LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 27, 1997 TO: Honorable Barry Telford, Chair IN RE: House Bill No. 2812 Committee on Pensions and Investments By: Woolley House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2812 ( Relating to the inclusion of performance pay in the calculation of a teacher's standard service retirement annuity.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2812-As Introduced 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. Performance pay is part of a total compensation plan approved by a local school board, 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, local school districts would be required to pay the 6.0% employer retirement contribution to TRS. Source: Agencies: 323 Teacher Retirement System and Optional Retirement Program LBB Staff: JK ,PE ,SC