UTA Legal Docs

HR-B-PR-07 Benefit Replacement Pay (BRP) Procedure 

I. Title

Benefit Replacement Pay Procedure 

II. Objective

(No objective text provided in document) 

III. Scope

(No scope text provided in document) 

IV. Procedure

Prior to January 1, 1996, the State paid 5.8% of the social security tax on the first $16,500 of the State employee’s earnings. This payment was treated as taxable income to the employee. The remaining FICA tax was paid by the employee. 

  1. The 74th Legislature passed Senate Bill 102, eliminating the provision for the State of Texas to pay the 5.8% portion of the FICA tax. The legislation provided that state employees on the payroll as of August 31, 1995, would continue to receive the state-paid FICA benefit on wages paid through December 31, 1995. Beginning with wages paid January 1, 1996, state-paid social security ceased and Benefit Replacement Pay was paid to eligible employees to offset the loss of state-paid social security. The Benefit Replacement Pay calculation is based on the employee’s compensation as of October 31, 1995. 
  2. As of September 1, 1997, the Benefit Replacement Pay was added to the gross pay of eligible employees. It is no longer reported as a separate item. 
  3. An eligible employee who leaves State employment for 30 or more consecutive days after August 31, 2005, becomes ineligible to receive benefit replacement pay upon re-employment with the State. 
  4. An eligible employee who retired from State employment on or after June 1, 2005, who receives an annuity from a public retirement system, is ineligible to receive benefit replacement pay upon re-employment with the State. 
  5. Employees on leave without pay due to military leave retain eligibility for BRP upon return to active employment. 

V. Definitions

None 

VI. Relevant Federal and State Statutes

None 

VII. Relevant UT System Policies, Procedures and Forms

None 

VIII. Who Should Know

(No specific text provided in the document) 

IX. UTA Office(s) Responsible for Procedure

  • Responsible Officer: Chief Human Resources Officer 
  • Sponsoring Department: Human Resources 

X. Dates Approved or Amended

February 11, 2011 

XI. Contact Information

  • All questions pertaining to this procedure should be directed to the Chief Human Resources Officer: askhr@uta.edu 
  • Send notifications of errors or changes to: policysite@uta.edu