Part 11.
OFFICE OF THE FIRE FIGHTERS' PENSION COMMISSIONER
Chapter 301.
RULES OF THE TEXAS STATEWIDE EMERGENCY SERVICES RETIREMENT FUND
34 TAC §§301.1 - 301.12
(Editor's note: The text of the following sections proposed for
repeal will not be published. The sections may be examined in the Office of
the Fire Fighters' Pension Commissioner or in the Texas Register office, Room
245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
Introduction: The State Board of Trustees of the
Texas Statewide Emergency Services Personnel Retirement Fund proposes to repeal
34 Texas Administrative Code §301.1- §301.12 governing the administration
of the Texas Statewide Emergency Services Personnel Retirement Fund. The Board
proposes this repeal because the Legislature repealed the statutory authority
for the rules (Texas Civil Statutes, Article 6243e.3) with the enactment of
79R-SB 522.
Fiscal Note: Kevin Deiters, Program Director, has determined for the first
five years that this repeal is in effect, no fiscal implications for state
or local government are anticipated from the repeal of these rules.
Public Benefit-Cost Note: Mr. Deiters has also determined that for the
first five years that this repeal is in effect the public benefit will be
to eliminate obsolete regulations. There is no anticipated economic cost to
small businesses or individuals by the repeal of theses rules.
Comments: Questions or comments by members of the public on the proposed
repeal are solicited. Written questions or comments on the proposal may be
submitted to Lisa Ivie Miller, Commissioner, Office of the Fire Fighter Pension
Commissioner, P.O. Box 12577, Austin, Texas 78711-2577 no later than August
29, 2005.
Statutory Authority: This repeal is proposed under Title 8, Government
Code, Subtitle H Texas Emergency Services Retirement System, which provides
the State Board of Trustees with the authority to promulgate rules necessary
for the administration of the pension fund.
No other statutes, articles, or codes are affected by the proposed amendment.
§301.1.Definitions.
§301.2.Scope.
§301.3.Determination of Costs.
§301.4.Revocation and Reduction of Benefits.
§301.5.Billings and Annual Reports.
§301.6.Local Boards of Trustees.
§301.7.Investment Objectives.
§301.8.Requests for Rulings.
§301.9.General.
§301.10.Standard of Conduct for Financial Advisors and Service Providers.
§301.11.Qualified Domestic Relations Order.
§301.12.Disability.
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 July 18, 2005.
TRD-200502907
Kevin Deiters
Program Director
Office of the Fire Fighters' Pension Commissioner
Proposed date of adoption: August 30, 2005
For further information, please call: (512) 936-3472
34 TAC §302.1 - 302.5
The State Board of Trustees of the Texas Emergency Services
Retirement System proposes new 34 Texas Administrative Code Chapter 302, §§302.1
- 302.5, governing the general provisions relating to the Texas Emergency
Services Retirement System.
The new rules will provide the Board and the Office of the Fire Fighters'
Pension Commissioner with the authority needed to administer the System. The
System provides pension, disability, and death benefits for volunteer fire
fighters and EMS personnel in departments that participate in the System.
The proposed new rules will identify definitions and provide the Board with
the authority to make changes needed to comply with Internal Revenue System
regulations. The proposed rules will also allow individuals to reduce or revoke
benefits provided by the System.
Kevin Deiters, Program Director, has determined that for the first five
years that the new rules are in effect no fiscal implications for state or
local government are anticipated from the adoption of the new rules. Failure
to adopt the provisions governing pension distributions could threaten the
System's qualified status under the Internal Revenue Code.
Mr. Deiters has also determined that for the first five years that the
new rules are in effect the public benefit will be to allow members to comply
with Internal Revenue Service Regulations regarding pension distributions.
The new rules will also allow members to reduce or revoke benefits provided
by the System. There is no anticipated economic cost to small businesses or
individuals by the adoption of the new rules.
Questions or comments by members of the public on the proposed new rules
are solicited. Written questions or comments on the proposal may be submitted
to Lisa Ivie Miller, Commissioner, Office of the Fire Fighters' Pension Commissioner,
P.O. Box 12577, Austin, Texas 78711-2577 no later than August 29, 2005.
The new rules are proposed under the statutory authority of Title
8, Government Code, Subtitle H Texas Emergency Services Retirement System
that was created with the enactment of Senate Bill 522 by the 79th Legislature.
The new rules are also proposed to comply with Internal Revenue Service regulations
for qualified pension plans.
No other statutes, articles, or codes are affected by the proposed new
rules.
§302.1.Definitions.
