Part 4.
EMPLOYEES RETIREMENT SYSTEM OF TEXAS
Chapter 79.
SOCIAL SECURITY
34 TAC §§79.1, 79.3 - 79.5, 79.9, 79.11, 79.13, 79.15, 79.23
The Employees Retirement System of Texas (ERS) adopts amendments
to §§79.1, 79.3 - 79.5, 79.9, 79.11, and 79.13, and new §79.15
and §79.23 of Title 34, Texas Administrative Code, concerning the Social
Security Program, without changes to the text as published in the May 7, 2004,
issue of the
Texas Register
(29 TexReg 4430).
The text will not be republished.
The new and amended sections are needed pursuant to Texas Government Code,
Chapter 606, which gives ERS the authority to administer the Social Security
Program for state and local governments within federal guidelines of the Social
Security Act §218. The new rules and amendments to the existing rules
are required in order to allow ERS to more effectively administer the Social
Security Program.
New §79.15 establishes guidelines to covered entities for resolving
discrepancies and reporting errors.
New §79.23 substantiates that ERS assumes no obligation and no liability
for costs associated with entering into a social security coverage agreement.
Section 79.1 clarifies the legal name of the Employees Retirement System
of Texas and defines the abbreviated name, "ERS."
Section 79.3 clarifies reporting procedures for collection of Social Security
taxes prior to January 1, 1987 by ERS, and payment and reporting responsibility
for Social Security taxes beginning January 1, 1987 to the IRS.
Sections 79.4 and 79.13 replace "the Employees Retirement System of Texas"
with the abbreviated name "ERS."
Sections 79.5 and 79.11 were amended to correctly cite the applicable law,
and §79.11 further defines state holidays for reporting procedures for
collection of Social Security taxes prior to January 1, 1987.
Section 79.9 instructs an entity in the referendum process to inform the
State Social Security Administrator within 30 days when a change of reporting
official occurs.
ERS received no comments regarding the new or amended sections.
The amendments and new rules are adopted under Texas Government
Code, §606.023, which provides authorization for the Board of Trustees
to adopt rules necessary to govern the application for and the eligibility
of employees of a political subdivision to obtain social security coverage
through §218 of the Social Security Act.
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 9, 2004.
TRD-200403783
Paula A. Jones
General Counsel
Employees Retirement System of Texas
Effective date: June 29, 2004
Proposal publication date: May 7, 2004
For further information, please call: (512) 867-7125
34 TAC §§81.1, 81.5, 81.7
The Employees Retirement System of Texas (ERS) adopts amendments
to §§81.1, 81.5, and 81.7 concerning definitions, eligibility, and
enrollment and participation in the Texas Employees Group Benefits Program
(GBP). Section 81.5 is adopted with changes to the text as published in the
May 7, 2004, issue of the
Texas Register
(29
TexReg 4431). Sections 81.1 and 81.7 are adopted without changes and will
not be republished.
The amendments to §81.1 and §81.5 are needed to update the rules
to comply with the addition of §1551.114, Texas Insurance Code, added
by Acts of the 78th Legislature, Regular Session. Section 1551.114, Texas
Insurance Code, concerns the participation of certain Community Supervision
and Corrections Department employees, retirees, and their surviving dependents
in the GBP.
Section 81.1 changes the definition of a Retiree to include an eligible
annuitant of a Community Supervision and Corrections Department that is determined
by ERS to be eligible for the GBP as described in §1551.102 and §1551.114,
Texas Insurance Code.
Section 81.5 adds eligibility for continuing coverage of surviving dependents
of a deceased employee of a Community Supervision and Corrections Department
as described by §1551.114, Texas Insurance Code.
Section 81.5(f)(3) is amended to clarify continuing coverage of dependents,
when the deceased active employee/retiree does not have a spouse covered by
the plan. Section 81.5(f)(3) is adopted with a change by adding the clause
"as determined by ERS." The Board adopted a change to the published text,
which conforms §81.5(f)(3) to amendments to §81.5(f)(1) and (2)
that were published in the
Texas Register
on
May 7, 2004.
