Calculating Contributions

How are the employee and employer TRS and THIS Fund contributions calculated?

Following are examples of the calculation of the employee and employer TRS and THIS contributions for the 2007-08 school year.

Example:

District A is obligated per a negotiated agreement to pay the 9.4 percent retirement contributions for full-time teachers.

2007-08 - A teacher has a base contract of $33,000. In addition, he is the basketball coach and earns $2,000. Base earnings and the 9.4 percent retirement contribution are paid from Title 1.

• Creditable earnings:
  ($33,000 + $2,000) x 1.103753 = $38,631.36
• Employee contributions:
  $38,631.36 x 9.4% = $3,631.35
• Employer contribution for member benefit increase:
  $38,631.36 x 0.58% = $224.06
• Employee THIS Fund contributions:
  $38,631.36 x 0.84% = $324.50
• Employer THIS Fund contributions:
  $38,631.36 x 0.63% = $243.38
• Salaries paid from federal funds: $33,000
• 13.11 percent employer contributions due:
  ($33,000 x 1.103753) x 13.11% = $4,775.17

Example:

At District B the teachers pay their own 9.4 percent retirement contributions.

2007-08 - A teacher has a base contract of $33,000. In addition he is the basketball coach and earns $2,000. Base earnings only are paid from Title 1.

• Creditable earnings:
  $33,000 + $2,000 = $35,000.00
• Employee contributions:
  $35,000 x 9.4% = $3,290.00
• Employer contribution for member benefit increase:
  $35,000 x 0.58% = $203.00
• Employee THIS Fund contributions:
  $35,000 x 0.84% = $294.00
• Employer THIS Fund contributions:
  $35,000 X 0.63% = $220.50
• Salaries paid from federal funds: $33,000
• 13.11 percent employer contributions due:
  $33,000 x 13.11% = $4,326.30

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