Definition of Terms

An individual member's TRS account containing applications of salaries, deposits, payments for special service credit (excluding administrative fees), and interest earned.

The staff member selected to be the RE Portal contact responsible for submitting TRS ActiveCare information.

An instructor position with an institution of higher education that is filled on a semester-by-semester basis, compensated on a per class basis, and the duties include only those directly related to instruction of students.

State Minimum Salary adjusted by the CEI.

Compensation paid for services performed:

As a teacher, full-time librarian, counselor, or nurse;

OR

In a position covered under former Section 16.056* of the Texas Education Code (i.e., superintendent, principal, administrative officer, instructional officer, diagnostician, etc.);

PLUS

Any supplemental pay for duties that are part of a particular position that is subject to the state minimum salary.

*This section was repealed by the 74th Legislature (1995). It is only valid for the purpose of this report.

Salary docks, if any, are to be subtracted from the adjusted TRS salary and the state minimum salary.

Payment for duties that constitute a “wholly separate” job are excluded from the adjusted TRS salary for the purpose of this report.

Annual adjusted TRS salary and annual state minimum salaries are divided by the appropriate number of months in the term of payment of the contract (generally 10, 11, or 12 months).

This level of authority is only available to the designated Web Administrator at each reporting employer.  Administration authority will have rights and responsibilities to create, update, and inactivate RE contacts per the business needs of the RE and will also be able to manage web accounts for other RE contacts. Administration authority also includes Signature, Submit, and Display authority.

A monthly retirement benefit payment to service and disability retirees of TRS; a monthly survivor benefit to the beneficiary of a TRS member or retiree; or a payment under a QDRO (Qualified Domestic Relations Order) to an alternate payee of a portion of a retiree’s monthly retirement benefit payment.

The number of days of leave necessary to recuperate from all physical injuries sustained as a result of the assault sustained during the performance of the employee's regular duties.

Salary that is continued while the employee is on assault leave, as authorized by Section 22.003 of the Texas Education Code. It is eligible compensation for TRS purposes. If the employee receives worker's compensation paid as temporary wage replacement pay and compensation from the employer, the compensation from the employer may be reported to TRS and contributions withheld. Worker's compensation paid in the form of temporary wage replacement pay should be verified by the employer on the form TRS 22W, Verification of Worker's Compensation Payments, and the form should be submitted to TRS. If the employee verifies the worker's compensation to TRS by the end of the school year after the school year in which it is received, the cost to the employee is only the member contributions that would have been paid on the compensation. The member contributions must be paid in a lump sum by the end of the school year after the school year in which the worker's compensation is received. If the worker's compensation is not verified and the lump sum contributions are paid in the time period provided, the employee may establish the additional service credit and compensation by purchasing it as unreported service and compensation.

There are four (4) levels of authority in the RE Portal:

Administration

This level of authority is only available to the designated Web Administrator at each reporting employer.  Administration authority will have rights and responsibilities to create, update, and inactivate RE contacts per the business needs of the RE and will also be able to manage web accounts for other RE contacts. Administration authority also includes Signature, Submit, and Display authority.

Signature

An electronic signature is the official certification required by law which attests to the accuracy and completeness of the information submitted to TRS. Signature authority includes Submit and Display authority.

Submit

The Submit authority level allows the designated contact to submit report Detail components, Query for report processing results, and use the “View Employee Information” function.

Display

The most limited level of authority. This level of authority allows the designated contact to Query for report processing results and use the “View Employee Information” function.

A term used by some reporting employers for irregular employees. See Irregular Employment

The state entity that operates and maintains the TEXNET system used by reporting employers to submit required monthly contribution deposits

An oral or written employment agreement between an employee and a reporting employer.

An adjustment adopted in December 1990 by the foundation school fund budget committee. The basic allotment for each school district is adjusted by the assigned index to reflect the geographic variation in known resource costs of education due to factors beyond the control of the school district.

The salary and wages paid to TRS members that is eligible to be applied toward the member’s retirement benefit calculation.  See “Creditable Compensation” section earlier in this document

The month for which a report is currently due.

