SBW C.S.H.B. 2812 75(R)BILL ANALYSIS


PENSIONS & INVESTMENTS
C.S.H.B. 2812
By: Woolley
4-3-97
Committee Report (Substituted)



BACKGROUND 

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. 

PURPOSE

As proposed, CSHB 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.. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1:  Amends Subsection 822.201(b), Government Code to add
performance pay to the definition of "wages and salary" paid to an
employee of a school district. 

SECTION 2:  Effective date:  1997-1998 school year.

SECTION 3:  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1 changes reference of "a local school board" to "the board of
trustees of the district."  

New SECTION 2 adds the effective date.

The original SECTION 2 is now SECTION 3.