Chapter 5: Special Conditions
School District and Educational Service District Pay Adjustments
When determining which status code to use, you must evaluate whether the employee's service credit will be impacted. If the employee is full-time and meets the required Compensated Criteria for Full Service Credit more flexibility is allowed.
Full-time employees earn a full year of service credit as follows:
|System and Plan||Compensated Criteria for Full Service Credit:|
|TRS Plan 1||144 full-time days = 12 months of service credit|
|TRS Plan 2 & 3||If compensated in 9 months of the school year and for 810 hours or more = 12 months of service credit|
|SERS Plan 2 & 3||If compensated in 9 months of the school year and for 810 hours or more = 12 months of service credit|
|PERS Plan 1||If compensated in 9 months of the school year and for 630 hours or more = 12 months of service credit|
Refer to Chapter 3, Service Credit Rules for how service credit is earned for part-time members and for rules prior to September 1, 1991.
Note: Newly hired employees, except TRS Plan 1, must begin in September to earn a full year's service credit.
- If additional compensation and service are paid out equally through the school year, report the adjustment evenly over the working months of the school year associated with the pay using Status Code A. Use this method only if there is no negative impact to the member's service credit.
- The adjustment can't be reported in months that the employee didn't work, usually July and August.
- You have the option to report the adjustment as earned using Status Code A.
- If the employee terminates prior to the end of the school year, you must adjust the reporting if service credit is impacted.
- If there is additional compensation but no service attached to the adjustment and it is paid out equally through the school year, the adjustment can be evenly distributed over the working months of the school year associated with the pay using Status Code A.
- An adjustment with additional service must be reported as earned because the additional hours or days can potentially increase the employee's service credit.
- Part-time includes substitutes and anyone who doesn't meet the full-time definition.
- For more information for reporting as earned using Status Code A, review chapter 7, List of Status Codes for Current Reporting - Status Code A.
Effective 6/12/2008, National Board for Professional Teaching Standards (NBPTS) certification payments or bonuses are considered reportable compensation. Employers are to report the payment as a lump sum using the status code M in the month in which it is paid.
This code is used for lump sum payments. This code can also be used for backing out overpayments in a lump sum.
Some examples of lump payments are: settlements resulting from contract agreements, court-ordered back-pay settlements, holiday and longevity pay, or supplemental contract payments, such as coaching contracts.
- Status Code M is optional. You can use Status Code M to report lump sum payments and back outs, or you can use Status Code A and break the data into earn periods.
- Service can't be reported with Status Code M, only compensation.
- Status Code M can be used for:
- Status code M can't be used for:
- Part-time - If there is service attached to the payment because additional service can impact the employee's service credit. Report the adjustment as earned with Status Code A.
- Substitutes - A substitute is defined as "a classified or certificated employee who is employed as a substitute for an absent employee or is working in an ineligible position" for a school district or an educational service district.
- If paid in July or August, report a lump sum payment in the last month of work for the employee, usually June. This status code can't be reported in months that have no service.
- You must document the earning periods associated with the adjustment in case DRS needs this information.
- If the earning periods for the lump sum payment fall into more than one contribution rate period, you will need to report the adjustment applicable to each rate period.
- If the earning period for the lump sum payment falls into the period of time used to calculate the member's retirement benefit (the AFC period), a month-by-month breakdown of the lump sum payment may be required at the time of the member's retirement.
- For more information about reporting retirement data using Status Code M, review chapter 7, List of Status Codes for Current Reporting - Status Code M.