34 TAC §41.16
The Teacher Retirement System of Texas (TRS) proposes new §41.16
concerning insurance coverage under the Texas Public School Employees and
Retirees Group Long-Term Care Insurance Program. The purpose of the new rule
is to make clear that TRS may select or reject coverage options, including
inflation protection and nonforfeiture benefits options, that may be offered
under the long-term care insurance program.
Ronnie Jung, Chief Financial Officer, has determined that for each year
of the first five-year period the rule is in effect there will be no fiscal
implications to state or local governments as a result of enforcing or administering
the rule.
Mr. Jung has also determined that for each year of the first five years
the rule is in effect the public benefit anticipated will be that there will
be clarity regarding the agency's ability to select or reject coverage options.
There will be no effect on small businesses. There are no anticipated economic
costs to the persons who are required to comply with the rule as proposed.
Comments on the proposal may be submitted to Charles L. Dunlap, Executive
Director, 1000 Red River, Austin, Texas, 78701.
The new section is proposed under the Insurance Code Article
3.50-4A, which gives TRS authority to adopt rules as necessary to implement
and administer the Texas Public School Employees Group Long-Term Care Insurance
Program. This section is also proposed under Government Code, Chapter 825, §825.102,
which authorizes the Board of Trustees of the Teacher Retirement System to
adopt rules for the transaction of business of the Board.
Insurance Code Article 3.50-4A, Government Code §825.102, and Texas
Administrative Code Title 28 §3.3920 are affected by this proposal.
§41.16.Coverage Offered Under the Texas Public School Employees and Retirees Group Long-Term Care Insurance Program.
Under the authority granted by Article 3.50-4A of the Texas Insurance
Code, the Board of Trustees of the Teacher Retirement System of Texas may
select or reject any and all coverage options relating to the Texas Public
School Employees and Retirees Group Long-Term Care Insurance Program, including
but not limited to:
(1)
Inflation protection options, including without limitation
inflation protection options based on compound or simple interest assumptions;
and
(2)
Nonforfeiture benefit options, including without limitation
reduced paid-up, extended term, shortened benefit period, and return-of-premium
at death.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State, on May 5, 2000.
TRD-200003192
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: June 23, 2000
For further information, please call: (512) 391-2115