Part 6. TEXAS MUNICIPAL RETIREMENT SYSTEM

Chapter 127. MISCELLANEOUS RULES

34 TAC §127.7, §127.8

The Texas Municipal Retirement System adopts new §127.7, concerning rollovers of plan distributions, and new §127.8, concerning plan limitations. Both of these new sections are adopted without changes to the proposed text as published in the January 17, 2003, issue of the Texas Register (28 TexReg 532) and will not be republished. These new rules were also adopted on an emergency basis (28 TexReg 529), effective from December 30, 2002 until April 29, 2003.

Section 127.7 is being added to specify the types of retirement plans and Individual Retirement Accounts that members receiving plan distributions from the Texas Municipal Retirement System are allowed to use for rollover purposes. The purpose of the new section is to enable the Texas Municipal Retirement System to properly process plan distributions in accordance with the Economic Growth and Tax Relief Act of 2001, Public Law 107-16 (June 7, 2001) ("EGTRA").

Section 127.8 is being added to specify the amount of compensation that can be taken into account in determining a person's retirement benefit and places certain restrictions on members depending on plan entry dates. The purpose of the new section is to enable the Texas Municipal Retirement System to properly account for a member's compensation in accordance with the EGTRA.

No comments were received regarding the proposed new rules.

These new rules are adopted pursuant to Texas Government Code, §855.102, which provides the Board of Trustees of the Texas Municipal Retirement System with the authority to adopt rules as necessary or desirable for the efficient administration of the system. The new rules are also adopted pursuant to Texas Government Code, §855.607, which authorizes the Board of Trustees of the Texas Municipal Retirement System to adopt rules necessary for the plan to be a qualified plan.

Texas Government Code, §§851.001(6) and 852.103 are affected by the new rules.

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 March 31, 2003.

TRD-200302121

Gary W. Anderson

Executive Director

Texas Municipal Retirement System

Effective date: April 20, 2003

Proposal publication date: January 17, 2003

For further information, please call: (512) 225-3715

34 TAC §129.12

The Texas Municipal Retirement System adopts amendments to §129.12, concerning payments to alternative payees under a qualified domestic relations order, without changes to the proposed text as published in the January 17, 2003, issue of the Texas Register (28 TexReg 533) and will not be republished. This amendment was also adopted on an emergency basis (28 TexReg 530), effective from December 30, 2002 until April 29, 2003.

This rule is being amended to clarify that if payments to a disability retiree are suspended under the Texas Municipal Retirement System Act, payments will continue to an alternate payee under a qualified domestic relations order. This rule amendment ensures that payments to alternate payees under qualified domestic relations orders will continue as anticipated.

No comments were received on the proposed amendments.

The amendments are adopted pursuant to Texas Government Code, §804.003, which provides the Board of Trustees of the Texas Municipal Retirement System with the authority to adopt rules as necessary for the administration of domestic relations orders. The amendments are also adopted pursuant to Texas Government Code, §855.102, which provides the Board of Trustees of the Texas Municipal Retirement System with the authority to adopt rules as necessary or desirable for the efficient administration of the system.

No other statute is affected by the adoption of the amendment.

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 March 31, 2003.

TRD-200302122

Gary W. Anderson

Executive Director

Texas Municipal Retirement System

Effective date: April 20, 2003

Proposal publication date: January 17, 2003

For further information, please call: (512) 225-3715