Reimbursing Retirement Contributions and Insurance Premiums (APS 005)

Overview

Applicable To

State agencies and institutions of higher education using federal, private, other educational and general funds, or non-educational and general funds for salary payments to employees participating in the Teacher Retirement System (TRS) for retirement and the Employees Retirement System (ERS) for group health insurance.

Policy

Agencies and institutions that receive the following funds for matching retirement contributions for employees participating in TRS must immediately forward these funds to TRS:

• Federal funds.
• Private funds.

Matching retirement contributions for employees participating in TRS that are due from General Revenue Dedicated funds, other educational and general funds, or non-educational and general funds should be made monthly.

Also, institutions (except the University of Texas and Texas A&M University systems, which are self-insured) must reimburse ERS a proportional share of group health insurance premiums for both active and retired employees.

During the biennium beginning Sept. 1, 2023, institutions shall fund a portion of the group health insurance premiums of any benefit-eligible employee from sources available in the amount of one percent of the employee’s actual base salary.

The calculation of base salary excludes:

• Longevity pay.
• Hazardous duty pay.
• Benefit replacement pay (BRP).
• Overtime pay.
• Other payments that are not part of the base salary of the benefit-eligible employee.

These reimbursements should be made monthly per policies established by ERS.

See Payroll Contribution for Group Health Insurance (FPP P.005) for more information.

Legal Citation

Government Code, Sections 825.406, 825.407; General Appropriations Act (GAA), Article IX, Section 17.03, 88th Legislature, Regular Session.

Legend

This icon indicates information applicable to the Centralized Accounting and Payroll/Personnel System (CAPPS).