Part 5. TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
Chapter 101. PRACTICE AND PROCEDURE REGARDING CLAIMS
The Texas County and District Retirement System (system) proposes an amendment to §101.6, concerning the selection of an effective retirement date. The proposed amendment is intended to bring the rule in conformity with HB 1587, as enacted into law by the 80th Legislature. That law ensures that a retirement from a newly participating subdivision cannot occur prior to the first anniversary of the subdivision's date of participation in the system. Earlier law permitted retirements to occur if the applicant had been a member in the system for at least one year. The proposed amendment also incorporates the convention established by HB 1587 that, except for eligibility, service retirements and disability retirements are equivalent under the system and will be distinguished only in situations where there is a statutory difference.
Tom Harrison, Deputy Director and General Counsel of the Texas County and District Retirement System, has determined that, for the first five-year period the proposed amended rule is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.
Mr. Harrison has also determined that, for each year of the first five years the proposed amended rule is in effect, the public benefit anticipated as a result of administering the rule will be the assurance that a newly participating subdivision will have a sufficient period of contributions to accumulate adequate reserves to meet its initial benefit obligations. There will be no costs to small businesses. There are no anticipated economic costs to persons who are required to comply with the rule as proposed.
Comments on the proposed amended rule may be submitted to Tom Harrison, Deputy Director and General Counsel, Texas County and District Retirement System, P.O. Box 2034, Austin, TX 78768-2034.
The amendment to the rule is proposed under the Government Code, §845.102, which authorizes the board of trustees to adopt rules necessary or desirable for the efficient administration of the system.
The Government Code, §844.003, is affected by this proposed rule.
§101.6.Time for Filing of Retirement Applications.
(a) All applications for retirement[
, whether
for service or for disability,
] must be executed on or before
the date specified by the member as the effective date of the member's
retirement and except as provided in subsection (e) all applications
for retirement must be filed on or before the date specified as the
effective retirement date.
(b) The date specified as the effective date for retirement
must be the last day of a calendar month and may not precede the first
anniversary of the [
earlier of the effective date of the person's
membership in the retirement system or the
] effective date of
participation of the subdivision [
from which the member had most
recently earned credited service
].
(c)
A member must have terminated from employment
on or before the effective retirement date designated on the application.
If the member is applying for:
[
The date specified as the
effective date of retirement may not be a date preceding the termination
of the member's employment with all participating subdivisions except
as permitted by §844.003(d) of the Act.
]
(1) service retirement, the date specified as the effective date of retirement with respect to a subdivision may not be a date preceding the termination of the member's employment with the subdivision from which the member wishes to retire.
(2) disability retirement, the date specified as the effective date of retirement may not be a date preceding the termination of the member's employment with all participating subdivisions.
(d) Although the system will recognize a retirement application filed on or before the effective retirement date designated on the application as having been timely filed with respect to that designated retirement date, this section shall not be construed to require a subdivision to process, by the end of the month, a retirement application submitted to it at any time during the month. A subdivision may establish reasonable administrative rules and procedures, including submission schedules, for the monthly processing of retirement applications for filing with the system.
(e) If, on
a
[
an application for service
]
retirement
application
, a member specifies an effective
retirement date after November 30, 2002, and that application is received
by the system after the specified retirement date, the director may,
on his own motion or on good cause shown in a petition filed with
the system, deem the application to have been filed on the last day
of a month ending prior to the date it was received by the system
provided all other requirements set forth in this rule have been met.
In no event may a deemed filing date be earlier than the effective
retirement date specified on the application or the last day of the
second calendar month immediately preceding the date the application
was received by the system. The effective retirement date with respect
to an application that is filed under this subsection is the deemed
filing date. A petition filed under this subsection must fully state
the facts and circumstances that show that the member has complied
with all other filing requirements under this rule and that the failure
to timely file the application with the system was not due to the
neglect, indifference or lack of diligence of the member, must state
the relief requested, and must be certified as true and correct. The
system shall adjust benefits and make retroactive payments as appropriate
to correctly reflect the [
service
] retirement annuity that
is payable to the member based on the effective retirement date determined
under this subsection.
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 23, 2007.
