Compensation & Benefits
Group Health Insurance
All TSD employees are eligible for group health insurance, comprehensive health and prescription drug benefits, along with the State-paid $5,000 basic term life insurance which will all be offered effective on the first of the month following a 60 day waiting period. TSD pays 100 percent of the health insurance premiums for full-time employees and 50 percent of the premiums for their dependents. TSD pays half of the premiums for part-time employees (less than 30 hours per week) and 25 percent of their dependent premiums.
In addition, all TSD employees are offered optional coverage, which includes: Dependent Life Insurance, Optional Term Life Insurance, Accidental Death & Dismemberment, Long and Short Term Disability Insurance, and Dental and Vision Insurance. Enrollment for optional coverage may be effective on the date of hire or within the first 31 days of employment.
More information regarding group health insurance and optional coverage is available from the Employees Retirement System (ERS).
Employees can apply for Children's Health Insurance Program (CHIP). CHIP is offered through the Health and Human Services Commission and is low cost medical coverage for children ages 0 to 18. If your application is approved, the total cost per family can be as low as $50 yearly. Co-pays can range from $5 to $25 per visit. To qualify employees must meet income guidelines. For more information, see the CHIP website call (800) 647-6558.
Starting on your first day of employment, you become a member of the Employee Retirement System (ERS) and a retirement account is started for you. Contributions to the state retirement plan are mandatory. The State of Texas contributes 10% of an employees monthly salary to their retirement account.
For individuals hired by TSD on or after September 1, 2022, the retirement plan is a cash balance retirement benefit. Six percent of your monthly salary will be deducted and deposited into your personal state retirement account. The account will earn four percent annually with the possibility of up to an additional 3% interest per year through gain-sharing, dependent on ERS' investment performance. With the Cash Balance plan when an individual meets retirement eligibility the annuity is calculated based on how much money is in the retirement account. The total amount in the account will include the following: the employee's contributions, 4% annual interest, any gain-sharing amounts and 150% match (contributed by the State at that time).
For employees hired prior to September 1, 2022, you participate in a defined benefit retirement plan. Unlike a 401(k) or 457 plan, where retirement benefits are determined by your account balance, a defined benefit plan pays you a monthly benefit for life based on your length of service and monthly salary. 9.5 percent of your monthly salary will be deducted each month and deposited into your personal state retirement account. This account earns 2 percent interest annually. There are three different retirement groups within those hired prior to September 1, 2022. Group 1 are individuals hired before September 1, 2009. Group 2 are individuals hired between September 1, 2009 and August 31, 2013. Group 3 are individuals hired between September 1, 2013 and August 31, 2022. Please see the ERS website for specifics on retirement and annuity calculations for each of these different groups.
Texa$aver Automatic Enrollment:
Newly hired employees will automatically be enrolled in an additional 401(k) retirement plan at 1% of their monthly salary. This account is administered by Empower Retirement. Employees may opt out within the first 30 days of hire or within 90 days of the first deduction by calling Empower Retirement at 800-634-8091 to stop deferrals within the first 30 days of hire. This is separate from, and in addition to, the mandated retirement account.
In addition to the above retirement plan options, TSD offers a 403(b) plan for employees who are interested. JEM Resource Partners is the third party administrator of the 403(b). For more information, please contact TCG Administrators customer service at [email protected] or by calling (800) 943-9179.
Optional Retirement Programs
Employees can enroll anytime of the year in the Texa$aver Program. This program offers two voluntary retirement plans in addition to your ERS account, a 401(k) Plan and a 457 Plan and offers a number of investment choices. For more information or enrollment information you can contact the Texa$aver Customer Service line toll-free at (800) 634-5091 weekdays from 8 A.M. until 7 P.M.
TexFlex Reimbursement Accounts
The TexFlex Program provides options to pay eligible medical-related expenses, dependent care, elder care for a spouse, allowable health care costs and commuter expenses with pre-tax salary dollars. TexFlex enables you to designate an amount of money to be taken from your check every month that will be applied to this account that can be used on medical-related items and services that you and your family would normally purchase. For a list of eligible and ineligible TexFlex expenses, visit their website.
Family Medical Leave / Military Caregiver Leave
All employees with 12 months of state service who have worked 1,250 hours with the agency in the preceding 12 months are entitled to a maximum of twelve (12) weeks of paid or unpaid leave per year to care for themselves or an immediate family member due to illness or injury; and a maximum of twenty six (26) weeks of paid or unpaid leave per year to care for a family member who was injured or made ill in the line of duty (Military Caregiver Leave). For employees that are on approved Family Medical Leave or Military Caregiver Leave, the agency will continue to pay the employee portion of the health insurance while the employee will be responsible for paying premiums on optional coverage while the employee is on leave-without-pay status.
All employees may use Parental Leave for the birth of a natural child or the adoption of child younger than three years of age. Leave entitlement is not to exceed 12 continuous weeks, and the employee may elect to use any combination of available sick leave, annual leave, compensatory time off or leave without pay. If using available paid leave, the employee portion of the health insurance will continue to be paid through a payroll deduction and the State will continue to pay the state contribution. If using leave without pay for an entire month, the employee must pay the employee and state portion of the insurance.
The State Employees’ Workers’ Compensation Program pays for medical treatment and lost wages for state workers who are injured or become ill as a result of their work. Employees are given the option to participate in this program during New Employee Orientation and coverage is provided at no cost to the employee.
The State Office of Risk Management (SORM) serves as the state’s insurance carrier for this benefit. The program provides coverage to persons in the service of the State of Texas whether by hire, election, or appointment.
Employee Assistant Program (EAP)
TSD has partnered with Alliance Work Partners to offer EAP benefits to TSD staff and their families. This program offers guidance, counseling, and a variety of different services, all of which are confidential and at no cost to the employee. Alliance Work Partners can be reached by calling (800) 343-3822.
Note about insurance: Health and other insurance benefits for employees and retirees are subject to change based on available State funding. The Texas Legislature determines the level of funding for such benefits and has no continuing obligation to provide those benefits beyond each fiscal year.
If you have any questions regarding TSD Benefits, please contact the Human Resources Office at (512) 462-5321.