1. TRS RULE 31.41 & RULE 41.4 DAVID R. LERMA PAYROLL SERVICES TRS Retiree Surcharge Rates Update 9/1/2013

2. Agenda TRS Return to Work Employer Pension Surcharge Employer Health Benefits Surcharge (TRS-Care)

3. TRS Return to Work Employer Pension Surcharge  Prior to 9/1/2013 (Rule 31.41):  TRS Pension Surcharges applied to retirees who retired after 9/1/2005 & worked 4 hours (50%) or more and for 4 ½ months.  Surcharge amount was 12.8% on the compensation paid to the retiree.  Departments incurred the pension surcharge due to TRS.  In August 2013, UTSA had 18 employees with an incurred expense of $5,191.60

4. TRS Return to Work Employer Pension Surcharge  Post 9/1/2013 ( Rule 31.41):  TRS Pension Surcharges will apply to retirees who retired after 9/1/2005 & working greater than 4 hours per each work day in that calendar month. (>50% on a monthly basis)  Surcharge amount is 13.2% on the compensation paid to the retiree. (Employer portion increased by.4%)  Departments will continue to incur the pension surcharge due to TRS.  As of September, UTSA had 13 employees with an incurred expense of $6,045.00

5. Employer Health Benefits Surcharge (TRS-Care)  Post 9/1/2013 Update (Rule 41.4):  TRS Care is a Self-funded retiree health benefits program administered by TRS.  TRS Care monthly premiums are a flat fee based on the level of coverage. (Determined by TRS)  Department will owe TRS Care Surcharge if the retiree is: Retired AFTER 9/1/2005 Working greater than 4 hours per each work day in any calendar month. (>50% on a monthly basis) Covered under TRS Care

6. Employer Health Benefits Surcharge (TRS-Care)  As of September, UTSA had 3 retirees participating in TRS Care with an incurred expense of $1,374.  Departments will incur the TRS-Care Surcharge expense.  Examples of TRS-Care Participants  Charter School Retiree  ISD Retiree Questions: david.lerma@utsa.edudavid.lerma@utsa.edu