Payments for TRS monthly reports that are transmitted via TEXNET after the due date. The due date is the 6th day of the month following the calendar month for which the report is due. The TEXNET Deposits must be transmitted via TEXNET no later than 6 p.m., Austin time. If the 6th day of the month falls on a Saturday, Sunday, or Federal holiday, the due date is the previous business day.

Contributions made on behalf of a member through an employer pickup arrangement. Also referred to as “member contributions”. These amounts are “picked up” and deposited with TRS before taxes are withheld. In addition, this term can refer to the remittance of any contribution submitted by the reporting employer through any of the various monthly reports.

Detail is one of the required report components. Detail is used to report data required by each report.

Please read Creditable Compensation

Employment that is usually 40 clock hours per week. However, an employer may establish a lesser requirement for full-time employment for specified positions as long as the full-time requirement is not substantially less than 40 hours per week. In no event may full-time employment require less than 30 hours per week.

If there is no equivalent full-time position for a given position, the minimum number of hours required per week that will qualify the position for TRS membership is 15. This requirement applies to all positions.

The head of the reporting employer (e.g., the superintendent, president, chancellor, commissioner, director, or executive director). The head of the reporting employer remains ultimately responsible for the report and its accuracy and completeness.

An individual who is not an employee of the reporting employer but who is retained to perform a service or complete a project for the reporting employer. An independent contractor is usually not (1) under the day-to-day control of the reporting employer; (2) is not required to keep “office hours” or “work hours” as does an employee; (3) does not utilize the reporting employer’s facilities, equipment, or materials to perform the service; and (4) does not usually market the services to only one reporting employer. Duties for a position that are established in employer policies, laws, and/or rules indicate that the person is under the day-to-day control of the reporting employer. Further, having to teach a class or meet with students at an established time is considered having to keep “work hours”. For these reasons, a superintendent, principal, assistant principal, teacher, administrator, and/or coach are not independent contractors. Please note that this list of positions does not include all of the positions that are not suitable for independent contractors but includes the positions most frequently misidentified as independent contractor.

The term used by TRS to distinguish "school year" for TRS plan purposes from the 12-month period of each employer's academic school year.

Is typically temporary employment that occurs sporadically or on an "as needed" basis. Irregular employment is not eligible for membership in TRS.

Refers to an adjustment procedure used to effect a change to a member's account for salaries and/or deposits through the Regular Payroll Report using an RP 25, Regular Payroll Adjustment Record.

For the purpose of the monthly report, the term “member contributions” refers to three types of contributions made by the member:

The amount of member compensation withheld by the reporting employer before taxes and applied to the member’s account. These rates are set by the State Legislature and subject to change. Beginning September 1, 2014, interest on the member’s account balance is earned at the rate of 2% on the average balance in the account for the fiscal year.

Member compensation withheld by the reporting employer for the benefit of the retiree’s health insurance program, TRS-Care. This contribution is: (1) not tax-sheltered, (2) not applied to the member’s account, (3) not included in the amounts shown on the member’s annual Statement of Account, and (4) never refunded to the member.

Special Service Buyback

Payment by a member toward an installment agreement to purchase years of service in the retirement system through payroll deduction at the employer.  Special Service Buyback is not a pre-tax deduction.

The name of the participant as reflected on the member's Social Security card and as reported by the reporting employer through the ED 20, Employee Demographic Record, and the RP 20, Regular Payroll Detail Record.

“OASDI” is an acronym which stands for old age, survivor and disability insurance, which is more commonly referred to as Social Security. “Non-OASDI member” refers to a TRS member for whom a reporting employer pays a contribution to TRS instead of Social Security.

Optional Retirement Program available only for certain employees in Higher Education. Click here for Important ORP Information.

Employment that is less than one-half of the standard workload and is not eligible for membership in TRS unless combined with other employment at the same TRS-covered employer so that the minimum requirements for membership are met by the combined employment at that single employer.

The staff member designated by the Head of Institution to serve as the main contact for TRS reporting.