(a)
Unless otherwise specifically provided in this part, the
terms and phrases used in Chapters 302, 304, 306, 308 and 310 have the meanings
assigned by Government Code, Chapters 861 - 865.
(b)
In Chapters 302, 304, 306, 308 and 310, "Texas Local Fire
Fighters Retirement Act" means the Texas Local Fire Fighters Retirement Act
(Article 6243e, Vernon's Texas Civil Statutes).
§302.2.Benefit Distributions.
(a)
The annual benefit based on the service of a member may
not exceed the amount permitted by the Internal Revenue Code of 1986 and related
regulations for the appropriate year. If the aggregated benefit otherwise
payable under the pension system and any other defined benefit plan maintained
by a political subdivision that has contributed to the fund on behalf of the
member would otherwise exceed the benefits allowable under federal law, the
reduction in benefits must first be applied to the extent possible from the
other plan, and only after those reductions, from the fund.
(b)
A retirement annuity or benefits to a qualified beneficiary
under the pension system may not begin after the deadlines provided under
the Internal Revenue Code of 1986 and related regulations.
§302.3.Trustee-to-Trustee Transfer.
The distributee of a rollover distribution may elect, in a manner provided
by the pension system, to have the distribution paid directly to an eligible
retirement plan specified by the distributee in the form of a direct trustee-to-trustee
transfer. The pension system shall develop procedures to implement this section
in accordance with the Internal Revenue Code of 1986 and related regulations.
§302.4.Reduction or Revocation of Benefits.
(a)
A person entitled to benefits from the pension system may,
in a manner determined by the pension system, reduce the amount of the benefits
or revoke the right to the benefits. A decision under this section is irrevocable
and binding on the person's spouse and dependents, if applicable.
(b)
A reduction or revocation under this section applies to
all payments that become or would have become due after the date of the waiver.
Amounts waived under this section are forfeited to the pension system.
(c)
A subsequent cost-of-living adjustment granted under the
pension system or a benefit increase granted by a governing body for persons
entitled to benefits under the Texas Local Fire Fighters Retirement Act will
not be applied to persons who have reduced or revoked their benefits under
this section to the extent the benefits are administered by the commissioner.
§302.5.Correction of Errors.
A local board may correct an error in enrollment in membership or computation
of qualified service by a letter sent to the commissioner signed by the chair
and secretary of the local board and the administrative head of the participating
department, accompanied by a copy of the meeting minutes of the local board
showing approval of the change and any applicable past due contributions necessitated
by the change.
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 July 18, 2005.
TRD-200502925
Kevin Deiters
Program Director
Office of the Fire Fighters' Pension Commissioner
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 936-3472
34 TAC §304.1, §304.2
The State Board of Trustees of the Texas Emergency Services
Retirement System proposes new 34 Texas Administrative Code Chapter 304, §304.1
and §304.2, governing membership in the Texas Emergency Services Retirement
System.
The new rules will provide the Board and the Office of the Fire Fighters'
Pension Commissioner with the authority needed to administer the System. The
System provides pension, disability, and death benefits for volunteer fire
fighters and EMS personnel in departments that participate in the System.
The proposed new rules identify the responsibilities of departments joining
the System and provides for a probationary period for individual members.
Kevin Deiters, Program Director, has determined that for the first five
years that the new rules are in effect no fiscal implications for state or
local government are anticipated from the adoption of the new rules.
Mr. Deiters has also determined that for the first five years that the
public benefit will be to provide a method for volunteer fire fighter and
EMS departments to join the System. There is no anticipated economic cost
to small businesses or individuals by the adoption of the new rules.
Questions or comments by members of the public on the proposed rules are
solicited. Written questions or comments on the proposal may be submitted
to Lisa Ivie Miller, Commissioner, Office of the Fire Fighters' Pension Commissioner,
P.O. Box 12577, Austin, Texas 78711-2577 no later than August 29, 2005.
The new rules are proposed under the statutory authority of Title
8, Government Code, Subtitle H Texas Emergency Services Retirement System
that was created with the enactment of Senate Bill 522 by the 79th Legislature.
No other statutes, articles, or codes are affected by the proposed new
rules.
§304.1.Participation by Department.
(a)
The governing body of a department that performs emergency
services may, in the manner provided for taking official action by the body,
elect to participate in the pension system. A governing body shall notify
the commissioner as soon as practicable of an election made under this section.
An election made under this section is irrevocable except as provided by §862.001,
Government Code.
(b)
The effective date of a department's participation in the
pension system must be the first day of a month but may pre-date the date
of the election as determined by contract between the governing body and the
pension system.
