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A Valued Partnership…Minnesota Schools & TRA
Smart/HR Region
ANNUAL CONFERENCE
AGENDA TRA Contribution Rates
Service Credit -New
Payroll pay types
Pay period date reporting requirements
Termination date
Leave of Absence
Overviews / Resources
Questions
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TRA Contribution ratesEE is the Employee DeductionER is the Employer Contribution
As of July 1, 2012, EE 6.5% ER 6.5%
As of July 1, 2013, EE 7.0% ER 7.0%
As of July 1, 2014, EE 7.5% ER 7.5%
The EE deduction/ER contribution rates are based on the payroll payment date. This is important for budgeting purposes if you pay your teachers in July / August of the following school year. These “summer” checks would have the higher EE/ER rates.
Service Credit- Prior To FY 2013• Each Employer Unit reported service credit days to TRA.
• Service credit was based on hours per day.
• 5+ hours per day = 1 day of service credit.
• < 5 hours per day = percent of service credit day.
• 170+ service credit days = 1.0 year of service credit.
• The new service credit law is not retro active. TRA will continue to request service credit based on hours per day & number of days for years prior to FY 2013.
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Changes for Employer UnitTRA calculates service credit -- not the employer.
This change means employers -
No longer calculate service credit. No longer enter contracted service credit demographic
records. No longer enter non-contracted service credit for substitute
teachers, and other assignments.
Need to focus on when the salary was earned and report the correct pay period for earned salary.
New Service Credit Law Summary* Starting with fiscal year 2013 (July 1, 2012 – June 30,
2013), TRA service credit is based on monthly base salary.
* Service credit is calculated by dividing the teacher’s monthly earned salary by the employer unit’s monthly base salary multiplied by 0.111.
* A teacher cannot receive more than .111 of a year’s service credit in a calendar month.
* A teacher can receive a maximum of 1 year of service credit in one fiscal year.
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Reporting Requirements(MS 354.52 Subd. 4d. Annual base salary reporting)
Provide to TRA before June 30:
(1) annual base salary,
(2) beginning and ending dates for the regular school work year.
Defined as the first day and last day the regular teachers work.
If the employer requires new teachers to come in on 8-25 and all regular existing teachers to report on 8-27, the early date of 8-25 should be reported as the beginning date of the school year.
Annual Base Salary(Defined by Statute 354.05, subd 41)
Independent school districts (K-12) or educational cooperatives
The lowest full-time Bachelor of Arts (BA) base contract salary for the previous fiscal year for that employing unit.
Charter schoolsThe lowest starting annual salary for a full-time licensed teacher employed during the previous fiscal year for that employing unit.
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Annual Base Salary(MS 354.52 Subd. 4d. Annual base salary reporting)
TRA will notify each employer in March of the requirement to complete the Annual Base Salary certification for the upcoming fiscal year.
The signed completed certification is requested to be returned by June 15th. If the form is not returned by June 30, TRA will assess a penalty of $5 per day.
Many employers have already certified the fiscal year 2013 lowest BA salary on the prior year’s form. This FY 2013 salary will be pre-filled on the form.
Employers will be required to certify the regular teacher begin & end dates and include a school calendar. The form and calendar can be provided separately.
Monthly Base Salary CalculationTRA calculates monthly base salary (the annual base salary divide by
12) for each employer unit.
TRA assigns service credit based on the employee’s monthly earned salary.
This is similar to PERA, which assigns a monthly service credit if the employee has earned salary in that month.
The TRA difference is an employee must reach the employer unit’s monthly base salary to receive the full .111 service credit for that month.
If a employee earns less than the monthly base salary, service credit assigned will be a percentage of the base multiplied by .111.
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Example of Service CreditExtracurricular, Retro, Summer PayPart-time contract position earns $24,000 annually. Contract period is 8/16/12 to 6/15/13.Paid $1,000 on the 15th and last day of every month.
Retroactive payment = $210 With a pay period of 8/16/12 to 11/30/12 for a late contract settlement on 11/30/12.
Coaching payment = $3,200 With a pay period of 11/21/12 to 3/10/13.
Summer pay-off = $4,120 With a pay period of 8/16/12 to 6/15/13.
