TITLE 34.PUBLIC FINANCE

Part 4. EMPLOYEES RETIREMENT SYSTEM OF TEXAS

Chapter 67. HEARINGS ON DISPUTED CLAIMS

34 TAC §67.57

The Employees Retirement System of Texas (ERS) proposes amendments to 34 Tex. Admin. Code §67.57 concerning reporters and transcripts. This section is amended to clarify the means by which the official record shall be made and to provide that any motion that results in additional costs associated with official reporting of the hearing will be paid by the person or agency making the motion.

Paula A. Jones, General Counsel, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Jones also determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be lower costs associated with administrative hearings and greater efficiency. There will be no affect on small businesses. There are no known anticipated economic costs to persons who are required to comply with the rule as proposed.

Comments on the proposed rule amendments may be submitted to Paula A. Jones, General Counsel, Employees Retirement System of Texas, P. O. Box 13207, Austin, Texas 78711-3207, or email Ms. Jones at pjones@ers.state.tx.us

The amendments are proposed under Tex. Gov't Code Ann. §815.102, which provides that the Board of Trustees may adopt rules for the transaction of any business of the Board.

No other statutes are affected by these proposed amendments.

§67.57.Reporters and Transcripts.

(a) An official record shall be made in [ In ] all proceedings, either by stenographic means or by electronic sound or video recording. In proceedings where arrangements are made for stenographic recording, an official reporter shall make and, when requested by any party in writing, transcribe a stenographic record of the hearing. The reporter shall provide as many copies of the transcript as may be requested. The person or agency requesting such transcription shall be responsible for all costs associated with the transcription.

(b) To the extent that any motion by any party or any order arising from any motion results in additional costs associated with official reporting of the hearing, the person or agency making the motion shall be responsible for the payment of those additional costs. Such costs may include but are not limited to appearance fees incurred as the result of continuance, cancellation, or postponement of the hearing. Payment of any outstanding additional costs associated with official reporting of the hearing is a prerequisite to the making of a stenographic record of the hearing.

(c) [ (b) ] Errors claimed to be in a transcription of a contested hearing shall be noted in writing and suggested corrections may be offered within ten (10) days after the transcript is filed with the examiner, unless the examiner shall permit suggested corrections to be offered thereafter. Suggested corrections shall be served in writing upon each party of record and the examiner. If not objected to within twelve (12) days after being offered, the examiner will direct that such suggested corrections be made and the manner of making them. In the event that parties disagree on suggested corrections, the examiner, with the aid of argument and testimony from the parties, shall then determine the manner in which the record shall be changed, if at all.

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 January 3, 2002.

TRD-200200022

Sheila W. Beckett

Executive Director

Employees Retirement System of Texas

Earliest possible date of adoption: February 17, 2002

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


Chapter 73. BENEFITS

34 TAC §73.11

The Employees Retirement System of Texas (ERS) proposes amendments to 34 Tex. Admin. Code §73.11 concerning the supplemental retirement program. This section is amended to revise the requirements that must be met in order for military service credit to be creditable in the supplemental program.

Paula A. Jones, General Counsel, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Jones also determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be increased benefit to the member by allowing more time in which to enter military service after leaving covered employment, and more time to resume covered employment after leaving military service. There will be no affect on small businesses. There are no known anticipated economic costs to persons who are required to comply with the rule as proposed.

Comments on the proposed rule amendments may be submitted to Paula A. Jones, General Counsel, Employees Retirement System of Texas, P. O. Box 13207, Austin, Texas 78711-3207, or email Ms. Jones at pjones@ers.state.tx.us

The amendments are proposed under Tex. Gov't Code §815.102, which provides that the Board of Trustees may adopt rules for the transaction of any business of the Board.

No other statutes are affected by these proposed amendments.

§73.11.Supplemental Retirement Program.

(a) - (d) (No change)

(e) Military service credit shall be creditable in the supplemental program only if, within 90 [ 60 ] days of termination of covered employment, the member went into the military without intervening employment and the member resumed covered employment within 90 [ 60 ] days of termination of military service.

