SRC-HRD H.B. 2812 75(R) BILL ANALYSIS Senate Research Center H.B. 2812 By: Woolley (Gallegos) Education 5-5-97 Engrossed DIGEST The calculation of a teacher's standard service retirement annuity is based in part upon salary and wages earned by the teacher. "Salary and wages," as currently defined, does not include performance pay awarded to the teacher as a part of a total compensation plan. Therefore, the current statute does not allow the teacher to benefit from the new types of compensation plans now being implemented which recognize performance factors rather than previous salary plans which were based solely on an additional year of experience. H.B. 2812 would define "salary and wages" to include performance pay awarded to an employee as a part of a total compensation plan adopted by the board of trustees of a school district. PURPOSE As proposed, H.B. 2812 defines "salary and wages" to include performance pay awarded to an employee as a part of a total compensation plan adopted by the board of trustees of a school district.. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 822.201(b), Government Code, to redefine "salary and wages" to include performance pay awarded to an employee by a school district as part of a total compensation plan approved by the board of trustees of the district. SECTION 2. Provides that this Act applies beginning with the 1997-1998 school year. SECTION 3. Emergency clause. Effective date: upon passage.