Additional Payroll Retirement Contribution (2013)

Overview

Applicable to

State agencies

Policy

The 2014-15 General Appropriations Act, Article IX, Section 17.13, requires each state agency to contribute an amount equal to 0.5 percent of the total base wages and salaries for each benefits-eligible employee to the Employees Retirement System’s Retirement Program, beginning with the September 2013 pay period.

The Texas Comptroller of Public Accounts is publishing these rules and regulations to administer the program.

Legal citation

The General Appropriations Act, Article IX, Section 17.13 (for the 2014–15 biennium); Section 815.4035, Government Code; Senate Bill 1459

Benefits-eligible employee

An employee of a state agency is considered to be a “benefits-eligible employee” if he or she has a state contribution for retirement for that payroll period. This definition includes a Return-to-Work retiree who retired on or after Sept. 1, 2009, and for whom the agency pays the Return-to-Work Surcharge.

Base salary

The amounts paid as base salary will not include any other emoluments that are sometimes paid using the salary expenditure object code.

Total base salary does not include:

• Longevity pay
• Hazardous duty pay
• Benefit replacement pay
• Overtime pay
• Other payments that are not part of the base salary of the employee

Exemptions from the 0.5 percent additional payroll retirement contribution

No deductions occur for:

• Employees on a full-month’s leave without pay, even in Family and Medical Leave Act (FMLA) situations
• Employees in the 90-day wait (since there is no state paid amount of retirement)
• Employees participating in the Judicial Retirement System — Plan One or Plan Two
• Return-to-Work Retirees who retired on or before Aug. 31, 2009