(f) - (h) (No change)

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 January 3, 2002.

TRD-200200023

Sheila W. Beckett

Executive Director

Employees Retirement System of Texas

Earliest possible date of adoption: February 17, 2002

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


Chapter 75. HAZARDOUS PROFESSION DEATH BENEFITS

34 TAC §75.1

The Employees Retirement System of Texas (ERS) proposes amendments to 34 Tex. Admin. Code §75.1 concerning filing of claims. This section is amended to reflect changes made pursuant to House Bill 877 and House Bill 2446, 77th Legislative Session, codified in Texas Gov't Code Ann., Chapter 615.

Paula A. Jones, General Counsel, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Jones also determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be expanded classes of survivors eligible for benefits under Texas Gov't Code Ann., Chapter 615. There will be no affect on small businesses. There are no known anticipated economic costs to persons who are required to comply with the rule as proposed.

Comments on the proposed rule amendments may be submitted to Paula A. Jones, General Counsel, Employees Retirement System of Texas, P. O. Box 13207, Austin, Texas 78711-3207, or email Ms. Jones at pjones@ers.state.tx.us

The amendments are proposed Tex. Gov't Code §615.121, which provides that the board may adopt rules to administer this section of the Tex. Gov't Code, and under Tex. Gov't Code Ann. §815.102, which provides that the Board of Trustees may adopt rules for the transaction of any business of the Board.

No other statutes are affected by these proposed amendments.

§75.1.Filing of Claims.

(a) Claims for benefits under Texas Government Code, Chapter 615, may be initiated by the deceased employee's department, any applicant for benefits, if an adult, or by the representative of any minor children for whom benefits are being claimed.

(b) No claim for benefits on behalf of a child born after the death of the law enforcement officer or fire fighter will be paid, unless it is accompanied by a certificate of the attending physician that the child was conceived during the decedent's lifetime.

(c) The following documents or copies of the documents shall be submitted in an application for benefits under Texas Government Code, Chapter 615, unless the executive director waives their submission:

(1) a sworn statement from the person making the claim giving the date of death, the name and address of the surviving spouse, if there is one, and the names, addresses, and birth dates of all surviving [ minor ] children of the decedent. If the decedent left no surviving spouse or [ minor ] children, the names and addresses of surviving parents of the decedent [ dependent parents, and the names, addresses, and dates of birth of any dependent minor brothers and sisters ] shall be provided. The names and addresses of any persons caring for minors who may be eligible for benefits shall be given;

(2) a certified copy of the death certificate;

(3) a certified copy of the autopsy report, if any;

(4) a copy of the marriage certificate showing marriage between the surviving spouse and the deceased;

(5) a certified copy of the birth certificate of each surviving child of the deceased [ certified copies of birth certificate if minor children involved ];

(6) affidavits from any witnesses detailing the facts of the fatality;

(7) certified copies of any investigative reports;

(8) a sworn statement from the employer or authorized representative of the department that, at the time of the fatal injury, the deceased held a position covered by the terms of Texas Government Code, Chapter 615, and that the death was the result of risk or hazard inherent to that position;

(9) a copy of the decedent's birth certificate, if benefits are being claimed for [ dependent ] parents;

(10) a certification from the appropriate authority as follows:

(A) if the decedent was a paid law enforcement officer, as defined in Texas Government Code, §615.003(1), a certification from the Texas Commission on Law Enforcement Officer Standards and Education that the decedent was a commissioned peace officer certified by that commission;

(B) if the decedent was a paid fireman, as defined in Texas Government Code, §615.003(10) or §615.003(11), a certification from the Commission on Fire Protection Personnel Standards and Education that the decedent was certified by that commission, or a certification from the head of the state agency or political or legal subdivision of the state for whom the decedent worked that aircraft crash and rescue fire fighting were the decedent's principal duties at the time of his or her death;

(C) if the decedent was a member of an organized volunteer fire department, as defined in Texas Government Code, §615.003(12), a certification from the head of the organized volunteer fire department that the organized volunteer fire department of which the decedent was a member consists of not less than 20 active members; conducts a minimum of two drills each month, with each drill being at least two hours long and attended by a majority of all active members; and renders fire fighting services without remuneration;