Summer Total Monthly Month Salary Retroactive Coaching Payoff Salary Service CreditJulyAugust $1,000.00 $31.40 $1,031.40 0.046 September 2,000.00 58.88 2,058.88 0.091 October 2,000.00 60.84 2,060.84 0.092 November 2,000.00 58.88 2,058.88 0.091 December 2,060.00 2,060.00 0.091 January 2,060.00 2,060.00 0.091 February 2,060.00 2,060.00 0.091 March 2,060.00 2,060.00 0.091 April 2,060.00 2,060.00 0.091 May 2,060.00 2,060.00 0.091 June 1,030.00 1,030.00 0.041
Total $20,390.00 $210.00 $20,390.00 0.91
Allocation of Retroactive: $210.00
(pay period 8/16/12 to 11/30/12)August 16 $31.40 September 30 58.88 October 31 60.84 November 30 58.88
Total Days 107 $210.00
2012 Annual Base Salary (BA Base Contract): $30,0002012 Monthly Base Salary: $2,500
Part-Time Contract Position: $24,000 ($1,000 on 15th and last day of month)
New Contract amount: $24,720Retroactive Payment: $210
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Summer Total Monthly Month Salary Retroactive Coaching Payoff Salary Service CreditJulyAugust $1,000.00 $31.40 $1,031.40 0.046 September 2,000.00 58.88 2,058.88 0.091 October 2,000.00 60.84 2,060.84 0.092 November 2,000.00 58.88 227.27 2,286.15 0.101 December 2,060.00 704.55 2,764.55 0.111 January 2,060.00 704.55 2,764.55 0.111 February 2,060.00 636.36 2,696.36 0.111 March 2,060.00 227.27 2,287.27 0.102 April 2,060.00 2,060.00 0.091 May 2,060.00 2,060.00 0.091 June 1,030.00 1,030.00 0.046
Total $20,390.00 $210.00 $2,500.00 $23,100.00 0.99
Allocation of Retroactive: $210.00 (pay period 8/16/12 to 11/30/12)August 16 $31.40 September 30 58.88 October 31 60.84 November 30 58.88 Total
Days 107 $210.00
Allocation of Coaching: $2,500.00 (pay period 11/21/12 to 3/10/13)November 10 $227.27 December 31 704.55 January 31 704.55 February 28 636.36 March 10 227.27 Total Days 110 $2,500.00
2012 Annual Base Salary (BA Base Contract): $30,0002012 Monthly Base Salary: $2,500
Part-Time Contract Position: $24,720
Retroactive Payment: $210 Coaching: $2,500
2012 Annual Base Salary (BA Base Contract): $30,0002012 Monthly Base Salary: $2,500
Part-Time Contract Position: $24,720
Retroactive Payment: $210 Coaching: $2,500
Summer Payoff: $4,120 Summer Total Monthly
Month Salary Retroactive Coaching Payoff Salary Service CreditJulyAugust $1,000.00 $31.40 $216.84 $1,248.24 0.055 September 2,000.00 58.88 $406.58 2,465.46 0.109 October 2,000.00 60.84 $420.13 2,480.97 0.110 November 2,000.00 58.88 227.27 $406.58 $2,692.73 0.111 December 2,060.00 704.55 $420.13 3,184.68 0.111 January 2,060.00 704.55 $420.13 3,184.68 0.111 February 2,060.00 636.36 $379.47 3,075.83 0.111 March 2,060.00 227.27 $420.13 2,707.40 0.111 April 2,060.00 $406.58 2,466.58 0.110 May 2,060.00 $420.13 2,480.13 0.110 June 1,030.00 $203.30 1,233.30 0.055
Total $20,390.00 $210.00 $2,500.00 $4,120.00 $27,220.00 1.00
Summer Payoff: $4,120.00 (pay period 8/16/12 to 6/15/13)August 16 $216.84 September 30 406.58 October 31 420.13 November 30 406.58 December 31 420.13 January 31 420.13 February 28 379.47 March 31 420.13 April 30 406.58 May 31 420.13 June 15 203.30
Total Days 304 $4,120.00
Allocation of Retroactive: $210.00 (pay period 8/16/12 to 11/30/12)August 16 $31.40 September 30 58.88 October 31 60.84 November 30 58.88 Total
Days 107 $210.00
Allocation of Coaching: $2,500.00 (pay period 11/21/12 to 3/10/13)November 10 $227.27 December 31 704.55 January 31 704.55 February 28 636.36 March 10 227.27 Total Days 110 $2,500.00
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Pay Type / Pay Period Codes TRA system specifications require reporting salary by payroll payment type basis on a combined basis by member.
