| 1 | 1 | | 88R2163 BDP-D |
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| 2 | 2 | | By: Allison H.B. No. 656 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the inclusion of compensation paid under the teacher |
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| 8 | 8 | | incentive allotment under the Foundation School Program for |
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| 9 | 9 | | purposes of contributions to benefits under the Teacher Retirement |
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| 10 | 10 | | System of Texas. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 825.110, Government Code, is amended to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | Sec. 825.110. DETERMINATION OF ANNUAL COMPENSATION. (a) |
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| 15 | 15 | | The board of trustees shall adopt rules to exclude from annual |
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| 16 | 16 | | compensation all or part of salary and wages in the final years of a |
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| 17 | 17 | | member's employment that reasonably can be presumed to have been |
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| 18 | 18 | | derived from a conversion of fringe benefits, maintenance, or other |
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| 19 | 19 | | payments not includable in annual compensation to salary and wages. |
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| 20 | 20 | | Except as provided by Subsection (b), the [The] board of trustees |
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| 21 | 21 | | shall adopt rules that include a percentage limitation on the |
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| 22 | 22 | | amount of increases in annual compensation that may be subject to |
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| 23 | 23 | | credit and deposit during a member's final years of employment. |
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| 24 | 24 | | (b) The board of trustees may not impose a percentage |
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| 25 | 25 | | limitation on the amount of an increase in annual compensation that |
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| 26 | 26 | | is attributable to increased compensation paid to a teacher by a |
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| 27 | 27 | | school district using funds received by the district using the |
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| 28 | 28 | | teacher incentive allotment under Section 48.112, Education Code. |
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| 29 | 29 | | SECTION 2. This Act takes effect September 1, 2023. |
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