By: Averitt S.B. No. 1877
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the determination of compensation under the Teacher
Retirement System of Texas.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 822.201(b) and (c), Government Code, is
amended to read as follows:
       (b)  "Salary and wages" as used in Subsection (a) means:
             (1)  normal periodic payments of money for service the
right to which accrues on a regular basis in proportion to the
service performed;
             (2)  amounts by which the member's salary is reduced
under a salary reduction agreement authorized by Chapter 610;
             (3)  amounts that would otherwise qualify as salary and
wages under Subdivision (1) but are not received directly by the
member pursuant to a good faith, voluntary written salary reduction
agreement in order to finance payments to a deferred compensation
or tax sheltered annuity program specifically authorized by state
law or to finance benefit options under a cafeteria plan qualifying
under Section 125 of the Internal Revenue Code of 1986, if:
                   (A)  the program or benefit options are made
available to all employees of the employer; and
                   (B)  the benefit options in the cafeteria plan are
limited to one or more options that provide deferred compensation,
group health and disability insurance, group term life insurance,
dependent care assistance programs, or group legal services plans;
             (4)  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 and meeting the requirements of
Subsection (e);
             (5)  the benefit replacement pay a person earns under
Subchapter H, Chapter 659, except as provided by Subsection (c);
             (6)  stipends paid to teachers in accordance with
Section 21.410, 21.411, 21.412, or 21.413, Education Code;
             (7)  amounts by which the member's salary is reduced or
that are deducted from the member's salary as authorized by
Subchapter J, Chapter 659;
             (8)  a merit salary increase made under Section 51.962,
Education Code;
             (9)  amounts received under the relevant parts of the 
awards for student achievement program under Subchapter N, Chapter
21, Education Code, the educator excellence awards program under
Subchapter O, Chapter 21, Education Code, or a mentoring program
under Section 21.458, Education Code, that authorized compensation
for service; and[.]
             (10)  salary amounts designated as health care
supplementation by an employee under Subchapter D, Chapter 22,
Education Code.
                   (C)  Excluded from salary and wages are:
                         (1)  expense payments;
                         (2)  allowances;
                         (3)  payments for unused vacation or sick
leave;
                         (4)  maintenance or other nonmonetary
compensation;
                         (5)  fringe benefits;
                         (6)  deferred compensation other than as
provided by Subsection (b)(3);
                         (7)  compensation that is not made pursuant
to a valid employment agreement;
                         (8)  payments received by an employee in a
school year that exceed $5,000 for teaching a driver education and
traffic safety course that is conducted outside regular classroom
hours;
                         (9)  the benefit replacement pay a person
earns as a result of a payment made under Subchapter B or C, Chapter
661;
                         [(10)  any compensation designated as health
care supplementation by an employee under Subchapter D, Chapter 22,
Education Code, subject to an annual limit of $1,000;]
                         (10) [(11)]  any amount received by an
employee under:
                               (A)  former Article 3.50–8, Insurance
Code;
                               (B)  former Chapter 1580, Insurance
Code;
                               (C)  Subchapter D, Chapter 22,
Education Code, as that subchapter existed January 1, 2006; or
                               (D)  Rider 9, Page III-39, Chapter
1330, Acts of the 78th Legislature, Regular Session, 2003 (the
General Appropriations Act); and
                         (11) [(12)]  any compensation not described
in Subsection (b).
       SECTION 2.  This Act takes effect September 1, 2007.