teacher retirement system of texas trs/traqs updates
TRANSCRIPT
Teacher Retirement System of Texas
TRS/TRAQS Updates
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Rate change for FY2016
Member retirement contribution rate increasing from 6.7% to 7.2% effective September 1st.
• Regular Payroll• Pension Surcharge
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Newly Passed Legislation
Eligibility based on one employer
TRS Care Surcharge flat rate
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Rule Change Effective September 1, 2015
Rule 25.1-Full-Time Service• If employed in two or more positions that are each less than half-
time with the same employer, the minimum number of hours total must be equal to or more than one-half the number of hours required for the full-time equivalent for the position with the higher FTE.• Example:
– Employee working 10 hours per week as a bus driver and bus driver position has no FTE
– Employee also working 8 hours per week as an aide with a 40 hour/week FTE
– The minimum number of hours required for eligibility is 20 (1/2 the 40 hour FTE for the aide position.)
– Employee NOT eligible because only working 18 hours/week and does not meet at least half of the higher FTE
– If employee was hired at least 10 hours per week as an aide, then would be eligible because total employment would be 20 hours/week or at least half of the higher FTE
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Rule Change Effective September 1, 2015
Rule 25.28-Payroll Report Dates RP15 adjustments will only be accepted for Reporting Entity errors
for the current and 1 prior school year. • If the error occurred in the prior school year, the employee must still be employed at that same
RE.
• Employee must still be due compensation from the employer so that the member contributions may be “picked up” with pre-tax dollars.
• Employer has to request a waiver of the reporting requirements and be approved by TRS.
• Member and employer contributions must be submitted.
• Employer must pay penalty interest on these deposits.
If the error occurred before the prior school year, form 22I will be required to verify service and member will have the option to purchase it at actuarial cost.
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Rule Change Effective September 1, 2015
Rule 25.28-Continued
Report compensation in the month it is PAID, not when EARNED• Example: Employees are paid on the 1st business day of the month— e.g.
December 1st. The compensation is reported on the November Regular Payroll report since the payment on December 1 represents work done in November.
• Effective September 1, 2015, all employers must report compensation on the report for the month it is paid rather than the month it is earned.
• Employers must report based on what was paid in that calendar month and only what was due to be paid in that calendar month. Employers cannot delay or push back payments due to a later month in order to increase the annual salary for benefit calculation.
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Rule Change Effective September 1, 2015
Rule 25.26-Annual Compensation Creditable for Benefit Calculation
• If as a result of the requirement to report compensation for the month it is paid a member has only 11 months of salary credited for the 2014-2015 school year, TRS will attribute an additional month of salary to the member for the 2014-2015 school year.
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Rule Change Effective September 1, 2015
Rule 25.35-Employer Payments for New Members
• New member contribution period will be the report month that contains the 1st day of employment through the report month that contains the 90th day of employment.
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TEAM (New Reporting Portal)
Information
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New and Improved Features
Manual Entry and Copy Forward Option Correction System View Employee Information View RE Ledger Miscellaneous View Screens
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TEAM Update-What Changes are Coming?
New Data Elements-Employee Demographics:
Membership Eligibility Flag: Yes or No Entitled to group benefit coverage under ERS/UT/A&M: Yes or No Full-Time Equivalent: 30-40 hours/week; 00 if no FTE for position Employment Type: S=Substitute, P=Less than Half-Time, F=Full-
Time, M=Temporary RE Pays Social Security: Yes or No or Medicare Only
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TEAM Update-What Changes are Coming?
New Data Elements-Regular Payroll:• Hours worked per report month
• Days worked per report month
• Zero days reason code
• Total gross compensation
• Per employee:
• Compensation paid from Federal Funds/Private Grants
• Federal Grant and Federal TRS-Care contributions
• RE Payment for Non-OASDI contribution
• RE Payment for New Member Contribution
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TEAM Update-What Changes are Coming?
New Data Elements-Employment After Retirement
• All retirees to be reported, regardless of retirement date, and including any retirees working through third party entity
• Hours worked in report month• Days worked in report month• Total gross compensation• Paid through 3rd party entity?
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TEAM-Training and Certification
Training for users:• Training will be held at all Region Service Centers and in
Austin • At least 1 user per reporting entity must attend training• Training schedule and registration information will be
published as soon as the timeline is finalized
Certification:• Test environment will be available • Each Reporting Entity will be required to submit test
report files that process successfully
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Key Dates
Dates
March 2015 Draft Report Formatting Guide available
Summer 2015 Final Report Formatting Guide available
February 2016 Training sessions begin
February – July 2016 Certification period
September 2016 Reporting Entity Portal goes live
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Up-to-Date Information Available
TEAM Program Communications Page on TRS website – updated as information becomes available. Will start to see more and more information available on this page as project moves forward.
