TRA Retirement Deduction

TRA is a defined-benefit pension plan. During the employee’s (teachers and other licensed staff) career, both the employee and the employer contribute to the TRA. The State Board of Investment manages the TRA contributions to pay the employees' benefits. The teachers and other licensed staff must contribute to TRA through payroll deductions at the current employee rate. The employers also contribute to TRA on behalf of employees at the current employer rate.

Verify current TRA contribution rates with the Teachers Retirement Association, as they may change annually.

To configure TRA Retirement deductions, do the following:

Set up the TRA Retirement Deduction

You must first create the TRA Retirement deduction record on the Deduction Table page.

Menu path

From the Human Resources menu, select Reference Tables. From the Payroll menu, select Deductions.

To set up a TRA Retirement deduction record, you must enter or select valid information on the following tabs of the Deduction Table page:

General tab

Enter or select the following field values on the General tab of the Deduction Table page.

Field	What to enter or select
Deduction Code	Enter a four-character code (e.g., "TRA1", "TRA2", "TRAC").
Title	Enter a descriptive title (e.g., "TRA Coordinated Retirement").
Check Title	Enter an abbreviated title for pay stubs (e.g., "TRA COORD").
Frequency	Select the deduction frequency code that matches your pay schedule.
Maintain Arrears	Select this option if you want to track and collect missed deductions.
Method	Select R - Employee % for percentage-based TRA contributions.
Subjective Gross	Use the default option SP - Subject Pay Gross or select the appropriate gross basis.
Include in EAC "What If" Calculator	Select this option to make the deduction available in the Employee Access Center (EAC) Paycheck Calculator feature. Employees can calculate the change in their paycheck if they add this deduction or benefit. Leave it blank to exclude the deduction from the calculator.

Employee tab

Enter or select the following field values on the Employee tab of the Deduction Table page.

Field	What to enter or select
Maximum Method	Select one of the following: Y - Year to Date F - Fiscal Year to Date
Withholding Account	Enter the liability account for TRA withholdings.
Deduction Amount/Rate	Enter the TRA contribution rate (varies by plan).
Maximum Gross	Leave blank unless there is a wage cap.
Maximum Deduction	Enter the annual maximum if applicable.
Cafeteria Plan	Select N - Deduction is not part of the cafeteria plan.
Deduction for a Bond	Leave this option unchecked.

Employer tab

Enter or select the following field values on the Employer tab of the Deduction Table page.

Field	What to enter or select
Benefit Method	Select R - Record % to use a percentage-based employer match.
Benefit Amount/Rate	Enter the employer contribution rate (varies by plan).
Benefit Charging	Select one of he following: A - All Pay Rates P - Primary Pay Rates
Benefit Account	Enter the expense account for employer contributions.
Maximum Benefit	Enter the annual maximum if applicable.
Encumber Benefits	Select this option if you want to encumber employer contributions.
Times Encumbered	Enter the number of times per fiscal year.

Taxation tab

Enter or select the following field values on the Taxation tab of the Deduction Table page.

Field or Section	What to enter or select
Deduction Tax Exemptions section - Federal Tax	Select this option.
Deduction Tax Exemptions section - State Tax	Select this option.
Deduction Tax Exemptions section - FICA Tax	Uncheck this option. TRA is subject to FICA.
Deduction Tax Exemptions section - Local Tax	Select this option if applicable.
Benefit Taxes section	Select the required options based on your tax requirements.

Vendor tab

Enter or select the following field values on the Vendor tab of the Deduction Table page.

Field	What to enter or select
Vendor	Enter or select the TRA vendor code for liability payments.
Payment Frequency	Enter the vendor payments frequency code.

Next, you must map the TRA Deduction Code to MN TRA on the MN Retirement Deduction page.

Map the TRA Deduction Code

After setting up a TRA Retirement deduction record, you must map the TRA Deduction Code to MN TRA. Refer to MN Retirement Deduction for more information.

Assign the TRA Deduction Code

After mapping the TRA Deduction Code to MN TRA, you must assign the deduction code to employees.

Menu path

From the Human Resources menu, select Entry & Processing. From the Employee menu, select Employee Deductions.

Refer to the Employee Deductions page and set up employee deduction records.