The quarterly report provides a record of the number of hours or days a substitute employee worked and the amount of compensation earned. The substitute can use this information to estimate the cost of purchasing service credit. Substitutes must apply to DRS by submitting the appropriate “Substitute Guide to obtaining Service Credit”. Substitutes employed by the School for the Deaf, School for the Blind or any Higher Education Institution must include the quarterly report when they submit their application to purchase service credit.
Beginning July 27, 2003, school district and educational service district employers are required to provide SERS classified substitute employees with quarterly reports showing hours worked and compensation earned in each month.
Beginning with the 2004-05 school year, school district and educational service district covered employers will be required to report hours and compensation for substitute employees on the monthly transmittal report. The quarterly report will no longer be required unless the substitute is applying for service credit for a time period prior to the 2004-05 school year.
What to Include on the Quarterly Report
To be accepted as proof of service and compensation, the quarterly report must provide:
- your organization's name and TRS or SERS reporting group number. The reporting group number is not required by law on the quarterly report; including it will assist Retirement Services in processing the substitute's application;
- the employee's name and Social Security number;
- the total number of hours (for Plan 2 or Plan 3) or days (for TRS Plan 1) the employee worked for you each month. (If you are not sure of an employee's plan, report the employee's hours or days and give the conversion rate; for example, 7.5 hours = 1 day.);
- the total amount of compensation the employee earned with you each month. (Be sure to identify compensation by when it was earned, not by when it was paid.); and
- the signature of the payroll officer or other person authorized to sign Verification of Employment forms. (A signature plate may be used.)
If your quarterly report does not provide this information, you will be required to provide any missing details at the time the substitute applies for service credit.
What the Quarterly Report Should Look Like
Figure 5-1 is an example of a quarterly report using the recommended format. This sample shows how information should be reported for the first quarter of a school year. The remainder of the report is completed as the employee worked the remaining quarters of the year.
How the Quarterly Report is Used
Substitutes must submit their quarterly reports to DRS with their application to purchase service credit for a period of employment prior to the 2004 – 2005 school year. Substitute teachers employed by the School for the Deaf, School for the Blind or any Higher Education Institution must continue to submit quarterly reports. Substitutes can apply for service credit any time before their retirement. To receive service credit, the individual must:
- be an active TRS or SERS member (or be eligible for TRS or SERS membership based on the service as a substitute);
- submit the quarterly reports after the end of the school year for which application is being made (June 30 for TRS Plan 1 or August 31 for Plan 2 or Plan 3) and before retirement; and
- pay all employee contributions due, as well as any interest that may apply.
Note: The employee will be billed for the interest on both employee and employer contributions if payment is made more than six months after the end of the school year for which application has been made. The employer will be billed for employer contributions only after the employee's contributions and any applicable interest have been paid.
If employees have questions about their option to establish service credit for substitute employment, refer them to the New Hire Pyramid Substitutes. This site provides links to fact sheets, reporting charts, DRS Notices, FAQ's and the Substute Guides that must be submitted to DRS. If the member has additional questions, have the employee contact the SERS or TRS Retirement Services divisions.