Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 3 - TEACHER RETIREMENT SYSTEM OF TEXAS › Chapter 25 - MEMBERSHIP CREDIT › Subchapter B - COMPENSATION › Section 25.24 - Performance Pay

Current through Reg. 49, No. 28; July 12, 2024
(a) Annual
				  compensation includes performance pay earned under a total compensation plan
				  specifically approved by vote of the governing board of an employer. Such
				  approval must be reflected in the minutes of the governing board. Any employer
				  reporting to the retirement system is considered a school district for the
				  purposes of this section.
(b) For
				  purposes of including performance pay as a part of annual compensation under
				  this rule, a total compensation plan must describe all elements of compensation
				  received by all employees of the employer.
(c) Performance pay is compensation for
				  service as an employee in a Texas public educational institution that is paid
				  under a valid employment agreement based upon a performance standard published
				  in written documents adopted by the employer. The performance standard may be
				  based on evaluations or goal achievement of the individual employee or of the
				  group in which the individual belongs. Beginning on the first day of the
				  2011-2012 school year and thereafter, specific amounts of performance pay will
				  be credited to the year in which the performance pay is paid. For school years
				  prior to the 2011-2012 school year, specific amounts of performance pay will be
				  credited to the year in which the standards establishing the right to the
				  performance pay are met or in which the service occurred, whichever is earlier.
				  Performance pay paid in the 2011-2012 school year that is based on service
				  rendered prior to the 2011-2012 school year will be credited to the school year
				  in which the standards establishing the right to the performance pay are met or
				  the school year in which the service occurred, whichever is earlier.
(d) An employer shall certify each year to
				  the retirement system, by a date specified by the system on a form prescribed
				  by TRS, whether it is providing performance pay under this section. A district
				  that has properly made this certification shall report all qualifying
				  performance pay as compensation and make appropriate deductions for member
				  contributions unless the retirement system advises the employer that such pay
				  does not qualify as performance pay under this rule. Employer shall maintain
				  records that show it provides such pay for a period not less than 7 years after
				  such pay is reported to the retirement system.
(e) Beginning on the first day of the
				  2011-2012 school year and thereafter, performance pay earned during the school
				  year in which the member retires or any previous school year and paid after the
				  member has begun receiving retirement benefits is not creditable by TRS and
				  will not be used in any benefit calculation. For school years prior to the
				  2011-2012 school year, if performance pay earned during the school year in
				  which the member retires is paid after the member has begun receiving
				  retirement benefits, any benefit adjustment needed will be made effective the
				  month following the month in which TRS receives the deposits for the
				  performance pay, subject to any applicable limits under
				  26
				  United States Code §
											415.