Legislative Changes Affecting Salary Administration, 86th Legislature
Overview
Applicable to
State agencies and institutions of higher education
Summary
The 86th Legislature, Regular Session, made a number of changes to the salary administration laws:
- Retirement rates for fiscal 2020 and fiscal 2021
- Changes to leave administration
- Changes to salary/HR administration
The Texas Comptroller of Public Accounts (Comptroller’s office) is providing these general guidelines for the changes to be implemented in the Uniform Statewide Payroll/Personnel System (USPS), Human Resource Information System (HRIS), Standardized Payroll/Personnel Reporting System (SPRS) and the Centralized Accounting and Payroll/Personnel System (CAPPS–HR/Payroll).
ERS, TRS and ORP Retirement Rates for Fiscal 2020 and Fiscal 2021
ERS Retirement Rates for Fiscal 2020 and Fiscal 2021
The General Appropriations Act (GAA) provides that the rates for both the employee contribution and the state contribution for members of the Employees Retirement System of Texas (ERS), with the exception of participants in Judicial Retirement Plan II, will not change for the September 2019 pay period. House Bill 2384 raises the employee contribution rate for members of Judicial Retirement Plan II.
The table below outlines the rates effective Sept. 1, 2019.
| Retirement Plan | Employee Contribution Rate | State Contribution Rate¹ | ||
|---|---|---|---|---|
| Fiscal 2020 | Fiscal 2021 | Fiscal 2020 | Fiscal 2021 | |
| ERS* | 9.5% | 9.5% | 9.5% | 9.5% |
| Judicial Plan 1 | 9.5% | 9.5% | 0.0% | 0.0% |
| Judicial Plan 2 | 9.5% | 9.5% | 15.663% | 15.663% |
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The Law Enforcement Custodial Officer Supplemental (LECOS) rates will remain the same.
The payroll retirement contribution will continue to be paid by agencies at the rate of 0.5 percent of base salary for all employees who are members of the retirement system. It will be paid from the agencies’ budgets.
TRS Retirement Rates for Fiscal 2020 and Fiscal 2021
For employees covered by Teacher Retirement System of Texas (TRS), the state contribution rate will increase to 7.5 percent for both fiscal 2020 and fiscal 2021.
The employee contribution rate will remain at 7.7 percent for fiscal 2020 and 2021.
Optional Retirement Program (ORP) Rates for Fiscal 2020 and Fiscal 2021
For employees participating in the Optional Retirement Program (ORP), the state contribution rate will remain at 6.6 percent for both fiscal 2020 and fiscal 2021. Employers are authorized to use local funds or other sources of funds to supplement the General Revenue Fund appropriation at a rate up to 1.9 percent. The employee contribution rate will remain at 6.65 percent for both fiscal 2020 and fiscal 2021.
Changes to Leave Administration
Paid Leave for Search and Rescue Volunteers
House Bill 41 adds state employees who are search and rescue volunteers to those emergency services volunteers entitled to a paid leave of absence, of up to five days per fiscal year, for emergency training conducted by a state agency or institution of higher education. House Bill 41 also adds search and rescue volunteers to those emergency services volunteers for whom a state agency or institution of higher education could grant paid leave in order to respond to an emergency event in accordance with an established policy of the agency or institution of higher education.
Changes to Salary/HR Administration
Change to Salary Schedule Effective Sept. 1, 2019
The GAA, Article IX, Part 2, Schedule B Classification Salary Schedule added a new Pay Group, B36, to the listing.
Payroll Contribution for Group Health Insurance
A provision in the GAA, Article IX, Section 17.03, requires each state agency and institution of higher education included in the Group Benefits Program for the state fiscal biennium beginning Sept. 1, 2019, to contribute an amount equal to 1.0 percent of the total base wages and salaries for each benefits eligible employee of a state agency or institution of higher education to the ERS Group Benefits Program.
For this requirement, “institution of higher education” does not include components within the University of Texas or Texas A&M University systems.
The calculation of base salary excludes longevity pay, hazardous duty pay, benefit replacement pay, overtime pay and other payments that are not part of the base salary of the employee.
Tobacco User Monthly Premium Fee Deduction
The previously established Tobacco User Monthly Premium Fee Deduction will remain in effect for fiscal 2020 and fiscal 2021. The fee structure remains at:
| Insurees | Fees |
|---|---|
| Member or Spouse or Child(ren) Only | $ 30 per month |
| Member + Spouse or Member + Child(ren) or Spouse + Child(ren) | $ 60 per month |
| Family (Member + Spouse + Child(ren)) | $ 90 per month |