(c)
A department may purchase prior service credit under §303.1
of this title under the terms of that section for service performed before
the date of the election to participate in the pension system but is not liable
for the payment of benefits because of any disability or death that occurred
before that date.
§304.2.Probationary Period for Membership.
A participating department may have a probationary period not to exceed
six months for new personnel during which the department is not required to
pay contributions for the persons on probation. When the department begins
paying contributions for the persons, whether or not the probationary period
has ended for other purposes, individual membership in the pension system
begins.
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 July 18, 2005.
TRD-200502926
Kevin Deiters
Program Director
Office of the Fire Fighters' Pension Commissioner
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 936-3472
34 TAC §306.1
The State Board of Trustees of the Texas Emergency Services
Retirement System proposes new 34 Texas Administrative Code Chapter 306, §306.1,
governing creditable service for members of the Texas Emergency Services Retirement
System.
The new rule will provide the Board and the Office of the Fire Fighters'
Pension Commissioner with the authority needed to administer the System. The
System provides pension, disability, and death benefits for volunteer fire
fighters and EMS personnel in departments that participate in the System.
The proposed new rule will allow departments to purchase service credit in
the System for service performed by members before entry into the System.
The new rule sets the cost to finance the prior service at the actuarial assumed
rate of investment return and limits the System provided financing to 10 years.
Kevin Deiters, Program Director, has determined that for the first five
years that this new rule is in effect the fiscal implication for state government
is to reduce actuarial losses to the System. Previous Board rules provided
free financing of the purchase of prior service for a period of three years.
Although the new rule will result in increased costs to those departments
that purchase prior service using System financing, the new rule could provide
cost-savings to municipal volunteer fire departments under the Texas Local
Fire Fighter Retirement Act by eliminating the requirement that departments
purchase prior service credit for active volunteer firefighters. Under the
proposed rule, departments will still have the ability to purchase prior service
(either by lump sum payment or financed by the System) for active members,
but it will no longer be required as a condition of entry into the system.
Mr. Deiters has also determined that for the first five years that the
public benefit will be to provide a method for departments to purchase prior
service for volunteer fire fighter and EMS personnel. There is no anticipated
economic cost to small businesses or individuals by the adoption of the new
rule.
Questions or comments by members of the public on the new rule are solicited.
Written questions or comments on the proposal may be submitted to Lisa Ivie
Miller, Commissioner, Office of the Fire Fighters' Pension Commissioner, P.O.
Box 12577, Austin, Texas 78711-2577 no later than August 29, 2005.
The new rule is proposed under the statutory authority of Title
8, Government Code, Subtitle H Texas Emergency Services Retirement System
that was created with the enactment of Senate Bill 522 by the 79th Legislature.
No other statutes, articles, or codes are affected by the proposed new
rule.
§306.1.Prior Service Credit for Members of Participating Departments.
(a)
A department that elects to participate in the pension
system may, on the effective date of participation or later, purchase service
credit for service performed by the persons who become members on the effective
date of departmental participation, or whose participation begins or resumes
on or after that date.
(b)
The pension system shall grant prior service credit under
this section if the department agrees in writing to finance the prior service
credit by a lump-sum payment or within a period not to exceed 10 years from
the effective date.
(c)
The cost to finance the purchase of prior service credit
is based upon to the actuarially assumed rate of investment return on fund
assets at the time payment for the credit begins.
(d)
The commissioner shall furnish to each participating department
that agrees to purchase prior service credit a record of member prior service
to be completed and returned to the commissioner showing the amount of prior
service performed by each member of the department. The record must be signed
by the chair and secretary of the local board and the administrative head
of the department and be accompanied by a copy of the minutes of the local
board showing approval of the amounts of prior service credit given the members.
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 July 18, 2005.
TRD-200502927
Kevin Deiters
Program Director
Office of the Fire Fighters' Pension Commissioner
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 936-3472
34 TAC §§308.1 - 308.4
The State Board of Trustees of the Texas Emergency Services
Retirement System proposes new 34 Texas Administrative Code Chapter 308, §§308.1
- 308.4, governing benefits from the Texas Emergency Services Retirement System.
The new rules will provide the Board and the Office of the Fire Fighters'
Pension Commissioner with the authority needed to administer the System. The
new rules identify the eligibility requirements and annuity payment amounts
for pension, disability, and death benefits for volunteer fire fighters and
EMS personnel in departments that participate in the System.
