1. (a) Except as provided in subsection (c) of this section, a member's credited compensation for each of the last five creditable years of service before retirement or entry into the Deferred Retirement Option Plan (DROP) may not exceed the credited compensation of the immediately preceding creditable year for service in the same or similar positions by more than 20%. When appropriate TRS may convert salary for part-time employment to its full-time equivalent in determining the permissible increases in credited annual compensation.
2. (b) TRS will adjust a member's annual compensation at the time of retirement or entry into DROP to comply with the limits of this section and will refund excess deposits to the member after the effective date of retirement.

3. (c) No adjustment in annual compensation will be made:

   1. (1) for years before the 1981-1982 school year; or
   2. (2) for any year if the 20% limit on annual increases in credited compensation, applied to each of the member's last five years of annual compensation, would not affect the calculation of the member's retirement or DROP benefit.

Source Note:The provisions of this §25.31 adopted to be effective October 9, 1981, 6 TexReg 3599; amended to be effective November 23, 1987, 12 TexReg 4199; amended to be effective September 17, 1997, 22 TexReg 9255.