(D) if the decedent was a paid probation officer, as defined in Texas Government Code, §615.003(2), a certification from the district judge or district judges who appointed the decedent or for whom the decedent worked that the decedent had the qualifications and duties set out in the Texas Code of Criminal Procedure, Article 42.12, §10, 1965, as amended;

(E) if the decedent was a paid parole officer, as defined in Texas Government Code, §615.003(3), a certification from the executive director of the Board of Pardons and Paroles that the decedent was an officer of the division of parole supervision and had the qualifications and duties set out in the Texas Code of Criminal Procedure, Article 42.12, §§26-29, 1965, as amended;

(F) if the applicant alleges that the decedent was within the protected class defined as supervisory personnel in a county jail in Texas Government Code, §615.003(7), a certification by the sheriff that the decedent was appointed as jailer or guard of a county jail and performed a security, custody, or supervisory function over the admittance, confinement, or discharge of prisoners, and a certification from the Texas Commission on Law Enforcement Officer Standards and Education that the decedent was certified by that commission;

(G) if the applicant alleges that the decedent was within the protected class defined as performing emergency medical service or operation of an ambulance in Texas Government Code, §615.003(13), and provided these services as at least an "emergency medical volunteer" as defined by the Texas Department of Health, and was certified as at least an "emergency care attendant" by the Texas Department of Health;

(11) a newspaper account, if any, of the fatality; and

(12) a copy of the income tax return filed by the decedent in the year prior to death, if benefits are being claimed for surviving children [ dependent parents, brothers, or sisters ].

(d) The executive director may require any additional information or affidavits as are necessary to establish the validity of the claim.

(e) Payment on behalf of a minor child will be made only to a surviving natural parent with custody of the child, to a surviving adoptive parent with custody of the child, or to a court-appointed guardian of the child's estate.

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 January 3, 2002.

TRD-200200024

Sheila W. Beckett

Executive Director

Employees Retirement System of Texas

Earliest possible date of adoption: February 17, 2002

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


34 TAC §75.2

The Employees Retirement System of Texas (ERS) proposes amendments to 34 Tex. Admin. Code §75.2 concerning additional benefit claims. This section is amended to reflect changes made pursuant to House Bill 877, 77th Legislative Session, codified in Texas Gov't Code Ann., Chapter 615.

Paula A. Jones, General Counsel, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Jones also determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be additional financial support for surviving spouses of certain deceased law enforcement and custodial officers. There will be no affect on small businesses. There are no known anticipated economic costs to persons who are required to comply with the rule as proposed.

Comments on the proposed rule amendments may be submitted to Paula A. Jones, General Counsel, Employees Retirement System of Texas, P. O. Box 13207, Austin, Texas 78711-3207, or email Ms. Jones at pjones@ers.state.tx.us

The amendments are proposed Tex. Gov't Code §615.121, which provides that the board may adopt rules to administer this section of the Tex. Gov't Code, and under Tex. Gov't Code Ann. §815.102, which provides that the Board of Trustees may adopt rules for the transaction of any business of the Board.

No other statutes are affected by these proposed amendments.

§75.2.Additional Benefit Claims.

(a) In addition to the documents required under §75.1 of this chapter, the following documents shall be submitted in an application for benefits under Texas Government Code, Chapter 615, Subchapter F, unless the executive director waives their submission:

(1) a sworn statement from the person making the claim that:

(A) the decedent, on the date of death, was not receiving and was not eligible to receive an annuity under an employee retirement plan;

(B) the surviving spouse, if any, of the decedent has not remarried;

(C) the surviving spouse, if any, of the decedent is not retired and is not eligible to retire under an employee retirement plan; and

(D) the surviving spouse, if any, of the decedent is not receiving and is not eligible to receive social security benefits; and

(2) an itemized statement of funeral expenses incurred, if the application includes a claim for payment of funeral expenses.

