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TRS Retiree Surcharge Rates Update 9/1/2013

TRS Retiree Surcharge Rates Update 9/1/2013. TRS Rule 31.41 & Rule 41.4 David r. Lerma Payroll Services. Agenda. TRS Return to Work Employer Pension Surcharge Employer Health Benefits Surcharge (TRS-Care). TRS Return to Work Employer Pension Surcharge.

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TRS Retiree Surcharge Rates Update 9/1/2013

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  1. TRS Retiree Surcharge Rates Update 9/1/2013 TRS Rule 31.41 & Rule 41.4 David r. Lerma Payroll Services

  2. Agenda TRS Return to Work Employer Pension Surcharge Employer Health Benefits Surcharge (TRS-Care)

  3. TRS Return to Work Employer Pension Surcharge • Prior to 9/1/2013 (Rule 31.41): • TRS Pension Surcharges applied to retirees who retired after 9/1/2005 & worked 4 hours (50%) or more and for 4 ½ months. • Surcharge amount was 12.8% on the compensation paid to the retiree. • Departments incurred the pension surcharge due to TRS. • In August 2013, UTSA had 18 employees with an incurred expense of $5,191.60

  4. TRS Return to Work Employer Pension Surcharge • Post 9/1/2013 (Rule 31.41): • TRS Pension Surcharges will apply to retirees who retired after 9/1/2005 & working greater than 4 hours per each work day in that calendar month. (>50% on a monthly basis) • Surcharge amount is 13.2% on the compensation paid to the retiree. (Employer portion increased by .4%) • Departments will continue to incur the pension surcharge due to TRS. • As of September, UTSA had 13 employees with an incurred expense of $6,045.00

  5. Employer Health Benefits Surcharge (TRS-Care) • Post 9/1/2013 Update(Rule 41.4): • TRS Care is a Self-funded retiree health benefits program administered by TRS. • TRS Care monthly premiums are a flat fee based on the level of coverage. (Determined by TRS) • Department will owe TRS Care Surcharge if the retiree is: • Retired AFTER 9/1/2005 • Working greater than 4 hours per each work day in any calendar month. (>50% on a monthly basis) • Covered under TRS Care

  6. Employer Health Benefits Surcharge (TRS-Care) • As of September, UTSA had 3 retirees participating in TRS Care with an incurred expense of $1,374. • Departments will incur the TRS-Care Surcharge expense. • Examples of TRS-Care Participants • Charter School Retiree • ISD Retiree Questions: david.lerma@utsa.edu

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