The amendment to §81.7 is needed to update the rules to clarify the
use of the term GBP health coverage within that section. Section 81.7 changes
the term GBP coverage to GBP health coverage. This is a conforming change
to comport with a previous amendment to this section adopted by the Board
on June 11, 2003, that allows participation in additional coverages and plans
without concurrent enrollment in health coverage. The use of the term GBP
health coverage has a specific meaning as used in this section regarding the
90-day waiting period for health coverage as it relates to a new employee
with existing, current, and continuous GBP health coverage.
ERS received no comments regarding the amended sections.
The amendments are adopted under Texas Insurance Code, §1551.052,
which provides authorization for the ERS Board of Trustees to adopt rules
necessary to implement Chapter 1551 and its purposes, including rules that
provide standards for determining eligibility for participation in the GBP.
§81.5.Eligibility.
(a)
Full-time employees. A full-time employee, elected officer,
or appointed officer of the State of Texas is eligible for automatic coverage
upon completion of the waiting period established in Section 1551.1055 of
the Act. A rehired full-time employee, reelected officer, or reappointed officer
of the State of Texas, including a new full-time employee, each with existing,
current, and continuous GBP health coverage as of the date the employee begins
active duty or is qualified for and begins to hold office, is eligible for
automatic coverage without a waiting period provided there has been no break
in coverage in the GBP. However, an employee of an institution of higher education
and the employee's eligible dependents are eligible for coverage on the first
day that an employee performs services as an employee of an institution of
higher education only if:
(1)
the full amount of premiums are paid for the employee's
coverage from the first date of employment through the completion of the waiting
period defined in §1551.1055(a) of the Act;
(2)
any premiums paid as provided in paragraph (1) of this
subsection shall not be paid using money appropriated from the general revenue
fund; and
(3)
any institution of higher education electing to pay the
premium for any employee as described in this subsection must do so for all
eligible full-time employees.
(b)
Part-time employees. A part-time employee or other employee
who is not eligible for automatic coverage becomes eligible for coverage upon
completion of the waiting period established in Section 1551.1055 of the Act
and upon application to participate in the program, subject to the provisions
of §81.7(b) of this title (relating to Enrollment). A rehired part-time
employee, reelected part-time officer, or reappointed part-time officer of
the State of Texas, including a new part-time employee, each with existing,
current, and continuous GBP health coverage as of the date the employee begins
active duty or is qualified for and begins to hold office, who is not eligible
for automatic coverage is eligible for coverage without a waiting period provided
there has been no break in coverage.
(1)
However, a part-time employee of an institution of higher
education and the employee's eligible dependents are eligible for coverage
on the first day that a part-time employee performs services as a part-time
employee of an institution of higher education only if
(A)
the full amount of premiums are paid for the part-time
employee's coverage from the first date of employment through the completion
of the waiting period defined in §1551.1055(a) of the Act;
(B)
any premiums paid as provided in subparagraph (A) of this
paragraph shall not be paid using money appropriated from the general revenue
fund; and
(C)
any institution of higher education electing to pay any
portion of the premium for any part-time employee as described in this subsection
or in §1551.101(e)(2) must do so for all eligible similarly situated
part-time employees.
(2)
An institution of higher education is also not prohibited
from contributing a portion or all of the required premium for certain part-time
employees described by §1551.101(e)(2) of the Act only if:
(A)
the premiums not paid by the general revenue fund are paid
by the institution of higher education with funds that are not appropriated
from the general revenue fund;
(B)
any institution of higher education electing to pay the
premiums for any part-time employee as described in §1551.101(e)(2) of
the Act must do so for all eligible part-time employees described therein;
and
(C)
any premiums paid as provided in subparagraph (A) of this
paragraph must be paid from the first date of the part-time employee's initial
enrollment.
(c)
Retirees.
