ISBE - Employer’s TRS Contribution on Federally Funded Salary for Summer Activities

Employer’s TRS Contribution on Federally Funded Salary for Summer Activities

The Teachers’ Retirement System (TRS) requires earnings for summer work to be reported on an accrual basis. Earnings for work performed in June 2018 must be reported on the 2018-19 TRS Annual Report, even if the member is not paid for the June work until July or August. The 2018-19 TRS and THIS contribution rates apply to accrued earnings for work performed in June, regardless of when the June earnings are paid to the teacher.
Earnings for work performed in July and August 2019 must be reported on the 2019-20 TRS Annual Report. The 2019-20 TRS and THIS contribution rates apply to accrued earnings for work performed in July and August, regardless of when the July and August earnings are paid to the teacher.

Several questions from the field regarding what federal TRS rate to use for SUMMER salaries has prompted TRS to instruct LEAs to use the new employer TRS contribution on federally funded salaries that are providing services AFTER the start of the new fiscal year (July 1, 2019). Below are three scenarios and what federal TRS rate to use in each scenario:

• FY 2019: Federally funded staff/teachers who have completed their assignments by June 30, 2019, but are being paid after July 1: The CURRENT RATE (FY 2019) applies (9.85 percent).
• FY 2019: Federally funded staff/teachers providing services and being paid after July 1: The NEW RATE (FY 2020) applies (10.66 percent). (Please note that an FY 2019 amendment may be needed in this scenario.)
• FY 2020: Federally funded staff/teachers: The NEW RATE applies (10.66 percent). 

More information is available on the TRS website.

Further questions can be directed to the TRS Employer Services Division at employers@trsil.org or (877) 927-5877 (877-9 ASK TRS).