| (a) A disability retiree who applies for disability
retirement after August 31, 2007, and whose effective date of retirement
is after August 31, 2007, shall report to TRS compensation earned
for work performed during disability retirement in accordance with
this section.
(b) A disability retiree is not subject to the reporting
requirement for compensation earned in a calendar year in which the
disability retiree's annual gross disability retirement annuity payments
from TRS total $2,000 or less.
(c) Unless excluded under subsection (a) or (b) of
this section, a disability retiree is required to report to TRS compensation
earned in a calendar year when the compensation exceeds the greater
of the disability retiree's highest salary in any school year before
disability retirement or $40,000.
(d) The reporting requirement applies to compensation
earned in the first full calendar year that begins following the effective
date of disability retirement and to compensation earned in each subsequent
calendar year of disability retirement.
(e) Compensation that is required to be reported to
TRS is payment, earnings, or net income for employment, work, labor,
or services, whether performed for a Texas public education institution
or another employer or entity. Compensation includes but is not limited
to the following:
(1) "Wages" as defined under §3121 of the Internal
Revenue Code of 1986 that are subject to Federal Insurance Contributions
Act ("FICA") Social Security or Medicare employment taxes;
(2) Salary and wages, even if not subject to FICA taxes
because of a technical exclusion of a type of employer or type of
employment;
(3) Self-employment earnings, including net income
from a trade or business;
(4) Compensation for work performed as an independent
contractor;
(5) Net income earned as a sole proprietor or partner
in a business; and
(6) Net income earned as an S corporation shareholder.
(f) A disability retiree shall submit a report required
by this section to TRS after the end of the calendar year in which
the compensation was earned but no later than May 1 of the calendar
year following the year for which the report is due. A disability
retiree shall submit all required information in the format designated
by TRS.
(g) TRS may audit the compensation report of a disability
retiree and require the disability retiree to provide supporting documentation,
including copies of tax returns, W-2 forms, 1099 forms, and employment
payroll records as necessary to verify the accuracy of a compensation
report.
(h) TRS may obtain information from other sources with
regard to the compensation earned by a disability retiree in order
to administer applicable requirements.
(i) A report is due under this section for a calendar
year in which one or more annuities have been forfeited pursuant to §31.32
of this title (relating to Forfeiture of Disability Retirement Annuity
Payments Due to Excess Compensation).
|
