Employer Guide TEACHERS RETIREMENT ASSOCIATION

Transcription

1 TEACHERS RETIREMENT ASSOCIATION Employer Guide Revision: July 2012 The latest version of this document can be found on the TRA website. If printed, ensure you have an up-to-date version.

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3 Section 1. Introduction

4 Introduction e.g. The abbreviation for this Teachers Retirement Association Employer Guide is e.g., which of course means for example. In this guide we provide examples and explanations of Teachers Retirement Association laws adopted by the Minnesota State Legislature. In order to provide benefit estimates and retirement services to our members, we depend on you for accurate and timely information. We hope this guide facilitates TRA reporting, and we welcome any suggestions for additions and clarifications. The guide is divided into these main categories: 1. Introduction 2. Membership 3. Salary 4. Service Credit 5. Payroll and Demographic Reporting 6. Leave of Absence 7. Reports We have tried to cover as many situations as possible. However, we realize there will always be exceptions and new questions. Please call us for answers if you cannot find an explanation. Administration and Executive Staff TRA Administration is vested in a Board of Trustees, made up of four elected active TRA members; one elected TRA retiree; and three ex-officio trustees: the Commissioner of Education, Commissioner of Minnesota Management and Budget, and a representative from the Minnesota School Boards Association. TRA s Executive staff is Laurie Fiori Hacking, Executive Director Luther Thompson, Assistant Executive Director Legal and Legislative Services John Wicklund, Assistant Executive Director Administrative Services Karen Williamson, Assistant Executive Director Operations TRA s office is located at 60 Empire Drive Suite 400 St Paul MN Teachers Retirement Association 07.12

5 Introduction Fund Type Participating Members and Employers Employer Communication Contacts TRA is a Minnesota public retirement plan which administers a defined benefit plan, which provides various retirement benefits based on age, high-5 salary and years of service credit. TRA is a qualified plan under Section 401(a) of the IRS code with Section 414(h)(2) employer pickup of member contributions. All members who have required contributions withheld will have the pension plan box checked on Form W-2. An IRS letter of determination reconfirming TRA s 401(a) status was provided to TRA in February In March 2008, TRA applied for an updated IRS letter of determination. Teachers employed in Minnesota s public elementary and secondary schools, in all charter schools, and in certain educational institutions maintained by the state are required to be TRA members. Teachers employed by the Minnesota State Colleges and Universities (MnSCU) may elect to join TRA. Teachers employed by school districts in the cities of St. Paul and Duluth, or by the University of Minnesota are covered by other retirement systems. TRA communicates with our employers through: The Update newsletter, which is published approximately three times a year and when important topics warrant a special issue The Employer Guide (e.g.) Suggested financial statement footnotes for Governmental Accounting Standards Board Statement No. 27. The suggested footnotes are updated annually in mid-december, cover the state fiscal year ended the preceding June 30, and are made available on our web site. The Employers Section of the TRA web site at The web site provides up-to-the-minute information on all TRA-related issues. Contact your: TRA Payroll Processor with questions about data for the current fiscal year; or TRA Auditor with questions and concerns regarding reports and eligibility. employerquestions@minnesotatra.org or (option 2) FAX Kathy LaClair, Director klaclair@minnesotatra.org Dave Hammer, Supervisor dhammer@minnesotatra.org Joe Crawford, Auditor jcrawford@minnesotatra.org Sebastine Okere, Auditor sokere@minnesotatra.org Barb Kahle, Processor bkahle@minnesotatra.org Candi Parker, Processor cparker@minnesotatra.org Cindy Ng, Processor (Lead) cng@minnesotatra.org Sherry Knack, Processor sknack@minnesotatra.org Tom Parsons, Processor tparsons@minnesotatra.org Teachers Retirement Association

6 Introduction Software Vendors Software vendors are required to adhere to the legal reporting standards established by Minnesota Statute when submitting data to TRA for payroll purposes. Mark Roemhild Compliance Reviews The Teachers Retirement Association (TRA) and the Public Employees Retirement Association (PERA) have partnered to establish a compliance review effort. By conducting these reviews, PERA/TRA can promote and document salary and contribution reporting compliance by employers. This will also be a way to assess if our associations are providing the resources you need to understand your reporting responsibilities. And by doing the reviews periodically, we may be able to find and resolve problems early enough to lessen their impact on our funds, your entity, and affected members. The purpose of a compliance review is: to confirm that the salary and contribution reporting laws/policies of the pension plans are understood and followed; to ensure that members receive the proper salary and contribution credits in their accounts to determine their future retirement benefits; and to determine if our associations are providing the information and resources that you need to properly report eligible salary and contributions. As part of the compliance review effort, you will be asked to submit a copy of a payroll abstract/register and other supporting documents, such as contracts and agreements. At the completion of a review, a written evaluation of your salary and contribution reporting compliance will be provided. Member Tools Active members: The TRIB newsletter (active edition) three times a year Personal Statement of Pension Benefits (available online) Personal online account Inactive members: Personal Statement of Pension Benefits (available online) Personal online account Retired members: The TRIB newsletter (retiree edition) three times a year Important information regarding post retirement increases, tax withholding changes, etc., throughout the year. Personal online account Up-to-the-minute information on all TRA-related issues can be found on the following: TRA web site: Twitter: twitter.com/#!/minnesotatra Facebook: facebook.com/minnesotatra 1-4 Teachers Retirement Association 07.12

7 Introduction Additionally, our Member Services staff are available to answer member questions from 7:30 am to 4:30 pm, Monday through Friday or TTY FAX Data Privacy Under Minnesota Statutes, Section 13.43, the member s name, final gross pension and the type of benefit awarded to a member are public information. Data that is provided from employer units is used exclusively by the Teachers Retirement Association. If differences develop between the information provided in this guide and the laws of the Teachers Retirement Association, the laws will govern. Teachers Retirement Association

8 Section 2. Membership

9 Membership Membership TRA Member Definition of Teacher MS , subd. 2 As of July 1, 2011 there are approximately: 77,000 active teachers 36,000 inactive teachers 51,000 benefit recipients Many licensed teaching positions are covered by TRA as a condition of their employment, whether full-time, part-time or substitute. Teacher is broadly defined in Minnesota Statutes, Section , and includes the following: Administrator Annuitant/Retired Teacher It is important to note the difference between a person who has retired from teaching service and a person who has officially retired from TRA and is receiving monthly retirement benefits. You are not required to withhold deductions if a member is currently receiving retirement benefits from TRA and returns to teaching. You are required to withhold deductions if a member has retired from teaching, but has not retired from TRA (is not receiving retirement benefits from TRA), and returns to teaching. Assistant Superintendent (if position requires licensure and the person possesses that license) Athletic Director/Activities Director (if position requires licensure and the person possesses that license) Coach/head coach, certified A newly hired, nonstaff coach is not covered by TRA. A person who holds or has held a license/certificate as a head varsity coach of interscholastic sports in senior high schools issued before December 31, 1996, may continue to renew this license according to requirements of the Board of Teaching, which governs continuing education relicensure. He or she may continue TRA coverage under their current employer, as long as the member remains in the same position with the same employer. If you have a coach or assistant coach in a position that does not need a certificate, then that coach may be covered under PERA. Exceptions would be when a teacher s salary is 50 percent or more of their total salary, such as a substitute (refer to Reporting Guidelines later in this section). College instructor (also refer to Minnesota State Colleges and Universities (MnSCU) Faculty on page 2-3) Community education director Community expert (see limited license substitute/community expert) Counselor Curriculum writer Dean of students Director of joint power units/charter schools Driver s education instructor 2-2 Teachers Retirement Association 07.12

10 Membership TRA Member (cont d) Labor organization employee (who has elected TRA membership) Librarian Limited license substitute/community expert/short call substitute Limited license teachers, community experts and short call substitutes are TRA-covered if the district has obtained a waiver from the Board of Teaching Minnesota State Colleges and Universities (MnSCU) Newly-hired faculty that have previous service that is covered by TRA, or one of the other Minnesota Public Pension Funds, or by the state unclassified employees retirement program, are automatically enrolled as a member of TRA. (Minnesota Statutes 2011, Section 354B.21, effective July 1, 2011) Newly-tenured faculty of MnSCU have an opportunity to transfer retirement coverage from the individual retirement account plan (IRAP) to the Teachers Retirement Association (TRA). Faculty are eligible to elect transfer of retirement coverage to TRA any time up to one year from date of tenure. (Minnesota Statutes 2009, Section 354B.21, subd. 2 - authority expires with respect to any MnSCU faculty initially hired after June 30, 2014.) Non-Citizen of the U.S. TRA deductions are required if a non-citizen has been issued a teaching license or waiver to teach issued by the State of Minnesota. Nurse From 1957 to 1970, a certificate was required for school nurses, and they were covered by TRA. Since 1970, even if no license is required, a nurse is still considered to be a school nurse for TRA membership purposes if she/he is an RN and provides nursing services under the direction of the superintendent or a certificated school nurse. Nursing assistants, even if certified or an RN, are covered by PERA laws. Part-time teacher Principal Psychologist Social worker State high school league coordinator Substitute teacher Superintendent Supervisor Teacher Therapist Therapists are covered under TRA if they have a 4-year degree and are certified/licensed by a nationally recognized association. Therapists hired prior to July 1, 1981, and placed under PERA may continue PERA coverage. Title I instructor, if licensure is required Tutor Teachers Retirement Association

