TITLE 34.PUBLIC FINANCE

Part 3. TEACHER RETIREMENT SYSTEM OF TEXAS

Chapter 41. HEALTH CARE AND INSURANCE PROGRAMS

Subchapter A. RETIREE HEALTH CARE BENEFITS (TRS-CARE)

34 TAC §41.6

The Teacher Retirement System of Texas (TRS) adopts new §41.6 concerning the required contribution from public schools in the Texas Public School Employees Group Benefits Program known as TRS-Care. The new section is adopted with one non-substantive change to the text as published in the August 29, 2003 issue of the Texas Register (28 TexReg 7165).

The new section implements the new requirement set out under House Bill 3459, 78th Legislature, Regular Session, that public schools contribute a percentage of the salaries of active employees to the TRS-Care program. One technical change to subsection (a) of the text as proposed is adopted in order to correct the reference to the complete name of the TRS-Care fund.

The General Appropriations Act sets the percentage that public schools must contribute to the TRS-Care fund at 0.4% of the salaries of active employees for the 2004-2005 biennium. The new section implements that mandate and requires public schools to make these contributions in the same way that they make their retirement contributions.

No written comments on the proposal were received.

The new section is adopted under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for, among other things, the transaction of business of the board. The new section is also adopted under Insurance Code, Chapter 1575, §1575.052, which authorizes TRS, as trustee, to adopt rules reasonably necessary to implement the TRS-Care program, including procedures for contributions and deductions. The new section is also adopted under House Bill 3459, 78th Legislature, Regular Session, Section 54 and House Bill 1, 78 Legislature, Regular Session.

§41.6.Required Contributions from Public Schools.

(a) On a monthly basis, each public school shall contribute 0.4% of the salary of each active employee to TRS for deposit in the Retired School Employees Group Insurance Fund. The public school shall make the contribution at the same time and in the same manner in which the public school delivers retirement contributions. Any waiver granted to a public school under Government Code §825.408(a) does not apply to the contribution under this section.

(b) For purposes of this section, "active employee" means a contributing member of TRS who is employed by a public school and is not entitled to coverage under a plan provided under Chapter 1551 or Chapter 1601, Insurance Code.

(c) For purposes of this section, "public school" means a school district; another educational district whose employees are TRS members; a regional education service center established under Chapter 8, Education Code; or an open-enrollment charter school established under Subchapter D, Chapter 12, Education Code.

(d) TRS may take corrective action against a public school that fails to make the required contribution in accordance with the requirements of this section, including but not limited to placement of a warrant hold with the Comptroller of Public Accounts.

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 February 4, 2004.

TRD-200400731

Ronnie Jung

Interim Executive Director

Teacher Retirement System of Texas

Effective date: February 29, 2004

Proposal publication date: August 29, 2003

For further information, please call: (512) 542-6115


Subchapter B. LONG-TERM CARE, DISABILITY AND LIFE INSURANCE

34 TAC §§41.15, 41.16, 41.18 - 41.20

The Teacher Retirement System of Texas (TRS) adopts amendments to rules §41.15 relating to requirements to bid, §41.16 relating to coverage offered, §41.18 relating to eligibility for the long-term care program, §41.19 concerning initial enrollment periods, and §41.20 relating to effective date of coverage in the Long-Term Care Insurance Program now recodified in chapters 1576 and 1577, Texas Insurance Code. The amendments are adopted without changes to the text as published in the October 24, 2003 issue of the Texas Register (28 TexReg 9200) and therefore will not be republished.

The amendments to §§41.15, 41.16, 41.18, and 41.19 provide the correct references to the recodified Insurance Code provisions that establish the program and clarify initial enrollment periods and the effective date of coverage for eligible individuals. The former articles 3.50-4A were recodified as chapters 1576 and 1577, respectively, effective June 1, 2003. The amendments also add a subsection (c) to §41.18 that clarifies which applicants are subject to underwriting approval. §41.19 is amended to clarify the initial enrollment periods for persons eligible to participate in the program and §41.20 addresses the effective date of coverage for all of the categories of potentially eligible individuals.

No comments on the proposals were received.

The amendments are adopted under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for, among other things, the transaction of business of the board. The amendments are also adopted under Insurance Code, Chapter 1576, §1576.006 and Insurance Code, Chapter 1577, §1577.002which authorize TRS to adopt rules to implement the chapters.

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 February 4, 2004.

TRD-200400733

Ronnie Jung

Interim Executive Director

Teacher Retirement System of Texas

Effective date: February 24, 2004

Proposal publication date: October 24, 2003

For further information, please call: (512) 542-2115


Subchapter C. TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)

34 TAC §41.37

The Teacher Retirement System of Texas (TRS) adopts amendments to §41.37 concerning the effective date of coverage in the Texas School Employees Uniform Group Health Coverage Program ("TRS-ActiveCare"). The amendments are adopted without changes to the text as published in the September 5, 2003 issue of the Texas Register (28 TexReg 7637) and therefore will not be republished.

The amendments to §41.37 allow public school employees whose employers are participating in TRS-ActiveCare additional flexibility in determining the starting date of their TRS-ActiveCare coverage. Employees who are subject to a new 90-day waiting period for TRS membership and for supplemental compensation may delay the effective date of their TRS-ActiveCare coverage until the first day of the month in which the employee completes the waiting period and is able to receive supplemental compensation..

No comments on the proposal were received.

The amendments are adopted under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for, among other things, the administration of the funds of the retirement system and the transaction of business of the board. The amendments are also adopted under Insurance Code, Chapter 1579, §1579.052, Insurance Code, which authorizes TRS, as trustee, to adopt rules relating to the program as considered necessary.

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 February 4, 2004.

TRD-200400732

Ronnie Jung

Interim Executive Director

Teacher Retirement System of Texas

Effective date: February 29, 2004

Proposal publication date: September 5, 2003

For further information, please call: (512) 542-6115


34 TAC §41.53

The Teacher Retirement System of Texas (TRS) adopts new §41.53 concerning the waiting period for supplemental compensation. The new section is adopted without changes to the text as published in the August 29, 2003 issue of the Texas Register (28 TexReg 7165) and therefore, will not be republished.

The new section implements new legislation requiring a 90-day waiting period for the supplemental compensation offered to eligible employees of school districts, participating charter schools, other educational districts whose employees are members of TRS, and regional educational services who are hired on or after September 1, 2003, when the employee is not already a TRS member on the date of employment. The new section provides notice to employees affected by the waiting period as to how that waiting period is calculated for supplemental compensation. The new section also requires an entity to correct an erroneous report previously filed with TRS regarding supplemental compensation and in addition, requires entities and individuals to provide records that TRS determines are necessary to administer the section.

No comments on the proposal were received.

The new section is adopted under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for, among other things, the transaction of business of the board. The new rule is also adopted under section 1580.002, Insurance Code, which authorizes TRS, as trustee, to adopt rules to implement the supplemental compensation program.

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 February 4, 2004.

TRD-200400730

Ronnie Jung

Interim Executive Director

Teacher Retirement System of Texas

Effective date: February 29, 2004

Proposal publication date: August 29, 2003

For further information, please call: (512) 542-6115