Example 1-Member substitute teaches at $100 per day on 11-16, 11-18, 11-19, 11-22, 11-23, & 11-24. All salary would be coded as 03 Substitute and other licensed work. The member will be paid $600 on 12-15. The normal pay period reported is 11-16 to 11-30.
TRA requires one payroll entry for 12-15 for $600 with preferred pay period of 11-16 to 11-24 and acceptable pay period of 11-16 to 11-30 (as long as the member does not terminate by 11-30).
Pay Type / Pay Period Codes
TRA system specifications require reporting salary by payroll payment type basis on a combined basis by member.
Example 2- Member has a contract with 24 checks of $3,000 on the 15th & 30th of each month. The 6-15 regular payroll of $3,000 is coded as 01 licensed contract pay. Member will also be paid a $2,000 performance payment on 6-15. If the school does not code the performance pay as a 05 Retro and Performance pay, the $2,000 will be lumped in the 6-15 check as a $5,000 payment.The retro payment should have school year for its pay period begin and end dates.
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Pay Type Codes 01 Regular Contracted Licensed SalaryThis payment type is used to report only the licensed contracted salary.
This pay type code should only be used for contract licensed salary payments. Typically salary with an “01” record should be for a longer time frame.
Examples-Member has a teaching contract for FY 2013 paying $36,000.Member is hired to work as a long term sub teacher for 65 days.Member is hired to work 850 hours in this school year.
Pay Type Codes 02 Extracurricular & Other Non-Licensed WorkThis payment type includes, but not limited to, service classified as state high school league activity, non-instruction activity or noncredit activity.
Extracurricular pay generally does not require licensure.
Salary payments for coaching, para-professional aide work, ticket-taking, bus driving, afterschool site management, non-licensed community education, etc.
Example-Member is a full time teacher. Also coaches debate and takes tickets at the ball game . Because both positions do not require a license, pay type “02” is correct.
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Pay Type Codes
03 Substitute & Other Licensed WorkThis type is used for all non-contracted teaching-license required salary.
Most typically used for substitute teachers who are usually non-contracted members.
Salary payments for curriculum writing, summer school teaching, homebound school teaching, etc.
Example-Member teaches summer school for $1,200. The salary is not considered “contract” salary, thus the correct payroll pay type code is “03”
Pay Type Codes
04 GrievanceA grievance payment is usually determined after the work has been performed and a party raised an issue.
Grievance payments also arise during termination proceedings.
A TRA allowable grievance payment include lost wages.
TRA Eligibility of grievance payments must be approved by TRA prior to payment. Submit the grievance settlement payments and paperwork to TRA via fax at 651-297-5999 attention: DI auditor.
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Pay Type Codes 05 Retroactive- Performance Payments or Q-Comp
This payment type should be used for retroactive payments caused by contract settlements, paying for performance goals, or Q-comp.
Examples-School settled the contract and all teachers will receive $250 in back wages.
Member earns their performance goals and was paid $500 in July.
In both instances, the pay code is “05” retro and the school needs to report the salary payment as a separate payroll record with the correct earnings period.
Payroll Position CodeOn payroll records, each member is designated as either a
Teacher or an Administrator for TRA payroll reporting purposes.
01-Teacher – all non-administrators are coded as teachers.
02- Administrator – An administrator is defined as someone who spends at least 50% of their time in a supervisory role. Typical titles include superintendent, principal, director, coordinator, supervisor, etc.
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Date TerminologyEmployers are required to report when salary was earned-
Pay Period Begin Date: The first day a member works in a pay period.
Pay Period End Date: The last day a member works in a pay period.
The pay period / earnings schedule may need to be expanded to match when the member actually worked. Examples would be a coaching assignment, a retro payment, summer payoffs, or curriculum writing done over the summer.
