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