Creditable Compensation

Compensation Eligible for TRS

Compensation reported to TRS should reflect the types of monetary compensation that are recurring base pay for periods of employment that meet the definition of “salary and wages,” as that term is defined by the TRS plan terms. “Salary and wages” is monetary compensation that is:

payment for services rendered,
earned or accrue proportionally as the work is performed,
paid at fixed intervals, and
not specifically excluded under applicable laws and rules

In addition, compensation eligible for TRS purposes may include:
(Please expand each type of compensation to see additional information.)

Performance Pay that is a Part of the Total Compensation Plan Approved by the Board of Trustees and Otherwise Meets the Statutory and Rule Requirements.

2. Payments of Normal Compensation

3. Additional Duties and Pay Authorized by the Employer and Paid to an Employee Serving in a TRS-Eligible Position

4. Compensation for Overtime

5. Workers’ Compensation Paid as Temporary Wage Replacement

6. Longevity Pay

7. Service in a Particular Location that the Employer has Determined Requires Additional Compensation Compared to Other Employees of that Employer

8. Service in a Particular Specialty that the Employer has Determined Requires Additional Compensation Compared to Other Employees of that Employer

9. Pay for Assault Leave

10. Settlement Pay

11. Delayed Payments of Lump Sum Amounts

12. Amounts Deducted from Regular Pay

13. Amounts Deducted from Regular Pay for a Qualified Transportation Benefit

14. Merit Salary Increases

15. One-Time Salary Increases

16. Corrective Payments

Compensation Not Eligible for TRS

The following types of compensation should not be reported as TRS eligible compensation:
(Please expand each type of compensation to see additional information.)

1. Payments for Terminating Employment or Paid as an Incentive to Terminate Employment

2. Settlement Pay

3. Reimbursement for Expenses

4. Allowances

5. Payments for Certain Types of Accrued Leave

6. Payments for Accrued Compensatory Time for Overtime Worked

7. Bonus and Incentive Payments

8. Payments that Exceed $5,000 Annually

9. Employer Payments for Fringe-Type Benefits

10. Cash Payments in Lieu of a Fringe Benefit

11. Pay for Work as an Independent Contractor or Consultant

12. Signing Bonus

13. Retention Bonus or Payment

14. Payments that Exceed the Salary Cap

15. “At Risk” Pay

16. Retroactive Pay Increases Excluded by the Plan’s Terms

See: TRS Laws Subchapter B, 822.201, Member Compensation; and TRS Rules 25.21, Compensation Subject to Deposit and Credit and 25.24, Performance Pay. When in doubt about compensation eligibility, please contact your TRS Reporting Employer Coach.