11 Membership Not TRA Member Certain positions are not covered by TRA and may be covered by the Public Employees Retirement Association (PERA) or by the Minnesota State Retirement System (MSRS). Refer to Reporting Guidelines later in this section. The definition of teacher, for TRA purposes, may not include the following: Reporting Guidelines Annuitant/retired teacher (refer to page 2-2) Coach or assistant coach (refer page 2-2) Business manager Consultant/independent contractor Qualification under IRS rules must be established before granting exemption from TRA deductions. Refer to IRS Form SS-8 to determine if someone can be classified as a consultant or independent contractor rather than an employee. Graduate assistants Interpreter Nursing assistants Management assistant Student teacher Substitute teacher (if employed by a private company ) If a substitute teacher is employed by a private employer and all of the following conditions apply, the substitute teacher is not eligible for TRA coverage: 1. The substitute teacher is an employee of the private employer; 2. No direct employment relationship exists between the school district (or charter school) and the substitute teacher; and 3. No Minnesota Statutes Section 122A.40 contract exists between the substitute teacher and the school district (or charter school). Teachers aide, even if certified/licensed as a teacher Use the following steps to determine if a licensed teacher should be reported to TRA or another pension fund (50 Percent Policy): If 50 percent or more of the total compensation that a member earns from your employer unit during the fiscal year is for licensed teaching service, then all salary and service performed is covered by TRA. If less than 50 percent of the compensation earned during the fiscal year is for licensed teaching service, the eligibility laws of another fund apply to all services. 2-4 Teachers Retirement Association 07.12

12 Membership Reporting to the Wrong Fund Questions Minnesota Statutes section , Correction of Erroneous Defined Benefit Plan Coverage, states that the employer must stop remitting the erroneous employee deductions and employer contributions and report the employee to the correct covered pension plan for all subsequent service: If a member was reported to the wrong retirement fund within two fiscal years prior to the current fiscal year, the pension plan coverage and contributions for the past service must be transferred to the appropriate retirement plan. If a member was reported to the wrong retirement fund earlier than two fiscal years prior to the current fiscal year in which the error is discovered, the member retains coverage for that period of time with the plan that originally credited the service no transfer will be made. Beginning with the next pay period, the member will automatically have contributions withheld for the correct fund. If you are unsure whether a position qualifies as TRA-eligible, please contact your TRA Auditor for clarification. Teachers Retirement Association

13 Section 3. Salary

14 Salary Definitions Eligible Salary MS , subd. 35(a) The definitions of eligible and ineligible salary contained in this section should be used as a guide and should not be considered exclusive. "Salary" means the periodic compensation, upon which member contributions are required before deductions for deferred compensation, supplemental retirement plans, or other voluntary salary reduction programs. If pay is received for any of the following items, it SHOULD BE INCLUDED as salary reported to TRA. Gross wages or compensation, as stated in the member s contract Coaching (refer to page 2-2 of the Membership Section) Court-ordered payments or grievances usually for amounts awarded for lost compensation. Each settlement or grievance should be reviewed by TRA for approval of withholding and instruction for updating the member account prior to disbursement of funds. Supporting documentation for these types of payments should be submitted to TRA. Curriculum writing Driver s education (employee performed) Homebound teaching Hourly service Housing allowance specified as part of normal compensation for an employee living in an employer-owned facility Military Pay Differential On June 17, 2008, the Heroes Earnings Assistance and Relief Tax (HEART) Act went into effect. This Act provides that beginning January 1, 2009, differential military pay made by an employer to an employee who is on a military leave of absence is included in the calculation of wages for retirement plan (TRA) purposes. Therefore, beginning January 1, 2009, military pay differential will be considered TRA-eligible salary. Nonteaching duty or other service (if a teacher and 50 percent of salary is from teaching service during the fiscal year) Performance pay (Q-Comp) Sick leave, excluding lump sum payments (even if from a donation) Summer school Substitute teaching Tutoring (only if certified teacher) 3-2 Teachers Retirement Association 07.12

15 Salary Ineligible Salary MS , subd. 35(b) A member may be compensated in many different ways for services provided to an employer. However, certain types of compensation are not considered TRA-covered salary. In general, employer-paid benefits are not considered TRA-eligible salary. If pay is received for any of the following items, IT SHOULD NOT BE INCLUDED AS SALARY REPORTED TO TRA. Refer to Processing Ineligible Salary on page 3-4. Auto allowance, even if specified as a monthly allowance and paid as salary Court-ordered damages Employer contributions to a tax-sheltered annuity (403b) Employer-paid fringe benefits, including but not limited to flexible spending accounts, cafeteria plans, health care expense accounts, day care expenses or automobile allowances and expenses (e.g., employer/union contributions toward a deferred compensation account) Expense allowance Cash paid in lieu of fringe benefits normally provided by the employer to other employees Health Care Savings Account amounts to the Minnesota State Retirement System (MSRS), paid as part of a severance package Insurance payments (including self-funded disability insurance payments) Insurance rate differential based on marital status Jury duty pay Jury duty compensation paid to a TRA member by the court or expense payments to a TRA member related to the jury duty are not considered TRAcovered salary for pension purposes. Deductions should not be taken on jury duty earnings. Jury duty compensation is often processed differently by employers. Some employers add the pay for jury duty services to their employee s wages and issue one payment. In this instance, the additional pay is not TRA-covered salary. Other employers reduce an employee s regular salary by the amount the person receives directly from the court for jury duty. Longevity pay when paid due to an employee s termination and/or under a procedure that allows the employee to designate the time of payment if the payments are made during the period of formula service credit used to compute a retirement benefit Lump sum of unused sick leave or vacation pay, whether paid annually or at termination Resignation payments of any type School board member payments (MS , subd 2(a)(1)) Self-insurance payments Severance pay in any form (MS , subd 35(b)(5)) Teachers Retirement Association

16 Salary Ineligible Salary (cont d) Sick leave purchased with workers compensation checks Superintendent and other administrator payments for duties not specifically outlined in their contract and/or performed on nonduty days, after normal school hours or on leave days (MS , subd 35(b)(8)) Unearned salary, where no service is required (MS , subd. 35(a)) Unused cafeteria plan amounts returned to the employee Vacation pay where employee is also paid to work Wellness pay Workers compensation (M.S , subd. 35(b)(6)) Workers compensation payments made to a member are not eligible for coverage other than through the medical leave process. These payments cannot be used to buy salary that is reported to TRA, including sick leave purchased by workers compensation payments. Employer units and workers compensation carriers should check with TRA to verify if a member is receiving TRA disability benefits. The amount of TRA disability benefits must be deducted from the amount of workers compensation benefits that would otherwise be paid. Processing of Ineligible Salary Ineligible salary should not be reported to TRA. Since these types of payments are not considered when calculating a member s High-5 average salary, you should not withhold the TRA employee retirement contributions that are normally deducted from payments that are considered TRAeligible salary. If you discover you are currently reporting ineligible salary to TRA (i.e., salary that does not qualify to have TRA contributions deducted), please contact TRA and/or your software provider to discuss a resolution. Final Determination of TRA-Eligible Salary If you need clarification on what is TRA-eligible salary, please contact your TRA Auditor. We may request that you submit a copy of the contract language, and then provide documentation as to whether the salary is eligible. We rely heavily on the accuracy of your reported data. It is important to remember that you and the TRA member share the responsibility of verifying the types of payments that qualify as TRA-eligible salary. Statutes prevail regardless of mutual understandings in a negotiated agreement. 3-4 Teachers Retirement Association 07.12

17 Salary Salary Limits Although covered pension salary is not limited to 95 percent of the Governor s salary, TRA is required to audit all retirement annuities with salaries that exceed 95 percent of the Governor s salary (MS , subd. 1 and MS , subd. 6(f)). If a retired person has made application to be an interim superintendent and to be exempt from the earnings limitations for 90 days, then the salary rate for an interim superintendent may not exceed the rate paid to the previous full-time superintendent (refer to Earnings Limitation for TRA Annuitants on 3-6 and 3-7). Professional organization (union) coverage includes authorized leave time and is limited to 75 percent of the Governor s salary. Salary cap information can be found on the Minnesota Management and Budget s web site at: Termination of Service Return to Work Agreements Accrual date Termination of teaching service means the withdrawal of a member from active teaching service by resignation or the termination of the member s teaching contract by the employer. A member is not considered to have terminated employment if, before the age of 62, and before the effective date of retirement, they have entered into a contract to resume teaching service with a TRA-eligible employer. If a member is age 62 or older, they are allowed to begin receiving a retirement annuity from TRA even though they have entered into an agreement to return to teaching service. Such an agreement must be mutually agreed upon by the employer and the member, and include the member s termination and reemployment dates. A copy of the agreement must be filed with the member s TRA Application for Retirement prior to their accrual date. Members age 62 and older who return to work under this provision will not earn additional service credit with TRA. This return to work provision does not apply to members employed by the Minnesota State Colleges and Universities (MnSCU) system. Beginning on January 1, 2010, a teacher s effective date of retirement with TRA can be on any day of the month. The previous law allowed effective retirement dates of the 1 st or 16 th of the month. This change requires employer units to submit correct termination dates. TRA benefit payments will continue to be issued the first day of each month. Teachers Retirement Association

