At their July 17th Board meeting, the TRS Board of Trustees adopted new rates for the TRS-Care surcharges with an effective date of September 2011. Pursuant to Insurance Code 1575.204, the board is required to set the surcharge at an amount sufficient to pay the full cost of the retirees’ and any enrolled dependents’ participation in the group program. The new surcharge rates reflect the increase in cost of the program since the surcharge rates were first adopted in 2005.
Although the laws governing employment after retirement have changed effective June 2011, the rules for the Pension Surcharge and the TRS-Care Surcharge reports HAVE NOT changed.
Surcharges still apply to the employment of any retiree who:
- retired AFTER 9/1/2005
- is working in a TRS-eligible position (half-time or more)*
*Refer to TRS membership eligibility guidelines for complete criteria
Surcharges do not apply to retirees working:
- as a substitute
- less than half-time
- retired BEFORE 9/1/2005
If the employment of a retiree is subject to the pension surcharge and the TRS-Care surcharge, the retiree must complete form TRS 667, TRS-Care Employer Health Benefit Surcharge Information. The completion of this form by the retiree provides the information you will need to determine the amount due, if any, for the TRS-Care Surcharge Report.
Effective September 2011, the state contribution rate will change from 6.644% to 6%. Beginning with the September 2011 report the total contribution rate for the Reporting Entity Pension Surcharge for Reported Retirees Report (pdf) will be 12.4%.
Beginning with the September 2011, report use the rates provided in the attached document to determine the amount due for the Reporting Entity TRS-Care Surcharge for Reported Retirees Report (pdf).
The procedures used to determine the amount of the pension surcharge and the TRS-Care surcharge have not changed. Refer to the Payroll Manual located in the Employers section of the TRS website for detailed information.