Benefit Replacement Pay (BRP) Leveling Election
Issued: Oct. 31, 2005
Updated: Oct. 18, 2019 – View Changes
Sample memos to agency employees explaining their BRP options:
Sample form agencies may use to document employee choices:
Payroll/Personnel systems must be updated for December payrolls paid in the following calendar year.
For CAPPS questions, contact your agency’s CAPPS support staff.
Authorized agency support staff may contact the CAPPS help desk at (512) 463-CAPP (2277) for additional assistance.
Employees working for the state as of Aug. 31, 1995, may be eligible for benefit replacement pay (BRP). BRP replaced a state benefit that paid 5.85 percent of the first $16,500 of the employee’s portion of Social Security wages plus an amount equal to the retirement contribution associated with the benefit.
While statute determines which state employees and state-paid judges are eligible to receive BRP, individual state agency policy dictates whether employees will have the choice to have their BRP paid in equal monthly installments over the course of a calendar year. This choice is called leveling and must be exercised before the beginning of each calendar year.
This icon indicates information applicable to the Centralized Accounting and Payroll/Personnel System (CAPPS).
If agency policy permits leveling, the agency should provide eligible employees and judges with the information needed to make an informed decision about leveling their BRP. See USPS Sample Memo or CAPPS Sample Memo.
The leveling election forms completed by eligible employees and judges should be maintained by the agency for the current year and the two previous calendar years. See BRP Leveling Sample Election Form.
CAPPS provides BRP-eligible employees the ability to change their leveling election for the next calendar year in Employee Self Service during an open enrollment period. However, CAPPS maintains an employee’s election from one year to the next, so if an employee does not want to change the way he or she receives BRP, no action is required during the open enrollment period.
Agencies may use the CAPPS Sample Memo as a template for notifying employees about the open enrollment period.
Employees who want to change their election must make the change in CAPPS between 8 a.m. on Nov. 25 and 5 p.m. on Dec. 6. Employees will only be able to access the system to make the change during that period. The election becomes effective with the December pay period payable in the next calendar year.
BRP indicators for eligible employees are set to N during calendar year-end file split. Before processing payroll for the December pay period payable in the next calendar year, agencies must change the BRP indicator to Y for those employees who submit a request to level.
Agencies must poll their eligible employees to determine their leveling election and make applicable changes. Agencies may use the USPS Sample Memo and BRP Leveling Sample Election Form as a template for notifying employees and tracking changes.
The BRP accumulator for every eligible employee resets to a zero balance for the new calendar year. Regardless of the leveling option, the BRP accumulator is incremented by payments of BRP and is used to ensure employees do not receive more than the maximum entitlement for the applicable retirement system.
Agency Procedures Related to BRP Leveling
Procedure for an Agency to Prohibit Leveling of BRP:
State agencies determine if they will allow their BRP-eligible employees and judges to choose to have their BRP paid in equal installments over the course of a calendar year. If an agency prohibits its employees from leveling their BRP, no action is required unless this is a policy change from the previous year.
If an agency allowed eligible employees to level their BRP during the current calendar year but will not allow leveling for the subsequent calendar year, the agency must notify eligible employees and judges about the change.
Procedure for an Agency to Allow Leveling of BRP:
If an agency plans to allow eligible employees and judges the option to level their BRP, the agency must notify employees. Eligible employees and judges must know that:
- Their choice to level or not to level is irreversible for the calendar year
- Employees may be involuntarily removed from leveling if they transfer on a day other than the first workday of the month, if the agency to which they transfer prohibits leveling, or if there is a break in service
- An eligible employee or judge who terminates before the end of the calendar year will not receive any unpaid portions of BRP
See Benefit Replacement Pay for State Agencies for more information.
|10/18/2019||Reviewed for 2020 calendar year|
|10/19/2018||Reviewed for 2019 calendar year|
|10/13/2017||Reviewed for 2018 calendar year|
|10/14/2016||Updated for 2017 calendar year|