(1)
A retiree who is at least 65 years of age with a minimum
of 10 years eligible service credit or a retiree whose age and eligible service
credit equals or exceeds 80 with a minimum of 10 years eligible service credit,
is eligible for health coverage on the day he or she becomes an annuitant
provided the individual retires directly from state service. If the individual
does not retire directly from state service as described in §1551.1055(b)
of the Act, eligibility for health coverage begins on the first day of the
calendar month following 90 days after the date of retirement.
(2)
A retiree who is less than 65 years of age with a minimum
of 10 years eligible service credit is eligible for health coverage on the
first day of the calendar month following the date on which the individual
reaches 65 years of age provided the individual retires directly from state
service. If the individual does not retire directly from state service as
described in §1551.1055(b) of the Act, eligibility for health coverage
begins on the first day of the calendar month following 90 days after the
retiree's 65th birthday.
(3)
A retiree who is not eligible for health coverage at the
time of retirement is eligible for dental coverage and, except as provided
in paragraph (4) of this subsection, optional life insurance and dependent
life insurance at the time of retirement. A retiree described by this paragraph
and by paragraph (2) of this subsection, is eligible for coverage under the
provisions described in Texas Insurance Code, Chapter 1551, as amended by
House Bill 7, 78th Legislature 3rd Special Session, upon payment of the total
cost, as determined by the Board of Trustees, for coverages subject to the
requirements of Tex. Ins. Code §1551.323. For purposes of §1551.323,
the total cost shall be determined by the Board of Trustees based on an actuarial
determination, as recommended by the system's consulting actuary for insurance,
of the estimated total claims costs for individuals eligible for interim insurance
pursuant to §1551.323. If an individual who is eligible for this interim
insurance is also eligible for COBRA coverage, then COBRA coverage should
be exhausted, if possible, before applying for the interim insurance described
by this subsection.
(4)
A retiree is eligible for optional life insurance and dependent
life insurance coverage if the retiree was enrolled in such coverage on the
day before becoming an annuitant. Except as provided in paragraph (5) of this
subsection, a retiree may not increase the amount of life insurance for which
the retiree was enrolled on the day before becoming an annuitant, but may
cancel life insurance coverage at any time. Canceled life insurance coverages
may never be reinstated. A retiree is not eligible for disability or AD&D
coverage.
(5)
A retiree who is not enrolled in minimum retiree optional
life insurance or dependent life insurance coverage is eligible to apply for
such coverage. Submission of evidence of insurability acceptable to the system
shall be required for enrollment in such coverage.
(6)
A covered retiree who was not enrolled in dependent life
insurance coverage on the day before becoming an annuitant becomes eligible
for dependent life insurance coverage of a newly acquired dependent on the
first day of the month following the date on which the individual becomes
a dependent of the retiree.
(7)
A retiree who returns to work for a department may continue
coverages for which he is eligible as a retiree, or, subject to subsection
(a) or subsection (b) of this section, elect to participate in the program
as a full-time or part-time employee. Time spent in an eligible position as
a return to work retiree may not be used to meet eligibility requirements
for retiree health insurance coverage. A return to work retiree may elect
retiree coverages for which he is eligible at the time of separation from
department service.
(8)
A retiree whose extended life insurance benefits are terminated
is eligible for retiree life insurance coverage on the first day of the month
following the extended life insurance benefits termination date.
(d)
Dependents of employees and retirees.
(1)
The dependents of an employee or retiree are eligible for
coverage on the same day that the employee or retiree becomes eligible. Except
as otherwise provided in this paragraph, a newly acquired dependent is eligible
for coverage on the first day of the month following the date on which the
individual becomes a dependent of a covered employee or retiree. The employee
or retiree must be enrolled for a particular coverage before the employee's
or retiree's dependents are eligible for that type of coverage. An eligible
child for whom a covered employee or retiree is court ordered to provide medical
support becomes eligible for health coverage upon receipt by the department
of a valid court order. A newborn natural child is eligible automatically
on the date of birth. A newly adopted child is eligible automatically on the
date of placement for adoption.
