TITLE 34.PUBLIC FINANCE

Part 4. EMPLOYEES RETIREMENT SYSTEM OF TEXAS

Chapter 81. INSURANCE

34 TAC §§81.3, 81.5, 81.7

The Employees Retirement System of Texas (ERS) adopts amendments to §§81.3, 81.5, and 81.7, concerning the Uniform Group Insurance Program (UGIP or program), without changes to the proposed text as published in the May 12, 2000, issue of the Texas Register (25 TexReg 4294).

Section 81.3 is amended to clarify the terms of eligibility for supplemental state contribution as authorized under §14A of the Texas Employees Uniform Group Insurance Benefits Act (Act); §81.5 is amended to permit certain retirees not covered by optional life insurance or dependent life insurance at the time of retirement to have an opportunity to apply for minimum retiree optional life insurance and dependent life insurance coverage; §81.5 is amended to reflect that former members and employees of the legislature authorized by the Act to continue to participate in the program are eligible for coverage, other than disability income insurance coverage, in effect on the day before the member or employee terminates employment or leaves office. Section 81.7 is amended to clarify that the coverages in an approved HMO or in HealthSelect Plus become effective on the first day of the month following the date on which the employee begins active duty. Section 81.7 is also amended to clarify that if the required premiums are paid or deducted, health and dental insurance coverages of a surviving dependent may continue on the death of the deceased employee or retiree if the dependent is eligible for such coverage. In addition, §81.7 is amended to clarify the terms of reinstatement in the program, and continuation of coverages for a former member or employee of the legislature. Further, §81.7 is amended to provide that continuation coverage for a former board member's life insurance will be reduced to the maximum amount for which the former member is eligible.

No comments were received regarding the proposed amendments.

The amendments are adopted under Insurance Code, Article 3.50-2, §4A.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 20, 2000.

TRD-200004326

Sheila W. Beckett

Executive Director

Employees Retirement System of Texas

Effective date: July 10, 2000

Proposal publication date: May 12, 2000

For further information, please call: (512) 867-7125


Chapter 85. FLEXIBLE BENEFITS

34 TAC §§85.3, 85.5, 85.7

The Employees Retirement System of Texas (ERS) adopts amendments to §§85.3, 85.5, and 85.7, concerning the Flexible Benefits Program, without changes to the proposed text as published in the May 12, 2000, issue of the Texas Register (25 TexReg 4297).

Section 85.3 is amended to make changes to the effective date of elections; §85.5 is amended to clarify the rules concerning the payment of flexible benefit dollars; and §85.7 is amended to conform to the amendments made to §85.3.

No comments were received regarding the proposed amendments.

The amendments are adopted under Insurance Code, Art. 3.50-2, §4A and affect Insurance Code Art. 3.50-2, §13B.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 20, 2000.

TRD-200004327

Sheila W. Beckett

Executive Director

Employees Retirement System of Texas

Effective date: July 10, 2000

Proposal publication date: May 12, 2000

For further information, please call: (512) 867-7125


Chapter 87. DEFERRED COMPENSATION

34 TAC §87.7, §87.9

The Employees Retirement System of Texas (ERS) adopts amendments to §§87.7 and 87.9, concerning the deferred compensation plan, without changes to the proposed text as published in the May 12, 2000, issue of the Texas Register (25 TexReg 4299). Both sections are amended to add a reference to the new §87.31.

No comments were received regarding the proposed amendments.

These amendments are adopted under Tex. Gov't Code, §609.508 which provides the ERS board of trustees the authority to adopt any rules necessary to administer the deferred compensation plan.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 20, 2000.

TRD-200004328

Sheila W. Beckett

Executive Director

Employees Retirement System of Texas

Effective date: July 10, 2000

Proposal publication date: May 12, 2000

For further information, please call: (512) 867-7125


34 TAC §87.31

The Employees Retirement System of Texas (ERS) adopts a new rule, §87.31, concerning the Revised Plan, without changes to the proposed new text as published in the May 12, 2000, issue of the Texas Register (25 TexReg 4299). Section 87.31 is being added to address changes in the deferred compensation program.

No comments were received regarding the new rule.

This new rule is adopted under Tex. Gov't Code, §609.508 which provides the ERS board of trustees the authority to adopt any rules necessary to administer the deferred compensation plan.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 20, 2000.

TRD-200004329

Sheila W. Beckett

Executive Director

Employees Retirement System of Texas

Effective date: July 10, 2000

Proposal publication date: May 12, 2000

For further information, please call: (512) 867-7125