The Teacher Retirement System of Texas (TRS) Board of Trustees adopted rule changes in December intended to streamline and simplify existing retirement rules. School districts and employees believe that a few of the rule changes may have a greater impact on them.
One of the rule changes (Rule 25.31) removes exceptions to a limit on compensation increases during the final years before retirement. Creditable compensation increases prior to retirement are limited to 10 percent or $10,000 annually. This limit applies to the five years preceding retirement or three years for a member who was grandfathered in by Aug. 31, 2005. An exception was previously allowed if a larger increase occurred because the employee had changed employers or changed duties. Beginning in 2011-12, no exceptions to the limit on compensation increases will be allowed.
The work standard for TRS membership is one-half or more of the standard full-time workload for the position, with an employment period of at least four and a half months. If there was no full-time standard, then certified employees were required to work 20 hours per week and noncertified employees were required to work 15 hours per week.
Starting in 2011-12, the work standard will still be one-half of the full-time workload but in no case less than 15 hours. This new work standard applies to bus drivers. TRS officials acknowledged that this rule change could cause some employees to lose or gain TRS membership and could affect district contributions to TRS.
For districts with performance pay plans that qualify for TRS creditable compensation, the rules have changed. Beginning in 2011-12, performance pay will be credited to the year in which it is paid rather than the year in which it is earned. No performance pay will be credited after an employee has retired and has started receiving benefits.
Other changes to creditable compensation clarify what is not creditable. The list includes cell phone allowances, signing or retention bonuses, payments for educator excellence awards that are not paid for service, amounts paid under settlement agreements, and military differential pay that is less than 50 percent of the compensation paid for a full-time service position.
Other rule changes were adopted to clarify the meaning of rule provisions relating to special categories of service credit, grandfathered members, and restrictions on employment after retirement. All rule changes can be viewed on the TRS website 
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