Kevin Deiters, Program Director, has determined that for the first five
years that the new rules are in effect the fiscal implication for state government
is to reduce actuarial losses to the System incurred by extended disability
payments. The proposed rules establish a formal review process for members
receiving disability payments over two years. There is no fiscal implication
for local government as a result of the adoption of the new rules.
Mr. Deiters has also determined that for the first five years that the
public benefit will be to reduce the potential of fraud in the provision of
disability benefits. There is no anticipated economic cost to small businesses
or individuals by the adoption of the new rules.
Questions or comments by members of the public on the new rules are solicited.
Written questions or comments on the proposal may be submitted to Lisa Ivie
Miller, Commissioner, Office of the Fire Fighters' Pension Commissioner, P.O.
Box 12577, Austin, Texas 78711-2577 no later than August 29, 2005.
The new rules are proposed under the statutory authority of Title
8, Government Code, Subtitle H Texas Emergency Services Retirement System
that was created with the enactment of Senate Bill 522 by the 79th Legislature.
No other statutes, articles, or codes are affected by the proposed new
rules.
§308.1.Eligibility for Retirement Annuity.
(a)
A member is eligible to retire and receive a service retirement
annuity with full benefits from the pension system when the member has at
least 15 years of qualified service credited in the system and has attained
the age of 55.
(b)
Partial vesting to receive a service retirement annuity
accrues at the following rates:
(1)
25 percent after the first five years of credited qualified
service;
(2)
five percent a year for the next five years of credited
qualified service; and
(3)
10 percent a year for the next five years of credited qualified
service.
(c)
Vested retirement benefits, including partially vested
benefits, are nonforfeitable. A retirement benefit also becomes nonforfeitable
when a member attains normal retirement age or, to the extent funded, on the
termination or partial termination of the pension system or the complete discontinuance
of contributions to the pension system.
§308.2.Service Retirement Annuity.
(a)
In this section, normal retirement age is the later of
the month a member completes 15 years of credited qualified service or attains
the age of 55, and early retirement age is the age of 55.
(b)
A service retirement annuity is payable in equal monthly
installments to a member who terminates service after attaining early retirement
age or normal retirement age, subject to the vesting requirements of §308.1
of this title.
(c)
Except as otherwise provided by this section, the monthly
service retirement annuity is equal to six times the governing body's average
monthly contribution during the retiring member's term of qualified service.
(d)
For credited qualified service in excess of 15 years, a
retiring member is entitled to receive an additional seven percent of the
annuity compounded annually and adjusted for days or months of credited qualified
service that constitute less than a year.
§308.3.Disability Retirement Annuity.
(a)
Except as otherwise provided by §864.004 and §865.006,
Government Code, and this section, a member whose disability results from
performing emergency service duties is entitled to a monthly annuity during
the period of the disability in an amount equal to $300 plus $50 for every
$12 increase in contributions paid by the governing body for which the person
was performing emergency services at the time of the disability.
(b)
An increase in contributions by a governing body after
the payment of a monthly annuity begins does not increase the amount of the
annuity.
(c)
Disability benefits are prorated for portions of months
during which a person is disabled.
(d)
A local board shall report to the commissioner, in a manner
provided by the pension system, a determination of temporary disability not
later than the 45th day after the date the disability begins.
(e)
A person receiving temporary disability benefits who does
not apply to the Social Security Administration for certification as permanently
disabled before the second anniversary of the date of determination of temporary
disability or, if the person does not participate in the social security program,
to a medical board selected by the state board for alternative certification
is subject to suspension of disability benefit payments pending certification
by the Social Security Administration or the medical board within the period
provided by §864.004, Government Code.
§308.4.Death Benefits.
(a)
The beneficiary of a member who dies as a result of performing
emergency service duties is entitled to a lump-sum benefit of $60,000.
(b)
The beneficiary of a deceased member whose death did not
result from the performance of emergency service duties, including a member
whose death resulted from the performance of active military duty, is entitled
to:
(1)
the amount contributed to the fund on the decedent's behalf;
or
(2)
the sum that would have been contributed on the decedent's
behalf from whatever source at the end of the period required for full service
retirement benefits.
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 July 18, 2005.
TRD-200502928
Kevin Deiters
Program Director
Office of the Fire Fighters' Pension Commissioner
Earliest possible date of adoption: August 28, 2005
For further information, please call: (512) 936-3472
Chapter 302.
GENERAL PROVISIONS RELATING TO THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM
Chapter 304.
MEMBERSHIP IN THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM
Chapter 306.
CREDITABLE SERVICE FOR MEMBERS OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM
Chapter 308.
BENEFITS FROM THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM
Chapter 310.
ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM