TITLE 34.PUBLIC FINANCE

Part 5. TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM

Chapter 101. PRACTICE AND PROCEDURE REGARDING CLAIMS

34 TAC §101.2

The Texas County and District Retirement System adopts amended rule §101.2, concerning the scope and application of the rules adopted under Part 5 of Title 34, Texas Administrative Code. This amended rule is adopted without changes to the proposed text as published in the May 20, 2005, issue of the Texas Register (30 TexReg 3006).

This amendment states the equitable authority granted by the board to the director to suspend, modify, or grant an exception to the operation of a rule in an individual case in the interest of fairness and equity, and limits the application of the director's decision to that case only. The authority may not be used to enlarge or diminish any substantive rights or powers, and may not be exercised in a manner that would cause harm or injury to the system or any other party, or that would be impermissible for a qualified plan under §401(a) of the Internal Revenue Code. Under the amended rule, it clearly specifies the director's authority to grant equitable relief from the application of a rule in appropriate cases to avoid undue hardships, and the limits and effects of the exercise of that authority.

The rule provides the availability of equitable relief from the harshness of a rule when appropriate in individual cases.

No comments were received regarding adoption of this rule.

The rule 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.

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 July 7, 2005.

TRD-200502747

Tom Harrison

Deputy Director and General Counsel

Texas County and District Retirement System

Effective date: July 27, 2005

Proposal publication date: May 20, 2005

For further information, please call: (512) 637-3230


Chapter 103. CALCULATIONS OR TYPES OF BENEFITS

34 TAC §103.2

The Texas County and District Retirement System adopts amended rule §103.2, concerning the optional benefit forms that may be selected by the retiree. This amended rule is adopted without changes to the proposed text as published in the May 20, 2005, issue of the Texas Register (30 TexReg 3007). Under the amended rule, the statutory changes made to the available optional benefit forms and the order of distribution of unrecovered contributions are appropriately reflected. As reflected in the amendment, retirees may select the optional 100% joint and survivor annuity with a 'pop-up' feature that increases the monthly annuity amount to the standard benefit if the designated beneficiary predeceases the retiree. The 25% joint and survivor annuity option has been replaced by the new option. This rule also references the statutory section which sets forth the order of distribution of unrecovered contributions in the event the retirement annuity terminates before the balance of the member's account has been totally recovered.

The rule appropriately reflects the statutory changes made to the available optional benefit forms and the order of distribution of unrecovered contributions.

No comments were received regarding adoption of this rule.

The rule 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.

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 July 7, 2005.

TRD-200502748

Tom Harrison

Deputy Director and General Counsel

Texas County and District Retirement System

Effective date: July 27, 2005

Proposal publication date: May 20, 2005

For further information, please call: (512) 637-3230


34 TAC §103.6

The Texas County and District Retirement System adopts amended rule §103.6, concerning the inclusion in the retirement benefit calculation of those deposits received after the effective retirement date. This amended rule is adopted without changes to the proposed text as published in the May 20, 2005, issue of the Texas Register (30 TexReg 3007). Under the amended rule, it establishes a 60-day period in which post-retirement deposits must be received by the system so that they may be included in the calculation of benefit. A 60-day window is reasonable period for an employer to determine and submit employee contributions attributable to the retiree's final regular pay period and payments for unused vacation and sick leave. Recalculations of annuities resulting from deposits received later than 60 days after the effective retirement date are disruptive to the efficient administrative operation of the system. Recalculations may still be made for additional deposits received after the 60-day window as a result of the correction of a reporting error.

The rule supports the efficient administration of the system by encouraging employers to be diligent in timely delivering to the system all required contributions and information.

No comments were received regarding adoption of this rule.

The rule 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.

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 July 7, 2005.

TRD-200502749

Tom Harrison

Deputy Director and General Counsel

Texas County and District Retirement System

Effective date: July 27, 2005

Proposal publication date: May 20, 2005

For further information, please call: (512) 637-3230


34 TAC §103.7

The Texas County and District Retirement System adopts amended rule §103.7, concerning the restoration of service credits pursuant to a subdivision's order under Government Code §843.003. This amended rule is adopted without changes to the proposed text as published in the May 20, 2005, issue of the Texas Register (30 TexReg 3008). Under the amended rule, a member is required to make the payment on or before December 15, for crediting to the member's account on the following January 1. A member has sufficient time (eleven and one-half months) during the year to submit the payment so that it will be included in the following January 1 opening account balance for the crediting of interest. If the payment is received by the system after December 15, the deposit will not be treated as accumulated contributions for the crediting of interest at year's end until the next following January 1. The mid-December cutoff for crediting the payment is necessary because of the heavy volume of end-of-year processing for refunds, retirements and subdivision change orders.

The rule supports the efficient administration of the system by encouraging eligible members to deposit payments for restoring forfeited service credits well before the last day of the year in order that the payment may receive an allocation of interest as soon as possible.

