As a reminder for reporting creditable compensation, the following types of pay should be excluded and only included in “Total Gross Compensation” on the RP20 records. If a TRS membership eligible employee receives a payout of only ineligible compensation after the date entered on the ED90 for Final Report Month for TRS Contributions, then do not report that payout of ineligible compensation.
Vacation, Sick Leave and Compensatory leave
Example
A teacher has terminated all employment as of May 31, 2026, but had 10 days of accrued, unused leave that needed to be paid to the employee. The employee will be issued their final teacher salary payment in August 2026 of $4000 and will also receive the payout of accrued leave of $2000.
On the RP20, the final monthly salary needs to be reported in the “Eligible TRS Gross Compensation” field.
The payout of leave should only be included in the “Total Gross Compensation” field.
Compensatory leave (or time) is time-off granted in lieu of overtime wages under the Fair Labor Standards Act (FSLA). When leave is granted in lieu of wages at the time, it is considered leave. If unused compensatory leave is later “cashed out,” the payment is NOT creditable compensation. Compensatory time converted to a monetary payment is never TRS-eligible compensation.
Example
A support staff worker has 40 hours of compensatory time that they have accumulated for working overtime throughout the year. They did not take this as leave so are being paid out at the end of the year. The employee terminated all employment as of Aug. 31, 2026, and received their final eligible pay in August 2026. The payout of comp time is being issued in September 2026.
The final salary issued in August must be reported but the additional payout of ineligible compensation in September would not need to be reported to TRS. Make sure the ED90 has the correct month for the final report month.
