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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Benefit Replacement Pay (BRP) Leveling Election

Issued: Oct. 31, 2005
Updated: Oct. 13, 2017 – View Changes

FPP F.035

Overview

Applicable to

State agencies

Policy

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.

Legend

CAPPS logo

This icon indicates information applicable to the Centralized Accounting and Payroll/Personnel System (CAPPS).

Note: Employees’ decisions about whether to level their BRP could affect retirement calculations and the amount of money owed to them if they terminate or enter into a leave-without-pay situation.

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 Sample Form 1.

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 Sample Form 2.

CAPPS Process

CAPPS logo

CAPPS provides employees eligible for Benefit Replacement Pay (BRP) the ability to change how they will receive this compensation for the next calendar year in Employee Self Service. However, CAPPS maintains an employee’s election from one year to the next. If the employee does not want to change the way he or she is currently receiving BRP, then no action is required during the open enrollment period.

Agencies may use BRP Leveling Election Form 3 sample as a template for notifying employees and tracking changes.

Employees who want to change their election must make the change in CAPPS between 8 a.m. on Nov. 27 and 7 p.m. on Dec. 8. Employees will be able to access the system to make the change only during that time period. The election will become effective with the December pay period.

USPS Process

All BRP indicators will be set to N during calendar year-end file split. After the indicators have been reset, agencies must enter a 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 BRP Leveling Election Forms 1 and 2 samples as a template for notifying employees and tracking changes.

The BRP accumulator for every eligible employee will be reset 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 edit for the maximum amounts for the appropriate retirement system.

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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 further 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 is not allowing them to level their BRP for the subsequent calendar year, eligible employees and judges must be notified of this policy change.

Procedure for an Agency to Allow Leveling of BRP:

If an agency has determined it will allow eligible employees the option to level their BRP, eligible employees and judges must be notified. Eligible employees and judges should be aware of the following conditions:

  • Their choice to level or not to level is irreversible for the calendar year
  • An employee may be involuntarily removed from leveling if he or she transfers 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

Refer to additional payment provisions in Benefit Replacement Pay for State Agencies for more information about the procedures for leveling BRP.

Changes to this document
10/13/2017 Reviewed for 2018 calendar year
10/14/2016 Updated for 2017 calendar year
10/19/2015 Updated for 2016 calendar year
10/10/2014 Updated for 2015 calendar year
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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