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Your Turn to Ask
February 2024
Should an employee’s additional duties as an acting administrator be reported as creditable compensation?
No. This falls under payments of a temporary nature, which should be excluded from the amount you report to VRS for the employee’s creditable compensation.
Other types of pay that should be excluded:
- Overtime.
- Extraordinary pay.
- Bonus pay.
- Housing and moving expenses.
- Mobile device and internet costs.
- Vehicle allowances.
- Termination pay for leave.
- Non-permanent shift differentials.
- Payments for extra duties, such as pay for teachers who serve as coaches.
- A member’s election to defer salary to a deferred compensation plan, such as a 403(b), a 457(b) or a 125 plan, may only be included in creditable compensation if the member voluntarily elects the deferral, the deferral is not conditional or performance based, and the deferral would otherwise be included in the member’s gross income.
Other exclusions apply, so be sure to consult the Creditable Compensation Job Aid and Checklist.
Still have questions about creditable compensation inclusions or exclusions? Reach out to your employer relationship manager.
