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The following definitions are provided to help you understand terms we regularly use in our seminars, correspondence, and publications. These definitions are general, not technical, in nature. For detailed definitions, please see the Illinois Pension Code, Article 16.
E
Earnings Statement – Direct Deposit
A listing of monthly payments issued via direct deposit, showing gross and net payments and all withholding deductions. It is issued by the Office of the Comptroller year-to-date following the November 30 payment each year and whenever the deposit amount changes.
EFT, electronic funds transfer
The process of electronically depositing monthly benefit payments into an account at a financial institution. For employers, this is the system that allows them to remit contributions and certain payments to TRS electronically.
A member’s or an annuitant’s unmarried natural or adopted child who is under age 18 or age 22 if he or she is a full-time student. Also, can be a disabled adult child. Adopted children are eligible only if the adoption proceedings were finalized while the child was a minor. The definition applies to eligibility for certain survivor benefits.
Documents provided by TRS to each TRS employer on a monthly basis. A separate bill is provided for each type of payment (PDP, ERO, penalties, ATE, report difference) that is owed to TRS or THIS Fund.
Employer Bulletin
A supplement to the TRS Employer Guide. Contains periodic news and information.
Employer Guide
A publication designed to help TRS-covered employers remit contribution payments to TRS and meet TRS reporting requirements. The Employer Guide also serves as a reference for employers on TRS policies, procedures, and benefits.
Documents provided by TRS to each TRS employer on a monthly basis. This reflects all payments credited to the employer's account during the previous time period.
Employer’s Annual Report of Earnings
A report providing necessary information to establish and record earned service credit, annual salary rates, creditable earnings, and contributions for all members of a TRS-covered employer for a current reporting year. The report is due to TRS from the TRS-covered employer by August 15 of each year for the prior fiscal year.
The employer's portion of the total normal cost of benefits earned by active members during the fiscal year that is not funded by the estimated contributions of active members.
Employer’s Report of Adjustments to Earnings (ATE)
A form used to correct salary and service credit information that was previously submitted on an Employer’s Annual Report of Earnings for any prior reporting year.
Employer's Sick Leave Report form
This form is used to report unused and uncompensated sick leave days for all teachers who have terminated employment with a TRS employer. The Employer's Sick Leave Report form is completed by the employer and submitted with the Employer's Annual Report of Earnings form.
ERISA, Employee Retirement Income Security Act
This federal legislation applies to private sector pension plans, although TRS voluntarily upholds the fiduciary and reporting standards set forth in the law.
A qualifying member may retire before age 60 with a nondiscounted annuity by making a contribution based on the member's age or years of service and highest salary. The participating TRS-covered employer is also required to make a one-time contribution.
exclusion ratio
The percentage of an annuitant’s benefit that is not subject to federal income tax. The portion of the benefit attributable to previously-taxed contributions is not taxable when the benefit is paid.
extra duties not requiring certification
Extra duties that involve supervising students or are related to teaching or the academic program that do not require teacher certification (e.g., class sponsor, club leader, coach) performed for a TRS-covered employer. These extra duties are reportable if performed by a full-time or a part-time contractual teacher.
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