34 TAC §41.42
The Teacher Retirement System of Texas (TRS) proposes amendments
to §41.42, concerning payment of supplemental compensation to employees
of school districts, other educational districts, charter schools, and regional
education service centers. The section outlines the reporting requirements
for school districts, other educational districts whose employees are members
of TRS, participating charter schools, or regional education service centers
for the payment of supplemental compensation and also defines full-time, part-time,
and professional employees, and specifies which classifications of employees
are eligible to receive the supplemental compensation. The proposed amendments
update the section in light of the discontinuation of TRS's health reimbursement
account (HRA) program. The proposed amendments have been adopted on an emergency
basis as published in this issue of the
Texas Register
.
The proposed amendments primarily address the definitions of terms used
in the rule. The amendments change the term "professional employee" to "professional
staff" but continue to apply the same definition to the renamed term beginning
in fiscal year 2005. The amendments also specify which entities are affected
by the rule and fully define full-time and part-time employees rather than
referring to definitions in prior statutes.
Tony Galaviz, Chief Financial Officer, has determined that for each year
of the first five-year period the amendments are in effect, there will be
no fiscal implications to state or local governments as a result of enforcing
or administering the rule. There is no foreseeable effect on local employment
or local economies as a result of the proposed amendments. There is no anticipated
adverse economic effect on small businesses or micro-businesses as a result
of compliance with the proposed amendments.
Mr. Galaviz has also determined that for each year of the first five years
the proposed rule is in effect the public benefit anticipated as a result
of the rule will be that affected employers and employees will have notice
of these requirements, employers will know which employees receive what amount
of supplemental compensation, and only eligible individuals will receive the
supplemental compensation. Mr. Galaviz has determined that there are no anticipated
economic costs to persons required to comply with the proposed rule.
Comments on the proposal may be submitted to Ronnie Jung, Executive Director,
1000 Red River, Austin, Texas 78701.
The amendments are proposed under Government Code, Chapter 825, §825.102,
which authorizes the Board of Trustees of the Teacher Retirement System to
adopt rules for the administration of the funds of the retirement system and
for the transaction of business of the Board. These amendments are also proposed
under House Bill 1, 78th Legislature, Regular Session, which defines the supplemental
compensation program beginning on September 1, 2004.
There are no other codes affected.
§41.42.Payment of Supplemental Compensation.
(a)
For each designated report month,
a school district,
other educational district whose employees are members of TRS, participating
charter school, or regional education service center
[
entities
eligible to receive and to hold in trust supplemental compensation under Insurance
Code Article 3.50-8 or Insurance Code Chapter 1580
] ("entity" or "entities")
shall report to the Texas Education Agency (TEA), in the manner prescribed
by TRS, the number of full-time and part-time employees, as defined herein,
eligible to receive supplemental compensation and the total number of professional
staff
[
employees
], as defined herein, as determined by the
entity in accordance with requirements established by TRS. TEA must receive
each monthly report by 5:00 p.m. Central Time on the 10th calendar day of
each month, or, if that date is not a business day, by 5:00 p.m. Central Time
on the first business day after the 10th calendar day of the month. TEA or
TRS may dispute, seek verification of, or conduct an investigation regarding
the reported number of
employees and staff
[
participating
members
] at any time after receiving the report.
(b)
For purposes of this section, an individual is employed
as a full-time employee if the individual
:
(1)
is a participating member of
TRS;
(2)
is employed by a school district,
other educational district whose employees are members of TRS, participating
charter school, or regional education service center;
(3)
is not a retiree covered under
the Texas Public School Retired Employees Group Benefits Program established
under Chapter 1575, Texas Insurance Code;
(4)
[
meets the definition of "employee under
Article 3.50-8 or Chapter 1580, Insurance Code, the individual
] is not
[
a
] professional
staff;
[
employee,
] and [
the individual
]
(5)
works for an entity or any combination of entities
for 30 or more hours each week.
(c)
For purposes of this section, an individual is employed
as a part-time employee if the individual
:
(1)
is a participating member of
TRS;
(2)
is employed by a school district,
other educational district whose employees are members of TRS, participating
charter school, or regional education service center;
(3)
is not a retiree covered under
the Texas Public School Retired Employees Group Benefits Program established
under Chapter 1575, Texas Insurance Code;
(4)
[
meets the definition of "employee" under
Article 3.50-8 or Chapter 1580, Insurance Code, the individual
] is not
[
a
] professional
staff;
[
employee,
] and
(5)
[
the individual
] works for an entity
or any combination of entities for less than 30 hours each week.
(d)
For purposes of this section
, beginning in
[
during
] state fiscal year
2005
[
2004
], an individual
is [
a
] professional
staff
[
employee
] if:
(1)
50% or more of the individual's time is reported under
any combination of the following role identifications in the Public Education
Information Management System (PEIMS), or under any subsequently created role
identifications that describe roles that are substantially similar to the
ones identified in this paragraph:
Figure: 34 TAC §41.42(d)(1) (No change.)
(2)
or the individual is employed by a regional education service
center and 50% or more of the individual's time is reported under any combination
of the following role identifications in PEIMS, or under any subsequently
created role identifications that describe roles that are substantially similar
to the ones identified in this paragraph:
Figure: 34 TAC §41.42(d)(2) (No change.)
(3)
or
,
regardless of how the individual's time
is reported in PEIMS, 50% or more of the individual's time is reported in
a role that is substantially similar to a role set out in paragraph (1) or
(2) of this subsection, as determined by the reporting entity or combination
of entities.
(e)
If TEA receives the report on or before the deadline and
neither TRS nor TEA seeks verification of, investigates, or otherwise disputes
information in the report upon initial review, subject to later adjustment
if TRS determines that there are errors in the report, TRS will remit to the
entity, subject to the availability of funds appropriated for this purpose:
(1)
an amount equal to the number of full-time employees, reported
by the entity for the reporting month divided by 12 and multiplied by $500;
(2)
an amount equal to the number of part-time employees reported
by the entity for the reporting month divided by 12 and multiplied by $250.
(f)
If a report is submitted after the deadline under this
section, remittance to the reporting entity will be delayed by at least one
month even if neither TEA nor TRS disputes or seeks verification of the numbers
reported. In the first month an individual becomes eligible for the supplement,
all entities must begin to distribute the appropriate monthly supplement to
each eligible individual employed by the entity, regardless of whether reports
are submitted in accordance with the deadlines and other requirements of this
section. Entities must continue to make the appropriate monthly distribution
to eligible individuals for so long as such individuals are employed, as determined
by the entity, for at least one day of the applicable month, provided that
the individual did not receive a monthly distribution from another entity
for employment that occurred earlier in the same month. Entities must submit
proposed adjustments to previously reported numbers through September 30 of
the fiscal year following the reporting month. TRS or TEA may make adjustments
to previously reported numbers and may make a corresponding increase or decrease
in funds that would otherwise be remitted to an entity, at any time after
receipt of a report.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on December 22, 2004.
TRD-200407472
Ronnie Jung
Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: February 25, 2005
For further information, please call: (512) 542-6115