Furloughs are considered a temporary downward adjustment in an employee’s salary, not a permanent salary reduction. Since Georgia law states contributions are remitted based on the member’s full rate of regular compensation for his full normal working time, contributions will continue to be reported based on the member’s full regular salary prior to the implementation of the furlough.
Salary reductions and reductions in contracted days are permanent in nature and become the employee’s full rate of regular compensation for their full normal working time. Therefore, employee and employer contributions should be remitted based on the employee’s adjusted regular salary. Reporting employers should report all employee salaries equally and not differentiate between newer employees and those employees who are nearing retirement. Should discrepancies occur, your TRS representative will contact you for clarification. For employees who are close to retirement, please remember that the retirement calculation is based, in part, on the member’s two highest consecutive years of salary, which may not necessarily be their final two years of salary. Should you have additional questions, please contact our office.