Part 1.
COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3.
TAX ADMINISTRATION
Subchapter F. MOTOR VEHICLE SALES TAX
34 TAC §3.63
The Comptroller of Public Accounts adopts the repeal of existing §3.63,
concerning motor vehicles purchased, leased or operated by diplomatic officials,
without changes to the proposal as published in the November 11, 2005, issue
of the
Texas Register
(30 TexReg 7380).
The existing §3.63 is being repealed so that the content can be updated
in a new §3.63 to reflect changes made by the United States Department
of State to the procedure and policy for authorization of tax exemption on
vehicles purchased by diplomatic missions and their members. The adopted new
section will incorporate those changes.
No comments were received regarding adoption of the repeal.
The repeal is adopted under Tax Code, §111.002, which provides
the comptroller with the authority to prescribe, adopt, and enforce rules
relating to the administration and enforcement of the provisions of Tax Code,
Title 2.
The repeal of the existing section and adoption of a new section implements
United States Department of State, Office of Foreign Missions tax exemption
procedure.
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 December 20, 2005.
TRD-200505964
Martin Cherry
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: January 9, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 475-0387
34 TAC §3.63
The Comptroller of Public Accounts adopts new §3.63,
concerning foreign diplomatic officials, without changes to the proposed text
as published in the November 11, 2005, issue of the
Texas Register
(30 TexReg 7380).
This section implements changes made by the United States Department of
State, Office of Foreign Missions to the procedure and policy for authorization
of tax exemption.
No comments were received regarding adoption of the new section.
The new section is adopted under Tax Code, §111.002 and §111.0022,
which provides the comptroller with the authority to prescribe, adopt, and
enforce rules relating to the administration and enforcement of the provisions
of Tax Code, Title 2, and taxes, fees, or other charges which the comptroller
administers under other law.
This new section implements United States Department of State, Office of
Foreign Missions tax exemption procedure.
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 December 20, 2005.
TRD-200505965
Martin Cherry
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: January 9, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 475-0387
Chapter 31.
EMPLOYMENT AFTER RETIREMENT
Subchapter D. EMPLOYER PENSION SURCHARGE
34 TAC §31.41
The Board of Trustees (Board) Teacher Retirement System of
Texas (TRS) adopts on a permanent basis new §31.41, concerning the administration
of an employer pension surcharge related to employment after retirement. The
amendments to §31.41 are adopted with changes to the proposed text as
published in the September 30, 2005, issue of the
Texas Register
(30 TexReg 6254).
The Board adopts the new rule so TRS can implement Senate Bill 1691, 79th
Legislature, Regular Session (2005) (SB 1691) (to be codified at §825.4092,
Government Code), which, with certain exceptions, requires employers who report
to TRS the employment of a retiree to pay a pension surcharge. The new law
became effective September 1, 2005. In implementing SB 1691, the new rule
will provide guidance regarding the basis for computing the surcharge as well
as guidance on which reported retirees the surcharge must be paid. The new
section also provides for payment of the surcharge on reported retirees concurrently
employed by more than one employer or subsequently employed by more than one
employer during the same school year. In accordance with the legislative enactment,
the Board separately adopted by resolution the pension surcharge amount, which
is an amount equal to the sum of the combined member and state contributions
(currently 12.4% of salary).
Clarifying when payment is triggered, the new section applies the surcharge
only to a reported retiree working in a TRS-covered position. The new rule
applies the same criteria used to determine eligibility for TRS membership
to the determination of whether a retiree is working in a TRS-covered position
for purposes of the surcharge. The new section also provides that an employer
owes the surcharge on a retiree who is working in a TRS-covered position for
a third-party entity but who is considered an employee of the employer.
