may differ between actuarial departments, this change can result in either a credit or an amount due on your Statement of Account.
In addition, adjustments may result from the wage and employment certification process, during which LAGERS asks employers to verify employee wage information and employment history. If changes are made to certified wages or employment dates, an adjustment is processed to update the member’s record with the verified amounts and/or dates.
Adjustments may appear as credits or dues on your Statement of Account. Unlike corrections, which apply to the current reporting month, adjustments are tied to prior reporting months and reflect changes made after the original reporting period is completed.
How Corrections and Adjustments Affect the Current Balance
It’s important to know that corrections and adjustments can change the total payment amount shown on your Statement of Account.
On your Statement of Account, your current balance appears at the top right of the page. This number is the sum of the current contributions for the current reporting month, plus or minus any correction dues or credits, adjustment dues or credits, and amounts contained in the Debit/Credit Memo.
Payments should still be submitted by the due date, even if corrections or adjustments have not yet been resolved. You may choose to submit only the required monthly contribution payment without paying any additional amounts related to corrections or adjustments at that time.
However, resolving corrections and adjustments as soon as possible is recommended. Addressing them promptly helps keep your account accurate and can prevent confusion or additional follow-up for both you and LAGERS in the future.
What to Do if You See a Correction or Adjustment
If you see a correction or adjustment on your Statement of Account and would like more information, select the blue month/year hyperlink next to the employee’s name. This link will open additional details and comments explaining why the correction or adjustment was created.
These comments can help you understand what changed, why the amount appears on your Statement of Account, and how the amount should be allocated during the monthly reporting process.
If you still have questions after reviewing the comments, please contact your employer services specialist for further assistance.
How Debit/Credit Memos Differ
Debit/Credit Memos are similar to corrections and adjustments, but they are not tied to a specific employee record. Instead, they apply to the employer account as a whole.
One of the most common reasons a Debit/Credit Memo appears is due to an overpayment or underpayment in contributions. For example, if $1,000 in contributions was due for March and a payment of $1,100 was submitted, the April Statement of Account may show a $100 credit memo at the bottom of the page. The memo will reference the month of the overpayment (03/2026) and the amount of the credit.
In some cases, credit memos are created because of small rounding differences between the employer’s calculations and LAGERS’ calculations. These differences are typically only a few cents.
Remember: You must complete and submit your wage report (Payroll Summary) before accessing your Statement of Account. The Statement of Account also tracks any adjustments made to the wage report after it has been submitted to LAGERS. The monthly reporting process is not complete until the Statement of Account has been reviewed, payment amounts have been applied and submitted.
Still have questions? For more information, reach out to your employer services specialist.
