Part 1.
COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 5.
FUNDS MANAGEMENT (FISCAL AFFAIRS)
Subchapter D. CLAIMS PROCESSING--PAYROLL
34 TAC §5.43
The Comptroller of Public Accounts proposes new §5.43,
concerning payments for accrued vacation time. A brief description of the
new section follows.
Subsection (a) defines important terms used throughout the section.
Subsection (b) specifies the meaning of "continuous state employment."
State law states that a state employee who separates from state employment
must have accrued six months of "continuous state employment" before the employee
is entitled to be paid for the employee's accrued vacation time.
Subsection (c) specifies the meaning of "separation from state employment."
State law states that a state employee is entitled to be paid for the employee's
accrued vacation time only if the employee has separated from state employment.
Subsection (d) specifies which state agency is responsible for paying a
state employee for the employee's accrued vacation time.
Subsection (e) specifies the method for determining how many hours of accrued
vacation time must be paid to a state employee. Subsection (e)(1) requires
the employee's time to be allocated over the workdays following the effective
time of the employee's separation from state employment until the balance
is allocated completely. Subsection (e)(2) specifies what happens when a holiday
is incurred during the allocation period. Subsection (e)(2) makes it clear
that the inclusion of a workday in the allocation does not cause any individual
to be a state employee on that workday for any purpose.
Subsection (f) specifies the method for computing the amount of a payment
for accrued vacation time. Subsection (f)(1) covers when vacation time is
allocated over only one month. Subsection (f)(2) covers when vacation time
is allocated over more than one month.
Subsection (g) specifies the method for determining the applicable rate
of compensation when computing the amount of a payment for accrued vacation
time. Subsection (g)(1) lists the items that must be included when determining
the rate. Subsection (g)(2) covers employees who are not hourly. Subsection
(g)(3) covers employees with contracts to work fewer than twelve months each
fiscal year.
Subsection (h) covers a state employee's remaining on the payroll to exhaust
the employee's accrued vacation time balance instead of the employee being
paid for that time in a lump sum.
Subsection (i) specifies the data that must be included in the payroll
detail submitted to the comptroller to make a payment for accrued vacation
time.
John Heleman, Chief Revenue Estimator, has determined that for the first
five-year period the rule will be in effect, there will be no foreseeable
implications relating to costs or revenues of the state or local governments.
Mr. Heleman also has determined that for each year of the first five years
the rule is in effect, the public benefit anticipated as a result of adopting
the rule will be helping administer payments to state employees for their
accrued vacation time. The rule would not have an adverse effect on small
businesses or micro-businesses. There is no significant anticipated economic
cost to individuals who are required to comply with the rule.
Comments on the proposal may be addressed to Joani Bishop, Manager, Claims
Division, P.O. Box 13528, Austin, Texas 78711. If a person wants to ensure
that the comptroller considers and responds to a comment made about this proposal,
then the person must ensure that the comptroller receives the comment not
later than the 30th day after the issue date of the
Texas Register
in which this proposal appears. If the 30th day is a
state or national holiday, Saturday, or Sunday, then the first workday after
the 30th day is the deadline.
The new section is proposed under Government Code, §661.068
and §661.094, which authorize the comptroller to adopt rules to administer
payments for accrued vacation time.
The new section implements Government Code, Chapter 661, Subchapters C
and D.
§5.43.Payments for Accrued Vacation Time.
(a)
Definitions. In this section:
(1)
"Calendar month" means the first day through the last day
of January, February, March, April, May, June, July, August, September, October,
November, or December.
(2)
"Community college" has the meaning assigned to "public
junior college."
(3)
"Comptroller" means the Comptroller of Public Accounts
for the State of Texas.
(4)
"Fiscal year" means the accounting period beginning on
September 1st and ending the following August 31st.
(5)
"Institution of higher education" has the meaning assigned
by Education Code, §61.003, except that the term does not include a community
college or a public junior college.
(6)
"National holiday" has the meaning assigned by Government
Code, §661.061(1).
(7)
"Public junior college" has the meaning assigned by Education
Code, §61.003.
(8)
"State agency" means a department, board, commission, committee,
council, agency, office, or other entity in the executive, legislative, or
judicial branch of Texas state government, the jurisdiction of which is not
limited to a geographical portion of this state. The term includes the State
Bar of Texas, the Board of Law Examiners, and an institution of higher education.
The term does not include a community college or a public junior college.
(9)
"State employee" has the meaning assigned by Government
Code, §661.061(2).
