Sometimes REs submit ED40 contract/position records after a member had a reported termination with a Reporting Employer (RE). This additional contract required TRS to reach out to the RE to finalize the member’s retirement.
Employee Retirement Checklist
Before an employee can retire through TRS, the employee must do the following:
- terminate all TRS-covered employment (including ineligible employment such as substitute)
- have one full calendar month where they do not work after the retirement date, and
- have no active contracts or open employment after the termination date and retirement date
When an active contract (ED40) is submitted after the retirement/termination date, a TRS employee will reach out to the RE to determine if the member has truly returned to work for a TRS-covered employer or if the contract (ED40) was submitted in error. A retirement cannot be finalized with an active contract after the retirement/termination date.
Sometimes these contracts are created in error due to software issues or a misunderstanding of the TRS Reporting requirements. Below are some considerations:
The employee can still have accrued pay past the termination date, but the pay must be accrued from a contract prior to the termination date. The accrued pay should align with the final report month provided to TRS by the RE.
If the new contract was created in error and the employee has not returned to work at your RE, the contract will need to be deleted via ED45. If any accrued pay was attached to the new contract, you may need to delete the pay and then add it back once the new contract is deleted.
You may need to contact your RE coach to see if the employee observed the one calendar month break in service. This is especially true if the employee did not work as an active employee at your RE directly prior to the retirement/ termination. If they observed the one calendar month break in service, then the contract may need to be deleted via ED45 and added back as an ER (retiree) record. '
TRS will continue to reach out to REs for these corrections. These corrections are considered a high priority. Contract errors can delay when TRS is able to finalize a retirement and ultimately delay the member’s retirement benefits.
If you have any questions about these corrections, please do not hesitate to reach out to your RE coach for assistance.