The acronym for Qualified Domestic Relations Order. A QDRO is a court order issued when a spouse or former spouse (referred to as the “alternate payee”) is awarded a portion of a TRS member’s or retiree’s TRS benefit and is to receive direct payment from TRS of the portion awarded. TRS has a form QDRO that parties are required to use when submitting an order to TRS. The form QDRO is on the TRS website (www.trs.texas.gov) or is available from TRS by request.

A refund of a member’s account balance that is issued at the request of the member and in accordance with TRS Laws and Rules. At the member’s request, membership in TRS is terminated and all of the member’s pension contributions plus any interest credited to the account are refunded. All service credit associated with the contributions is also terminated. State and employer contributions, however, are not part of the member’s account and remain in the TRS fund.

A member is eligible for a refund when the member has permanently terminated all employment with TRS-covered employers, including any employment that is not eligible for TRS membership, does not have a promise or agreement for future employment, and has not applied for employment with a TRS-covered employer. The only exception to the requirement that all employment with a TRS-covered employer must cease is if a member is serving only as a substitute. For TRS purposes, the definition of substitute is someone who takes the place of a current employee and is paid at the daily rate of pay as set by the employer.

If an employee has earned a year of service credit for the school year and then drops to a position that is not eligible for membership, the employer is required to continue to report and make contributions for the employee for the remainder of that school year.

TRS Rules 27.2, 27.3, and 27.4.

A Texas public educational institution covered by TRS.

Payments by the reporting employer for employer contributions due TRS on various monthly reports as mandated by the State Legislature. Also referred to as deposit(s).

RI-Reporting Entity TRS-Care Contribution (public schools, charter schools, and regional education service centers)

FG-Federal Fund/Private Grant Contribution;

FI-Federal Grant TRS-Care Contribution (public schools, charter schools and regional education service centers);

SM-Statutory Minimum Contribution (certain public schools);

NM-Reporting Entity Payment for New Members Contribution;

PS-Reporting Entity Pension Surcharge for Reported Retirees Contribution;

CS-Reporting Entity TRS-Care Surcharge for Reported Retirees Contribution

NO-Reporting Entity Payment for Non-OASDI Members (public schools, charter schools, and regional education service centers).

NE-Non-Educational/General Contribution (public senior colleges, universities, and medical and dental schools)

EG-Educational/General-Local Contribution (public junior colleges, senior colleges, universities, medical and dental schools)

CJ-Community/Junior College Contribution (community and junior colleges)

AC-TRS ActiveCare premiums (public schools, charter schools, and regional service centers)

For TRS purposes, the Reporting Official is the primary reporting contact responsible for certifying to the accuracy and completeness of all reported information. The Reporting Official may authorize others to report information to TRS and certify as to its accuracy and completeness.

The TRS reports that are the subject of this manual that are submitted monthly and must be certified by a contact with Signature authority.

A deduction from salary for unpaid sick leave or personal leave days Subtract any salary docks from the state minimum salary and the adjusted TRS salary.

Determined by subtracting the adjusted state minimum salary from the adjusted TRS salary. The district must pay the state contribution on the total amount of salary paid above the adjusted state minimum salary

A 12-month period beginning September 1 and ending August 31 of the next calendar year.

A type of temporary employment that occurs at predictable or expected times but is not ongoing and is not eligible for membership in TRS.

This is the date that the CPA drafts the TEXNET deposit from your Reporting Employer’s bank account. The deposit will post to TRS the business day after the Settlement Date.

Payment in resolution of an employee’s claim against an employer and usually in lieu of the amount of salary and wages owed. An employer paying amounts to a member pursuant to a settlement agreement must obtain a written determination from TRS that the amounts are creditable compensation before reporting such amounts to TRS as compensation. In the absence of the written determination from TRS, amounts paid pursuant to a settlement agreement are not creditable compensation for TRS purposes. Amounts of on-going compensation while an employee is on paid administrative leave is not considered settlement pay.