(b) Except as provided in Subsection (c) of this section, an annuity payable to a surviving spouse who is eligible for benefits under Texas Government Code, Chapter 615, Subchapter F, shall be computed as provided by Texas Government Code §814.105 as if the decedent, on the date of death:

(1) was employed by the Texas Department of Public Safety at the lowest salary provided by the General Appropriations Act for a peace officer position, if the decedent held a peace officer position on the date of death, or by the Texas Department of Criminal Justice at the lowest salary provided by the General Appropriations Act for a custodial personnel position, if the decedent held a custodial personnel position on the date of death;

(2) had accrued 10 years of service credit in the applicable position; and

(3) was eligible to retire without regard to any age requirement.

(c) In lieu of the amount computed under Subsection (b), an annuity shall be paid in the amount the decedent would have been eligible to receive under the decedent's employee retirement plan if the decedent had been eligible to retire at the age and with the service attained on the last day of the month of the decedent's death if:

(1) the person making the claim requests payment of the amount computed under this subsection before any payment computed under Subsection (b) is made;

(2) an authorized representative of the employee retirement plan in which the decedent was a participant certifies the amount computed under this subsection; and

(3) the amount computed under this subsection is greater than the amount computed under Subsection (b).

(d) The reduction factors applied to a death benefit plan administered by the system shall be applied in the same manner to an annuity computed under either Subsection (b) or Subsection (c) of this section.

(e) As a condition of receipt of an annuity under Texas Government, Chapter 615, Subchapter F, an eligible surviving spouse shall agree to annually certify the spouse's eligibility under Subparagraphs (1)(B), (1)(C), and (1)(D) of Subsection (a) of this section and to notify the system of any change in circumstances affecting the spouse's continued eligibility. Failure to comply with this requirement or to provide the agreed certification is a basis for suspension of annuity payments until such time as compliance occurs.

(f) [ (b) ] The amount reimbursed for funeral expenses under Texas Government Code, Chapter 615, Subchapter F, shall not exceed the lesser of $6,000 or the amount of funeral expenses actually incurred.

(g) [ (c) ] The executive director may require additional information or affidavits as necessary to establish the validity of any claim under this section.

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 January 3, 2002.

TRD-200200025

Sheila W. Beckett

Executive Director

Employees Retirement System of Texas

Earliest possible date of adoption: February 17, 2002

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


Part 11. OFFICE OF THE FIRE FIGHTERS' PENSION COMMISSION

Chapter 301. RULES OF THE TEXAS STATEWIDE EMERGENCY SERVICES RETIREMENT FUND

34 TAC §§301.2, 301.5, 301.6

The Office of the Fire Fighters' Pension Commissioner (FFPC) proposes amendments to §§301.2, 301.5, and 301.6 concerning Rules of the Texas Statewide Emergency Services Retirement Fund.

Morris Sandefer, Commissioner, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Sandefer also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be current and updated regulations. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Comments on the proposal may be submitted to Morris Sandefer, Commissioner, Office of the Fire Fighters' Pension Commissioner, P.O. Box 12577, Austin, Texas 78711-2577.

The amendments are proposed under Texas Civil Statutes, Article 6243e.3, (Senate Bill 411) 65th Legislature (1977), revised in the 72nd Legislature (1991), revised in the 75th Legislature (1997), and revised in the 77th Legislature (2001), which provide the Office of the Fire Fighters' Pension Commissioner with the authority to promulgate rules necessary for the administration of the pension fund.

No other statutes, articles, or codes are affected by the proposed amendments.

§301.2.Scope.

(a) The Texas Statewide Emergency Services Retirement Act (TSESRA) applies to the governing body of any political subdivision of the state. If the participating department is situated in more than one political subdivision, the governing bodies of such political subdivisions shall contribute equally toward a total of at least $12 for each member for each month of service.

(b) Governing Body/Emergency Services Districts.

(1) An emergency services district which is composed of members of a department which has been in Texas Local Fire Fighters' Retirement Act (TLFFRA House Bill 258) must inform the commission of this at the time they request entrance in Senate Bill 411. Being an emergency services district does not negate the legal obligations which have arisen as a result of being a member of TLFFRA.

