LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 2, 1997 TO: Honorable Teel Bivins, Chair IN RE: House Bill No. 2812, As Engrossed Committee on Education By: Woolley Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2812 ( Relating to the inclusion of performance pay for purposes of contributions and benefits uder the Teacher Retirement System of Texas.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2812-As Engrossed No fiscal implication to the State is anticipated. The bill would include performance pay awarded to an employee by a school district in the definition of salary and wages used in contribution and benefit calculation purposes for the Teacher Retirement System (TRS). Performance pay is part of a total compensation plan approved by the board of trustees of a school district, and is not part of the salary schedule established by the Texas Education Code, Section 21.402. Since any compensation received through a performance pay plan would be over and above the minimum salary schedule, as adjusted by the Cost of Education Index, the local school district would be required to pay the 6.0% employer retirement contribution to TRS. Source: Agencies: LBB Staff: JK ,LP ,PE ,SC