TRS Penalty for Future Creditable Earnings

A situation has emerged where some districts may be paying stipends to individuals even though the activity is not occurring simply to offset any potential TRS penalty for future creditable earnings in excel of six percent. In these cases, the stipends are likely less expensive than the penalty.

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* 1. Will your district have probable creditable earnings in excess of the six percent penalty from TRS for employees who have extra duty stipends where 2020-21 and 2021-22 are included in their highest four-year earnings?

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* 2. If yes, how much do you estimate the stipends will cost the district?

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