Substitute Employment: TRS Retiree Definition
TRS understands that REs may use the title of “substitute” for individuals that do not meet the TRS definition. However, please keep in mind that when reporting substitute employment to TRS, the position must meet the following definition.
Substitute - In accordance with Rule 31.12, service retirees may substitute an unlimited number of days during the school year without incurring surcharges if the following two criteria are met:
A retiree serves on a temporary basis in the place of a current employee, referred to as the employee of record.
and
- The retiree is paid no more than the daily rate of pay for substitutes as set by the employer.
Any other employment that does not meet this definition cannot be reported as substitute employment type. Below are examples of different employments that are common examples of employment meeting the definition of substitute and some that are misreported as substitute employment.
Substitute Employment
- Math teacher out for maternity leave and is expected to return. Substitute employee fills in and is paid substitute rate of pay.
- Food service worker calls out sick. Substitute employee fills in for the day and is paid substitute rate of pay.
Non-Substitute Employment
- Employee of record was on maternity leave and decides to terminate employment. TRS membership eligibility must be reviewed as of the termination date or the previous employee of record.
- Employee is hired as an aide on the campus and is used as needed in different roles but positions are vacant (no employees of record).
TRS Retirees:
TRS retirees working in a position that does not meet the definition of substitute must be reported as one-half time or less, combined or full-time employment based on their work performed during that calendar month. Please keep in mind, if a retiree works as a substitute in a vacant position within the 20-day exception window, and the 21st day falls in the middle of a month, then that month is considered “Combination” employment. A retiree can work as a substitute and as a one-half time or less employee in the same month without surcharges if the total time does not exceed 11 days. Any part of a day worked, including paid time off, counts as a full day. More information about exceeding the EAR limits can be found on the TRS website.
If you have questions or would like assistance in determining whether an employee can be reported as a substitute, please reach out to your TRS coach.
Vacant Positions
There is a special provision that applies to TRS retirees that allows them to work in a vacant position and still be classified as a substitute.
A vacant position is any position, whether existing or newly created, that does not have an employee of record. In this case, TRS laws and rules permit a retiree to work in a vacant position for up to 20 days per position, per fiscal year and still be considered a substitute.
In these situations, the retiree can be reported as a substitute in the vacant position. However, REs must keep in mind that:
- The employment in the vacant position is limited to 20 days if the retiree has not previously been employed in that vacant position during the same school year.
- The vacancy cannot be created by the employee’s retirement. For example, they cannot retire in spring and return as a sub to fill the vacancy their retirement created in the fall.
- And the retiree cannot be hired to fill that position, becoming the employee of record.
If a retiree continues to work in a vacant position beyond the 20th day, they are no longer eligible to be reported as a substitute. The employment type will be determined based on when the 21st day falls within the calendar month.
If an RE is going to utilize retirees in vacant positions, it is recommended that they keep detailed records showing what positions and dates the retiree worked as a substitute. This is a matter that auditors regularly review.
Reporting Requirements
The following reporting requirements only applies to substitute employment for TRS retired employees:
Employment Dates: TRS recommends that REs report the employment dates on the ER records on a month to month basis. As an example, an ER record for September 2026 would have an employment start date of 09/01/2026 and an employment end date of 09/30/2026. This allows adjustments to employment types and reported information to be adjusted easier if needed.
Time Worked: The actual time worked in the report month, from the first day of the calendar month through last day of the calendar month, must be reported on the ER report. This includes the actual total Hours Worked and the Days Worked.
Paid Leave: Paid leave is considered time worked for TRS purposes and must be included in the total time worked for the report month if taken by the retiree.
Days Worked: Working any portion of a day counts as one full day for TRS reporting purposes.
Substituting in More than One Position: If an employee is substituting in more than one position in the same calendar month, then only one ER record can be submitted. Please report the position code in which the employee primarily substituted.