Part III.
Teacher Retirement System of Texas
Chapter 29.
Benefits
Subchapter F. Partial Lump-Sum Option Plan
34 TAC §29.70, §29.71
The Teacher Retirement System of Texas (TRS) adopts on an
emergency basis new §29.70 and §29.71 concerning the Partial Lump-Sum
Option as passed by the 76th Legislature, 1999, in Senate Bill 1128 (SB).
Section 29.70 provides for the methods of distribution of the lump-sum to
include payments in the event of the death of the retiree. Section 29.71 provides
the tables needed for calculation of the reduction to the retiree annuity
when the option is selected.
These sections are adopted on an emergency basis in order that the retirement
system may process any person who wishes to select the option as early as
September, 1999. The agency finds that requirements of state law (specifically,
those found in Senate Bill 1128) require the adoption of these new rules on
fewer than 30 days notice. The new rules are simultaneously being proposed
for permanent adoption.
The new emergency rules are adopted on an emergency basis under
the Government Code, Chapter 825, §825.102, which authorizes the Board
of Trustees of the Teacher Retirement System to adopt rules for the administration
of the funds of the retirement system and under Government Code, §824.2045(h)
which authorizes the Board to adopt rules for the implementation of the partial
lump-sum option.
Government Code, Chapter 824, §824.2045 is affected by this emergency
adoption.
§29.70. Distribution .
(a)
The partial lump-sum option payment shall be made at the
same time as the initial retirement annuity payment is made. For those retirees
selecting two or three annual lump-sum payments, the second and third payment
shall be made on the appropriate anniversary date of the due date of the initial
lump-sum payment. No interest will be paid on any lump-sum amounts paid in
the second year, third year, or at any other time.
(b)
A retiree who selected two or three annual lump-sum payments
may receive all the money due at any time they elect in writing to do so.
(c)
A retiree will be permitted to roll-over any amounts to
a qualified plan to the extent authorized by law.
(d)
In the event a retiree dies prior to receiving all payments
due from the partial lump-sum option plan, the retirement system will pay
any partial lump-sum benefits due in a single lump sum payment to the beneficiary
named on retirement documents at the time of retirement or as that beneficiary
may be changed from time to time.
(e)
A retiree also has the option of designating a beneficiary
specifically for any unpaid lump-sum payments due under this section upon
the death of the retiree. Any such designation must be done on a form provided
by and filed with the retirement system. The designation would be superior
to subsection (d) of this section and would control the payment of a single
lump sum payment of any money due upon the death of the retiree under the
partial lump-sum option plan. In the event that the designated beneficiary
named under this subsection dies prior to distribution, TRS will pay the lump
sum benefit under subsection (d) of this section.
§29.71. Tables.
(a)
Any eligible retiree who selects a partial lump-sum option
will receive an actuarially reduced annuity to reflect the selection of the
lump-sum option. TRS will use Factor Tables for Partial Lump-Sum Option Payments
furnished by the TRS actuary of record.
Figure 1: 34 TAC 29.71(a)
Figure 2: 34 TAC 29.71(a)
(b)
The member's age in whole years will be used from column
one and the percentage of standard annuity factor from column three, four,
or five, depending on the number of months of lump-sum selected, will be used
to determine the percentage of standard annuity that will be paid to a person
who elects to participate in the partial lump-sum option plan.
Filed with the Office of the Secretary of State,on
August 9, 1999.
TRD-9904953
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Effective date: August 9, 1999
Expiration date: December 7, 1999
For further information, please call: (512) 391-2115
Chapter 31.
Employment After Retirement