(10)
"State holiday" has the meaning assigned by Government
Code, §661.061(3).
(11)
"Temporary state employee" means a state employee who
is hired to provide services to a state agency for a limited time. The term
includes a seasonal employee. The term does not include:
(A)
an independent contractor; or
(B)
an employee or independent contractor of an independent
contractor.
(12)
"Workday" means any day except Saturday and Sunday. The
term includes a state or national holiday.
(b)
Meaning of "continuous state employment." For purposes
of determining whether a state employee is entitled to be paid for the accrued
balance of the employee's vacation time upon separation from state employment,
the employee has "continuous state employment" so long as employment with
the state is not interrupted by a period when the employee is not being paid
a regular state salary. The period when the employee is on leave without pay
or leave of absence without pay is not an interruption that requires the period
of continuous state employment to begin again. A leave period that covers
one or more entire calendar months, however, does not count toward fulfilling
the six month requirement in Government Code, §661.062(a).
(c)
Meaning of "separation from state employment." For purposes
of determining whether a state employee is entitled to be paid for the accrued
balance of the employee's vacation time, "separation from state employment"
includes:
(1)
a resignation or dismissal from state employment;
(2)
a circumstance listed in Government Code, §661.062(b)(2)
- (5) or §661.091(a); or
(3)
a state employee leaving one state agency to begin working
for another state agency, if at least one workday occurs between the two employments.
(d)
Responsibility for making the payment. The state agency
that employed a state employee at the time of the employee's separation from
state employment is responsible for paying the accrued balance of the employee's
vacation time. This responsibility exists even if the employee at that time
held a position that did not accrue vacation time.
(e)
Hours of accrued vacation time to be paid.
(1)
Allocation of accrued time. Except as provided in paragraph
(2)(D)(ii) of this subsection, the accrued balance of a state employee's vacation
time must be allocated over the workdays following the effective time of the
employee's separation from state employment until the balance is allocated
completely.
(A)
If the employee, at the effective time of separation, was
normally scheduled to work at least 40 hours each week, then each workday
consists of eight hours.
(B)
If the employee, at the effective time of separation, was
normally scheduled to work fewer than 40 hours each week, then each workday
consists of 20% of the number of hours the employee was normally scheduled
to work each week.
(2)
Addition for holidays encountered during the allocation.
(A)
This subparagraph applies to a state employee who, on the
effective date of separation from state employment, was normally scheduled
to work at least 40 hours each week. Except as provided in subparagraph (C)
or (D)(i) of this paragraph, eight hours must be added to the accrued balance
of the employee's vacation time for each state or national holiday that occurs
during the period over which the balance is allocated.
(B)
This subparagraph applies to a state employee who, on the
effective date of separation from state employment, was normally scheduled
to work fewer than 40 hours each week. Except as provided in subparagraph
(C) or (D)(i) of this paragraph, a specified number of hours must to be added
to the accrued balance of the employee's vacation time for each state or national
holiday that occurs during the period over which the balance is allocated.
The number of hours added for each holiday is equal to the product of:
(i)
eight hours; and
(ii)
the percentage of 40 hours that the employee was normally
scheduled to work each week on the effective date.
(C)
This subparagraph applies to a state employee who is entitled
to receive a payment under this subsection because the employee moves or transfers
to a position that does not accrue vacation time. No hours may be added to
the accrued balance of the employee's vacation time for a state or national
holiday that occurs during the period over which the balance is allocated.
(D)
This subparagraph applies to a state employee who is entitled
to be paid for a state or national holiday that occurs after the effective
time of the employee's separation from state employment.
(i)
No hours may be added to the accrued balance of the employee's
vacation time for that holiday.
(ii)
The holiday is ignored when allocating the accrued balance
of the employee's vacation time over the workdays following the effective
time of the employee's separation from state employment.
(3)
Individuals not state employees during the allocation period.
The inclusion of a workday in the allocation of the accrued balance of vacation
time does not cause any individual to be a state employee on that workday
for any purpose.
(f)
Computation of the payment.
(1)
Accrued balances allocated over only one month. If the
accrued balance of a state employee's vacation time is allocated over only
one month, then the amount of the payment for that balance is equal to the
product of:
(A)
the number of hours of the balance; and
(B)
the applicable rate of compensation of the employee, which
must be expressed as an hourly rate for that month.
(2)
Accrued balances allocated over more than one month. If
the accrued balance of a state employee's vacation time is allocated over
more than one month, then the amount of the payment for that balance is equal
to the sum of the amounts attributed to each month included in the allocation.