No comments were received regarding adoption of this rule.

The rule 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.

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 July 7, 2005.

TRD-200502750

Tom Harrison

Deputy Director and General Counsel

Texas County and District Retirement System

Effective date: July 27, 2005

Proposal publication date: May 20, 2005

For further information, please call: (512) 637-3230


Chapter 107. MISCELLANEOUS RULES

34 TAC §107.2

The Texas County and District Retirement System adopts new rule §107.2, concerning the payment by members to purchase forfeited service credits in accordance with Government Code §843.0031. This new rule is adopted without changes to the proposed text as published in the May 20, 2005, issue of the Texas Register (30 TexReg 3009).

This section of the code authorizes a current member who has forfeited benefits by previously withdrawing the member's individual account to pay to the system for deposit to the member's account, a lump sum in any amount that does not exceed the actuarial present value of the benefits that would be attributable to the withdrawn amount. The payment, which can be made at any time during employment, will be deposited to the member's individual account as accumulated contributions for crediting with interest in accordance with the TCDRS Act. However, the payment and all accumulated interest relative to the payment are excluded from the determination of the member's current service credit and multiple matching credits. To be credited with interest under the TCDRS Act for a specific year, the payment must be included in the member's opening account balance on January 1 of that year. Under the new rule, a member is required to make the payment on or before December 15 for crediting to the member's account on the following January 1. If the payment is received by the system after December 15, the deposit will not be treated as accumulated contributions for the crediting of interest until the next following January 1. The mid-December cutoff for crediting the payment is necessary because of the heavy volume of end-of-year processing for refunds, retirements and subdivision change orders.

The rule supports the efficient administration of the system by encouraging eligible members to deposit payments for restoring forfeited service credits well before the last day of the year in order that the payment may receive an allocation of interest as soon as possible.

No comments were received regarding adoption of this rule.

The rule 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.

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 July 7, 2005.

TRD-200502751

Tom Harrison

Deputy Director and General Counsel

Texas County and District Retirement System

Effective date: July 27, 2005

Proposal publication date: May 20, 2005

For further information, please call: (512) 637-3230


34 TAC §107.5

The Texas County and District Retirement System adopts amended rule §107.5, concerning the termination of membership resulting from the withdrawal of all accumulated contributions by a member, and the cancellation of a withdrawal application and reinstatement of accounts. This amended rule is adopted without changes to the proposed text as published in the May 20, 2005, issue of the Texas Register (30 TexReg 3010). Under the amended rule, the date of membership termination and closing of accounts based upon a withdrawal is the date shown on the first check the system sends or causes to be sent as payment of any portion of the member's accumulated contributions.

The rule supports the efficient administration of the system by requiring a member who timely chooses to cancel the withdrawal to return to the system the uncashed check or checks rather than merely repaying the withdrawn amount. The amendment avoids the exceptions and special handling associated with personal checks, establishes a certain and identifiable date for the termination of accounts, and stills allows relief to diligent members who timely act to rescind their previous actions.

No comments were received regarding adoption of this rule.

The rule 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.

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 July 7, 2005.

TRD-200502752

Tom Harrison

Deputy Director and General Counsel

Texas County and District Retirement System

Effective date: July 27, 2005

Proposal publication date: May 20, 2005

For further information, please call: (512) 637-3230


Chapter 109. DOMESTIC RELATIONS ORDERS

34 TAC §109.12

The Texas County and District Retirement System adopts amended rule §109.12, concerning the form and timing of payments to alternate payees pursuant to a qualified domestic relations order. This amended rule is adopted without changes to the proposed text as published in the May 20, 2005, issue of the Texas Register (30 TexReg 3011). Under the amended rule, the manner of payment of the interest awarded to the alternate payee in those cases where the qualified domestic relations order is received after the participant or participant's beneficiary has begun to receive a dual-life retirement annuity and the alternate payee was not the beneficiary-annuitant is described. Additionally, the amendment describes the authority to initiate payment of the interest awarded to the alternate payee in cases where the underlying membership has terminated and the person entitled to apply for the former member's benefit fails to do so. Lastly, the amendment defines and expands the authority and circumstances under which the system may pay the alternate payee the lump sum actuarial equivalent of the interest awarded to the alternate payee that would otherwise be payable in the form of a single life annuity. As non-substantive modifications, the amendment also makes minor clarifying changes to the grammar and style of the rule.

The rule supports the efficient administration of the system in making payments under terminated memberships, making a single payment of certain benefits in the form of lump sums thereby eliminating the costs associated with the on-going administration of life annuities of small monthly amounts, and making available to the divorcing parties distribution options that are more flexible and appropriate to individual circumstances.

No comments were received regarding adoption of this rule.

The rule 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.

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 July 7, 2005.

TRD-200502753

Tom Harrison

Deputy Director and General Counsel

Texas County and District Retirement System

Effective date: July 27, 2005

Proposal publication date: May 20, 2005

For further information, please call: (512) 637-3230