COMPENSATION AND BENEFITS: COMPENSATION PLAN

Pay Increases

Generally

A college district shall not grant any extra compensation, fee, or allowance to a public officer, agent, servant, or contractor after service has been rendered or a contract entered into and performed in whole or in part. Tex. Const. Art. III, Sec. 53

Merit Salary Increases

An institution of higher education, including a college district, may grant merit salary increases, including one-time merit payments, to employees described by this section. A merit salary increase made under Education Code 51.962 is compensation for purposes of Government Code Chapter 659, and salary and wages and member compensation for purposes of Government Code Title 8. An institution of higher education may pay a merit salary increase from any funds. Before awarding a merit salary increase, an institution of higher education must adopt criteria for the granting of merit salary increases. To be eligible for a merit salary increase, an employee must have been employed by the institution of higher education for the six months immediately preceding the effective date of the increase and at least six months must have elapsed since the employee’s last merit salary increase.

For employees employed by the institution of higher education for more than six months, the requirement that six months elapse between merit salary increases does not apply to a one-time merit payment if the chief administrative officer of the institution of higher education determines in writing that the one-time merit payment is made in relation to the employee’s performance during a natural disaster or other extraordinary circumstance.

Education Code 51.962

Salary Advances and Loans

A political subdivision, including a college district, shall not lend its credit or gratuitously grant public money or things of value in aid of any individual, association, or corporation. Tex. Const. Art. III, Sec. 52; Brazoria County v. Perry, 537 S.W.2d 89 (Tex. Civ. App.—Houston [1st Dist.] 1976, no writ)

Severance Pay

A political subdivision, including a college district, that enters into a contract or employment agreement, or renewal or renegotiation of an existing contract or employment agreement, that contains a provision for severance pay with an employee or independent contractor must include:

1. A requirement that severance pay that is paid from public money may not exceed the amount of compensation, at the

rate at the termination of employment or the contract, the employee or independent contractor would have been paid for 20

weeks, excluding paid time off or accrued vacation leave; and

2. A prohibition of the provision of severance pay when the employee or independent contractor is terminated for misconduct.

Local Gov’t Code 180.011(b)

Publication

A political subdivision shall post each severance agreement in a prominent place on the political subdivision's internet website. Local Gov’t Code 180.011(d)

Definition

"Severance pay" means dismissal or separation income paid on termination of:

1. The employment of an employee that is in addition to the employee's usual earnings from the employer at the time of termination; or

2. The contract of an independent contractor that is in addition to the contractor's usual compensation from the employer as

prescribed by the contract.

Local Gov’t Code 180.011(a)(2)

Payments in Excess

of Contractual Amount

A political subdivision, including a college district, may not pay an employee or former employee more than an amount owed under a contract with the employee unless the political subdivision holds at least one public hearing under this section.

Notice must be given of the hearing in accordance with notice of a public meeting under Government Code Chapter 551, Subchapter C.

The governing body of the political subdivision must state the following at the public hearing:

1. The reason the payment in excess of the contractual amount is being offered to the employee or former employee, including the public purpose that will be served by making the excess payment; and

2. The exact amount of the excess payment, the source of the payment, and the terms for the distribution of the payment

that effect and maintain the public purpose to be served by making the excess payment.

Local Gov’t Code 180.007

Teacher Retirement

System

Contributions for

New Hires

During each fiscal year, an employer, including a college district, shall pay an amount equal to the state contribution rate, as established by the General Appropriations Act for the fiscal year, applied to the aggregate compensation of new members of the Teacher Retirement System (TRS), during their first 90 days of employment.

“New member” means a person first employed on or after September 1, 2005, including a former member who withdrew retirement contributions under Government Code 822.003 and is reemployed on or after September 1, 2005.

On a monthly basis, an employer shall:

1. Report to TRS, in a form prescribed by TRS, a certification of the total amount of salary paid during the first 90 days of employment of a new member and the total amount of employer payments due under this section for the payroll periods; and

2. Retain information, as determined by TRS, sufficient to allow administration of this section, including information for each

employee showing the applicable salary as well as aggregate compensation for the first 90 days of employment for new employees.

The employer must remit the amount required under this section to TRS at the same time the employer remits the member’s contribution. In computing the amount required to be remitted, the employer shall include compensation paid to an employee for the entire pay period that contains the 90th calendar day of new employment.

