As a reminder, anytime an adjustment is submitted that is adding either contributions or surcharges, REs must review their ledger balances to assess if additional funds need to be sent. Below are some examples of different adjustments that can be submitted in the portal and when additional funds may need to be sent.
Scenario 1:
The TRS Exception team reaches out to an RE regarding records that were deleted for March 2026. After review, it is determined that a few RP20 records containing eligible compensation and contributions were left off the March 2026 report.
- RE Actions:
- The RE submits RP25s on an RP-Adjustment file (separate from their RP Report) with the positive adjustments to add the missing records. Before submitting the signature, the RE realizes that they do not have any available balances in their ledger to cover the adjustments being submitted. The RE completes their report and submits a TEXNET within one business day for the additional contributions being submitted.
- Penalty Incurred:
- Penalty interest will be incurred for any positive adjustments to member contributions; Member Retirement Contribution (MC) and Member TRS-Care Contribution (IN).
- Due to the TEXNET being submitted within one business day, penalty interest would not be incurred for the employer contributions.
Scenario 2:
RE Coach reaches out to an RE regarding records for a member who retired in May 2025 that was reported as active that should have been reported as a retiree. Corrections are needed from the RE so that TRS can close the account for retirement.
- RE Actions:
- First the RE submits RP25s to remove any active postings and contracts. Once the account has been properly closed for retirement, the RE submits ER adjustments to add the time worked and any compensation that was paid. When adding the adjustments, some of the records are triggering surcharges due to the retiree working over the half-time limits. The RE adds the surcharges on the report, but once they completed their file, they now have negative balances for the surcharges. The RE does not realize that they have negative balances until a week later and submits their TEXNET for the surcharges.
- Penalty Incurred:
- Since the report contained positive adjustments for surcharges and the TEXNET was not submitted within the one business day time frame, penalty interest will be incurred for the employer surcharges.
Our goal is to minimize penalty interest as much as possible, and for employer contributions this can be avoided if the TEXNET is submitted within one business day of the adjustment report being completed. Other scenarios of when penalty interest is incurred can be found on the TRS website. As more adjustments are submitted due to the review of participant accounts by TRS, please remember to always check your ledger before and after reports are completed.