The amount attributed to any particular month is equal to the product of:
(A)
the number of hours of the balance that is allocated to
that month; and
(B)
the applicable rate of compensation of the employee, which
must be expressed as an hourly rate for that month.
(g)
Applicable rate of compensation.
(1)
Items included in the rate of compensation. For purposes
of determining the amount of a payment under this section, a state employee's
rate of compensation includes base pay plus any emolument or stipend provided
as a salary supplement. A special item of compensation, e.g., housing, utilities,
clothing, and cleaning, may be included in the rate only if the item was provided
in lieu of base pay. Longevity pay, hazardous duty pay, and benefit replacement
pay may not be included in the rate.
(2)
Employees who are not hourly. This paragraph applies only
to a state employee who was not an hourly employee at the effective time of
the employee's separation from state employment.
(A)
The employee's rate of compensation must be expressed as
an hourly rate for each month or part of a month included in the allocation
of the accrued balance of vacation time.
(B)
This subparagraph applies only if the state agency making
a payment under this section is not an institution of higher education. The
hourly rate of compensation for a particular month is equal to a quotient:
(i)
the numerator of which is equal to the rate of compensation
for the month; and
(ii)
the denominator of which is equal to eight multiplied
by the number of workdays during the month.
(C)
This subparagraph applies only if the state agency making
a payment under this section is an institution of higher education. The institution
may calculate the hourly rate of compensation for a particular month under
the method described in subparagraph (B) of this paragraph. If the institution
determines not to use that method, then the hourly rate of compensation for
a particular month is equal to a quotient:
(i)
the numerator of which is equal to the rate of compensation,
expressed as an annual rate; and
(ii)
the denominator of which is 2080.
(3)
Employees with contracts to work fewer than twelve months
each fiscal year. This paragraph applies to a state employee who, on the effective
date of the employee's separation from state employment, was normally scheduled
to work for a state agency fewer than twelve months during a fiscal year but
who agreed for the agency to pay the compensation earned during that work
period over twelve months. The employee's applicable rate of compensation
must be based on the amount of compensation earned each month the employee
worked, not on the amount of compensation paid to the employee each month
of the year.
(h)
Remaining on the payroll to exhaust the accrued balance
of vacation time. A state agency that is liable for a payment under this section
and the state employee who is entitled to receive the payment may mutually
agree for the employee to remain on the agency's payroll to exhaust the accrued
balance of the employee's vacation time instead of paying the employee for
the balance. The payment must occur if either party does not agree.
(i)
Payroll details. The payroll detail submitted to the comptroller
to make a payment under this section must include:
(1)
the employee's rate of pay at the effective time of separation
from state employment;
(2)
the effective time of separation from state employment;
and
(3)
the number of days and hours of the accrued balance of
the employee's vacation time, not including hours for authorized national
and state holidays.
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 April 11, 2005.
TRD-200501486
Martin Cherry
Chief Deputy General Counsel
Comptroller of Public Accounts
Earliest possible date of adoption: May 22, 2005
For further information, please call: (512) 475-0387
34 TAC §5.44
The Comptroller of Public Accounts proposes new §5.44,
concerning payments for accrued vacation and sick leave to the estates of
deceased state employees. A brief description of the new section follows.
Subsection (a) defines important terms used throughout the section.
Subsection (b) specifies the meaning of "continuous state employment."
State law states that a deceased state employee must have accrued six months
of "continuous state employment" before the employee's estate is entitled
to be paid for the employee's accrued vacation and sick leave.
Subsection (c) specifies which state agency is responsible for paying a
state employee's estate for the employee's accrued vacation and sick leave.
Subsection (d) specifies the method for determining how many hours of accrued
vacation and sick leave must be paid to a state employee's estate. Subsection
(d)(1) requires the employee's leave to be allocated over the workdays following
the time of the employee's death until the balance is allocated completely.
Subsection (d)(2) specifies what happens when a holiday is incurred during
the allocation period. Subsection (d)(3) makes it clear that the inclusion
of a workday in the allocation does not cause any individual to be a state
employee on that workday for any purpose.
Subsection (e) specifies the method for computing the amount of a payment
for accrued vacation and sick leave. Subsection (e)(1) covers when the leave
is allocated over only one month. Subsection (e)(2) covers when the leave
is allocated over more than one month.
Subsection (f) specifies the method for determining the applicable rate
of compensation when computing the amount of a payment for accrued vacation
and sick leave. Subsection (f)(1) lists the items that must be included when
determining the rate. Subsection (f)(2) covers employees who were not hourly.