(2)
Except as otherwise provided in this paragraph, double
coverage is not permitted for any participant in the program.
(A)
A participant may not be simultaneously covered by basic
or optional term life insurance as an employee or retiree and dependent term
life insurance as a dependent. A family member who is covered as an employee
or retiree is not eligible to be covered as a dependent in the Program. Except
as provided in subparagraph (B) of this paragraph, a dependent may not be
covered by more than one employee or retiree for the same coverage.
(B)
A child who is an eligible dependent of two participants
in the Program may be enrolled in dependent life insurance coverage and accidental
death and dismemberment coverage by both participants.
(e)
Former COBRA unmarried children.
(1)
A former COBRA unmarried child is eligible to continue
the health and dental insurance coverages in which the child was enrolled
upon expiration of the child's continuation coverage under COBRA.
(2)
A former COBRA unmarried child continuing health insurance
coverage under the provisions of this subsection is eligible for dental insurance
coverage if such coverage was not in effect upon the expiration of the child's
continuation coverage under COBRA.
(f)
Surviving dependents.
(1)
The surviving spouse of a retiree or the surviving spouse
of an active employee is eligible to continue coverage in the health and dental
benefits plans in which the surviving spouse was enrolled on the day of death
of the employee/retiree provided, however, the deceased active employee must
have had at least 10 years of service credit, including at least 3 years on
August 31, 2001 or at least 10 years after August 31, 2001 of service as an
eligible employee with a Program participating department, at the time of
death. A deceased active employee described by §1551.114 of the Act must
have had at least 10 years of eligible service credit, as determined by ERS,
before his or her surviving spouse is eligible to continue coverage. A surviving
spouse who is also a state retiree or state employee shall not be eligible
for surviving spouse benefits as long as he or she is eligible for coverage
as an employee or retiree. Participants continuing coverage as surviving spouses
are not eligible for life insurance coverages.
(2)
Dependent children of a deceased active employee or retiree
are eligible to continue coverage in the health and dental benefits plans
in which the dependent children were enrolled on the day of death of the employee/retiree
provided, however, the deceased active employee must have had, at the time
of death, at least 10 years of service credit, including at least 3 years
on August 31, 2001 or at least 10 years after August 31, 2001 of service as
an eligible employee with a Program participating department, as long as the
surviving spouse is eligible and continues to participate in the program.
A deceased active employee described by §1551.114 of the Act must have
had at least 10 years of eligible service credit, as determined by ERS, before
his or her dependent children are eligible to continue coverage. Dependent
children of deceased employees or retirees will be considered as dependents
of the deceased employee's or retiree's surviving spouse for purposes of the
program. Participants continuing coverage as surviving dependents are not
eligible for life insurance coverage.
(3)
If an active employee/retiree does not have a spouse covered
in the program at the time of his or her death, dependent children of the
deceased active employee/retiree are eligible to continue coverage in the
health and dental benefits plans in which the dependent children were enrolled
on the day of death of the employee/retiree provided, however, the deceased
active employee must have had at least 10 years of service credit, including
at least 3 years on August 31, 2001 or at least 10 years after August 31,
2001 of service as an eligible employee with a Program participating department,
at the time of death. A deceased active employee described by §1551.114
of the Act must have had at least 10 years of eligible service credit, as
determined by ERS, before his or her dependent children are eligible to continue
coverage. A surviving dependent child may continue such coverage until the
dependent child becomes ineligible as defined in §81.1 of this title
(relating to Definitions). Participants continuing coverage as surviving dependents
are not eligible for life insurance coverage.
(4)
A surviving spouse or a dependent child of a paid law enforcement
officer employed by the state or a custodial employee of the institutional
division of the Texas Department of Criminal Justice who suffers a violent
death in the course of performance of duty is eligible to continue or enroll
in health and dental coverages. A surviving spouse or natural or adopted children
eligible under this section may enroll within 90 days from the date of death.
Other eligible dependent children may continue health and dental coverages
in effect on the date of death.
