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Have You Reported? Submissions on Grandfathered Contracts and Agreements Due in 10 Days

K-12 Education Publications

If you haven’t already done so, make sure to report “grandfathered” CBA and employment contract/policy information to TRS by March 29, 2019, to safeguard application of the 6% excess salary cap. TRS considers CBAs and contracts entered into, amended, or renewed prior to June 4, 2018, grandfathered and subject to the 6% salary cap. Similarly, for employees not covered by a CBA and who do not have an employment contract, the 6% threshold applies if the increase was the result of employment policy in place prior to June 4, 2018, and payments are made pursuant to the term of the policy prior to June 30, 2022. Non-grandfathered CBA and contracts are subject to the 3% threshold.

The information can be submitted online using a new CBA/Contract Collection Portal. According to TRS Employer Bulletin 19—12, if the required information is not received by TRS by the due date, any year-over-year salary increases in 2018-19 and future years above 3% will be subject to a TRS excess salary contribution if those increases are used in calculating the member’s final average salary upon retirement.