TRS Retiree Surcharge Rates Update 912013 TRS RULE

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 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

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

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

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