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Additional Payroll Retirement Contribution (2013)

FPP P.006

Procedure

When the PRC is in effect

The Additional Payroll Retirement Contribution (PRC) deduction starts with the September 2013 pay period and continues through the payrolls paid for the August 2015 payroll month.

How the PRC is paid

The PRC is paid using the:

  • Comptroller expenditure object:
    7040 – Additional Payroll Retirement Contribution for Employees Retirement System Retirement Program
  • Texas Identification Number (TIN) for the various retirement systems:
    Vendor Name Vendor Number
    ERS-Payroll Retirement State Contribution 3-3273273277-028
    ERS-LECOS Payroll Retirement State Contribution 3-3273273277-032
    ERS-Return-to-Work (RTW) Payroll Retirement State Contribution 3-3273273277-033
    ERS-LECOS RTW Payroll Retirement State Contribution 3-3273273277-034
    ERS – Payroll Retirement State Contribution Elected State Officials 3-3273273277-035

State agencies must be aware that:

  • The 0.5 percent payroll contribution is an addition to the state retirement match for each benefits-eligible employee.
  • The PRC deduction must adjust for situations in which the employee receives partial pay.

When the PRC is paid

Agency employees paid monthly

The PRC is due the first of the month for employees paid monthly.

Agency employees paid twice-monthly

For twice-monthly paid employees at state agencies, the agency-paid portion of retirement contributions are paid to ERS with each payroll:

  • The PRC is calculated on actual base salary (BSY) for the first half of the month (paid on the 15th of the month) and is from the agency budget as an addition to the state paid amount.
  • The PRC is calculated again on actual BSY for the second half of the month (paid on the first of the following month because of the need to know the total amount of base salary for the month).

Examples

See applicable SPRS and USPS examples in this fiscal policy and procedure (FPP) detailing how the PRC is calculated and deducted for the payroll system used by your agency.

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