Payroll Deduction Program

How is the PDP pay cycle determined?

The pay cycle is equal to the number of calendar months that a deduction is made. The pay cycle cannot change throughout the life of the agreement. Specific examples of pay cycles can be viewed by clicking here (PDF).

What if a member is a 9-, 10- or 11- month teacher and is not paid over the summer months?

If a member does not receive a payroll check over the summer months, the PDP agreement should reflect the actual pay cycle. TRS does not expect a member payment for a month in which a payroll check is not received. The member should be listed on the district’s Employer Bill with an amount due of $0.00. Payroll deductions for teachers with a 9-, 10-, or 11- month pay cycle should resume with their first paycheck in the new school year.

When can a PDP agreement be terminated?

The irrevocable PDP agreement signed by the employer and the member may only be terminated upon full payment of the member’s balance, upon the member’s death, retirement, or termination of the member’s employment with the employer who entered into the agreement. Since the Payroll Deduction Program is being discontinued, all agreements expire June 30, 2010.

What happens to a member’s PDP agreement if they go on an approved leave of absence?

If a member is granted a leave of absence, is placed on disability, or if there is a strike, the PDP agreement may be suspended for up to one year. The district should notify TRS immediately if this situation occurs. Since the Payroll Deduction Program is being discontinued, all agreements expire June 30, 2010.

How are PDP deductions remitted to TRS?

The total amount deducted from participating member’s salary is remitted to TRS once per month. All remittances should be made through the TRS EFT System.

When are Payroll Deduction Program payments due?

The monthly amount is due by the 10th of the month following the month of the deduction.

Can a member change the amount being deducted for their agreement?

No. However, by law, the final payoff amount may be less than the regular monthly amount.

How will I know if the contract is scheduled to pay off?

The estimated end date of the contract is shown each month on the Employer Bill. However, since the Payroll Deduction Program is being discontinued, all agreements expire June 30, 2010. Contracts that are scheduled to end within three months are indicated on the PDP Final Payment Report portion of the monthly bill. The information should be used to update your payroll system so that the final deductions are correct. Note that optional service contracts do accrue interest each month on the unpaid balance.

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