Gov’t Code 825.4041(a)–(c), (e)

TRS Surcharge for

Rehired Retirees

TRS Fund Contributions

During each payroll period for which a retiree is reported, an employer, including a college district, shall contribute to the retirement system for each retiree reported an amount based on the retiree’s salary equal to the sum of:

1. The current contribution amount that would be contributed by the retiree if the retiree were an active, contributing member; and

2. The current contribution amount authorized by the General Appropriations Act that the state would contribute for that retiree if the retiree were an active, contributing member.

Gov’t Code 825.4092(b)

Exception

The amounts required to be paid above are not required to be paid by a reporting employer for a retiree who retired from the retirement system before September 1, 2005. Gov’t Code 825.4092(e)

Notice Regarding

Earned Income Tax

Credit

Not later than March 1 of each year, each employer, including every college district, shall provide to the employer’s employees information regarding general eligibility requirements for the federal earned income tax credit by one of the following means:

1. In person;

2. Electronically at the employee’s last known email address;

3. Through a flyer included, in writing or electronically, as a payroll stuffer; or

4. By mailing the information to the employee at the employee's last known address by U.S. first class mail.

An employer may not satisfy this requirement solely by posting information in the workplace.

In addition, an employer may provide employees with IRS publications and forms, or information prepared by the comptroller, relating to the earned income tax credit.

Labor Code 104.001–.003

Gifts, Grants, and

Donations for Salary

Supplements Conflict-of-Interest Provisions

A state agency, including a college district, by rule shall adopt conflict-of-interest provisions regarding the acceptance by the agency of a gift, grant, donation, or other consideration to be used as a salary supplement for an employee of the agency. The governing board of an institution of higher education shall adopt the conflict-of-interest provisions in the same manner as the board adopts other policies applicable to the institution. The agency shall post the conflict-of-interest provisions on the agency's internet website.

Gov’t Code 659.0201(c)

Internet Posting

A state agency that accepts a gift, grant, donation, or other consideration from a person that the person designates to be used as a

salary supplement for an employee of the agency shall post on the agency's internet website the amount of each gift, grant, donation, or other consideration provided by the person that is designated to be used as a salary supplement for an employee of the agency. The agency may not post the name of the person. Gov’t Code 659.0201(b)

Reports

The state auditor shall adopt a schedule and format for reporting information required by this section that does not require the release of information that identifies an anonymous donor. Gov’t Code 659.0201(h)

Generally

Each state agency receiving a gift, grant, donation, or other consideration from a person that is designated to be used as a salary

supplement for a named person, position, or endowment shall report the following information to the state auditor in the form determined by the state auditor:

1. Whether the person making the gift, grant, or donation or providing other consideration to the state agency is an individual

or an entity;

2. If the person is an entity, the type of entity;

3. If the entity is a nonprofit entity or organization, whether the entity is classified as a supporting organization by the Internal

Revenue Service;

4. If the entity is classified as a supporting organization by the Internal Revenue Service, the type of supporting organization,

the name of the supported organization, and any other information relating to that classification;

5. Any internal or external oversight procedures the state agency has established to monitor the use of any gift, grant,

donation, or other consideration the agency receives; and

6. How the state agency uses gifts, grants, donations, and other consideration the agency receives, including whether they are

used to provide salary supplements for agency employees.

Gov’t Code 659.0201(i)

College District Support Entities

If the person making a gift, grant, or donation or providing other consideration to the state agency for the purpose of a salary supplement is an entity created solely to provide support for the state agency, the entity shall report to the agency:

1. The name of each person who makes gifts, grants, or donations, or provides other consideration to the entity, in an amount or having a value that exceeds $10,000, unless the person has made a request to the entity to remain anonymous; and

2. The amount or value of each specific gift, grant, donation, or other consideration.

A state agency that receives the gift, grant, donation, or other consideration shall compile the information the agency receives into a report and submit the report to the state auditor and the legislature. The state auditor may review the report to identify any conflicts of interest or any other areas of risk. The state auditor shall report the results of the audit to the legislature.

The information provided to the institution of higher education is confidential and is not subject to disclosure under Government

Code Chapter 552 (Public Information Act).

Gov’t Code 659.0201(d)–(g)