TRS staff took actions with regard to the employer pension surcharge pursuant
to the emergency disasters, emergency conditions, and threat thereof declared
by the Governor of Texas because of Hurricane Katrina. The governor's emergency
disaster proclamation was issued to be effective September 1, 2005 and was
renewed effective October 1, 2005. In response to the declared emergency,
the governor's office requested emergency relief from the imposition of the
employer pension surcharge on Texas school districts that needed to hire TRS
retirees to respond to the influx of evacuees from states impacted by Hurricane
Katrina. Accordingly, the Board adopts the new rule with changes to the proposed
text as published September 30, 2005 to respond to emergency disaster conditions
created by Hurricane Katrina and to clarify the definition of "substitute"
to be used in applying the surcharge. As determined by legal counsel, these
changes are a logical outgrowth of the proposed rule as published and do not
materially alter the issues raised in it. The changes to the proposed rule
do not entail new subjects of application or affect any new persons besides
those previously given notice.
TRS received no public comments on proposed new section as published September
30, 2005.
Statutory Authority: §825.102, Government Code, which authorizes
the Board to adopt rules for the administration of the funds of the retirement
system; Tex. Gov. Proclamation No. 41-3018 (signed Sept. 1, 2005), 30 TexReg
5881 (2005), Governor Perry's initial disaster proclamation regarding Hurricane
Katrina, and Tex. Gov. Proclamation No. 41-3025 (signed Oct. 3, 2005), 30
TexReg 6842 (2005), the governor's renewal of the disaster proclamation for
Hurricane Katrina, both of which require adoption of amended rule §31.41
so that TRS may provide clear and consistent guidance to affected retirees
and reporting entities regarding the limited exception being granted on the
imposition of the employer surcharge in response to the governor's proclamations
and emergency relief request; §418.012, Government Code, which provides
that the above-referenced gubernatorial proclamations have the force and effect
of state law.
Cross-reference to Statute: §30 of SB 1691, which establishes new §825.4092,
Government Code, relating to employer contributions for employed retirees.
§31.41.Return to Work Employer Pension Surcharge.
(a)
For each report month a retiree is working in a TRS-covered
position and reported on the Employment of Retired Members Report, the employer
that reports the retiree shall pay to the Teacher Retirement System of Texas
(TRS) a surcharge based on the retiree's salary. For purposes of this section,
the employer is the reporting entity that reports the employment of the retiree
and the criteria used to determine if the retiree is working in a TRS-covered
position are the same as the criteria for determining employment eligible
for TRS membership, except that a retiree reported as a substitute must meet
the requirements of §31.1(b) of this title for the surcharge not to apply.
For the 2005-2006 school year only, a retiree who retired before September
1, 2005 and is employed for a period of more than 4 1/2 months due to the
enrollment of students displaced by Hurricane Katrina may be considered a
temporary employee whose employment is not subject to the surcharge under
this section.
(b)
The surcharge amount that must be paid by the employer
for each retiree working in a TRS-covered position is an amount that is derived
by applying a percentage to the retiree's salary. The percentage applied to
the retiree's salary is an amount set by the Board of Trustees and is based
on member contribution rate and the state pension contribution rate.
(c)
The surcharge is due from each employer that reports a
retiree as working as described in this section on or after September 1, 2005,
beginning with the report month for September 2005.
(d)
The surcharge is not owed by the employer for any retiree
reported by that employer on the Employment of Retired Members Report for
the report month of January 2005.
(e)
The surcharge is not owed by the employer for a retiree
that is reported as working under the exception for Substitute Service as
provided in §31.13 of this title unless that retiree combines Substitute
Service under §31.13 of this title with other TRS-covered employment
in the same calendar month. For each calendar month that the retiree combines
substitute service and other TRS-covered employment, the surcharge is owed
by the employer that reports the retiree on all compensation earned by the
retiree, including compensation for the substitute service.
(f)
The surcharge is owed by the employer on any retiree who
is working for a third party entity but serving in a TRS-covered position
and who is considered an employee of that employer under §824.601(d)
of the Government Code.
(g)
If a retiree is employed concurrently in more than one
position that is not eligible for TRS membership, the surcharge is owed if
the combined employment is eligible for membership under §25.6 of this
title. If the employment is with more than one employer, the surcharge is
owed by each employer.
(h)
If a retiree is employed concurrently in more than one
position and one of the positions is eligible for TRS membership and one is
not, the surcharge is owed on the combined employment. If the employment is
with more than one employer, the surcharge is owed by each employer.
(i)
If a retiree is employed in a position eligible for TRS
membership, the surcharge is owed by each employer on all subsequent employment
with a TRS-covered employer for the same school year.
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 December 21, 2005.
TRD-200506045
Ronnie G. Jung
Executive Director
Teacher Retirement System of Texas
Effective date: January 10, 2006
Proposal publication date: September 30, 2005
For further information, please call: (512) 542-6438
Subchapter A. RETIREE HEALTH CARE BENEFITS (TRS-CARE)
34 TAC §41.4
The Board of Trustees (Board) Teacher Retirement System of
Texas (TRS) adopts on a permanent basis new §41.4 concerning the administration
of an employer health benefit surcharge related to employment after retirement.
The amendments to §41.4 are adopted with changes to the proposed text
as published in the September 30, 2005, issue of the
Texas Register
(30 TexReg 6255).
The Board adopts the new rule so TRS can implement Senate Bill 1691, 79th
Legislature, Regular Session (2005) (SB 1691) (to be codified at §825.4092,
Government Code and §1575.204, Insurance Code), which, with certain exceptions,
requires employers who report to TRS the employment of a retiree enrolled
in the retiree health benefits program (TRS-Care) to pay a health benefit
surcharge. The new law became effective September 1, 2005. In implementing
SB 1691, the new rule will provide guidance regarding the basis for computing
the surcharge as well as guidance on which reported retirees the surcharge
must be paid. The new section also provides for payment of the surcharge on
reported retirees concurrently employed by more than one employer or subsequently
employed by more than one employer during the same school year. In accordance
with the legislative enactment, the Board separately adopted by resolution
a table setting forth the monthly dollar amounts for the surcharge, as shown
in the table titled "TRS-Care Employer Surcharge Amounts - Return to Work
Effective September 1, 2005," which is incorporated into this preamble and
may be viewed by accessing TRS's Web site at www.trs.state.tx.us/Reporting_Officials/surcharge_amts.pdf
or by requesting a copy from Ronnie Jung, TRS Executive Director, 1000 Red
River Street, Austin, Texas 78701.
Clarifying when payment is triggered, the new section applies the surcharge
only to a reported retiree enrolled in TRS-Care and working in a TRS-covered
position. The new rule applies the same criteria used to determine eligibility
for TRS membership to the determination of whether a retiree is working in
a TRS-covered position for purposes of the surcharge. The new rule also requires
the retiree to provide the employer updated information about changes to the
retiree's TRS-Care coverage. Further, the new section provides that an employer
owes the surcharge on a retiree enrolled in TRS-Care who is working in a TRS-covered
position for a third-party entity but who is considered an employee of the
employer.
TRS staff took actions with regard to the employer health benefit surcharge
pursuant to the emergency disasters, emergency conditions, and threat thereof
declared by the Governor of Texas because of Hurricane Katrina. The governor's
emergency disaster proclamation was issued to be effective September 1, 2005
and was renewed effective October 1, 2005. In response to the declared emergency,
the governor's office requested emergency relief from the imposition of the
employer health benefit surcharge on Texas school districts that needed to
hire TRS retirees to respond to the influx of evacuees from states impacted
by Hurricane Katrina. Accordingly, the Board adopts the new rule with changes
to the proposed text as published September 30, 2005 to respond to emergency
disaster conditions created by Hurricane Katrina and to clarify the definition
of "substitute" to be used in applying the surcharge. As determined by legal
counsel, these changes are a logical outgrowth of the proposed rule as published
and do not materially alter the issues raised in it. The changes to the proposed
rule do not entail new subjects of application or affect any new persons besides
those previously given notice.
TRS received no public comments on proposed new §41.4 as published
September 30, 2005.
Statutory Authority: §1575.052, Insurance Code, which authorizes
the Board to adopt rules it considers necessary to implement and administer
the retiree health benefits program and associated fund; Tex. Gov. Proclamation
No. 41-3018 (signed Sept. 1, 2005), 30 TexReg 5881 (2005), Governor Perry's
initial disaster proclamation regarding Hurricane Katrina, and Tex. Gov. Proclamation
No. 41-3025 (signed Oct. 3, 2005), 30 TexReg 6842 (2005), the governor's renewal
of the disaster proclamation for Hurricane Katrina, both of which require
adoption of amended rule §41.4 so that TRS may provide clear and consistent
guidance to affected retirees and reporting entities regarding the limited
exception being granted on the imposition of the employer surcharge in response
to the governor's proclamations and emergency relief request; §418.012,
Government Code, which provides that the above-referenced gubernatorial proclamations
have the force and effect of state law.
Cross-reference to Statute: §30 of SB 1691, which establishes new §825.4092,
Government Code, relating to employer contributions for employed retirees; §42
of SB 1691, which amends §1575.204, Insurance Code, relating to public
school contribution under the retiree health benefits program.
§41.4.Employer Health Benefit Surcharge.
(a)
When used in this section, the term "employer" has the
meaning given in §821.001(7), Government Code.
(b)
A retiree who is enrolled in the health benefits program
("TRS-Care") provided pursuant to the Texas Public School Retired Employees
Group Benefits Act, is working in a TRS-covered position, and is reported
on the Employment of Retired Members Report to the Teacher Retirement System
of Texas ("TRS") shall submit the TRS-Care Employer Health Benefit Surcharge
Information Form, promulgated by TRS, to the employer, providing details of
the retiree’s TRS-Care coverage tier, years of service credit, and category
of enrollment, as well as the identification of all employers of the retiree
and all employers of any other retiree enrolled under the same account identification
number, as required by the form. The criteria used to determine if the retiree
is working in a TRS-covered position are the same as the criteria for determining
employment eligible for TRS membership, except that a retiree reported as
a substitute must meet the requirements of §31.1(b) of this title for
the surcharge not to apply.
(c)
The retiree must submit to the employer an updated Employer
Health Benefit Surcharge form when changes occur in coverage or the employment
status of any retiree or other individual enrolled under the same account
identification number.
(d)
For each report month a retiree is enrolled in TRS-Care,
is working in a TRS-covered position, and is reported on the Employment of
Retired Members Report, the employer that reports the retiree shall, using
the information provided by the retiree to the employer on the Employer Health
Benefit Surcharge form, pay monthly to the Retired School Employees Group
Insurance Fund (the "Fund") a surcharge amount that is derived by taking the
difference, if any, between:
(1)
the monthly full cost, as set by the trustee, for all individuals
(including a spouse and children, if any) enrolled under the same account
identification number; and
(2)
the monthly total premium, as set by the trustee, for all
individuals (including a spouse and children, if any) enrolled under the same
account identification number.
(e)
The surcharge is also owed by the employer on any retiree
who is enrolled in TRS-Care, is working for a third party entity but is serving
in a TRS-covered position, and who is considered an employee of that employer
under §824.601(d) of the Government Code.
(f)
The surcharge under subsection (d) of this section is due
from each employer that reports a retiree as working in a TRS-covered position
on or after September 1, 2005, beginning with the report month for September
2005.
(g)
The surcharge under subsection (d) of this section is not
owed:
(1)
by an employer for any retiree reported by that employer
on the Employment of Retired Members Report for the report month of January
2005;
(2)
by an employer for any retiree reported by a second employer
on the Employment of Retired Members Report for the report month of January
2005, if both employers are school districts that consolidate into a consolidated
school district on or before September 1, 2005; or
(3)
by an employer for a retiree reported as working under
the exception for Substitute Service as provided in §31.13 of this title
unless that retiree combines Substitute Service under §31.13 of this
title with other TRS-covered employment in the same calendar month. For each
calendar month that the retiree combines substitute service and other TRS-covered
employment, the surcharge is owed by the employer that reports the retiree
on all compensation earned by the retiree, including compensation for the
substitute service.
(h)
An employer who reports to TRS the employment of a retiree
who is enrolled in TRS-Care and is working in a TRS-covered position shall
inform TRS as soon as possible in writing of the name, address, and telephone
number of any other employer that employs the retiree or any other retiree
who is also enrolled under the same account identification number.
(i)
If more than one employer reports the employment of a retiree
who is enrolled in TRS-Care to TRS during any part of a month, the surcharge
under subsection (d) of this section required to be paid into the Fund by
each reporting employer for that month is the total amount of the surcharge
due that month divided by the number of reporting employers. The pro rata
share owed by each employer is not based on the number of hours respectively
worked each week by the retiree for each employer, nor is it based on the
number of days respectively worked during the month by the retiree for each
employer.
(j)
If a retiree who is enrolled in TRS-Care is employed concurrently
in more than one position that is not eligible for TRS membership, the surcharge
is owed if the combined employment is eligible for membership under §25.6
of this title. If the employment is with more than one employer, the surcharge
will be paid according to subsection (i) of this section by each employer.
(k)
If a retiree who is enrolled in TRS-Care is employed concurrently
in more than one position and one of the positions is eligible for TRS membership
and one is not, the surcharge is owed on the combined employment. If the employment
is with more than one employer, the surcharge will be paid according to subsection
(i) of this section by each employer.
(l)
If a retiree who is enrolled in TRS-Care is employed in
a position eligible for TRS membership, the surcharge will be paid according
to subsection (i) of this section by each employer on all subsequent employment
with a TRS-covered employer for the same school year.
(m)
Notwithstanding the above, for the 2005-2006 school year
only, a retiree
(1)
who retired before September 1, 2005,
(2)
who is enrolled in TRS-Care, and
(3)
who is employed for a period of more than four and one-half
months due to the enrollment of students displaced by Hurricane Katrina may
be considered a temporary employee whose employment is not subject to the
surcharge under this section.
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 December 21, 2005.
TRD-200506046
Ronnie G. Jung
Executive Director
Teacher Retirement System of Texas
Effective date: January 10, 2006
Proposal publication date: September 30, 2005
For further information, please call: (512) 542-6438
Chapter 71.
CREDITABLE SERVICE
34 TAC §§71.1, 71.2, 71.27, 71.31
The Employees Retirement System of Texas (ERS) adopts amendments
to Title 34, Chapter 71, Texas Administrative Code. The amendments to §§71.1,
71.2 and 71.31 concern changes in the membership waiting period; the amendments
to §71.27 concern certain service solely to establish retirement eligibility.
The amendments are adopted without changes to the proposed text as published
in the November 11, 2005, issue of the
Texas Register
(30 TexReg 7383). The text of the adopted rules will not be republished.
The amended sections are adopted to comply with and conform to Senate Bill
1176, 79th Legislature, Regular Session.
Section 71.1 is adopted to delete subsection (e). This is a technical change
needed to update and clarify the rules regarding membership waiting period
service. Subsection (e) is currently delineated under §71.2(g) and will
now be delineated under §71.2(f).
Section 71.2, subsection (a) is adopted to remove a reference to the expiration
of the 90-day membership waiting period as provided by Texas Government Code, §812.003,
as amended by Senate Bill 1176, which makes the 90-day membership waiting
period permanent. Section 71.2 is also adopted to deleted subsection (f),
thereby removing a provision that provided for the establishment of waiting
period service between the 91st day of employment until contributions begin
on the first day of the following month as membership service not previously
established, as provided by Texas Government Code, §813.514, as amended
by Senate Bill 1176. Section 813.514 was amended to remove the three-month
limit on the credit purchase option for service during the membership waiting
period; therefore, service earned between the 91st day of employment and the
date contributions begin may be established as provided in §71.31 of
this chapter.
Subsection 71.27(a) is adopted to update the rules by deleting language
pursuant to Senate Bill 1176, which repealed Texas Government Code, §814.202(d),
regarding the use of service credit in the Optional Retirement Program under
TRS to meet the requirement of 10 years of service credit in ERS for a disability
retirement annuity. Subsections 71.27(a) and (b) are also adopted to update
the rules pursuant to Senate Bill 1176, which repealed Texas Government Code, §814.1042,
effective January 1, 2006, regarding the establishment of service with certain
governmental employers. Subsection (b) is also adopted to provide that service
documented with the system prior to January 1, 2006, will be considered for
the sole purpose of determining eligibility to receive a service retirement
only under the Rule of 80.
Section 71.31 is adopted to update and clarify the rules pursuant to Texas
Government Code, §813.514, as amended by Senate Bill 1176, which removed
the three month restriction on the credit purchase option for service during
the waiting period. Employees who do not begin state employment on the first
day of a calendar month experience four months of waiting period service.
This amendment will allow those affected employees to purchase the fourth
month under the credit purchase option. This section is further adopted to
clarify that a retirement contribution must have been made as provided under §813.201
before establishing service under this section. This change is needed because
a credit purchase option cost estimate cannot be made until a retirement contribution
has been made to the System.
No comments were received on these proposed rule amendments.
The amendments to Chapter 71 are adopted under the following
Texas Government Code provisions: §815.102, which authorizes the board
of trustees (board) to adopt rules for eligibility of membership and the administration
of the funds of the retirement system; and §813.514, which authorizes
the board to adopt rules to administer the credit purchase option, including
rules that impose restrictions on the application of the statutes as necessary
to cost-effectively administer the statute. These rules affect Title 8, Subtitle
B of the Texas Government Code.
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 December 21, 2005.
TRD-200506056
Paula A. Jones
General Counsel
Employees Retirement System of Texas
Effective date: January 10, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 867-7421
34 TAC §71.21
The Employees Retirement System of Texas (ERS) adopts a repeal
to Title 34, Chapter 71, Texas Administrative Code. The repeal of §71.21
concerns the transfer of certain state employees from the Teacher Retirement
System of Texas (TRS) to ERS. The repeal is adopted without changes as published
in the November 11, 2005, issue of the
Texas Register
(30 TexReg 7385). The text of the repealed rule will not be published.
Section 71.21 is repealed to update the rules regarding the transfer of
certain state employees from TRS to ERS under a retirement incentive for the
employee class pursuant to Acts of the 73rd Legislature. The repeal is needed
because provisions of the retirement incentive expired on September 1, 1995
and are no longer applicable. The sections of §71.21 that remain applicable
are already contained in §71.19.
No comments were received on the proposed repeal.
The repeal of §71.21 is adopted under Texas Government Code, §815.102,
which authorizes the board of trustees (board) to adopt rules for the administration
of the funds of the retirement system. This repeal affects Title 8, Subtitle
B of the Texas Government Code.
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 December 21, 2005.
TRD-200506054
Paula A. Jones
General Counsel
Employees Retirement System of Texas
Effective date: January 10, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 867-7421
34 TAC §73.19
The Employees Retirement System of Texas (ERS) adopts a repeal
to Title 34, Chapter 73, Texas Administrative Code. The repeal of §73.19
concerns the limitation of disability claims. The repeal is adopted without
changes as published in the November 11, 2005, issue of the
Texas Register
(30 TexReg 7385). The text of the repealed rule will
not be published.
Section 73.19 is repealed to update the rules and remove sections that
only duplicate what is already contained in the relevant statute. The provisions
of §73.19 are delineated under Texas Government Code, §814.201,
and an administrative rule is not needed.
No comments were received on the proposed repeal.
The repeal of §73.19 is adopted under Texas Government Code, §815.102,
which authorizes the board of trustees to adopt rules for the administration
of the funds of the retirement system. This repeal affects Title 8, Subtitle
B of the Texas Government Code.
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 December 21, 2005.
TRD-200506055
Paula A. Jones
General Counsel
Employees Retirement System of Texas
Effective date: January 10, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 867-7421
34 TAC §§77.15, 77.21, 77.23
The Employees Retirement System of Texas (ERS) adopts a rule
amendment, an amended table of factors, and a new rule under Title 34, Chapter
77, Texas Administrative Code. The amendment to §77.15 is a conforming
change to correspond with the proposed new rule §77.23. An amended table
of factors relating to §77.21(d) [Figure: 34 TAC §77.21(d)], is
adopted to replace the existing table and will be used to determine the cost
for members of the Judicial Retirement System of Texas Plan Two (JRS II) to
purchase membership service credit under the credit purchase option authorized
by Texas Government Code, §838.108, as amended by Senate Bill 1176, 79th
Legislature, Regular Session. New rule §77.23 concerns penalty interest
on the purchase of service in excess of 20 years as established by House Bill
1114, 79th Legislature, Regular Session. The amended rule, the amended table
and the new rule are adopted without changes to the proposed text and proposed
table as published in the November 11, 2005, issue of the
Texas Register
(30 TexReg 7386). The text of the adopted rules and
table will not be republished.
Section 77.15 is adopted to reference proposed new rule §77.23 to
clarify that, consistent with the existing rule, penalty interest applies
only to JRS II in purchasing service in excess of 20 years.
Section 77.23 is adopted to clarify the purchase of service in excess of
20 years and to provide for a penalty interest rate of ten percent for those
JRS II members who do not establish the service credit before the first anniversary
of the date of first eligibility. This change is consistent with current rules
and practice with regard to service credit not previously established and
is required to cost-effectively administer the program.
An amended table of factors relating to §77.21(d) is adopted to allow
a member of JRS II only to purchase additional service credit under the credit
purchase option to retire or to become eligible to retire with 20 years of
service by paying the System the actuarial present value of the additional
benefit attributable to the additional service credit as specified in Texas
Government Code, §838.108(b). The table of factors represents the actuarial
cost factors to purchase the additional service credit. This table replaces
the existing table and is needed to comply with and conform to Senate Bill
1176, 79th Legislature, Regular Session, in order for ERS to be able to administer
the service purchase properly. The text of rule §77.21 is not amended.
No comments were received on the proposed rule amendment, the proposed
new table or the proposed new rule.
The amendment to §77.15 and new §77.23 are adopted under Texas
Government Code, §833.1035, §835.002, §838.1035, and §840.002,
which authorizes the board to adopt rules necessary for the administration
of the Judicial Retirement System of Texas Plan One and Plan Two, respectively.
The table of factors is adopted under Texas Government Code, §838.108,
which authorizes the board to adopt rules to administer the credit purchase
option, including rules that impose restrictions on the application of the
statutes as necessary to cost-effectively administer the statute; and §840.002,
which authorizes the board to adopt rules it considers necessary for the administration
of the Judicial Retirement System Plan Two. These rules affect Title 8, Subtitles
D and E of the Texas Government Code.
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 December 21, 2005.
TRD-200506057
Paula A. Jones
General Counsel
Employees Retirement System of Texas
Effective date: January 10, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 867-7421
34 TAC §§87.1, 87.3, 87.5, 87.17, 87.33
The Employees Retirement System of Texas (ERS) adopts amendments
to 34 Texas Administrative Code §§87.1, 87.3, 87.5, 87.17, and 87.33,
concerning the Deferred Compensation Plan, without changes to the proposed
text as published in the November 11, 2005, issue of the
Texas Register
(30 TexReg 7389). The text of the rules will not be
republished.
Sections 87.1 through 87.33 are adopted to update the plan rules, to clarify
plan requirements, and to comply with and conform to state and federal law
and administrative requirements.
Section 87.1, concerning Definitions, is adopted to add and revise certain
definitions due to changes in state regulations. State regulations changed
in 2005 to allow community colleges and junior colleges to participate in
the Texa$aver 457 Plan.
Sections 87.3, 87.5 and 87.33, concerning Administrative and Miscellaneous
Provisions, Participation by Employees, and The Economic Growth and Tax Relief
and Reconciliation Act, are adopted to adjust the annual deferral limit to
$15,000 for 2006, per federal law.
Section 87.5(h)(9) is adopted to adjust the over age 50 catch-up limits
to $5,000 for 2006, per federal law. Other changes in §87.5 include amendments
to post severance compensation now allowed by Internal Revenue Code (IRC) §415
regulations, and defines the conditions under which this compensation can
be deferred.
Section 87.17, concerning Distributions, is adopted to include amendments
resulting from IRC §415 regulations and also amendments to the loan section.
Section 87.17 is also adopted to include a clarification regarding the IRC §402(f)
safe harbor notice, and to provide that the notice may be delivered electronically
or in writing.
Section 87.33, concerning The Economic Growth and Tax Relief and Reconciliation
Act, is adopted to include a clarification regarding the delivery of the IRC §402(f)
safe harbor notice.
ERS received no comments regarding these proposed rule amendments.
The amendments are adopted under Government Code, §609.508,
which provides authorization for the ERS Board of Trustees to adopt rules
necessary to administer the deferred compensation plan.
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 December 21, 2005.
TRD-200506058
Paula A. Jones
General Counsel
Employees Retirement System of Texas
Effective date: January 10, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 867-7421
Chapter 103.
CALCULATIONS OR TYPES OF BENEFITS
34 TAC §103.8
The Texas County and District Retirement System adopts an
amendment to §103.8, concerning the manner of paying retirement annuities
with respect to retirees whose benefits are subject to the limitations of
Section 415(b) of the Internal Revenue Code. This amended rule is adopted
without changes to the proposed text as published in the October 28, 2005,
issue of the
Texas Register
(30 TexReg 7009).
The amendment sets forth the method of distribution to be used depending
on whether the annuitant is a participant in the Texas County and District
Retirement System Qualified Replacement Benefit Arrangement.
No comments were received regarding adoption of the amendment.
The amendment 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 December 21, 2005.
TRD-200506042
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Effective date: January 10, 2006
Proposal publication date: October 28, 2005
For further information, please call: (512) 328-8889
34 TAC §107.15
The Texas County and District Retirement System adopts new
rule §107.15, concerning the resumption of enrollment of new employees
in the retirement system by a subdivision that previously had elected to discontinue
enrollment of its new employees. The new rule is adopted without changes to
the proposed text as published in the October 28, 2005, issue of the
No comments were received regarding adoption of the new rule.
The new 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 December 21, 2005.
TRD-200506043
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Effective date: January 10, 2006
Proposal publication date: October 28, 2005
For further information, please call: (512) 328-8889
34 TAC §§111.1 - 111.4
The Texas County and District Retirement System adopts new
Chapter 111, consisting of new §§111.1 - 111.4, concerning the definitions
and notice procedures for the termination of a subdivision’s participation
in TCDRS. The new rules are adopted without changes to the proposed text as
published in the October 28, 2005, issue of the
Texas Register
(30 TexReg 7010).
The new chapter causes the rule to conform to the statutory change made
by §6, of HB 633 as passed during the 2005 regular session of the 79th
Legislature, which provides subdivisions the option to terminate participation
in TCDRS and the authority to adopt rules to implement this termination option.
No comments were received regarding adoption of the new rules.
The new rules are 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; and are adopted in anticipation of the authority
granted in §842.051(c), Government Code.
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 December 21, 2005.
TRD-200506044
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Effective date: January 10, 2006
Proposal publication date: October 28, 2005
For further information, please call: (512) 328-8889
Part 3.
TEACHER RETIREMENT SYSTEM OF TEXAS
Chapter 41.
HEALTH CARE AND INSURANCE PROGRAMS
Part 4.
EMPLOYEES RETIREMENT SYSTEM OF TEXAS
Chapter 73.
BENEFITS
Chapter 77.
JUDICIAL RETIREMENT
Chapter 87.
DEFERRED COMPENSATION
Part 5.
TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
Chapter 107.
MISCELLANEOUS RULES
Chapter 111.
TERMINATION OF PARTICIPATION: SUBDIVISIONS
Chapter 113.
TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM QUALIFIED REPLACEMENT BENEFIT ARRANGEMENT