Subsection (f)(3) covers employees who had contracts to work fewer than twelve
months each fiscal year.
Subsection (g) specifies the data that must be included in the payroll
detail submitted to the comptroller to make a payment for accrued vacation
and sick leave.
John Heleman, Chief Revenue Estimator, has determined that for the first
five-year period the rule will be in effect, there will be no foreseeable
implications relating to costs or revenues of the state or local governments.
Mr. Heleman also has determined that for each year of the first five years
the rule is in effect, the public benefit anticipated as a result of adopting
the rule will be helping administer payments for the accrued vacation and
sick leave of deceased state employees. The rule would not have an adverse
effect on small businesses or micro-businesses. There is no significant anticipated
economic cost to individuals who are required to comply with the rule.
Comments on the proposal may be addressed to Joani Bishop, Manager, Claims
Division, P.O. Box 13528, Austin, Texas 78711. If a person wants to ensure
that the comptroller considers and responds to a comment made about this proposal,
then the person must ensure that the comptroller receives the comment not
later than the 30th day after the issue date of the
Texas Register
in which this proposal appears. If the 30th day is a
state or national holiday, Saturday, or Sunday, then the first workday after
the 30th day is the deadline.
The new section is proposed under Government Code, §661.038,
which authorizes the comptroller to adopt rules to administer payments for
accrued vacation and sick leave.
The new section implements Government Code, Chapter 661, Subchapter B.
§5.44.Payments for Accrued Vacation and Sick Leave to the Estates of Deceased State Employees.
(a)
Definitions. In this section:
(1)
"Calendar month" means the first day through the last day
of January, February, March, April, May, June, July, August, September, October,
November, or December.
(2)
"Community college" has the meaning assigned to public
junior college.
(3)
"Comptroller" means the Comptroller of Public Accounts
for the State of Texas.
(4)
"Fiscal year" means the accounting period beginning on
September 1st and ending the following August 31st.
(5)
"Institution of higher education" has the meaning assigned
by Education Code, §61.003, except that the term does not include a community
college or a public junior college.
(6)
"National holiday" has the meaning assigned by Government
Code, §661.031(1).
(7)
"Public junior college" has the meaning assigned by Education
Code, §61.003.
(8)
"State agency" means a department, board, commission, committee,
council, agency, office, or other entity in the executive, legislative, or
judicial branch of Texas state government, the jurisdiction of which is not
limited to a geographical portion of this state. The term includes the State
Bar of Texas, the Board of Law Examiners, and an institution of higher education.
The term does not include a community college or a public junior college.
(9)
"State employee" has the meaning assigned by Government
Code, §661.031(2).
(10)
"State holiday" has the meaning assigned by Government
Code, §661.031(3).
(11)
"Temporary state employee" means a state employee who
is hired to provide services to a state agency for a limited time. The term
includes a seasonal employee. The term does not include:
(A)
an independent contractor; or
(B)
an employee or independent contractor of an independent
contractor.
(12)
"Total leave balance" means the sum of:
(A)
the accrued balance of a deceased state employee's vacation
leave; and
(B)
the lesser of:
(i)
half of the accrued balance of the employee's sick leave;
or
(ii)
336 hours of sick leave.
(13)
"Workday" means any day except Saturday and Sunday. The
term includes a state or national holiday.
(b)
Meaning of "continuous state employment." For purposes
of determining whether the estate of a deceased state employee is entitled
to be paid for the employee's total leave balance, the employee had "continuous
state employment" so long as employment with the state was not interrupted
by a period when the employee was not being paid a regular state salary. The
period when the employee was on leave without pay or leave of absence without
pay was not an interruption that required the period of continuous state employment
to begin again. A leave period that covered one or more entire calendar months,
however, did not count toward fulfilling the six month requirement in Government
Code, §661.032(a).
(c)
Responsibility for making the payment. The state agency
that employed a state employee at the time of the employee's death is responsible
for paying the employee's estate for the employee's total leave balance. This
responsibility exists even if the employee at that time held a position that
did not accrue vacation leave or sick leave, or both.
(d)
Hours of total leave balance to be paid.
(1)
Allocation of total leave balance. A deceased state employee's
total leave balance must be allocated over the workdays following the date
of the employee's death until the balance is allocated completely.
(A)
If the employee, at the time of death, was normally scheduled
to work at least 40 hours each week, then each workday consists of eight hours.