(5)
A surviving spouse and eligible dependents, and a surviving
dependent child, continuing health insurance coverage under the provisions
of this subsection are eligible for dental insurance coverage if such coverage
was not in effect on the date of death of the deceased employee or retiree.
(g)
Retiree under ORP.
(1)
A member of the ORP is eligible for health coverage on
the day he or she receives or is eligible to receive an annuity under the
ORP program or would have been eligible to receive an annuity had his or her
membership been in the Teacher Retirement System rather than the ORP, and
meets the age, length-of-service, and other requirements as provided in §81.5(c)
of this title (relating to Eligibility).
(2)
A member of the ORP is eligible for additional coverages
and plans which include optional and voluntary coverages in the program as
long as he or she receives or is eligible to receive an annuity under the
ORP program or would have been eligible to receive an annuity had his or her
membership been in the Teacher Retirement System rather than the ORP.
(h)
Disability retirement. An applicant who is approved for
disability retirement is entitled to retiree insurance coverages as provided
in §81.7(c) of this title (relating to Enrollment and Participation).
An ORP participant authorized by the Act with at least 10 years of eligible
service credit, and granted ORP disabled retiree status in the Program, as
established by the disability test used by the system, is eligible to participate
in the Program. Initial or continued eligibility for insurance coverage for
an ORP disabled retiree will be determined by the system under the following
provisions.
(1)
An ORP participant is eligible for ORP disabled retiree
status in the program if the ORP participant is not otherwise eligible to
participate in the program as an employee or retiree and is certified by a
licensed physician designated by the system as disabled as provided in paragraph
(2) of this subsection. An ORP participant may apply for disabled retiree
status in the program by filing a written application for ORP disabled retiree
status in the program or having an application filed with the system by the
ORP participant's spouse, employer, or legal representative. In addition to
an application for ORP disabled retiree status in the program, an ORP participant
must file with the system the results of a medical examination of the ORP
participant. After an ORP participant applies for ORP disabled retiree status
in the program, the system may require the ORP participant to submit additional
information about the disability. The system will prescribe forms for the
information required by this section.
(2)
If a licensed physician designated by the system finds
that the ORP participant is mentally or physically disabled from the further
performance of duty and that the disability is probably permanent, the physician
will certify the disability. The Executive Director is authorized to approve
ORP disabled retiree status in the program after a certification of disability
is made. Once each year during the first five years after an ORP participant
enrolls in the program as an ORP disabled retiree, and once in each three-year
period after that, the system may require an ORP disabled retiree to undergo
a medical examination by a physician the system designates. If an ORP disabled
retiree refuses to submit to a medical examination as provided by this section,
the system will suspend the ORP disabled retiree's enrollment in the program
until the ORP disabled retiree submits to an examination. The system will
terminate the ORP disabled retiree's coverage in the program and notify the
ORP participant in writing if:
(A)
the system concurs with a certification issued by the designated
physician which finds that an ORP disabled retiree is no longer mentally or
physically disabled from the further performance of duty; or
(B)
an ORP disabled retiree refuses for more than one year
to submit to a required medical examination.
(3)
The effective date of coverage for an ORP disabled retiree
in the program is the first of the month following the date the application
for ORP disabled retiree status in the program is received by the system,
or the first of the month following the date employment is terminated, whichever
is later.
(i)
Former members of the legislature. A former member of the
legislature authorized by the Act to continue to participate in the program
is eligible for the coverage, other than disability income insurance coverage,
in effect on the day before the member leaves office.
(j)
Former employees of the legislature. A former employee
of the legislature authorized by the Act to continue to participate in the
program is eligible for the coverage, other than disability income insurance
coverage, in effect on the day before the employee terminates employment.
(k)
Continuation of health and dental coverages only for certain
spouses and dependent children of employee/retirees, and for certain terminating
employees, their spouses, and dependent children (as provided by the Consolidated
Omnibus Budget Reconciliation Act, Public Law 99-272).
(1)
The surviving spouse and/or dependent child/children of
a deceased employee or retiree who are not eligible to continue coverage under
the provisions of the Act or subsection (f) of this section, who are not entitled
to benefits under the Social Security Act, Title XVIII, and who are not covered
under any other group health plan, or who were covered by a plan that subjects
them to a preexisting conditions limitation or exclusion that was not satisfied
by the service credit provisions of Public Law 104-91 Health Insurance Portability
and Accountability Act (HIPAA), may continue for up to 36 months the health
and dental coverages only that were in effect immediately prior to the date
of death of the employee/retiree. A formal election must be made to continue
coverage by the surviving spouse and/or the dependent child/children. The
formal election must be postmarked or received by the system within 60 days
of the date of notice contained in the notice of right to continue coverage
form or by the date coverage terminated, whichever is later.
(2)
An employee whose employment has been terminated voluntarily
or involuntarily (other than for gross misconduct), whose work hours have
been reduced such that the employee is no longer eligible for the program
as an employee, or whose coverage has ended following the maximum period of
leave without pay as provided for in §81.7(1)(2)(A) of this title, except
for those persons not eligible pursuant to §81.11(c) of this title (relating
to Termination of Coverage), and/or his or her spouse and/or dependent child/children
who are not eligible to continue coverage under the provisions of the Act
or subsection (h) or (i) of this section, who are not entitled to benefits
under the Social Security Act, Title XVIII, who are not covered under any
other group health plan, or who were covered by a plan that subjects them
to a preexisting conditions limitation or exclusion that was not satisfied
by the service credit provisions of Public Law 104-91 (HIPAA), may continue
for up to 18 months the health and dental coverages only without the basic
term life that were in effect immediately prior to the date of the loss of
coverage. A formal election must be made to continue coverage by the employee
and/or his or her spouse and/or dependent child/children. The formal election
must be postmarked or received by the system within 60 days of the date of
notice contained in the notice of right to continue coverage form or by the
date coverage terminated, whichever is later.
(3)
If an employee, spouse, or dependent child is determined
by the Social Security Administration to have been disabled before or during
the first 60 days of continuation coverage, all covered individuals may continue
health and dental coverages extended up to an additional 11 months, for a
total of 29 months. Notification of the Social Security Administration's determination
must be received by the system before the end of the original 18 months of
continuation coverage. Continuation coverage will be canceled the month that
begins more than 30 days after the date the Social Security Administration
determines that the participant is no longer disabled.
(4)
A spouse who is divorced from an employee/retiree and/or
the spouse's dependent child/children who are not otherwise eligible to continue
coverage under the provisions of the Act or subsection (d) of this section,
who are not entitled to benefits under the Social Security Act, Title XVIII,
who are not covered under any other group health plan, or who are covered
by a plan that subjects them to a preexisting conditions limitation or exclusion
that was not satisfied by the service credit provisions of Public Law 104-92
(HIPAA), may continue for up to 36 months the health and dental coverages
only that were in effect immediately prior to the date the divorce decree
is signed. The employee/retiree or the divorced spouse or the divorced spouse's
dependent child/children must notify the system through the employing department
or retiree benefits coordinator of the divorce within 60 days from the date
the divorce decree is signed. A formal election must be made to continue coverage
by the divorced spouse and/or the dependent child/children. The formal election
must be postmarked or received by the system within 60 days of the date of
notice contained in the notice of right to continue coverage form or by the
date coverage is terminated, whichever is later.
(5)
A dependent child under 25 years of age who marries, who
is not entitled to benefits under the Social Security Act, Title XVIII, who
is not covered under any other group health plan, or who are covered by a
plan that subjects the child to a preexisting conditions limitation or exclusion
that was not satisfied by the service credit provisions of Public Law 104-91
(HIPAA), may continue for up to 36 months the health and dental coverages
only that were in effect immediately prior to the date of the marriage. The
married child or the employee/retiree must notify the system through the employing
department or retiree benefits coordinator of the marriage within 60 days
from the date of the marriage. A formal election must be made by the married
child to continue coverage. The formal election must be postmarked or received
by the system within 60 days of the date of notice contained in the notice
of right to continue coverage form or by the date coverage is terminated,
whichever is later.
