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TRS Contribution Rates Increase

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Increased contribution rates for Teacher Retirement System (TRS) go into effect September 1, 2021.

The TRS contribution rates were authorized by Senate Bill (SB) 12 during the 86th Texas Legislative session (2019). SB 12 provides gradual contribution increases each fiscal year through 2024 to make the pension fund actuarially sound. All contribution rates—the state, public education employers, active employees, and pension surcharge—will increase for pay received on or after September 1, 2021.

Employers will want to include this information when communicating 2021–2022 compensation and benefits to employees. Best practice is to annually issue a personal compensation and benefits statement to each employee along with an explanation of changes. A sample of a personalized compensation letter is available in the HR Library (member login required).

Employers who effectively communicate pay and benefits typically see higher employee job satisfaction than those who have poor communication strategies. Providing an explanation of the TRS rate increases and other changes will help employees understand their pay and deductions from their paychecks.

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Cheryl Hoover
Cheryl Hoover

Cheryl Hoover joined HR Services in 2018. She assists with staffing and HR reviews, training, and other HR projects. During Hoover’s public school career, she served as an executive director of curriculum and principal leadership, executive director of human resources, principal, assistant principal, teacher, and coach.

Hoover earned her bachelor’s degree from The University of Texas at Austin and obtained her master’s degree from Texas State University. She is a certified PHR.

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TASB HR Services supports HR leadership in Texas schools through membership offerings in specialized training, consulting, and other services.

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