(2) If a department is in more than one political subdivision the governing body of each political subdivision shall contribute equally toward the cost for each member's service. It is the responsibility of the department and the governing bodies to inform the commissioner if this section of the law applies.

(3) An emergency services district which is composed of the members of a city or county emergency services department which has been in the TLFFRA system cannot be forced to assume the liability of the TLFFRA payees. If the district refuses to accept the payment of this liability the district cannot be in the Senate Bill 411 system.

(4) A department which enters the system with the city or county as governing body and subsequently becomes governed by an emergency services district will, for pension purposes, continue with the city or county as governing entity until such time as the district enters into a contract with the pension system. The district and the city or county may contribute equally toward the total if applicable.

(c) Exemption.

(1) This retirement fund need not apply to a public agency whose governing body exempted itself from its operation no later than 60 days after August 28, 1977. The requirement to provide for participation in the fund pertains to all other public agencies whose governing bodies did not choose to exempt themselves prior to October 28, 1977.

(2) If a governing body acts to rescind its order exempting itself from the Texas Statewide Emergency Services Retirement Fund, its action will amount to a repeal; and the governing body will begin making its contributions at the time the rescission becomes effective.

(3) If the public agency's governing body did not exempt itself, the emergency services department will be admitted to the pension system after the members vote to enter the system as required by §10, Entering The Pension System; Required Election. The department's entrance date cannot pre-date the election. The governing body will be held liable for funding as though they rescinded the exemption.

(d) Eligibility of a Public Agency. A department, to enter into the SB 411 retirement system, must have at least ten active members. A subsequent drop of the number of active members will not affect the department's eligibility.

(e) Merger. The decision to merge into the Senate Bill 411 plan may be made by a vote of the qualified members who participated in the emergency services department for at least one year. Each qualified member is entitled to cast one vote for each full year of participation. The governing body of the merging public agency is to provide verification of service with the Commissioner [ Fire Fighters' Pension Commission ] as required by the Commissioner. [ commission. If no record of prior service exists with the Fire Fighters' Pension Commission, the local board is to verify service for each prospective member in a manner prescribed by the Commissioner. This verification is to be signed by the chief or head of the department and the representatives of the local board, notarized and returned to the commission office. ]

(1) When establishing prior years credit for service performed by members in a department that has not been a member of the TLFFRA (HB 258) system or was a member of TLFFRA and the records are missing, the Commissioner will prepare and send to the local board a Service Record for the department's members showing the years purchased for each member. This record will be sent to the local board upon the Commissioner's receipt of the contract entering the TSESRA pension system.

(2) The local board will complete the service record by indicating if each member is to receive credit for prior years of service. This service record shall be signed by the chairman, the current chief or head of the department, and the secretary of the local board and their signatures notarized.

(3) The original service record will be returned to the Commissioner with a copy of the minutes of the local board showing that the local board approved the service credit given the members.

(f) Non-TLFFRA Departments. Entities which have not been in any pension system prior to entering the TSESRA (Senate Bill 411) system follow the same procedures as entities in the Texas Local Fire Fighters' Retirement Fund (TLFFRA, formerly House Bill 258) system on voting to enter this pension system and follow the same rules as departments merging into the TSESRA (SB 411) system from TLFFRA.

(g) Individual Eligibility.

(1) Status. Qualified members of a department, whether involved in prevention, suppression, investigation, maintenance, or clerical work are eligible to participate in the retirement fund provided, however, that the member's eligibility to join is dependent on the status of the public agency under whose control the member is. The prospective member cannot override the public agency's status simply by the payment of contributions. If the person does not receive a certification of physical fitness or assignment to support duties, that person cannot be a member of the department. The following are specifically barred as members of the pension system:

(A) If the person is less than 18 years of age.

(B) If the person is retired under this Act whether or not the person continues to participate in emergency related functions for the department from which the member retired. (For the exception see paragraph (6)(A) of this subsection.)

(C) If the person is a probationary member for whom dues are not being paid. The maximum period during which dues are not paid is six months at which time the member must be placed in the TSESRA system. Entry dates cannot be back dated to cover the probationary period unless all prospective members are covered from the date they joined the department.

