Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 3 - TEACHER RETIREMENT SYSTEM OF TEXAS › Chapter 25 - MEMBERSHIP CREDIT › Subchapter B - COMPENSATION › Section 25.31 - Percentage Limits on Compensation Increases

Current through Reg. 49, No. 28; July 12, 2024
(a) For members who
				  on or before August 31, 2005 had attained the age of 50, had at least 25 years
				  of service credit, or whose combined age and service credit equals 70 or
				  greater, the amount of compensation credited by TRS in each of the last three
				  school years prior to retirement may not exceed the amount of compensation
				  allowed for the preceding school year by more than 10% or $10,000, whichever is
				  greater.
(b) For members who on or
				  before August 31, 2005 did not meet requirements of subsection (a) of this
				  section, the amount of compensation credited by TRS in each of the last five
				  school years prior to retirement may not exceed the amount of compensation
				  allowed for the preceding school year by more than 10% or $10,000, whichever is
				  greater.
(c) For members meeting
				  the requirements of subsection (a) of this section, the base line amount used
				  to determine the amount of allowable compensation in the third school year
				  prior to retirement is the greater of either the amount of compensation for the
				  fourth school year prior to retirement or the amount of compensation for the
				  fifth school year prior to retirement, provided the member received service
				  credit in the base year. If the member did not receive service credit in either
				  the fourth or fifth school year prior to retirement, the base amount is the
				  earliest salary credited in the three school years prior to retirement,
				  provided the member received service credit in the base year. If the member
				  does not have service credit in at least three school years during the last
				  five school years prior to retirement, the limit in subsection (a) of this
				  section does not apply.
(d) For
				  members who do not meet the requirements of subsection (a) of this section and
				  who are subject to the restriction in subsection (b) of this section, the base
				  line amount used to determine the amount of allowable compensation in the fifth
				  school year prior to retirement is the greater of either the amount of
				  compensation for the sixth school year prior to retirement or the amount of
				  compensation for the seventh school year prior to retirement, provided the
				  member received service credit in the base year. If the member did not receive
				  service credit in either the sixth or seventh school year prior to retirement,
				  the base amount is the earliest salary credited in the five school years prior
				  to retirement, provided the member received service credit in the base year. If
				  the member does not have service credit in at least five school years during
				  the last seven school years prior to retirement, the limit in subsection (b) of
				  this section does not apply.
(e)
				  The amount of allowable compensation is the greater of 110% of the base line
				  amount or the amount of compensation in the base year plus $10,000. The amount
				  of allowable compensation for each subsequent year is the greater of 110% of
				  the allowable amount for the previous year or the allowable amount for the
				  previous year plus $10,000.
(f)
				  Beginning on the first day of the 2011-2012 school year and thereafter, all
				  increases in compensation without regard to the reason for the increase, are
				  subject to the limits in subsections (a) and (b) of this section.
(g) TRS will adjust a member's annual
				  compensation at the time of retirement to comply with the limit on creditable
				  compensation in subsections (a) or (b) of this section and refund the member
				  contributions on the amount that exceeds the limits described in this section.
				  The refund will be made after the date on which TRS makes the first annuity
				  payment.
(h) No adjustment in
				  compensation will be made if the limit on compensation increases would not
				  affect the calculation of the member's retirement benefit.
(i) Upon the request of TRS, the employer
				  shall provide documents or records evidencing the amount and nature of the
				  increased compensation reported to TRS.