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USPS Fiscal Year-End Close Manual
Insurance Rollover

Insurance Salary Calculations

Insurance salary is equal to the sum of base monthly pay, hazardous duty pay, longevity pay, shift differential, cost of living adjustment (COLA) pay, housing supplement, Texas military department pay, corporal pay, applicable benefit replacement pay (BRP) and the special pays for commissioned peace officers (education pay, certification pay and/or bilingual pay). These special pays must be established on H10SP before the insurance roll is complete if effective Sept. 1, 2019.

Use the following guidelines to determine an employee’s applicable BRP:

  • If annual insurance salary as of Sept. 1, 2019, is greater than $16,500.00, the BRP amount in the insurance salary formula is the leveled amount of the ERS annual maximum. (Use $85.58 for ERS, JR1 and JR2.)
  • If annual insurance salary as of Sept. 1, 2019, is less than or equal to $16,500.00, the BRP amount in the insurance salary formula would be determined by using the factors listed below.

(Multiply Base Pay by factor to get monthly BRP amount.)

BRP Maximum Amount Calculation Factors by Retirement System

Name of System Maximum/Level Factor
ERS $1,026.86/$85.57 0.066364152
TRS $1,031.25/$85.93 0.066666667
JRS Plan One $1,026.86/$85.57 0.066364152
JRS Plan Two $1,026.86/$85.57 0.066364152
ORP $1,034.01/$86.16 0.066857143
Not Participating in Retirement $965.25/$80.43 0.062134891

Note: The following examples are for BRP-eligible employees.

Example 1:

Employee’s Annual Insurance Salary is greater than $16,500.00
Retirement System = ERS

Types of Pay Amount
Base Pay $1398.00
Hazardous Duty Pay $0.00
Longevity $20.00
Shift Differential $0.00
COLA $0.00
Housing Supplement $0.00
Texas Military Department Pay $0.00
Corporal Pay $0.00
Hazardous Duty Pay $0.00
BRP $85.57
Total Insurance Salary $1503.57

Example 2:

Employee’s Annual Insurance Salary is less than or equal to $16,500.00
Retirement System = ERS

Types of Pay Amount
Base Pay $1335.00
Hazardous Duty Pay $0.00
Longevity $40.00
Shift Differential $0.00
COLA $0.00
Housing Supplement $0.00
Texas Military Department Pay $0.00
Corporal Pay $0.00
*Calculated BRP ($91.25)
BRP $85.57
Total Insurance Salary $1460.57

*When calculated BRP is more than leveled BRP, the leveled BRP amount must be used for the insurance salary.

Example 3:

Employee’s Annual Insurance Salary is less than $16,500.00
Retirement System = ERS

Types of Pay Amount
Base Pay $627.50
Hazardous Duty Pay $0.00
Longevity $0.00
Shift Differential $0.00
COLA $0.00
Housing Supplement $0.00
Texas Military Department Pay $0.00
Corporal Pay $0.00
BRP $41.64
Total Insurance Salary $669.14

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