18 Salary TRA Annuitants who return to teaching service (see page 3-7 for special provisions for retired members who have Minneapolis Teachers Retirement Fund Association (MTRFA) benefits) It is important to note the difference between a person who has retired from teaching service and a person who has officially retired from TRA. A TRA annuitant is a person who has retired from teaching service and is receiving a monthly annuity benefit from TRA. You are not required to withhold deductions if a member is currently receiving retirement benefits from TRA and returns to teaching. You are required to withhold deductions if a member has retired from teaching, but has not retired from TRA (is not receiving retirement benefits from TRA) and returns to teaching. Since TRA annuitants are subject to an earnings limitation, you are required by law to report the salary through payroll reporting, even though TRA deductions are not taken from that salary. MnSCU annuitant salary is reported to TRA using the retirement code TR. K-12 annuitant salary is reported to TRA using the code A for exempt annuitant in the Exempt Status field on the demographic detail record. Severance payments, lump sum vacation payments or lump sum sick leave payments should not be reported, because they are not considered post-retirement earnings. If deductions have been taken in error within the current fiscal year, submit an adjustment on the next payroll record. All reemployed annuitants are covered under Social Security. Earnings Limitation for TRA Annuitants (see page 3-7 for special provisions for retired members who have Minneapolis Teachers Retirement Fund Association (MTRFA) benefits) The earnings limitation for re-employed annuitants is applied to salary earned on a fiscal year basis (July 1 to June 30). If under normal retirement age for the entire fiscal year, as defined by the Social Security Administration, the earnings limitation is $46,000. If under normal retirement age and are retired for only a portion of the year, the earnings limitation amount will be prorated ($46,000 x number of months retired during the fiscal year 12). Members who have reached full normal retirement age are not subject to the earnings limitation. If a re-employed annuitant exceeds the limit, then in the next calendar year, $1 in benefits will be deducted for each $2 above the limit. The pension offset amounts are redirected to a separate savings account for later distribution. A member may request a refund of their earnings limitation savings account (ELSA), plus interest, one year after the last deferred amount was redirected to the ELSA account. Account balances will earn 6.0 percent compounded annual interest until December 31, No additional interest will be earned on account balances beginning January 1, Teachers Retirement Association 07.12

19 Salary Income Definition for Earnings Limitation for TRA Annuitants Income from teaching service includes, but is not limited to, all income for services performed as a teacher, administrator, consultant or an independent contractor for a TRA-covered employer. Income earned while employed in a position not covered by TRA (e.g., discount store, etc.) is not subject to the earnings limitation. A TRA annuitant who is appointed to a position at the Department of Education engaged in educational administration may elect to become a member of the Minnesota State Retirement System. The TRA annuitant earnings limit does not apply. Annuitant Reporting and Earnings After Retirement due to the Minneapolis Teachers Retirement Fund Association (MTRFA)/TRA Consolidation Legislation Omnibus Pension Bill II, Chapter 277 of Minnesota Laws 2006 If a TRA annuitant was employed by Minneapolis Special School District #1 prior to July 1, 2006, and continues employment with Minneapolis Special School District #1, that TRA annuitant is not subject to the earnings limitation. If a TRA annuitant retires from Special School District #1 and then resumes employment with another TRA-eligible employer, the earnings limitation will apply. If a MTRFA annuitant was working in a TRA-covered school prior to July 1, 2006, and continues employment in a TRA-covered school, that Minneapolis annuitant is not subject to the earnings limitation. These members are considered actively teaching. ONLY this specific group of annuitants is covered under this grandfather clause. You are required to report salary and withhold deductions from this group of annuitants. If any annuitant covered under this grandfather clause continues to work after retirement, as specified above, they will earn service credit and may eventually apply to receive a second annuity. IRS Limits for 2012 The IRS limits for retirement plans for 2012: The annual salary compensation for retirement plans is $250,000. The annual benefit that can be paid to a retired TRA member is $200,000. Teachers Retirement Association

20 Section 4. Service Credit

21 Service Credit Overview Service credit, along with the member s age, affects their retirement benefit in the calculation of a benefit amount. A member can earn up to one year of service credit per fiscal year. Service credit is earned for all TRA eligible salary including regular contract teaching, substitute wages, and all other salary. TRA service credit is defined by MN Statutes, section History Prior to July 1, 2012, service credit was based on hours per day and the number of days a member worked. Service credit was calculated by the employer unit and provided to TRA. Service credit as defined by Minnesota Statutes: 1 day of service credit is earned when a member works at least 5 hours per day. 1 year of service credit is earned when a member works at least 5 hours per day for 170 or more days during the fiscal year (July 1 - June 30). A member cannot earn more than 1 year of service credit for any given fiscal year. A member cannot earn more than 1 day of service credit when working more than 5 hours in a day. Paid sick leave, vacation days and all required paid attendance days and hours (such as workshops) are counted toward service credit. Partial daily service credit for the fiscal year can be totaled to receive a partial annual service credit year. Service Credit as of July 1, 2012 As of July 1, 2012, the service credit calculation statute has changed. Employer units are no longer required to: Calculate service credit for a member Enter contractual service credit through demographic records Enter non-contracted service credit on payroll salary TRA calculates service credit for all non-mnscu members based on the annual base salary. Service credit is not based on hours per day and number of days. Employer unit reporting requirements include: The annual base salary for the reporting unit for the current fiscal year. The regular school work begin and end dates for the upcoming fiscal year. Accurate pay period begin and pay period end dates for all salary reported; Timely termination dates; Correct payroll payment type codes; Leave of absence reporting using updated forms. 4-2 Teachers Retirement Association 07.12

22 Service Credit Service Credit Definitions Annual Base Salary MS , subd. 41 Monthly Base Salary Service Credit Annual Limit MnSCU Service Credit MN , subd 4 Non-Traditional Schedules MN , subd 5 Requirements and Penalty for Annual Base Salary Reporting MN , 4d, 6 Annual base salary is the contract amount used in the TRA service credit calculation. Annual base salary is unique to the employer unit and is defined by employer unit type: For ISD & cooperatives, TRA uses the lowest full-time Bachelor of Arts (BA) base contract salary for the previous fiscal year for that employing unit. For Charter schools, TRA uses the lowest starting annual salary for a full-time licensed teacher during the previous fiscal year for that employing unit. For State Agencies or professional organizations, TRA uses the lowest starting annual salary for a full-time Teachers Retirement Association covered position for the previous fiscal year for that employing unit. For new employer units, TRA uses the lowest full time TRA eligible position for the current year. Monthly base salary is the annual base salary provided by the employer unit divided by 12. The monthly base salary is the amount that is needed to receive the maximum monthly service credit of.111. MS , Service Credit, states, In computing service credit, no teacher may receive credit for more than one year of teaching service for any fiscal year. Service credit is determined for full-time and part-time employees of the Minnesota State Colleges and Universities system as defined in their collective bargaining agreement. For employer units that have nontraditional work schedules or pay schedules, the procedure for determining service credit must be specified by the executive director with the approval of the board of trustees. An employing unit must provide the following data to the association on or before June 30 of each fiscal year: (1) annual base salary (2) beginning and ending dates for the regular school work year If the annual base salary has not been settled or determined as of June 16, a fine of $5 per calendar day commences if the annual base salary has not been reported to the association within 14 days following the settlement date. Teachers Retirement Association

23 Service Credit Monthly Service Credit Annual Service Credit Monthly service credit is calculated by dividing the teacher's monthly earned salary by the monthly base salary for the employing unit and multiplying the result by 11.1%. A teacher may not receive more than 11.1% of a year's service credit in a calendar month. Example 1: Annual base salary = $30,000 Monthly base salary = $30, months = $2,500 Member s monthly salary = $4,500 $4,500 $2,500 x 11.1% =.1998, which is capped at.111 for any month s service credit Example 2: Annual base salary = $30,000 Monthly base salary = $30, months = $2,500 Member s monthly salary = $800 (substitute teaching) $800 $2,500 x 11.1% =.036 for the month s service credit Example 3: Annual base salary = $40,000 Monthly base salary = $40, months = $3,333 Member s monthly salary = $4,500 $4,500 $3,333 x 11.1% =.149, which is capped at.111 for any month s service credit Example 4: Annual base salary = $40,000 Monthly base salary = $40, months = $3,333 Member s monthly salary = $2,500 $2,500 $3,333 = x 11.1% =.083 for the month s service credit Annual service credit is calculated by adding the allowable monthly service credit for all 12 months of the fiscal year. The result is rounded to two decimal places and subject to the annual limit of one full year. 4-4 Teachers Retirement Association 07.12

24 Service Credit Pay Period Reporting is the Key Calculating service credit is all about when the pay was reported as earned based on the pay period begin and end dates, not when it was paid. Employer units have always provided pay period begin and pay period end dates for all earned salary; this process has not changed. However, accurate dates are now even more important. Pay Period Dates A regular pay period is a recurring length of time over which employee time is recorded and paid. TRA refers to the pay period as the dates between, and including, the pay period begin date and the pay period end date. Pay period begin date is the first date the member works in the pay period. Pay period end date is the last date the member works in a pay period. The pay period may need to be changed to match when the salary was earned. Pay period end date typically should not exceed the last day of contract work for the teacher in a school year. The following examples assume normal pay period dates (days 1-15 and days 16 through end of the month): Example 1: Salary must be reported in the pay period in which it is earned. For example, a teacher starts work on August 22; the first pay period for that teacher is August 22- August 31. Example 2: Salary must be reported in the pay period in which it is earned. For example, a teacher ends work on June 5; the last pay period for that teacher is June 1 to June 5. Pay Period Begin and End Dates Cannot Cross Fiscal Years Pay period begin and end dates cannot cross fiscal years. For example, a pay record with a pay period begin date of June 16, 2012 and pay period end date of July 15, 2012 with salary of $3,000 causes an error and the employer unit must submit a correction. To enable TRA to accurately calculate service credit, the unit is required to separate the salary into two records: Paid Date Pay Period Begin Date Pay Period End Date Salary Fiscal Year July 15, 2012 June 16, 2012 June 30, 2012 $1, July 15, 2012 July 1, 2012 July 15, 2012 $1, Pay Period Begin and End Dates Can Cross Months Pay period begin and end dates can cross months. For purposes of computing service credit, salary is allocated to each calendar month based on the pay period begin and end dates. If the pay period covers more than one calendar month, the salary is allocated based on the number of calendar days in each month. For example, a pay period begin date of March 16 and a pay period end date of April 15 is allowed. Paid Date Pay Period Begin Date Pay Period End Date Salary April 22, 2012 March 16, 2012 April 15, 2012 $3,000 Teachers Retirement Association

