TRS Retiree Not Reported by Employer
Surcharges may be owed. Employer may owe surcharges for TRS retirees not previously reported.
Extra work and extra cost. Employer must make corrections, including corrections for prior years and submit adjustments through the Reporting Entity Portal. In addition, the employer must remit to TRS all pension and TRS-Care surcharges owed via the Reporting Entity Portal, along with the applicable interest on any unpaid or unreported amounts. The annual interest rate is currently 10 percent. Beginning with the report due for January 2018, TRS is authorized not only to charge interest on unpaid amounts but to also assess a late fee for each day that the payroll report is filed after the due date as well as each day the employment of retirees report if filed after the due date.
Violation of reporting requirements. Employer staff who intentionally make or permit the making of a false record or statement to TRS in an attempt to defraud TRS commit a criminal offense. See § 821.101, Texas Government Code.
Loss of income. Retirees may forfeit their annuities for that calendar month when they work in excess of the limits on employment after retirement.
Unanticipated cost. A retiree may experience unanticipated expense if the retiree’s employer requires the retiree to share in the cost of Pension or TRS-Care surcharges incurred by the employer as a result of employing the retiree.
Possible adverse employment action. Employer may terminate the employment of the retiree to avoid paying future monthly surcharges
TRS Retiree has Exceeded Allowable Hours
Surcharges may be owed. If the retiree retired after September 1, 2005 and works more than the equivalent of four clock hours for every work day in ta calendar month or combines substitute and any other type of TRS-covered employment in any amount in the same calendar month and works more days than one-half the number of work days in that calendar month, pension and any applicable TRS-Care surcharges will be owed. Surcharges are not owed on retirees who retired before September 1, 2005.
Loss of income. The retiree forfeits the annuity for each month that the retiree exceeds the amount of time allowed to work during that month. The forfeited annuities must be repaid immediately or TRS is authorized to actuarially reduce the retiree's retirement benefit for the life of the retiree to recover the amounts that were paid but not due to the retiree.
Unanticipated cost. The retiree may experience unanticipated expenses if the employer requires the retiree to share in cost of any surcharges assessed by TRS based on the retiree’s employment.
TRS Retiree Identified That Did Not Have Required Break In Service
Extra work and extra cost. Because there was no break in service, the employee revokes retirement and is not retired and must be reported as an active member. The employer must make corrections to the Regular Payroll Report showing the retiree as an active member, including corrections for the prior year and submit adjustments through the Reporting Entity Portal. Member and employer contributions must be collected along with applicable interest on any unpaid or unreported amounts. The annual interest rate is currently 10 percent.
Significant adverse financial impact. Because there was no break in service, the retiree has revoked retirement and must return any retirement benefits already paid, including any Partial Lump Sum Option (PLSO), and must also repay TRS-Care for any health benefits paid. The employee must then terminate employment and apply for retirement again, effective no earlier than the last day of the month preceding the first calendar month in which the person did not work for a TRS-covered employer. If the violation is not discovered until a subsequent tax year the employee must return to TRS not only the net amount of the annuities received but also the amount withheld for federal income taxes.
Incorrect Pension Surcharge Amount Reported
Extra work and extra cost. Employer must remit to TRS all pension or TRS-Care surcharges owed or correct amounts previously remitted through the Reporting Entity Portal. If remitting previously owed surcharges, the employer will be required to include applicable interest on the unpaid or unreported amounts and may also owe a penalty for reporting the information late. The annual interest rate is currently 10 percent.
Violation of reporting requirements. An employer staff member who intentionally makes or permits the making of a false record or statement to TRS in an attempt to defraud TRS commits a criminal offense. See § 821.101, Texas Government Code.
Unanticipated cost. The employer may terminate the employment of a retiree to avoid the risk and/or the cost of future monthly surcharges.
Possible adverse employment action. The employer may terminate the employment of a retiree to avoid the risk and/or the cost of future monthly surcharges.
Delay in receiving money earned. If the retiree is paying or sharing the cost of surcharges with the employer and the retiree has not effectively retired because the retiree returned to work too soon, surcharges that have been withheld from the retiree may not have been due and the employer may owe the amount of surcharges it required to be paid by the retiree to the retiree.