(2) It is the responsibility of the local Board of Trustees to determine that its members comply with the definitions for volunteer and auxiliary members as outlined by the law.

(3) Fair Labor Standards Act (FLSA). Participation in the Senate Bill 411 system is affected by the Federal Fair Labor Standards Act and regulations implemented there under. Questions concerning the effect of FLSA on the department should be directed to its attorney.

(4) Start of Membership.

(A) During a probationary period of service before becoming a regular member of a member department, if the governing body of the department is not making contributions for the probationary service, then that person is not eligible for benefits under this Act.

(B) A department may have a probationary period of up to six months during which dues are not paid for the member. Dues will be charged based on the date the member entered the pension system as listed on the Personnel Form 502, as long as it is not more than six months after the date the member entered the department.

(C) Personnel Form 502 must be submitted for new members at the end of the probationary period. Failure to do so could mean a delay of death or disability benefits.

(D) If there is a probationary period, it should be the same length of time for everyone in the department.

(E) If the date the member entered pension system is more than six months after the date the member entered department, the commission will change the date the member entered pension system reflected on the Form 502 to within six months after the date the member entered the department and shall send a corrected copy to the department. Dues will be charged from the date established by the commission.

(5) Credit.

(A) Under various versions of TLFFRA law any fire fighter who was terminated from the department for one or more years lost any service earned before that period unless the local board ruled that the interruption in service was through no fault of the fire fighter. A local board entering the SB411 system may rule that a member's service is to be reinstated for the purpose of computing prior service for cost studies. This is local decision.

(B) The department is not charged for non-qualifying years on the cost study.

(C) Once a member of this retirement fund, the member is not penalized for nonconsecutive periods of service.

(6) Dual Benefits.

(A) Death and Retirement. In order to be eligible for retirement benefits from two or more different departments, the member's service in the other departments must start before retirement from the primary department and he/she must start as a new member (without transferring time from the other department). See TSESRA, §2A, Membership, paragraphs (b)(5) and (c).

(B) Disability and Retirement. A member must, at the time of disability, elect between retirement or disability benefits if eligible for both. When a member, while on disability, reaches the age of 55 the member may switch to retirement benefits if he/she so chooses. The member shall then be deemed permanently retired.

(7) Once a governing entity has elected to participate it can not rescind that election (§2(b) of TSESRA). The membership of the department may withdraw from the pension system as outlined in §12 of TSESRA.

(8) Physical Fitness--§8, Certification of Physical Fitness, of the pension fund law, Texas Statewide Emergency Services Retirement Act, was amended so that those members of the department not physically fit to participate in emergency services could remain in the system and earn credit toward retirement. The local board decides on the type of physical it feels meets the department's needs.

(A) The physician's certification of physical fitness remains in department files unless requested by the commissioner.

(B) The local board must notify the agency if a member cannot participate in emergency services.

(C) A member who cannot participate in emergency services should be assigned to support duties by the local board to earn credit on the Annual Report.

(D) The state board recommends updating physicals at least every five years.

§301.5.Billings and Annual Reports.

(a) Billings.

(1) Each governing body shall contribute the funds for the department's participation in the system.

(2) Although the department and governing body may have an agreement between themselves that the department will pay for participation in the system, if the department is unable to pay, the governing body is held liable for the payment.

(3) The governing body may choose yearly or twice yearly billings. It may also choose to have billings based on the governing body's fiscal year instead of a calendar year.

(4) Billings cannot be altered by the department or governing body without prior approval by the Commissioner or State Board of Trustees. Payments are deemed late if they are not received by the Commissioner within 60 days from the mailing date as indicated on the bill. Late payments accrue interest at the most recent assumed actuarial rate of return on investments of the fund. Although the current assumed actuarial rate of the fund is 8%, that rate is subject to change at any time and without notice.

(5) Requests for extensions of payments by the governing entity must be in writing to the Commissioner. The governing entity must demonstrate that the delay was beyond the control of the entities responsible for payment and was not the result of neglect, indifference or lack of diligence.

