Benefit Replacement Pay for Institutions of Higher Education
BRP Calculation, Maximums and Payments
BRP Calculation Factors and Maximum Amounts
Retirement System | BRP Factor | Maximum BRP Increase |
---|---|---|
Teacher Retirement System | 0.066666667 | $1,031.25 |
Optional Retirement System | 0.066857143 | $1,034.01 |
Not Participating in a Retirement System | 0.062134891 | $965.25 |
Payment of Benefit Replacement Pay
The BRP of an eligible state employee must be paid at the same time as the employee’s base compensation.
Non-Hourly Employee
The amount of the increase in compensation per pay period for an employee who is not hourly is equal to:
The amount of BRP the employee is entitled to receive per calendar year divided by the number of pay periods in the year.
Hourly Employee
The BRP increase for an hourly employee must be determined as follows:
- Calculate the employee’s hourly rate of BRP by dividing (1) the total amount of BRP the employee is entitled to receive per calendar year by (2) the total number of hours the employee is expected to work during that year.
- Multiply this hourly rate (after rounding to the nearest cent) by the number of hours worked in the pay period. This is the amount of the employee’s BRP for that period.
Note: BRP for institution of higher education employees is not paid using a separate expenditure object code.