In addition to earnable compensation listed under Compensation and TRS Contributions, leadership employees’ contracts may include additional components that are considered earnable compensation for TRS purposes. The cost of these components can either be paid directly to the employee or on the employee’s behalf. The components can either be included in the base salary, or itemized as an addition to the base salary, but they must be a part of the superintendent’s contract.
If TRS discovers that components have only been reported to TRS in recent years, and not reported the entire time the individual was in the position, TRS will deny their inclusion in earnable compensation until TRS is paid the employee and employer contributions due (plus the applicable rate of interest).
The following lists are not all inclusive. Questions about any component of an existing or proposed contract should be submitted in writing and directed to the attention of the Director of Employer Services at TRS.
Additional Compensation Subject to TRS Contributions:
- Automobile Allowance
Does not include the payment for reimbursable expenses such as mileage or fuel and maintenance costs. - Tax Sheltered Annuity Plan
Contributions to a tax sheltered annuity plan that are made by the local board of education on behalf of the employee. - Group Insurance
Payment of health, dental, vision, and disability insurance premiums. - Life Insurance
Payment of premiums provided the employee selects the beneficiary and it is not the local board of education. - F.I.C.A. Taxes
Social security and Medicare taxes paid on behalf of the employee (employee’s portion only).
Compensation Not Subject to TRS Contributions:
- Imputed Income
The value of life insurance above $50,000 that is provided by the local board of education. - Membership Fees
Payment of dues or fees for membership in any business, educational, fraternal, professional, or social organization. - Temporary Living Expenses
Payment of expenses incurred while obtaining permanent accommodations. - Moving Expenses
Payment of expenses incurred while relocating to the area of a new job. - Buyout of a contract.
Please contact TRS to discuss contract buyouts.