25 Service Credit TRA will allocate salary to each month based on days in each month. In this example, 16 days will be allocated in March and 15 days will be allocated in April. Month Salary (prorated based on days) Days Allocated for Service Credit March $1, April $1, Summer Payoff Payrolls Payroll reported after the member s last work day for the contract period must have pay period dates that match the contract period or dates when the member earned the salary. For example, if a teacher receives pay during the summer months for teaching service in the prior school year (August 29, 2011 June 4, 2012), report the pay as follows: Payment Date Pay Period Begin Date Pay Period End Date June 30, 2012 August 29, 2011 June 4, 2012 July August 29, 2011 June 4, 2012 July 31, 2012 August 29, 2011 June 4, 2012 August 15, 2012 August 29, 2011 June 4, 2012 August 31, 2012 August 29, 2011 June 4, 2012 Extra-Curricular Pay Expand the pay period to when the member, such as a coach, works for an extended period. For example, the member is paid $2,000 to coach basketball. The pay period must match the season, such as November 2 February 28. TRA will allocate the $2,000 salary over the pay period. Retro Payment If a school is processing a retro payment for the current year, the pay period begin date would be the start of the contract work year and the pay period end date would be the end of current pay period. For example, the member is being paid a retro payment for a contract settlement of $ The contract begin date was August 22, 2012, and the current pay period end date was January 15th, The retro pay period begin date is August 22, 2012, and the pay period end date is January 15, If the retro payment is for more than one year, TRA requires a separate record for each year the retro salary affects. In the above example, the contract also includes $500 for the prior year retro payment. The $500 retro payment must be a separate record with the prior year school period as the pay period begin date of August 29, 2011, and pay period end date of June 5, Performance or Q-Compensation Payments for performance, incentive, goal, ATTPS, or Q-Comp are processed similar to a retro payment. The payment is generally made at the end of the school year and needs to be a separate record. The pay period begin date is the start of the school year and the pay period end date is the last day of school. If the payment is made in the next fiscal year, the employer unit must report correct pay period begin and end dates with correct fiscal year indicator. For example, a reporting unit is paying all teachers $250 on September 15, 2013, because the school reached a performance goal for the FY 2013 school year. Use the pay code 05 for the performance 4-6 Teachers Retirement Association 07.12

26 Service Credit payment. The pay period begin date is September 1, 2012, the pay period end date is June 2, 2013, and a fiscal year indicator is Grievance Pay After TRA auditors review the grievance agreement to verify the payment is TRA eligible, the employer unit must ensure the pay period reported (begin and end dates) matches the time for the grievance payment. For example, the member was not paid their correct step for two years and part of this year. The total grievance payment is $6,000 on March 20, 2013 ($2,000 for FY 2011, $3,000 for FY 2012, and $1,000 for FY 2013). TRA requires a separate record for each year; for example, the FY 2013 pay period must be September 1, 2012, to March 15, Service Credit Calculation Examples Service credit calculations are performed by TRA. The following are for your information and illustrate how it is accomplished Examples 1. A full-time contract with regular pay option In fiscal year 2013, the member works in a full-time contract position that pays $45,000 annually. The member is paid $2,250 on the 15th and last day of every month. The contract period is from August 15th to June 15th. The annual base salary for the employer unit is $30,000. Annual Base Salary 12 months = Monthly Base Salary Therefore, $30, = $2,500 is the Monthly Base Salary TRA calculates the monthly service credit as follows: Month Monthly Base Salary Total 2013 Earned Salary Monthly Service Credit July $ 2, August 2, $ 2, September 2, , October 2, , November 2, , December 2, , January 2, , February 2, , March 2, , April 2, , May 2, , June 2, , Total $30, $45, * * Service credit is capped at.111 for a month and 1.00 for the year. Teachers Retirement Association

27 Service Credit Example 2: Full-Time Contract with Summer Pay Option In fiscal year 2013, the member works in a full-time contract, part-time position that pays $24,000 annually. The member is paid $1,000 on the 15th and last day of every month. The contract period is from August 16 to June Annual Base Salary = $30, Monthly Base Salary = $2,500 TRA calculates the monthly service credit as follows: Month Earned Salary 2013 by Month Summer Payoff * Allocated Total 2013 Earned Salary Monthly Service Credit July August $1, $ $1, September 2, , October 2, , November 2, , December 2, , January 2, , February 2, , March 2, , April 2, , May 2, , June 1, , Total $20, $4, $24, *Summer Payoff = $4, Salary for summer payoff will be allocated by TRA to the months in which it was earned. To do this, TRA prorates the pay to the months of the school work year. Formula for calculating monthly salary allocation for summer payoff: A B C Where: A = Salary for summer payoff B = Number of days in each month for the pay period C = Total days in the pay period Example: Salary for Summer Payoff: $4,000 Pay Period: 8/16/12 to 6/15/13 Total Days in Pay Period: 304 Salary allocated to August $4, = $ Salary allocated to September $4, = $ Teachers Retirement Association 07.12

28 Service Credit The entire summer payoff is allocated as follows: Month Number of Days in Month Pro-Rated Summer Payoff August 16 $ September October November December January February March April May June Total Days 304 $4, Teachers Retirement Association

29 Service Credit Example 3. Part-Time Contract, Hourly or Substitute In fiscal year 2013, the member works part-time during the school year and is paid various months for salary earned. The annual base salary for the employer unit is $30,000. The contract period is from August 15th to June 15th Annual Base Salary = $30, Monthly Base Salary = $2,500 TRA calculates the monthly service credit as follows: Month Monthly Annual Base Salary Total 2013 Earned Salary Monthly Service Credit July $2, August 2, September 2, October 2, , November 2, December 2, , January 2, February 2, March 2, April 2, , May 2, June 2, Total $30, $6, Teachers Retirement Association 07.12

30 Example 4. Part-Time work with Extra-Curricular Salary Service Credit In fiscal year 2013, the member works part-time during the school year and is paid various months for salary earned. The member also coaches two sports for the school: Member coaches volleyball from 8/17 to 10/15 for $1,000 Member coaches track from 3/26 to 6/6 for $2,000 The annual base salary for the employer unit is $27,000. The contract period is from September 1 to May Annual Base Salary = $27, Monthly Base Salary = $2,250 TRA calculates the monthly service credit as follows: Month Monthly Annual Base Salary Total 2013 Teaching Earned Salary Total 2013 Coaching Earned Salary Total Earned Salary Total Monthly Combined Service Credit July $2, August 2, September 2, October 2, , , November 2, December 2, , , January 2, February 2, March 2, April 2, , , May 2, , June 2, Total $27, $6, $3, $9, Coaching salary allocated over earned period. Month Number of Days in Month Volleyball Coaching Earned Salary Month Number of Days in Month Track Coaching Earned Salary August 15 $ March September 30 $ April October 15 $ May Total 60 $ 1, June Total 73 $ 2, Teachers Retirement Association

31 Service Credit Termination Date Termination of teaching service means the withdrawal of a member from active teaching service by resignation or the termination of the member s teaching contract by the employer. A termination date requires a demographic record. The following examples should help determine termination dates: Situation A teacher submits a resignation letter to your school in February for resignation at the end of the school year. The last day of the school year is 06/07/13. A teacher finishes the school year on 06/07/13, but decides during the summer not to return the following school year. The teacher submits a resignation letter on 08/13/13. A teacher is on a five-year extended leave of absence for the time period 09/02/09 through 06/03/14. The teacher resigns effective 05/24/13. A superintendent submits a letter of resignation to his district in January for resignation at the end of his contract on 06/30/13. A teacher teaches three years and, due to budget needs, is not offered a new contract after 06/08/13. A teacher teaches 10 years and becomes seriously ill; the member is granted a medical leave of absence for the FY 2014 school year from 08/26/2013 through 06/06/14. The member does not request an extension of the medical leave. A teacher starts their teaching career, but decides not to continue teaching. The teacher resigns after the first year of teaching on 06/08/13. A teacher changes positions on 1/28/13 and is now in a PERA-covered position. Their last day of TRA-covered service was 1/25/13. Termination Date 06/07/13 08/13/13 05/24/13 06/30/13 06/08/13 06/06/14 06/08/13 01/25/13 A substitute teacher last taught 4/4/ /04/12 A member is not considered to have terminated employment if, before the age of 62, and before the effective date of retirement, the member has entered into a contract to resume teaching service with a TRA-eligible employer. Situation* A member is age 64. In February, the member resigns from full-time teaching effective 06/07/13. In March, the member enters into an agreement to work part-time for the FY 2014 school year from 08/26/13 through 06/06/14. (Refer to the Return to Work Agreement form, TRA-4640.) A member is age 60. In February, the member resigns from full-time teaching effective 06/07/13. In March, the member enters into an agreement to work part-time for the FY 2014 school year from 08/26/2013 through 06/06/14. A member is age 60. In February, the member resigns from full-time teaching effective 06/07/13. In early August, the member enters into an agreement to work part-time for the FY 2014 school year from 08/26/2013 through 06/06/14. * Member must also file an application to be retired with TRA. Termination Date 06/07/13 06/06/14 06/07/ Teachers Retirement Association 07.12

32 Service Credit Effective Date of Retirement TRA effective date of retirement is the first day the member is retired with TRA and starts to accrue their pension benefit. Teachers Retirement Association

