TRS payroll deduction increase goes into effect Sept. 1
If your Sept. 10 paycheck is a bit smaller than you are expecting, it might be due to a recent rate increase for contributions to the Teacher Retirement System of Texas (TRS).
HISD is required by law to deduct these contributions from eligible employees’ salaries each month, and the before-tax contribution rate will be increasing from 6.4 percent to 6.7 percent as of Sept. 1, 2014. Additional increases will go into effect on Sept. 1, 2015 (7.2 percent) and Sept. 1, 2016 (7.7 percent).
After Sept. 1, 2017, employee contribution rates could conceivably go down. If the state’s contribution rate drops below 6.8 percent, the member contribution rate will be reduced from 7.7 percent by an equivalent percentage.
All TRS members must contribute a portion of their eligible compensation for the funding of benefits. The contribution rate is set by the Texas Legislature, and membership in TRS is required by law for all eligible employees; participation in the retirement plan cannot be waived.
Additional details can be found here (.pdf; p. 6, “Member Contribution Account”) and here (.pdf)
