Unsure of what "compensation" is defined as for your employees? View the definition and requirements below:

Definition of Compensation (PERF):

• Means all compensation that is included as gross income as reported on the member's W-2 for covered service by a covered employer, plus the amounts stated in IC 5-10.2-4-3 that are not paid directly to the member, except as provided below and otherwise stated in law.

• A member's basic salary or annual compensation must be certified by an official of the employing unit who has knowledge of and access to the records. A member may not certify his or her basic salary or annual compensation.

• Compensation of not more than two thousand dollars ($2,000) pursuant to and in accordance with IC 5-10.2-4-3(e) may be used in the total annual compensation from which the average of the annual compensation is determined.  This is compensation received in contemplation of retirement, and items such as vacation pay, sick pay, and employee bonuses are included within this limitation.

For Teachers (TRF):

• Unless otherwise required by law, a licensed teacher employed by a school corporation as a teacher and who under a standard teacher contract or separate contract is also employed to provide extracurricular student activities, those activities being generally described as voluntary activities sponsored by the school, for student involvement in public performances, contests, athletic competitions, demonstrations, displays, and club activities, is performing covered employment and compensation for such employment is included as basic salary.

For more information on compensation, view 35 IAC 1.2-5-5 (PERF) and 35 IAC 14-2-10 (TRF) .