33 Section 5. Payroll and Demographic Reporting

34 Payroll and Demographic Reporting Pay Period Reporting Demographic Data Pay period reporting allows employer units to provide TRA with accurate member information so pension benefit estimates and refund estimates can be provided to our members. Employers will be required to submit two types of data to TRA: demographic and payroll. Both types of data should be submitted electronically to TRA, unless you have received approval to use an alternative reporting method. Record formats and field descriptions for each type of data are outlined later in this section. Demographic data contains member-specific information such as: name, address, SSN, birth date, and gender. See page 5-6 for a complete list of data fields. NOTE: You are required to provide correct Social Security numbers when submitting payroll and demographic files. It is important that you do not submit an incorrect or estimated Social Security number. If the Social Security number is later corrected by the employer unit, the member may have two TRA accounts. Do not submit the payroll record to TRA until you have a verified Social Security number. Demographic information MUST be submitted before any payroll data can be processed for a member. You must also submit demographic information for part-time and substitute members. Code these members as a 01 status change (first employed). All new hires need a demographic record. If demographic information changes for a member during the school year, you must submit an updated demographic record to TRA that reflects these changes. Demographic data consists of two types of records: 1) one demographic header record, and 2) individual demographic detail records. Demographic Header Record Demographic Detail Record Penalties MS , subd. 4a and 6 This type of record always appears on the first line of your demographic data file. It identifies the file as demographic information and gives a general overview of the contents of the file. This type of record contains demographic information about each specific TRA member. Generally, there are multiple Demographic Detail Records in a file, but if a member s demographic information changes during the year, it is appropriate to submit demographic information for just that member. By statute, demographic information must be received by TRA within a specified period of time; otherwise, the following penalties apply: Data changes and the dates of the changes must be reported on an ongoing basis within 14 calendar days after the date of the end of the payroll cycle in which the change occurs. There is a $5.00 per calendar day fine until the required information is received. 5-2 Teachers Retirement Association 07.12

35 Payroll and Demographic Reporting Payroll Data Submitting Data and Remittances Payroll data contains member-specific information for a set payroll period such as: salary, deductions, pay period begin and end dates, fiscal year salary earned, etc. See page 5-12 for a complete list of data fields. Remittance payments must refer to the payroll batch ID as the key to identifying all related payroll batches. Payroll batches must balance with remittances. The TRA Payroll Remittance Report, TRA-7600 (AE-20), must accompany remittances and be signed by a district-approved representative, usually the payroll specialist (see page 5-24). Submitting a payment through E-Payment does not constitute the signature of a district-approved representative. TRA also requires a signed TRA-7600 form. Payroll data consists of two types of records: 1) one payroll header record, and 2) one or more payroll detail records. Payroll Header Record Payroll Detail Record Electronic Fund Transfer This type of record always appears on the first line of your payroll data file. It identifies the file as payroll information and summarizes the contents of the file, such as total employee deductions, total salary, etc. This type of record contains payroll information about a specific TRA member. You must report payroll detail for all members paid during each pay period. The following Electronic Fund Transfer (EFT) capabilities are available: Submit electronic payment of contributions Designate the TRA batch for which the payment is being made Set the payment date Pay outstanding invoices View previous payments Cancel pending payments A tutorial is available on the TRA web site at: If new staff are hired who will handle the EFT process, please contact your TRA payroll processor so a new employer-specific User ID can be assigned. Penalties MS , subd. 4b, 6 MS , subd. 4d, 6 By statute, payroll data and remittances must be received by TRA within a specified period of time; otherwise, the following penalties apply: If the employee and employer contributions (remittances) are not received within 14 calendar days of the date of the payroll warrant, the amount will accrue interest at an annual rate of 8.5 percent compounded annually from the due date until the amount is received. If payroll data is not received within 14 calendar days of the date of the payroll warrant, a fine of $5 per calendar day will be assessed until TRA receives the required data. Teachers Retirement Association

36 Payroll and Demographic Reporting Definition of Basic and Coordinated Plan Membership The following explanation of Basic and Coordinated plan membership is provided since you are required to differentiate between Basic and Coordinated salary and deductions on each member s payroll detail record. Coordinated Plan members contribute to Social Security in addition to TRA under a Section 218 agreement. Their TRA benefits are coordinated with Social Security and Medicare coverage. All new TRA members belong to the Coordinated Plan. Even if they are exempt from Social Security for any reason they are considered Coordinated members for contribution and benefit purposes. Legislation passed during the 2010 session increased member and employer contribution rates by 0.5 percent annually over a four-year period beginning July 1, On July 1, 2014, the member and employer rate will each be 7.5 percent. Contributors Prior to July 1, 2011 July 1, 2011 July 1, 2012 July 1, 2013 July 1, 2014 Employers 5.50% 6.00% 6.50% 7.00% 7.50% Coordinated Members Members 5.50% 6.00% 6.50% 7.00% 7.50% Coordinated Plan Employers Basic 9.50% 10.00% 10.50% 11.00% 11.50% Members Members Basic Plan 9.00% 9.50% 10.00% 10.50% 11.00% Employers Minneapolis Add l 3.64% 3.64% 3.64% 3.64% 3.64% Retired TRA members do not have TRA contributions withheld from their salary if they return to work with a TRA-eligible employer after retirement. However, TRA retirees/annuitants are subject to Social Security and Medicare withholding for earnings after retirement. Their salary must be reported as Coordinated salary, because they are now contributing to Social Security. For retired members, schools should only report teaching salary plus any income paid by the school to a member as an independent contractor or consultant. Basic Plan members are only eligible for Medicare if they qualify under Social Security rules. Prior to July 1, 2006, TRA had very few Basic members who have been contributing annually (or on an approved leave of absence when not teaching) since January 1, 1960, which is required in order to retain Basic coverage. The number of TRA Basic members increased on July 1, 2006, due to the Minneapolis Teachers Retirement Fund Association (MTRFA)/TRA merger. Some community college charter teachers became Basic TRA members after January 1, In 1989, some Basic members elected to obtain Medicare coverage in addition to Basic coverage. 5-4 Teachers Retirement Association 07.12

37 Payroll and Demographic Reporting Teachers Retirement Association

38 Payroll and Demographic Reporting Demographic Header Record Demographic Header Record Field Name Start End Length 1. Transaction code N Always 01 for demographic header record Data Type Field Layout Field Description 2. Employer unit number N TRA standard: 3-digit county (group) number, 5-digit district (unit) number This field identifies the information as a demographic header record. Your employer unit number is the number assigned by TRA. Use leading zeros as required (e.g., ). 3. Batch creation date N Format: YYYYMMDD This field displays the date the file was created and is automatically generated. 4. Batch creation time N Format: HHMM (24 hours) This field displays the time the file was created and is automatically generated. 5. Total number of records in batch (including header record) N Zero filled, right justified, no decimal positions This field displays the total number of records (or lines) contained in the demographic file. The demographic header record is considered a record and should be reflected in the total count. This field is also automatically generated. 6. Filler AN Blank spaces (TRA use only) This is an informational field. It informs the software vendor that each record must contain a total of 276 characters and that characters contain blank spaces. 5-6 Teachers Retirement Association 07.12

39 Payroll and Demographic Reporting Demographic Detail Record Demographic Detail Record Field Name Start End Length 1. Transaction code N Always 02 for demographic detail records Data Type Field Layout Field Description This field identifies the information as a demographic detail record. 2. Name AN Last name, comma, first name, space, middle name 3. Street line AN Street address, not rural route number; use standard U.S. Postal Service abbreviations Name format. Punctuation is allowed for a hyphen or an apostrophe in a name. If a middle initial is used, do not include a period. The street address should appear on line 1. Only use the second address line if necessary. Use standard U.S. Postal Service abbreviations and omit punctuation. Please note that these abbreviations are for street suffixes only, not street names or cities. Apartment, suite or building numbers appear on the same line as the delivery address. Rural route numbers should be used only if a street address has not been assigned. Do not enter a street address AND a PO box number. 4. Street line AN Use second line only if Only use this line if necessary (see above). necessary 5. City AN City of member. 6. State AN Valid postal abbreviation Use valid postal abbreviations only. 7. Zip N Left justified 5-digit zip required Format: (left justified) 5-digit zip code required 9-digit zip+4 code if providing a 9-digit zip, please fill the rest of the field with zeros (e.g., ) 11-digit delivery point code optional Teachers Retirement Association N = Numeric, AN = Alphanumeric 5-7

40 Payroll and Demographic Reporting Demographic Detail Record Field Name Start End Length Data Type Field Layout Field Description 8. SSN N Field length must be 9 digits All characters must be numeric The first three digits must be greater than 001 Digits must not be all the same 9. Employer-assigned employee ID Must be valid Social Security number. Do not include dashes. Do not enter incorrect Social Security numbers AN Blank if not used The combination of numbers and letters that you use to identify your employees. It can be blank if you do not use one. 10. TRA number N Zero filled, right justified When you provide demographic information for a new teacher, TRA assigns a TRA number and sends membership registration directly to the member. You will receive a report that lists newly-assigned TRA numbers, including TRA numbers for members who were enrolled through other employer units. If you do not know the TRA number, contact our Customer Service Information Center at or If it is absolutely impossible to find the correct TRA number, it is allowable to fill with all zeros. Filling this field with any other information is not acceptable. 11. Date of birth N Format: YYYYMMDD Default to blanks 12. Exempt status A A Exempt annuitant B Exempt technical college (see field description) C Exempt independent consultant or contractor Blank if not used Entering the correct date of birth is very important. If it is absolutely impossible to enter an accurate date of birth, leave the field blank; do not enter an incorrect date of birth. Use this field to indicate that TRA deductions will not be taken from a member s salary because they are exempt. Leave the field blank if it does not apply. Technical Colleges Only Exempt technical college refers to a teacher who is performing service that is incidental to the regular nonteaching occupation of that person, AND the technical college stipulates the service will not exceed 300 hours, AND the service does not actually exceed the 300 hour limit in a fiscal year. 5-8 Teachers Retirement Association 07.12