(B)
If the employee, at the time of death, was normally scheduled
to work fewer than 40 hours each week, then each workday consists of 20% of
the number of hours the employee was normally scheduled to work each week.
(2)
Addition for holidays encountered during the allocation.
(A)
This subparagraph applies to a state employee who, at the
time of death, was normally scheduled to work at least 40 hours each week.
Eight hours must be added to the employee's total leave balance for each state
or national holiday that occurs during the period over which the balance is
allocated.
(B)
This subparagraph applies to a state employee who, at the
time of death, was normally scheduled to work fewer than 40 hours each week.
A specified number of hours must to be added to the employee's total leave
balance for each state or national holiday that occurs during the period over
which the balance is allocated. The number of hours added for each holiday
is equal to the product of:
(i)
eight hours; and
(ii)
the percentage of 40 hours that the employee was normally
scheduled to work each week at the time of death.
(3)
Individuals not state employees during the allocation period.
The inclusion of a workday in the allocation of a total leave balance does
not result in any individual being a state employee on that workday for any
purpose.
(e)
Computation of the payment.
(1)
Total leave balance allocated over only one month. If a
deceased state employee's total leave balance is allocated over only one month,
then the amount of the payment for that balance is equal to the product of:
(A)
the number of hours of the balance; and
(B)
the applicable rate of compensation of the employee, which
must be expressed as an hourly rate for that month.
(2)
Total leave balance allocated over more than one month.
If a deceased state employee's total leave balance is allocated over more
than one month, then the amount of the payment for that balance is equal to
the sum of the amounts attributed to each month included in the allocation.
The amount attributed to any particular month is equal to the product of:
(A)
the number of hours of the total leave balance that is
allocated to that month; and
(B)
the applicable rate of compensation of the employee, which
must be expressed as an hourly rate for that month.
(f)
Applicable rate of compensation.
(1)
Items included in the rate of compensation. For purposes
of determining the amount of a payment under this section, a deceased state
employee's rate of compensation includes base pay plus any emolument or stipend
provided as a salary supplement. A special item of compensation, e.g., housing,
utilities, clothing, and cleaning, may be included in the rate only if it
was provided in lieu of base pay. Longevity pay, hazardous duty pay, and benefit
replacement pay may not be included in the rate.
(2)
Employees who were not hourly. This paragraph applies only
to a state employee who was not an hourly employee at the time of death.
(A)
The employee's rate of compensation must be expressed as
an hourly rate for each month or part of a month included in the allocation
of the employee's total leave balance.
(B)
This subparagraph applies only if the state agency making
a payment under this section is not an institution of higher education. The
hourly rate of compensation for a particular month is equal to a quotient:
(i)
the numerator of which is equal to the rate of compensation
for the month; and
(ii)
the denominator of which is equal to eight multiplied
by the number of workdays during the month.
(C)
This subparagraph applies only if the state agency making
a payment under this section is an institution of higher education. The institution
may calculate the hourly rate of compensation for a particular month under
the method described in subparagraph (B) of this paragraph. If the institution
determines not to use that method, then the hourly rate of compensation for
a particular month is equal to a quotient:
(i)
the numerator of which is equal to the rate of compensation,
expressed as an annual rate; and
(ii)
the denominator of which is 2080.
(3)
Employees who had contracts to work fewer than twelve months
each fiscal year. This paragraph applies to a state employee who, at the time
of death, was normally scheduled to work for a state agency fewer than twelve
months during a fiscal year but who agreed for the agency to pay the compensation
earned during that work period over twelve months. The employee's applicable
rate of compensation must be based on the amount of compensation earned each
month the employee worked, not on the amount of compensation paid to the employee
each month of the year.
(g)
Payroll details. The payroll detail submitted to the comptroller
to make a payment under this section must include:
(1)
the employee's rate of pay at the time of death;
(2)
the date of death;
(3)
the number of days and hours of the employee's accrued
vacation leave balance, not including hours for authorized national and state
holidays; and
(4)
the number of days and hours of the employee's accrued
sick leave balance, which must be the number before the application of the
336 hour limit on the number of hours of sick leave that may be paid.
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 April 11, 2005.
TRD-200501487
Martin Cherry
Chief Deputy General Counsel
Comptroller of Public Accounts
Earliest possible date of adoption: May 22, 2005
For further information, please call: (512) 475-0387
Chapter 41.
HEALTH CARE AND INSURANCE PROGRAMS
Subchapter A. RETIREE HEALTH CARE BENEFITS (TRS-CARE)
Part 3.
TEACHER RETIREMENT SYSTEM OF TEXAS