TITLE 34.PUBLIC FINANCE

Part 5. TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM

Chapter 105. CREDITABLE SERVICE

34 TAC §105.5

The Texas County and District Retirement System adopts new §105.5, concerning the adjustment of a person's record because of a reporting error by a sponsoring employer. The new section is adopted without changes to the proposed text as published in the May 21, 2004, issue of the Texas Register (29 TexReg 5031).

Under the new section, if as a result of an act or omission of an employer, a person contributes more or less than the correct amount, or receives more or less credited service, service credit or benefits than the person is rightfully entitled to receive, the employer may file an application with the retirement system for an adjustment to the person's record.

The new section provides a procedure so that a person seeking an adjustment to a record because of a reporting error of the employer must apply to the employer for a correction. The system will accept applications for adjustments and any related deposits only from an employer. However, under Government Code, §842.112, a person may pursue a legal remedy against the employer and submit that final judgment or settlement agreement to the system in lieu of an application. The system may adjust the person's record in accordance with the terms set forth in the application provided: The terms of the adjustment would not grant the person a right, status or benefit not otherwise available under Government Code, Title 8, Subtitle F; the terms of the adjustment are reasonable and can be feasibly implemented and administered by the system; and the terms of the adjustment can be implemented without causing financial instability with respect to the employer's participation in the system or causing a reduction in the accrued benefit of any member or annuitant of the employer. Under the new rule, adjustments to credited service (vesting) may be made separately from adjustments to service credit (benefits). This allows for the recognition of all properly creditable service for retirement eligibility purposes while permitting limited or partial adjustments to benefit credits.

No comments were received regarding adoption of this new section.

The new section is adopted under the Government Code, §845.102, which provides the board of trustees of the Texas County and District Retirement System with the authority to adopt rules necessary or desirable for efficient administration of the system.

The Government Code, §842.112 is affected by this new section.

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 30, 2004.

TRD-200404328

Tom Harrison

Director, Legal and Governmental Relations

Texas County and District Retirement System

Effective date: July 20, 2004

Proposal publication date: May 21, 2004

For further information, please call: (512) 328-8889


Chapter 107. MISCELLANEOUS RULES

34 TAC §107.14

The Texas County and District Retirement System adopts new §107.14, concerning a member's use of rollovers and transfers from other plans to restore withdrawn accounts and the related forfeited service credit. The new section is adopted without changes to the proposed text as published in the May 21, 2004, issue of the Texas Register (29 TexReg 5032)

The new section incorporates the changes made to the Internal Revenue Code that now allow qualified plans to accept rollovers and trustee-to-trustee transfers initiated by the plan participant for the purchase of service credit.

Under the new section, an eligible member may restore the withdrawn account balance and related forfeited service credit with a direct rollover or trustee-to-trustee transfer from an eligible plan provided the rollover or transfer follows the regulations of the Internal Revenue Service.

No comments were received regarding adoption of this new section.

The new section is adopted under the Government Code, §845.102, which provides the board of trustees of the Texas County and District Retirement System with the authority to adopt rules necessary or desirable for efficient administration of the system.

The Government Code, §843.003 and §843.0031 are affected by this new section.

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 30, 2004.

TRD-200404327

Tom Harrison

Director, Legal and Governmental Relations

Texas County and District Retirement System

Effective date: July 20, 2004

Proposal publication date: May 21, 2004

For further information, please call: (512) 328-8889