TRD-200703154
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: September 2, 2007
For further information, please call: (512) 637-3230
The Texas County and District Retirement System (system) proposes an amendment to §103.2, concerning the optional retirement annuities that a retiree may select in lieu of a standard retirement annuity. The proposed amendment is intended to bring the rule in conformity with HB 1587, as enacted into law by the 80th Legislature. That law removes from the TCDRS Act, an exclusive listing of those optional retirement annuity forms that a retiree could select in lieu of a standard retirement annuity and authorizes the board of trustees to provide for additional optional annuity forms by administrative rule. Under this authority, the board is restating those optional forms currently listed by statute, except for the five-year certain and life annuity form which is repealed effective January 1, 2008.
Tom Harrison, Deputy Director and General Counsel of the Texas County and District Retirement System, has determined that, for the first five-year period the adopted amended rule is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.
Mr. Harrison has also determined that, for each year of the first five years the adopted amended rule is in effect, the public benefit anticipated as a result of administering the rule will be the earlier availability of optional annuity forms that better serve the interests of the members and their beneficiaries, as well as the earlier removal of those optional forms of payment that have frequently proven to be a disservice to those interests. There will be no costs to small businesses. There are no anticipated economic costs to persons who are required to comply with the rule as proposed.
Comments on the proposed amended rule may be submitted to Tom Harrison, Deputy Director and General Counsel, Texas County and District Retirement System, P.O. Box 2034, Austin, TX 78768-2034.
The amendment to the rule is proposed under the Government Code, §845.0041, as amended by the 80th Legislature, which authorizes the board of trustees to provide by rule for additional forms of optional retirement annuities.
The Government Code, §844.0041, as amended by HB 1587 is affected by this proposed rule.
§103.2.Additional Optional Retirement Annuities [ Benefits ].
(a) A member entitled to retirement may elect to receive,
in lieu of a standard retirement benefit, one of the following optional
annuities
[
benefits
], each of which is a reduced
monthly annuity that is the actuarial equivalent of the standard retirement
benefit, payable during the lifetime of the retiree, but with the
provision that:
(1)
[
Option 1:
] after the retiree's death,
the reduced annuity is payable throughout the life of
an individual
[
a person
] designated by the retiree;
(2)
[
Option 2:
] after the retiree's death,
three-fourths
[
one-half
] of the reduced annuity is
payable throughout the life of
an individual
[
a person
]
designated by the retiree;
(3)
after the retiree's death, one-half of the
reduced annuity is payable throughout the life of an individual designated
by the retiree
[
Option 3: if the retiree dies before 60
monthly annuity payments have been made, the remainder of the 60 payments
are payable to the retiree's beneficiary or, if one does not exist,
to the retiree's estate
];
[
(4)
Option 4: if the retiree
dies before 120 monthly annuity payments have been made, the remainder
of the 120 payments are payable to the retiree's beneficiary or, if
one does not exist, to the retiree's estate;]
(4)
[
(5)
] [
Option 5:
]
after the retiree's death, the reduced annuity is payable throughout
the life of
an individual
[
a person
] designated
by the retiree, except that if the designated
individual
[
person
] predeceases the retiree, the annuity payable throughout
the remaining life of the retiree is the annuity that would be payable
if the retiree had
originally
chosen a standard retirement
annuity;
(5) if the retiree dies before 120 monthly annuity payments have been made, the remainder of the 120 payments are payable to the retiree's beneficiary or, if one does not exist, to the retiree's estate; or
[(6) Option 6: after the retiree's death, three-fourths of the reduced annuity is payable throughout the life of a person designated by the retiree;]
(6)
[
(7)
] [
Option 7:
]
if the retiree dies before 180 monthly annuity payments have been
made, the remainder of the 180 payments are payable to the retiree's
beneficiary or, if one does not exist, to the retiree's estate.
(b) If payments under a standard or optional retirement
annuity
[
benefit
] cease before the sum of all such
payments equals or exceeds the amount of accumulated contributions
in the individual account in the employees saving fund at the time
of retirement of the member on whose service the annuity was based,
a lump-sum benefit equal to the amount by which the accumulated contributions
exceed the sum of all such payments made under the annuity is payable
in the manner described in Government Code §844.402.
