TRS recognizes that during a legislative year, some reporting employers (REs) may experience difficulty finalizing budgets until after employment agreements have been executed for the upcoming school year.
Please keep in mind that for the purpose of determining whether a person's salary is creditable for TRS purposes, retroactive salary increases are generally not creditable compensation for TRS benefit calculation purposes.
If an RE executes employment agreements and employees begin work under those agreements prior to the salary increases being finally determined and incorporated into the agreements, an RE should do the following to minimize the risk that the salary increases provided will be excluded from employees' creditable compensation: