TITLE 34.PUBLIC FINANCE

Part 3. TEACHER RETIREMENT SYSTEM OF TEXAS

Chapter 41. HEALTH CARE AND INSURANCE PROGRAMS

Subchapter C. TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)

34 TAC §41.42

The Teacher Retirement System of Texas (TRS) adopts amendments to §41.42 concerning payment of supplemental compensation. The proposed amendments are adopted without changes to the text as published in the January 7, 2005, issue of the Texas Register (30 TexReg 17) and therefore will not be republished.

The amendments update the section in light of the discontinuation of TRS's health reimbursement account (HRA) program and primarily address the definitions of terms used in the section. Effective beginning with fiscal year 2005, the amendments change the term "professional employee" to "professional staff" but continue to apply the same definition to the renamed term. The amendments also specify which entities are affected by the rule and fully define full-time and part-time employees rather than referring to definitions in prior statutes.

The HRA program was to go into effect on September 1, 2004, and the definitions of the appropriate terms were contained in those rules. However, the HRA program was discontinued effective September 1, 2004, requiring that the definitions be made applicable to the supplemental compensation program for fiscal year 2005 and that certain terms be fully defined so that the supplemental compensation can be paid to eligible employees during fiscal year 2005.

No comments on the proposal were received.

The amendments are adopted under Chapter 825, §825.102, Government Code, which authorizes the TRS Board of Trustees to adopt rules for, among other things, the transaction of business of the board. The amendments are also adopted under House Bill 1, 78th Legislature, Regular Session, which defines the supplemental compensation program effective September 1, 2004.

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 March 7, 2005.

TRD-200501044

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Effective date: March 27, 2005

Proposal publication date: January 7, 2005

For further information, please call: (512) 542-6438