(6)
A dependent child who has attained 25 years of age, who
is not otherwise eligible to continue coverage indefinitely under the provisions
of the Act or subsection (d) of this section, who is not entitled to benefits
under the Social Security Act, Title XVIII, who is not covered under any other
group health plan, or who is covered by a plan that subjects the child to
a preexisting conditions limitation or exclusion that was not satisfied by
the service credit provisions of Public Law 104-91 (HIPAA), may continue for
up to 36 months the health and dental coverages only that were in effect immediately
prior to the date of the child's 25th birthday. The child or employee/retiree
must notify the system through the employing department or retiree benefits
coordinator within 60 days of the child's 25th birthday. A formal election
must be made by the 25-year-old child to continue coverage. The formal election
must be postmarked or received by the system within 60 days of the date of
notice contained in the notice of right to continue coverage form or by the
date coverage is terminated, whichever is later.
(7)
Extension of continuation of coverage for certain spouses
and/or dependent child/children of former employees who are continuing coverage
under the provisions of paragraph (2) of this subsection is governed by the
following provisions.
(A)
The surviving spouse and/or dependent child/children of
a deceased former employee whose death occurred during the period of continuation
coverage, who satisfy the provisions of paragraph (1) of this subsection and
who notify the Employees Retirement System of Texas within 60 days of the
date of death of the former employee are entitled to a total of 36 months
of continuation coverage.
(B)
A spouse who is divorced from a former employee during
the period of continuation coverage and/or the divorced spouse's dependent
child/children who satisfy the provisions of paragraph (4) of this subsection
are entitled to a total of 36 months of continuation coverage.
(C)
A dependent child under 25 years of age who marries during
the period of continuation coverage and who satisfies the provisions of paragraph
(5) of this subsection is entitled to a total of 36 months of continuation
coverage.
(D)
A dependent child who attains the age of 25 years during
the period of continuation coverage and who satisfies the provisions of paragraph
(6) of this subsection is entitled to a total of 36 months of continuation
coverage.
(E)
An employee, spouse, or dependent child determined by the
Social Security Administration to be disabled at the time of termination of
the employee's employment and who satisfies the provisions of paragraph (3)
of this subsection is entitled to a total of 29 months of continuation coverage.
(F)
No person shall be allowed to continue health and dental
coverages under the provisions of this subsection for more than 36 months.
(8)
A person who continues benefits under the provisions of
paragraphs (1)-(7) of this subsection may change coverage levels or plans
during the continuation period on the same basis as an employee/retiree participant,
provided, however, that health and dental coverages which are canceled during
the continuation period may not be reestablished.
(9)
In all situations deemed applicable by the Employees Retirement
System of Texas where state or federal laws or regulations mandate specific
terms or provisions which are omitted or conflict with specific terms or provisions
of the group contracts or trustees' rules, the appropriate contracts and rules
shall be interpreted and administered to comply with such laws or regulations.
(l)
Former board members. Subject to the limitations of this
subsection, a former member of a board or commission or of the governing body
of an institution of higher education, as both are described in Section 1551.109
of the Act, is eligible to continue the coverage, other than disability income
insurance coverage, in effect on the day before the member leaves office if
no lapse in coverage occurs after the end of the term of office. Life insurance
coverage may not exceed Election II.
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 9, 2004.
TRD-200403784
Paula A. Jones
General Counsel
Employees Retirement System of Texas
Effective date: June 29, 2004
Proposal publication date: May 7, 2004
For further information, please call: (512) 867-7125
Chapter 181.
BOND REVIEW BOARD
Subchapter A. BOND REVIEW RULES
Chapter 81.
INSURANCE
Part 9.
TEXAS BOND REVIEW BOARD