Pay Date: The date of the payroll warrant. Payment date is the date the member receives the benefit of the check.
Summer Payoff Rules
Any payroll date after the member’s last work day should have pay period dates matching school year (for example: August 27 to June 6).
Example: School year operates from August 27, 2012 to June 6, 2013. School pays their teachers monthly on the 15th over a 12 month period. School payroll on June 15, July 15, and August 15should have fiscal year indicator of 2013, because the salary was earned in fiscal year 2013. The school should report the pay period begin of August 27, 2012 and pay period end date of June 6, 2013 for these three summer payrolls.
TRA recommends the school produce separate batches for summer payoff payroll and regular summer payroll.
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Summer Payrolls Examples If a member terminates prior to the last regular school end date, the pay period end date records reported must be based on the termination date.
Example-if a member terminates on May 25th and the last day of school is June 4th, the summer payroll checks should not report a pay period end date of June 4th. All summer payrolls should have a pay period end date of May 25th.
If a member is hired after the first regular school begin date, the pay period begin date records reported must be based on the hire date.
Example - if a member is hired on October 25th and the first day of school was August 25th, the summer payroll checks should notreport a pay period begin date of August 25th . All summer payrolls should have a pay period end date of October 25th.
Termination Date Defined
Termination / Resignation Date-Last day of required Minnesota public school teacher attendance for which salary is paid or the termination date of contract by official resignation, whichever is later.
TRA Accrual Date-
this is the 1st day the member is retired and starts receiving their pension benefit. The member must have terminated employment with the employer unit prior to this date. Member cannot work on this date.
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Termination Date Example
If the master agreement states the last teacher work day is June 5th and the member gets paid for June 5th even if the school says it is optional to teachers who are retiring, June 5th is the member’s termination date.
Last day worked could be June 4th, but the member is being paid for June 5th. Termination date is June 5th.
Leave of Absence(MS 354.092-354.96, 354.53) Part 1
A leave of absence classified under certain categories will permit a member to pay for salary / service credit during the leave.
When the leave has been approved by the reporting unit, submit form TRA-1500/1501 within 14 days of the approval.
Leave ending date is usually the last normal teaching day covered by the leave.
On demographic record, employer unit must report the correct status code.
New leave of absence should be submitted using the secured employer section of the TRA website.
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Leave of Absence (MS 354.091 - 354.096, 354.53) Part 2
Leave of Absence reporting is currently a two-step process:
Filing the TRA-1500/1501 form and changing the member’s status on the demographic record in your computer. If the employer unit only enters the leave on your demographic system, the leave has not been officially reported to TRA.
Leave of Absence Requirements(MS 354.091 - 354.096, 354.53)
All approved leaves of absence MUSTbe reported to TRA even if the leave is fully paid.
Examples of unreported leaves include a member hurt at work and collecting workers compensation or using sick leave, member placed on paid administrative leave, member on a personal reduced FTE leave, or member on a phased retirement plan.
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Leave of Absence Certification ProcessSchool reports the leave of absence to TRA by leave type and approved leave period.
Upon request of the member, TRA will generate a leave of absence certification report on parental, family (FMLA), medical, military and extended leaves.
Sabbatical, union, legislative leaves have a different certification process.
Leave of Absence Certification Process
Continued
Schools must complete the leave certification report based on when the salary was earned and not when the salary was paid.
TRA Data Integrity staff will make the payroll date corrections.
The corrected payroll earned dates will adjust service credit.
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Leave of Absence Certification Form(in the process of being changed)
Certification form will allow the school to correct the leave period.
Certification form will ask if this is a “fully paid leave of absence”*? If yes, school will need to only sign and return the report.**
* A fully paid leave is generally when the member’s earned salary did not change from before the start of the leave period to the end of the leave period.
** TRA’s year-end process will review payroll detail to confirm the salary did not change during leave period.
Leave of Absence Completing the Certification FormTRA certification form will provide a table of reported salary
covering the leave period.
The school will need to answer on the form the correct earned begin & end dates and salary earned during the leave period.
The bottom line is TRA needs to know how much salary was earned during the leave period.
