FY 2016 Retirement Rate Changes
The September 2nd issue of the weekly ERS Employee News communication regarding a change to ERS contributions and a corresponding increase does not apply to TWU or any other higher education institution.
This letter included details regarding retirement contributions for non-higher education State Employees. The article references an increase to the ERS (Employees Retirement System) contribution along with an increase in pay to offset this increase. The 2.6% increase in contribution and 2.5% pay increase only applies to non-higher education state employees such as employees of the Department of Transportation.
TWU employees and all state higher education agencies contribute to the Teacher Retirement System (TRS) of Texas. The TRS contribution increase was .5% with a change from 6.7% to 7.2%. All references to retirement contributions to ERS can be disregarded.
To review FY 2016 benefits changes and to subscribe to the newsletter go to the ERS home page.
Please note there are often significant differences between State Higher Education Institutions and State Agencies. When subscribing to the newsletter select the News for Non-State Agency Employees.
Changes made during Annual Enrollment will be reflected your October 1, 2015 check.
The employee retirement contribution for TRS members will increase from 6.8% to 7.2% effective 09/01/2015.
Annual Maximum contributions for a TexFlex Health Care Reimbursement Account will increase to $2550.
A new administrator for TexFlex has been announced by ERS. The new administrator is ADP and has a 4 year contract that begins September 1, 2015.
ERS has also announced a new formula for calculating faculty salary and premiums for Optional Life and Disability benefits effective 09/01/2015. The 9 month annual salary will now be divided by 12 months.
Starting September 1, 2015 KelseyCare powered by Community Health Choice will be available to eligible participants in the Houston area. This is administered bt Kelsey Care. Plan details can be found on the new KelseyCare webpage.
Health Select will have a combined out-of-pocket maximum for medical and pharmacy benefits effective January 1, 2016. As a result, pharmacy deductibles will now reset at the start of every calendar year rather than plan year.
Following the U.S. Supreme Court's ruling on June 26, 2015, regarding same-sex marriage, state agency and higher education employees and retired employees eligible for the Texas Employees Group Benefits Program (GBP) will be able to enroll their same-sex spuoses and dependent children of those spouses in the same coverages and services, and at the same cost, as opposite-sex spouses. Optional Life and Disability will require EOI during Annual Enrollment.