41 Payroll and Demographic Reporting Demographic Detail Record Field Name Start End Length 13. Blank Blank 14. Blank Blank 15. Status change N 01 First employed 02 Terminate employment 03 Resume employment 04 Disability 05 Sabbatical leave 06 Medical leave 07 Parental leave 08 Extended leave 09 Military leave 10 Family leave 11 Other leave 12 Workers comp 13 Death 14 Legislative leave 15 Unrequested/layoff 16 Voluntary leave, state only 17 Union leave 18 Part-time teacher program Data Type Field Layout Field Description Enter the appropriate code in this field when the member s employment status changes. For example, report a status change when a member goes on leave or returns to work after a leave. Most status change codes are self explanatory, except for the following: 01 First employed means the starting work date, including workshops 02 Terminate employment; refer to the explanation on page 4-12 for further information. 03 Resume employment means the first work day back from leave or other time off the payroll. 04 Disability (when reported as a medical leave on TRA-1500) When a member is granted a leave of absence, you must report the leave details (online using your employer logon) and submit TRA-1500 (use TRA-1501 for an extended leave of absence) to TRA. You must also submit a new demographic record with the appropriate status change code (and effective date of change see field #16 below) when a member goes on a leave and when a member returns from a leave. Teachers Retirement Association N = Numeric, AN = Alphanumeric 5-9

42 Payroll and Demographic Reporting Demographic Detail Record Field Name Start End Length Data Type Field Layout Field Description 15. Status change (cont d) Example: A member is granted a paternal leave, which starts on February 10, 2012 and ends on April 29, When the member starts the leave, enter a status code of 07. When the member returns from the leave, enter the status code of 03. Any changed records will be applied to the current fiscal year. Prior year changes must be submitted on paper. Remember, you must submit TRA-1500 for any leave that is classified as status 04, 05, 06, 07, 09, 10, 11, 14, 16 or 17. Submit a TRA-1501 for an extended leave of absence, which is a status 08. (02) Terminate employment It is very important to submit the terminate employment status change and the date of the status change to TRA. Any time a member resigns or retires from teaching service, you must submit a new/updated demographic record that indicates the status change of 02 terminate employment and the effective date of the status change (see field #16 below). You may enter termination information when a member submits their letter of resignation to you. The latest date that this status change and the effective date of the status change could be entered would be 14 calendar days after the date of the end of the payroll cycle in which the termination occurs. This information is necessary since the date you enter in field #16 will be used to calculate the member s retirement benefits. Refer to page 4-12 for an explanation of Termination Date. 16. Effective date of status change N Format: YYYYMMDD Default to blanks The effective date of any status change (see previous page) Teachers Retirement Association 07.12

43 Demographic Detail Record Field Name Start End Length 17. Gender A M Male F Female Payroll and Demographic Reporting Data Type Field Layout Field Description This is a required field. Do not leave blank. 18. Eligibility code N 01 Teacher (full or part time) 02 Teacher/administrator 03 Substitute teacher 04 Superintendent 05 College instructor 06 Community education director 07 Counselor 08 Curriculum writer 09 Director of joint power unit 10 Drivers education instructor 11 Early childhood instructor 12 Employee or officer of a professional org 13 Head coach (certified) 14 Homebound instructor 15 Librarian 16 Nurse 17 Principal 18 Psychologist 19 Retired teacher (not TRA annuitant) 20 Social worker 21 State high school league coordinator 22 Therapist 23 Title I instructor (licensed) 24 Tutor Gender of member. Please refer to pages 2-1 through 2-3 of the Membership Section with questions regarding the appropriate eligibility code, or contact TRA with questions. You must enter one of the approved codes. 19. Filler AN Blank spaces (TRA use only) This is an informational field and informs the software vendor that each record must contain a total of 276 characters and characters 207 through 276 will contain blank spaces. Teachers Retirement Association N = Numeric, AN = Alphanumeric 5-11

44 Payroll and Demographic Reporting Payroll Header Record Payroll Header Data Record Field Name Start End Length Type Field Layout Payroll Header Record Field Description 1. Transaction code N Always 03 for payroll batch header record This field identifies the information as a payroll header record. 2. Employer unit number N TRA standard number: 3-digit county (group) number, 5-digit (unit) number Your employer unit number is the number assigned by TRA. It contains the 3-digit county (group) number, plus the 5-digit district (unit) number. Use leading zeros as required (e.g., ). 3. Payroll identifier (batch number) AN Must be a unique identifier; cannot be blank This field must be unique for each batch and cannot be blank. The payroll identifier must be recorded on the corresponding TRA Payroll Remittance Report, TRA An example of the TRA Payroll Remittance Report is shown on page Pay cycle N 01 Weekly 02 Biweekly 03 Semimonthly 04 Monthly 5. Pay code AN Identifies separate payrolls with same date (e.g., 1 is first monthly, 2 is second) Blank if only one payroll per cycle This field identifies the frequency of the pay cycle. This field identifies individual payroll records when two or more are processed with the same payment date. For example, some reporting units run a separate payroll batch for their administrators and one for their teachers, but both batches have the same payment date. A 1 should be used to indicate the first payroll batch, and a 2 to indicate the second payroll batch. The pay code field may be blank if you only generate one type of payroll per cycle. 6. Payment date N Format: YYYYMMDD Payment date appears in the payroll header record, as well as all payroll detail records. This date should reflect the date that appears on the payroll check Teachers Retirement Association 07.12

45 Payroll and Demographic Reporting Payroll Header Data Record Field Name Start End Length Type Field Layout Payroll Header Record Field Description 7. Supplemental pay code A Y for yes Blank if not a supplemental payroll This field indicates if the payroll is part of a regular payroll batch or a supplemental batch. Indicate a Y in this field if it is for a supplemental batch; otherwise, leave this field blank. 8. Batch creation date N Format: YYYYMMDD This field displays the date the file was created and will be automatically generated by the software/system. 9. Batch creation time N Format: HHMM (24 hours) This field displays the time the file was created and will be automatically generated by the software/system. 10. Total Coordinated salary sign AN Blank if positive, sign (-) if negative A (-) indicates an adjustment. Refer to the information on Basic and Coordinated members on page Total Coordinated salary 12. Total Coordinated employee deductions sign 13. Total Coordinated employee deductions 14. Total Coordinated employer deductions sign 15. Total Coordinated employer deductions N Zero filled, right justified, two decimal positions, implied decimal point AN Blank if positive, sign (-) if negative N Zero filled, right justified, two decimal positions, implied decimal point AN Blank if positive, sign (-) if negative N Zero filled, right justified, two decimal positions, implied decimal point 16. Total Basic salary sign AN Blank if positive, sign (-) if negative Refer to the information on Basic and Coordinated members on page 5-4. A (-) indicates an adjustment. Refer to the information on Basic and Coordinated members on page 5-4. Refer to the information on Basic and Coordinated members on page 5-4. A (-) indicates an adjustment. Refer to the information on Basic and Coordinated members on page 5-4. Refer to the information on Basic and Coordinated members on page 5-4. A (-) indicates an adjustment. Refer to the information on Basic and Coordinated members on page 5-4. Teachers Retirement Association N = Numeric, AN = Alphanumeric 5-13

46 Payroll and Demographic Reporting Payroll Header Record Field Name Start End Length Data Type Field Layout Payroll Header Record Field Description 17. Total Basic salary N Zero filled, right justified, two decimal positions, implied decimal point 18. Total Basic employee deductions sign AN Blank if positive, sign (-) if negative Refer to the information on Basic and Coordinated members on page 5-4. A (-) indicates an adjustment. Refer to the information on Basic and Coordinated members on page Total Basic employee deductions 20. Total Basic employer deductions sign 21. Total Basic employer deductions 22. Total number of records in batch N Zero filled, right justified, two decimal positions, implied decimal point AN Blank if positive, sign (-) if negative N Zero filled, right justified, two decimal positions, implied decimal point N Header record is included in count. Zero filled, right justified, no decimal positions Refer to the information on Basic and Coordinated members on page 5-4. A (-) indicates an adjustment. Refer to the information on Basic and Coordinated members on page 5-4. Refer to the information on Basic and Coordinated members on page 5-4. This field displays the total number of records (or lines) contained in the payroll data file. The payroll header record is considered a record and should be reflected in the total count. This field is also automatically generated by the software/system. 23. Filler AN Blank spaces (TRA use only) This is an informational field and informs the software vendor that each record must contain a total of 276 characters and characters 116 through 276 will contain blank spaces Teachers Retirement Association 07.12

47 Payroll and Demographic Reporting Payroll Detail Record Payroll Detail Data Record Field Name Start End Length Type Field Layout Field Description 1. Transaction code N Always 04 for payroll detail records This field identifies the information as a payroll detail record. 2. SSN N Field length must be 9 digits. All characters must be numeric. The first three digits must be greater than Employer-assigned employee ID Must be member s valid Social Security number. Digits must not be all the same. Do not create an erroneous SSN AN Blank if not used The combination of numbers and letters that you use to identify your employees. It can be blank if you do not use one. 4. TRA number N Zero filled, right justified When you provide demographic information for a new teacher, TRA will assign a TRA number and send membership registration directly to the member. You will receive a report that lists newly-assigned TRA numbers, including TRA numbers for members who were enrolled through other employer units. If you do not know a TRA number, contact our Customer Service Information Center at or If it is absolutely impossible to find the correct TRA number, it is allowable to fill with all zeros. Filling this field with any other erroneous digit is not acceptable. 5. Current position N 01 Teacher 02 Administrator Employer units may check a member s status online by accessing the tab titled, Member and Annuitant Status. 01 Teacher As broadly defined in MS , subd 2 (page 2-1 of the Membership Section). 02 Administrator Educational administrators including, but not limited to: superintendent, assistant superintendent, principal, director (normally a 12-month contract). If the member is considered an administrator for any portion of that member's position, then it is appropriate to classify the member as an administrator. Teachers Retirement Association N = Numeric, AN = Alphanumeric 5-15

