Volume 17, Issue 5
January, 2008
MCALLEN AFT NEWS
MAKING A DIFFERENCE
LEGISLATURE SESSION
BEGINS JANUARY 13, 2009
The Texas Legislature begins on January 13, 2009 with a decision on who will be the Speaker of the House. Representative Tom Craddick (presently Speaker of the House) has released his supporters and it looks like Representative Joe Straus of San Antonio will get the job.
Here in Texas, our public schools have a huge stake in the contents of an initial economic-recovery bill likely to be enacted in the next month or so, as President-elect Barack Obama proposes a plan and Congress then molds it.
Major education-related elements of the legislation are likely to include overdue spending on school construction and renovation, new federal investments in early-childhood education and children's health insurance, and by some accounts a build-up of federal funding for special education.
The cumulative amount coming to Texas under these headings could run into the multiple billions of dollars this year alone. This flow of federal funds would directly benefit Texas public schools, and it also would make it easier to convince state legislators to use state revenue for other education needs, such as improving pay for teachers and providing a living wage for paraprofessionals and support personnel.
Texas AFT's national affiliate, the American Federation of Teachers, has urged Congress also to build into the expected economic-recovery bill a temporary aid program for school districts, which could be used to fund any of the already-authorized activities under the federal Elementary and Secondary Education Act and the Individuals With Disabilities Education Act.
These include class-size reduction; special preschool programs; professional development aligned to curriculum and state standards; proven programs to help turn around low-performing schools; and additional early-intervention services for students not currently identified as being in need of special education or related services, but who need more academic and behavioral support to succeed in general education.
WHAT UNFOLDS!
The McAllen AFT will be ready to act on your behalf.
We will telephone our legislators weekly to keep our eye on educational issues.
We will use petitions to get our points over.
We will use our email center at our office to help active and retirees access their representative or senator.
We will use our robophone to keep you alert and informed on the issues.
SUPERINTENDENT SALARY DATA
According to salary data compiled by Texas School Boards and Texas Association of School Administrators the average pay for superintendents this school year is $113,334, a 3 percent increase from the prior year.
The superintendent-related results are based on data from 867 (84%) of the 1,030 Texas public school districts that received the survey. The data does not include open-enrollment charter schools.
Other survey highlights as follows:
Average superintendent salaries range from $79,493 in districts with fewer than 500 students to $272,347 in districts with more than 50,000 students. Half of the reported salaries are less than $99,000.
Most (90%) of the responding districts (743) had a returning superintendent for 2008-09. These superintendents saw an average pay increase of 4.2%.
Texas superintendents have been in their current position for an average of four (4) years and have an average of seven (7) years of total experience as a superintendent, in any district.
The survey also looked at benefit-related issues.
For instance, the survey noted that 46% of responding districts (381) provide a vehicle or car allowance to the superintendent. Most of these districts (83%) provide an annual car allowance to cover all or part of the cost of a personal vehicle for the superintendent. The average annual vehicle allowance is $5,934, up 5% from 2007-08.*
*TEN, January 5, 2009
REVIEW OF PENSION CHANGES
"Final Average Salary" Formula for Calculating Your Retirement Benefit
Under current law, the amount of your pension is based on your "final average salary," which is defined as your average salary for your highest-paid three years. Under the new law, TRS will base your pension on your highest-paid five years. The effect of this change will be to reduce your pension.
This negative change will NOT affect you, and the three-year formula will still apply when you retire, if by August 31, 2005:
you are at least 50 years old; OR
your age and years of service credit equal at least 70 ("Rule of 70"); OR
you have at least 25 years of service credit.
TRS officials have estimated that roughly one-third of current education employees will qualify for this exemption, but two-thirds will not.
(Note: According to TRS publications, in order to use purchased service credit to meet the Rule of 70 or amass 25 years of service credit, you must complete all payments for the service credit by August 31, 2005.)
Percentage Limit on Annual Pay Increases Allowed for "Final Average Salary" Calculation
In calculating your "final average salary," whether you are covered by the old law or the new law, TRS is now required to impose a percentage limit on the amount of increases in annual compensation in your final years of employment that will be counted toward your pension. The TRS board of trustees has not yet established that percentage limit.
Reduced Benefits for Early Retirement
Under current law, if you retire at age 55 with 20 or more years of service credit but do not meet the Rule of 80 (age and years of service credit equaling at least 80), your standard pension benefit is reduced by 2 percent for each year you fall below the Rule of 80. Thus, someone who retires at age 55 with 20 years of service, falling five years below the Rule of 80, receives a 10-percent pension benefit reduction (2 percent times five years equals 10 percent).
Under the new law, the benefit reduction for employees in this situation will be much greater. For example, an employee who retires on or after September 1, 2005, at age 55 with 20 years of service credit will receive a 53% reduction (versus 10% under current law).