The employees' contributions are made through deductions from salaries. The state makes a matching contribution to these programs from the General Revenue Fund for each eligible employee. Prior to 1979, the state made the matching contribution from the General Revenue Fund, regardless of the source of funds used to pay the salary. In 1979, state law was changed to require reimbursement to the state for matching contributions made for employees whose salaries were paid from federal funds or private grants.
Reimbursement is made from federal or private funds which have been obtained by the employer.
Employers submit federal funds reports for both retirement programs to TRS for administration. Employers submitting reports include public school districts, community college districts, senior colleges and universities, and other entities whose employees are entitled to participate in the Teacher Retirement System or Optional Retirement Program. TRS relies solely on the employers for information on salaries paid with federal and private funds and the related reimbursement for matching. In June 1988, TRS requested reports from AEC for the period 1979-1988. Besides offering a traditional community college curriculum, AEC provides educational services around the world.