48 Payroll and Demographic Reporting Payroll Detail Data Record Field Name Start End Length Type Field Layout Field Description 6. Salary sign AN Blank if positive amount, sign A (-) indicates an adjustment. (-) if negative 7. TRA-covered salary N Zero filled, right justified, two As defined in the Salary Section. decimal positions, implied decimal point 8. Deduction sign AN Blank if positive amount, sign A (-) indicates an adjustment. (-) if negative 9. TRA deduction amount withheld N Zero filled, right justified, two decimal positions, implied Refer to page 5-4. decimal point 10. Transaction type N 01 Pay record 02 Adjustment 01 Pay record standard pay record 02 Adjustment indicates increment or decrement to the payment type indicator. Only use this code to adjust a pay record already reported. 11. Payment type N 01 Regular contracted licensed activity 02 Extracurricular & Other Non-Licensed Work 03 Substitute & Other Licensed Work 04 Grievance 05 Retroactive 05 Performance Payments or Q-Comp 06 Employer-paid employer share on unearned salary 07 Member-paid employer share on unearned salary Be sure to input adjustments and changes before you submit your next payroll. If a correction for a terminated employee is reported more than 30 days after the payroll, the employer unit may be responsible for employee contributions that may have been refunded. 01 Regular contracted licensed salary This payment type is used to report licensed contracted salary. 02 Extracurricular & Other Non-Licensed Work This payment type includes, but is not limited to, service classified as state high school league activity, non-instruction activity or noncredit activity. Extracurricular pay generally does not require a teaching license and may not be TRA eligible if not performed with teaching. Examples of extra-curricular work are: Sports coaching, drama, band, choir, yearbook, newspaper, National Honor Society, driver s education, science club, etc Teachers Retirement Association 07.12

49 Payroll and Demographic Reporting Payroll Detail Record Field Name Start End Length Data Type Field Layout Field Description Examples of non-licensed work are: Para-professional aide work, some types of community work, education instruction, bus driving, etc. 03 Substitute & Other Licensed Work This type is used for all non-contracted teaching-license required salary. It is most typically used for substitute teachers who are usually non-contracted members. Examples would be curriculum writing, summer school teaching, home school teaching, etc. 04 Grievance This payment type is automatically reviewed by TRA and you may be required to submit additional information. If pay is for multiple fiscal years, a separate record must be provided for each year. 05 Retroactive This payment type should be used for retroactive payments caused by contract settlements. Using this pay type is helpful when reviewing payroll data. Current fiscal year retroactive pay may be reported as transaction type 01, regular. The pay period begin date and the pay period end date for the retro pay must represent when the retroactive payment was earned. Can also be used to report Q-Comp. If the retroactive pay is for the previous fiscal year, it must be reported as pay type 05, retroactive pay; fiscal year indicator for the correct year; and transaction type 02, adjustment. The pay period begin date and the pay period end date for the retro pay must represent when the Teachers Retirement Association N = Numeric, AN = Alphanumeric 5-17

50 Payroll and Demographic Reporting Payroll Detail Record Field Name Start End Length Data Type Field Layout Field Description retroactive payment was earned. Can also be used to report Q-Comp. 05 Performance Payments or Q-Comp Since Q-Comp is licensed work, never report as payment code 02. Enter the correct fiscal year indicator on the record with the correct pay period begin and end dates. 06 Employer-paid employer share on unearned Used for all Sabbatical Leaves and the Part-Time Teacher Program participants, where the employer pays employer contributions. For a Sabbatical Leave, the member must pay employee contributions on 100 percent of the full-time equivalent (FTE) salary, and the employer must pay employer contributions on 100 percent of the FTE salary. Failure to report unearned Sabbatical salary will result in a shortage billing plus interest to the employer. For a Part-Time Teacher Program participant, the member must pay employee contributions on 100 percent of the FTE salary, and the employer may agree to pay employer contributions on 100 percent of FTE salary (also refer to Payment Type 07). For example: A member has full-time equivalent salary of $1, per pay period. Two payroll records for each pay period must be submitted: Payment type 01: Payment type 06: earned salary, regular activity unearned salary, employee contributions paid by member, employer contributions paid by employer 5-18 Teachers Retirement Association 07.12

51 Payroll and Demographic Reporting Payroll Detail Record Field Name Start End Length Data Type Field Layout Field Description Member earned $ in salary and had $ in unearned salary. Employer will make the contribution of 6.5%. Payment type 01: Payment type 06: $ salary (earned) $39.00 member deductions $39.00 employer contributions $ salary (unearned) $26.00 member deductions $26.00 employer contributions Teachers Retirement Association N = Numeric, AN = Alphanumeric 5-19

52 Payroll and Demographic Reporting Payroll Detail Data Record Field Name Start End Length Type Field Layout Field Description 11. Payment type (cont d) 07 Member-paid employer share on unearned Only for Part-Time Teacher Program participants where the employee pays the employer contributions. Member must make employee contributions on 100 percent of FTE salary, plus the employer contributions on the unearned salary. For example: A member has full-time equivalent salary of $1, per pay period. Two payroll records for each pay period must be submitted: Payment type 01: Payment type 07: earned salary, regular activity unearned salary, employee contributions paid by member, employer contributions paid by member (employer contributions are not tax-sheltered) Member earned $ in salary and had $ in unearned salary. Employer will not make contribution (with 6.5% contribution rate): Payment type 01: Payment type 07: $ salary (earned) $39.00 member deductions $39.00 employer contributions $ salary (unearned) $26.00 member deductions (pre-tax) $26.00 member paid employer contributions (after tax) 12. Blank 5-20 Teachers Retirement Association 07.12

53 Payroll Detail Record Field Name Start End Length 13. Blank 14. Fiscal year AN Format: YY Payroll and Demographic Reporting Data Type Field Layout Field Description Fiscal year to which activity applies; optional for current year The fiscal year indicator pertains to the fiscal year in which the salary was earned (when service was performed). Leave this field blank if the date paid is in the same fiscal year as the pay period begin and end dates. If not used, leave blank For example, the fiscal year indicator for the period July 1, 2011 through June 30, 2012, is Summer payoffs need special attention, because a teacher may work during one fiscal year, but receive a check dated in the next fiscal year. It is important to remember that the fiscal year indicator for these payments must match the fiscal year in which the teacher worked. For example, payments a teacher receives for work completed between July 1, 2011 and June 30, 2012, should be coded FY 12, even if a July 1, 2012, or August 1, 2012, check date is shown. 15. Pay period begin date N Format: YYYYMMDD Note: Pay period begin date and pay period end date must be in the same fiscal year. For example, a pay record with a begin date of June 16 and an end date of July 15 requires two records: 1) a record for June 16 June 30 and another record for July 1 July Pay period end date N Format: YYYYMMDD Note: Pay period begin date and pay period end date must be in the same fiscal year and may not be after a member s termination date. For example, a teacher officially resigns on June 12. The usual pay period is June 1 June 15. Submit a pay period of June 1 June 12. Teachers Retirement Association N = Numeric, AN = Alphanumeric 5-21

54 Payroll and Demographic Reporting Payroll Detail Data Record Field Name Start End Length Type Field Layout Field Description 17. Payment date (check date) N Format: YYYYMMDD Payment date appears in the payroll batch header record, as well as individual payroll records. The date must reflect the actual date on the employee s paycheck. 18. Filler AN Blank spaces (TRA use only) This is an informational field and informs the software vendor that each record must contain a total of 276 characters and characters 83 through 276 will contain blank spaces Teachers Retirement Association 07.12

55 Payroll and Demographic Reporting File Upload (Electronic Reporting) Submit data to TRA by uploading your file: 1. Access the TRA web site at 2. Click on MyEmployer Login and enter your User ID and Password. 3. Select the Upload File Tab. 4. Select the file you wish to upload by clicking the Browse button. 5. Click the Upload File button. 6. Wait for the confirmation message. If you have problems uploading a file, please contact your payroll processor or auditor. All other methods of data submission are being phased-out and will only be accepted if prior approval has been granted by TRA. E-Payment Submit data to TRA through E-Payment: 1. Access the TRA web site at 2. Click on MyEmployer Login and enter your User ID and Password. 3. Choose E-Payment 4. Choose the payment you wish to make by checking the Make Payment? box and then by choosing Continue. a. If payment shown is correct, choose Make Payment. b. If payment is incorrect, choose Edit Payment and make changes. 5. You will be directed to the US Bank electronic payment system. You must complete the registration process (the Org ID, User ID and Password are the same as those used on the TRA web site). Once registered, log on to the US Bank system. 6. Choose a scheduled payment date and the account from which you wish to pay, and then choose Continue. 7. Verify that the payment detail is correct and confirm your submission. 8. Print a copy of the payment confirmation screen for your records. 9. Choose Continue to Main Menu to complete the transaction and access other E-Payment features. 10. Choose Exit to end your US Bank E-Payment session. 11. If you choose, you will receive a payment confirmation . Paper Reporting Mailing Address Hard copies of records are not required, and should not be sent unless specifically requested by a TRA payroll processor. If you have received pre-approval from TRA to report by paper, please mail to: Teachers Retirement Association Data Integrity Division 60 Empire Dr Ste 400 St Paul MN Teachers Retirement Association