Signature is one of the required report components. Signature is used to report and certify the information in the report is accurate and complete. Signature is an “electronic signature” that may only be submitted by an RE Portal user with Signature authority

A reporting employer contact who is authorized by the Head of Institution to have access to the RE Portal, but is not designated as the Payroll Contact, Reporting Official or other contact type.

Funds paid to TRS monthly by the State of Texas at the rate set by the State Legislature. The state contribution rate is set by the Legislature and is also used to establish the rate of employer contributions owed on amounts paid above the statutory minimum salary, on money for compensation received from private and/or federal grants, for compensation paid in the first 90 days of employment for new members, and for pension surcharges.

The State contribution rate for the Teacher Retirement system is set by the Texas Legislature. Please click here for all current contribution rates.

A person employed in a Texas public college or university is not eligible for membership if that employment is conditioned upon enrollment as a student.

A person who serves on a temporary basis in the place of a current employee and is paid at the daily rate of pay as set by the employer.

For the purposes of Employment After Retirement only, retirees are also allowed to serve in a vacant position or positions for no more than 20 days in each vacant position and still be considered a ‘substitute,’ provided the retiree is not serving the vacant position created by that retiree’s retirement

The abbreviation for Texas Department of Agriculture.

Employment that is expected to last less than four and one-half (4½) months. Employment for an indefinite period of time, e.g., at-will employment, is not temporary employment for TRS purposes.

The acronym for the Texas Network for Electronic Transfers system. This is the system used by reporting employers to remit TEXNET Deposits to TRS through the State Comptroller.

TEXNET Deposit is one of the required report components. TEXNET Deposit refers to the monthly deposits (contributions, i.e., the actual funds) transmitted to TRS via TEXNET.

For purposes of employment after retirement, an entity retained by a Texas public educational institution to provide personnel to the institution to perform duties or provide services that employees of the institution would normally perform or provide.

The abbreviation for Teacher Retirement System of Texas.

The laws adopted by the Texas Legislature governing the Teacher Retirement System. See Laws, Rules and Legislation under About TRS on the TRS website for links to TRS Laws and TRS Rules.

Reports from TRS-covered employers that are required by law or rule that are submitted monthly and must be certified by a contact with Signature authority:

Regular Payroll Report

Employee Demographic Report

Employment after Retirement Report

The unique four-digit number assigned by TRS to each TRS-covered employer.

The rules adopted by the TRS Board of Trustees implementing TRS Laws and administering the TRS retirement plan. TRS Rules are codified in Part 3 of Title 34 of the Texas Administrative Code (34 Tex. Admin. Code §§ 21.1–53.20).

A year of TRS service credit is earned in one-year increments. Only one year of service may be credited in any one school year. The beginning date for calculating a year of service credit in a school year is September 1 and extends for 12 months through August 31.

To earn a year of service credit for a school year, a member (i) must work in a TRS-eligible position or receive paid leave from a TRS-eligible position for at least 90 available work days from September 1 through August 31 (the TRS school year), or (ii) be serving in a TRS-eligible position and regularly scheduled to work fewer than five (5) days per week for four and one-half (4½) months; provided the four and one-half month (4½) period includes four (4) full calendar months in which the member renders service and is paid or the member uses paid leave, for at least eight (8) days and an additional five (5) days of service rendered and for which the member is paid or paid leave used in another calendar month or months, but not to include the four (4) full calendar months. In the school year in which a member retires, a year of service credit may be granted for completing the full, fall semester with no unpaid leave.

An employee at a Texas public educational institution subject to TRS Laws and Rules.

A Texas public educational institution subject to TRS Laws and Rules.

Employment with a TRS-covered employer.

Compensation paid to a TRS member who meets the requirements of eligible compensation according to TRS Laws and Rules. Generally, eligible compensation is salary and wages paid or accrued proportionately as service is rendered that is not specifically excluded by law or rule. See TRS Laws, Section 822.201, Member Compensation, Texas Government Code, and TRS Rule 25.21, Compensation Subject to Deposits and Credit.

The person authorized by the Head of Institution to be responsible for updating and maintaining contacts in the Reporting Employer Portal.

See Contract/Work Agreement

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