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 23, 2007.
TRD-200703153
Tom Harrison
Deputy Director and General Counsel
Texas County and District and Retirement System
Earliest possible date of adoption: September 2, 2007
For further information, please call: (512) 637-3230
The Texas County and District Retirement System (system) proposes an amendment to §103.5, concerning the benefit distribution requirements for qualified plans as mandated by federal law. The proposed amendment sets forth the requirements for benefit distributions that apply when the member has attained the later of age 70 1/2 or separates from service, when the member has died prior to retirement, and when the member has died after retirement. The proposed amendment deletes surplus and obsolete language that was relevant in the past when membership in the system would terminate because of absence from service. As changed by the 79th Legislature, membership in the system no longer terminates as a result of absence from service. Other language is modified to address the distribution implications when a member's cumulative service also includes active or inactive service in the proportionate retirement program.
Tom Harrison, Deputy Director and General Counsel of the Texas County and District Retirement System, has determined that, for the first five-year period the proposed amended rule is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.
Mr. Harrison has also determined that, for each year of the first five years the rule is in effect, the public benefit anticipated as a result of administering the proposed amended rule will be the operation of the system in accordance with the requirements of federal law applicable to all qualified plans. There will be no costs to small businesses. There are no anticipated economic costs to persons who are required to comply with the rule as proposed.
Comments on the proposed amended rule may be submitted to Tom Harrison, Deputy Director and General Counsel, Texas County and District Retirement System, P.O. Box 2034, Austin, TX 78768-2034.
The amendment to the rule is proposed under the Government Code, §841.010, which authorizes the board of trustees to adopt rules for the distribution of benefits to ensure compliance with federal statutes and regulations.
The Government Code, §841.010, is affected by this proposed rule.
§103.5.Benefit Distribution Requirements.
(a) The following words and terms, when used in this section shall have the following meanings unless the context clearly indicates otherwise.
(1) Proportionate retirement system--A public retirement system other than the Texas County and District Retirement System that participates in the Proportionate Retirement Program.
(2) Required distribution date--March 31 of the year following the later of the year in which the member separates from service or the year in which the member attains age 70 and one-half.
[
(3)
Rule-year--A year
of service credited in participating subdivisions that have adopted
a rule providing for retirement eligibility when the addition of a
member's years of service and years of attained age produces a sum
equal to or in excess of a specific number.]
(3)
[
(4)
] Separates from service--The
termination of employment with a subdivision participating in the
Texas
County and District Retirement
System
('TCDRS')
.
(b) General Rules:
(1) A member who has separated from service with
a
[
all
] participating
subdivision
[
subdivisions
]
may receive a refund of the accumulated contributions in the member's
individual account
with respect to that subdivision
at any time
after
[
following
] separation from service
and before retirement from that subdivision
[
that is prior
to the member's required distribution date
].
(2) A member must receive a refund of the accumulated
contributions in the member's individual
accounts
[
account
] or retire from the
TCDRS
[
System
] on
or before
the member's
[
his/her
] required distribution
date.
(3) The remaining interest of a deceased retiree's benefit must continue to be distributed as rapidly as the method of distribution being used before the retiree's death.
(4) The entire interest that becomes payable because of the death of a member who has a designated beneficiary as defined in regulations to § 401(a)(9) of the Internal Revenue Code must be distributed over the life of the designated beneficiary or over a period not extending beyond the life expectancy of the designated beneficiary. A distribution under this provision after December 31, 1995, must:
(A) begin not later than the last day of the calendar year following the calendar year in which the member died, if payable to a person other than the decedent's spouse; or
(B) begin not later than the last day of the calendar year following the year in which the member died or the last day of the calendar year in which the decedent would have attained the age of 70 and one-half, if payable to the surviving spouse, unless the surviving spouse dies before payments begin, in which case the beginning of payments may not be deferred beyond the last day of the calendar year following the calendar year in which the surviving spouse dies.
(5) The entire interest that becomes payable because of the death of a member who does not have a designated beneficiary must be distributed within five years of the death of the member.