56 Payroll and Demographic Reporting 5-24 Teachers Retirement Association 07.12

57 Section 6. Leave of Absence

58 Leave of Absence Types of Leave Members approved for one of the following types of leaves qualify to pay for service credit during the period of the leave: Sabbatical leave (MS ) Military leave (MS ) Parental leave (MS ) Medical leave (MS ) Extended leave (MS , 122A.46, 124D.10 and 136F.43) Family leave (MS ) Legislative leave (MS ) Voluntary unpaid leave (state employees only) (Voluntary Unpaid Leave Law) Union leave (MS , subd. 4) Part-Time Teacher Program (MS ) Other Leave Although not actually a leave, this program allows members to apply to pay for full-time service. Additional information is provided on page 6-6. If a leave does not fall under one of the above categories, it is considered an Other leave. State statute does not provide for purchase of retirement service credit for the period of an other leave. The attached Leave of Absence Overview brochure contains detailed information about each leave type, including eligibility requirements and contribution payment information. 6-2 Teachers Retirement Association 07.12

59 Leave of Absence General Leave Reporting Steps Status change codes: Family leave (10) Legislative leave (14) Medical leave (06) Military leave (09) Other leave (11) Parental leave (07) Union leave (17) Voluntary leave (16) An authorized leave of absence, granted by the governing board of a school district, MnSCU or other TRA reporting unit, must be reported upon approval. Most leaves should be submitted via the internet, by logging on to MyEmployer Login at the TRA web site ( If for some reason you are unable to successfully transmit the information via the internet, contact your Payroll Processor. The Leave of Absence form, TRA-1500, is available under the Employer Section of our web site. If you cannot access our web site, request this form by calling our Customer Service Information Center. 1. Go to the TRA web site and enter your login information. Then go to the Leave Tab and submit the leave electronically. Extended leaves cannot be submitted to TRA electronically see page 6-3 for more information. OR Complete and submit the Leave of Absence form, TRA-1500, to TRA by mail or fax. 2. Submit a demographic record with the following revisions: a. The status change code should indicate the type of leave b. The date of the status change - the first day the member is on leave 3. When the leave ends, the status change code on the demographic detail record should be changed to 03 resume employment. 4. The date of the status change should be the day after the last day of the leave or the first day the member returns to employment, whichever is earlier. Demographic record changes must be made within 14 calendar days after the date of the end of the payroll cycle in which the status change occurred (the first day that the member started the leave). Revisions to an existing leave of absence must be submitted using the Leave of Absence form, TRA-1500, and cannot be made electronically. Special Note Other Leaves: Paid and unpaid leaves should be reported to protect TRA benefit rights for a member while on leave, however, a member on this leave does not receive any allowable service credit for the period of the leave. Although an authorized other leave of absence protects the employer/employee relationship and employment reinstatement privileges, state statute does not provide for the purchase of retirement service credit for the period of an other leave. When reporting an other leave, you will be required to provide a reason for the leave, so TRA can verify whether or not the leave fits into any other leave category. Teachers Retirement Association

60 Leave of Absence Military Leave (M.S ) Military leave may be granted for purposes of entering the military service. Purchase is allowed, up to 5 years, to cover the period of military service if the member was discharged under honorable conditions and must upon release from active duty: 1) return to teaching service within a reasonable length of time; or 2) enroll full-time in an accredited educational institution within a reasonable length of time. The period of educational enrollment cannot exceed two years and the member must resume teaching by the beginning of the next school year following completion of studies. Payment must include both member and employer contributions based on the salary that the member would have received if they had continued to provide teaching service. Any salary earned by the member and paid from the school district during the military leave period will be deducted from the amount of salary eligible to be purchased. When the member pays the member contributions, the employer must pay the employer contributions. Payment must be made during the period which begins with the date that the teacher returns to teaching and which has a duration of 3 times the length of the military service period, not to exceed 5 years. If service was less than 1 year, payment may be made within 1 year from date of discharge. TRA will send a military leave certification to the school to verify eligible salary and leave period. When the member makes the employee portion of the leave payment, TRA will bill the school for their cost of the leave payment. By Minnesota Statute, the employer is required to pay for the employer share of the military leave. The employer must pay interest on both the employee and employer contribution amounts at a rate of 8.5% compounded annually from the end of each fiscal year of the leave to the end of the month in which the payment is received. 6-4 Teachers Retirement Association 07.12

61 Leave of Absence Extended Leave of Absence Reporting Steps New or revised extended leaves should be reported using the Extended Leave of Absence Report, TRA We are not able to accept electronic extended leave of absence reporting. Status change code: Extended leave (08) 1. Submit the Extended Leave of Absence form, TRA-1501, to TRA by mail or fax. This form is available under the Employer Section of our web site. If you cannot access our web site, request a form by calling our Customer Service Information Center 2. Attach a copy of any contribution payment agreement. The law requires that, Any school district paying the employee s retirement contributions shall forward to the applicable retirement association or retirement fund a copy of the agreement executed by the school district and the employee. 3. Submit a demographic record with the following revisions: a. The status change code should indicate the type of leave b. The date of the status change the first day the member is on leave 4. When the leave ends, the status code on the demographic detail record should be changed to 03 resume employment. 5. The date of the status change should be the day after the last day of the leave or the first day the member returns to employment, whichever is earlier. Demographic record changes must be made within 14 calendar days after the date of the end of the payroll cycle in which the status change occurred (the first day that the member started the leave). Teachers Retirement Association

62 Leave of Absence Part-Time Teacher Program Reporting Steps Status change code: Part-Time Teacher Program (18) Although not actually a leave, this program allows members to apply to pay for full-time service. Board approval must be granted prior to October 1 of the school year and be reported to TRA on the Part-Time Teacher Program form, TRA-7500, by October Determine the salary based on the full fiscal year and the employment pattern of the teacher during the most recent fiscal year. 2. Determine the portion of the employer contributions that will be paid by the employer and the portion of the employer contributions that will be paid by the employee. 3. Go to the TRA web site and login using MyEmployer Login. Then go to the Leave Tab and submit the leave electronically. OR Complete and mail or fax the Part-Time Teacher Program form, TRA- 7500, to TRA. 4. Submit a demographic record with the following revisions: a. The status change code should be 18, Part-Time Teacher Program b. The date of the status change the first day of the member s participation in the Part-Time Teacher Program. 5. When payroll information is established, earned salary will be coded as payment type 01, unearned salary will be coded payment type 06 or 07. Refer to pages 5-16 through 5-19 of the Payroll and Demographic Reporting Section for additional information about payment type codes. 6. When the leave ends, submit a demographic record that changes: a. The status code of 03 resume employment. b. The date of the status change should be the day following the last day of participation in the Part-Time Teacher Program. Demographic record changes must be made within 14 calendar days after the date of the end of the payroll cycle in which the status change occurred (the first day that the member started the leave). Special Note - Legislators: A member who also serves in the Minnesota Legislature is eligible to participate in the Part-Time Teacher Program. Legislators participating in the program may purchase any shortfall in their salary and service credit. The employer must submit a Part-Time Teacher Program form, TRA-7500, to TRA by March 1 of the school year for which the member requests to make retirement contributions. 6-6 Teachers Retirement Association 07.12

63 Military Service Military Service Prior Service Credit Purchase (M.S ) Leave of Absence This legislation is focused on members who are past the window of time allowed to purchase military leave. Prior military service is the only prior service credit purchase allowed under legislation. Effective May 23, 2009, vested members with prior military service who have been honorably discharged, may purchase TRA service credit at full actuarial value for the initial period of enlistment, induction, or call to active duty. Purchase may not be made if the member has purchased or otherwise received service credit from any Minnesota defined benefit public employee pension plan, other than a volunteer fire plan, for the same period of service. Payment must be made before the member s termination of teaching service. The current employer or the prior employer may, at its discretion, pay all or any portion of the payment amount that exceeds an amount equal to the employee contribution rates in effect during the period or periods of prior service applied to the actual salary rates in effect during the period or periods of prior service, plus interest at the rate of 8.5 percent a year compounded annually from the date on which the contributions would otherwise have been made to the date on which the payment is made. If the employer agrees to payments under this subdivision, the member must make the employee payments within 90 days of the prior service credit authorization. If that employee payment is made, the employer payment must be remitted to the chief administrative officer of the public pension plan within 60 days of receipt. Teachers Retirement Association

64 Leave of Absence Sabbatical Leave Reporting Steps Status change code: Sabbatical leave (05) 1. Determine the full normal base contract salary that would have been paid to the member if the member was not on the sabbatical leave. 2. Go to the TRA web site and login using MyEmployer Login. Then go to the Leave Tab and submit the leave electronically. OR Complete and mail or fax the Leave of Absence Report form, TRA-1500, to TRA. 3. Submit a demographic record with the following revisions: a. The status change should be 05, sabbatical leave b. The date of the status change the first day of the member s sabbatical leave. 4. When payroll information is established, earned salary will be coded payment type 01, unearned salary will be coded payment type 06. Refer to pages 5-16 through 5-19 of the Payroll and Demographic Reporting Section for additional information about payment type codes. 5. When the leave ends, submit a demographic record that changes: a. The status code of 03 resume employment. b. The date of the status change should be the day following the last day of the leave. Contributions are required on the full contract salary and will be withheld from the member s gross pay. These contributions are paid through payroll deduction and are not subject to state or federal taxes until retirement. The employer pays all employer contributions based on full contract salary. If a reduced sabbatical salary is paid for two years, contributions must be paid based on full contract salary during both years. Demographic record changes must be made within 14 calendar days after the date of the end of the payroll cycle in which the status change occurred (the first day that the member started the leave). Unrequested Leave/Layoff Reporting Steps Status change code: Report unrequested leaves on your demographic record as stated above in Steps 3 and 5 (change status code, enter date of status code and review pay period end date. You are not required to submit a Leave of Absence form, TRA Unrequested leave/layoff (15) 6-8 Teachers Retirement Association 07.12

65 Section 7. Reports