TRA’s desire and future requirement will be for the employers to submit the correct pay period begin & end date information when the payroll is reported.
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Leave of Absence Real LifeAll the payroll reported during the leave period may not be earned in
the leave period. And all salary earned in the leave period may not be reported in the leave period.
If a member is on leave for 45 days or 30 school days. Member has 15 days of sick leave and 15 days of days without pay. Member is paid $300 per day. The school would state earned salary of $4,500 (15 x $300) for the leave period.
If a member is on leave for 45 days or 30 school days. Member has 15 days of sick leave and 15 days of days on school paid workers compensation at 1/3 of daily salary. Member is paid $300 per day. The school would state earned salary of $6,000 or sick leave (15 x $300) + workers comp ($300 x 1/3 = $100 x 15 = $1,500).
Leave of Absence Certification Form ExamplesCertification form will include four examples explaining the correct
completion of the report focusing on when the salary was earned and the correct begin & end earnings dates.
1) Unpaid leave with a retro payment. 2) Partially paid leave with a Q-comp payment.3) Partially paid leave with salary payroll adjusted post leave for
unpaid days.4) Partially paid leave with salary payroll adjusted at start of
school for unpaid leave days during the year.
The examples are attached for review. Please email comments to [email protected]
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www.MinnesotaTRA.orgTRA secured employer website will allow the user to perform
the following tasks-o Check on the status of a payroll file submission.o E-Pay - Electronic payment where the unit can set the future
payment date up to 14 days in the future.o Leave of Absence reporting for new leaves.o Review outstanding payroll errors.o Check on the membership status of employees.
Access to the secured employer site is provided using a TRA assigned user ID.
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Salary - overview
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“Salary” is defined by MS 354.05 subd.35.
Eligible salary examples: teaching wages, substitute teaching, driver’s education, curriculum writing, and other services if at least 50 percent of salary is from teaching.
Ineligible salary examples: Lump sum vacation, severance pay in any form, worker’s compensation paid by third party provider, school board member payment, and payment of cash in lieu of an employer benefit.
Statutes prevail regardless of mutual understandings and/or a negotiated agreement.
Membership - overviewTeachers are broadly defined by MS 354.05 subd.2.
If the position requires state certification or licensure and the employee has the license, then the employee is usually covered by TRA.
Any type of license or waiver from the Board of Teaching means that an individual falls under the definition of “teacher” for TRA purposes.
TRA web site lists the most common TRA-eligible positions; note special rules for coaches, advisors, nurses, therapists, TRA annuitants and consultants.
There is no maximum age at which an active member does not contribute to TRA.
RULE OF THUMB: If a member earns at least 50 percent of combined compensation from licensed teaching service, then all salary for services performed are covered by TRA.
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TRA Annuitant
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A TRA annuitant is receiving a retirement benefit from TRA.
A TRA annuitant must be at least 55 years of age or have 30 years of service.
If a member has retired from St Paul, Duluth, University of Minnesota, or another state AND has not retired from TRA, they are considered an active TRA member. Payroll deductions and employer contributions must be withheld.
TRA annuitant wages are reported through payroll similar to an active member but without deductions withheld.
Contact TRA to find out if a new district employee is a TRA annuitant.
TRA ResourcesTRA staff will provide group and individual training upon request.
EG (Employer Guide) is available on the TRA web site and it covers topics like membership, salary eligibility, payroll reporting, leave of absence.
Update - Employer newsletter published three times a year and addresses legislative changes, report reminders, upcoming changes, and explanation of recent issues raised by schools.
Videos –TRA will soon have employer-unit focused videos on the service credit, leave of absence reporting, payroll reporting, membership, salary, and termination dates.
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Resources (continued)
Web site: www.MinnesotaTRA.org
Address: 60 Empire Drive, Suite 400 St Paul MN 55103
Phone: 651-296-2409 or 800-657-3669
E-mail: [email protected]
Phone tip- when calling into TRA general number, hit the number 2 for Employer Reporting – then you are allowed to choose auditors or payroll staff.
All employer contact information is listed in the employer section of the website.
Questions?
Thank you for your help in reporting
payroll correctly which allows TRA to provide our
members with accurate retirement benefit
information
