34 Tex. Admin. Code § 25.31 - Percentage Limits on Compensation Increases
(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.
Notes
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