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ACR 30981 — USPS System Change
Dec. 31, 2011

Introduction

ACR 30981 created the Tobacco User Premium Differential Deduction in the Uniform Statewide Payroll/Personnel System (USPS) effective Dec. 31, 2011.

Issue

Senate Bill 1664, 82nd Legislature, Regular Session, mandated that tobacco users pay a premium differential for their health insurance coverage starting Jan. 1, 2012. If an employee or a covered family member uses tobacco, an additional $30, $60 or $90 in additional health insurance premiums will be assessed each month. Employees in 90-day wait or Opt Out will not pay the Tobacco User Premium Differential. USPS did not store a deduction for tobacco user premium.

Solution

USPS was modified to store and process this additional line of coverage on the HMTU1 (Group Insurance/TexFlex Participant Information) screen and generate a payroll pre-tax deduction (#34) to deduct from employees’ wages. The deduction will be sent to USAS with a unique vendor ID (33273273277015) and will be sent to the Employees Retirement System nightly with final payrolls.

This table represents the different cost levels for the deduction:

Tobacco Users Monthly Premium
Member only (MO) $30
Spouse only (SO) $30
Child only (CO) $30
Member + spouse (MS) $60
Member + child (MC)* $60
Spouse + child (SC)* $60
Member + spouse + child (MF)* $90

*Note: The charge for a child is the same regardless of how many children in the household use tobacco.

Screens affected

Reports affected

Extracts affected