(b) Annual Reports.

(1) Annual report forms are mailed by the Commissioner in December of each year.

(2) Annual reports are based on a calendar year in all cases.

(3) The reports are due in the Office of the Fire Fighters' Pension Commissioner by January 31.

(4) The guidelines accompanying the report forms should be followed by the local pension board.

(5) Administrative Penalties for late departmental annual report. An annual report is deemed late if the complete report is not in the office of the Commissioner within 60 days after January 31.

(A) The initial penalty is $500 (five hundred dollars) for the first violation. A penalty of $100 (one hundred dollars) will be added to the initial penalty for every 30 days the report is late.

(B) Departments which habitually (2 times in 3 years) submit late reports will have an initial penalty of $1000.00 (one thousand dollars) the second time the report is late. A penalty of $100 (one hundred dollars) shall be added to the initial penalty for every 30 days the report is late.

(C) Every consecutive year that an annual report is submitted late, the initial penalty will be at least $500 (five hundred dollars) greater than the initial penalty assessed the previous year.

(6) The Commissioner may[ , with the approval of the state board, ] waive penalties when a local board demonstrates that the delay in submission was beyond the control of the local entities responsible for preparing and submitting the report.

(A) Requests for waivers of the late annual report penalty must be in writing to the Commissioner.

(B) The local board must demonstrate that the delay was beyond the control of the entities responsible for preparing and submitting the report, and was not the result of neglect, indifference, or lack of diligence.

(C) If the Commissioner feels that a waiver is justified, the Commissioner must present the department's documentation to the State Board of Trustees at its next scheduled meeting for a determination by the State Board.

(D) A local board whose waiver of the penalty is denied shall have 60 days from the receipt of the denial of waiver to request that the Commissioner schedule a contested case hearing with the State Office of Administrative Hearings (SOAH). The request from the local board shall be in writing.

(7) The Commissioner shall [ with the approval of the state board may ] withhold an individual's pension payments when a local board cannot verify a recipient's eligibility to receive payments due to the recipient's failure to cooperate or to provide information. The chairman of the local board must make the request to withhold payments to the Commissioner in writing. The request shall outline the attempts the board has made to obtain this information. The Commissioner shall make a decision and shall notify the recipient in writing of the decision.

(8) The Commissioner shall not begin retirement annuity, disability, or death payments based on the service of a person in departments whose service information has not been updated by the latest annual report.

(9) When correcting prior years of service on an annual report for a member of the TSESRA (SB 411) system, the chairman, the current chief or head of department, and the secretary of the local board shall sign and have notarized a letter to the Commissioner correcting the service record. This letter shall be accompanied by a copy of the minutes of the local board of trustees showing that they voted to make the change.

§301.6.Local Boards of Trustees.

(a) Composition and terms of the local board are contained in Section 22, Local Board of Trustees, of Article 6243e.3, Vernons Texas Civil Statutes. The term limitations set forth in Section 22 of the TSESRA, Article 6243e.3, do not apply to the representative appointed by the governing body, and the governing body has the authority to select its representative to serve on the board in a manner that the local governing body chooses.

(b) Duties of the local board are contained in Section 23, Additional Duties of the Local Board of Trustees, and throughout the pension fund law Article 6243e and Article 6243e.3. These duties are also summarized in the information booklet issued by the Commissioner. The local board members are expected to be aware of the duties imposed on them by the law and these rules, and are legally responsible for errors and omissions made at the local level resulting in non-payment of benefits.

(c) By signing and notarizing Form LPB-411 of their department's annual report, the board members are certifying that, to the best of their knowledge, the report is correct.

(d) Meetings held by the local board of trustees shall be conducted as open meetings under the Texas Open Meetings Act, Texas Government Code Annotated, Chapter 551 as amended.

(e) In a department with five or less volunteer members all volunteer members must be on the local board.

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 January 7, 2002.

TRD-200200042

Morris E. Sandefer

Commissioner

Office of the Fire Fighters' Pension Commission

Earliest possible date of adoption: February 17, 2002

For further information, please call: (512) 936-3372