(6) For a distribution made by the retirement system
after December 31, 2001, the system shall apply the minimum distribution
requirements of § 401(a)(9) of the Internal Revenue Code of 1986
in accordance with the regulations under that section[
that were
proposed on January 17, 2001, notwithstanding any other provision
of law to the contrary. This provision expires on the effective date
of final regulations under Section 401(a)(9) of the Internal Revenue
Code of 1986 or on another date specified in guidance published by
the Internal Revenue Service
].
(c) Application:
(1) A member who is eligible to retire
from the
TCDRS, with or without combining the member's credited service with
a proportionate retirement system,
[
on the basis of credited
service in this System alone
] must receive a refund of the accumulated
contributions in the member's individual account or retire on or before
the member's required distribution date without regard to whether
that member is
actively participating
[
an active participant
] in a proportionate retirement system [
or has credited
service in a proportionate retirement system
].
(2) A member [
whose total credited service in
this System and all proportionate retirement systems equals less than
four years,
] who is not actively participating in
the TCDRS
or
a proportionate retirement system, and who is not eligible
to retire
from the TCDRS
[
under this System
]
on the member's required distribution date must receive a refund of
the accumulated contributions in the member's individual account on
the member's required distribution date.
[
(3)
A member who has less
than four rule-years of credited service, who has no credited service
in a proportionate retirement system, and who is not otherwise eligible
to retire at the member's required distribution date, must receive
a refund of the accumulated contributions in the member's individual
account on the member's required distribution date.]
[
(4)
A member who has four
or more rule-years of credited service in this System, who has no
credited service with a proportionate retirement system and who is
not otherwise eligible to retire at the member's required distribution
date, must receive a refund of the accumulated contributions in the
member's individual account on the member's required distribution
date, or must retire with an actuarially reduced annuity on the member's
required distribution date. The annuity under this provision is adjusted
because of the early commencement of the benefit and is actuarially
equivalent to the annuity that would otherwise be payable commencing
at the member's retirement eligibility date.]
[
(5)
The required distribution
date for an inactive member of this System who has attained age 70
and one-half and who continues to actively participate in a proportionate
retirement system is March 31 of the year following the year in which
the member becomes eligible to retire on the basis of credited service
in this System alone.]
[
(6)
A monthly annuity
payable because of the death of a member that would extend beyond
the life expectancy of the designated beneficiary, or that would extend
beyond five years from the date of death of the member if payable
to other than a designated beneficiary, will be converted to a monthly
annuity having an equivalent present value that is calculated using
a 7.0% interest rate and payable over the life expectancy of the designated
beneficiary or calculated using a 7.0% interest rate and payable over
a 60 month period if payable to other than a designated beneficiary.]
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 23, 2007.
TRD-200703151
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: September 2, 2007
For further information, please call: (512) 637-3230
The Texas County and District Retirement System (system) proposes an amendment to §105.1, concerning the participation and credited service of a member performing covered service for two or more participating subdivisions during the same calendar month. The proposed amendment deletes surplus and obsolete language that was relevant in the past when membership in the system was based on the minimum level of service performed for participating subdivisions. As changed by the 79th Legislature, except for employees determined by the subdivision to be temporary, all employees of a participating subdivision are now eligible for membership. The proposed amendment sets forth the rules for determining retirement eligibility with respect to the concurrently employing subdivisions, separately and simultaneously, and the interaction with the prohibition against dual crediting and counting of service.
Tom Harrison, Deputy Director and General Counsel of the Texas County and District Retirement System, has determined that, for the first five-year period the proposed amended rule is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.
Mr. Harrison has also determined that, for each year of the first five years the proposed amended rule is in effect, the public benefit anticipated as a result of administering the rule will be the notice to interested parties of the manner in which benefits will accrue and retirement eligibility calculated for those members concurrently employed by two or more subdivisions. There will be no costs to small businesses. There are no anticipated economic costs to persons who are required to comply with the rule as proposed.
Comments on the proposed amended rule may be submitted to Tom Harrison, Deputy Director and General Counsel, Texas County and District Retirement System, P.O. Box 2034, Austin, TX 78768-2034.
The amendment to the rule is proposed under the Government Code, §845.102, which directs the board of trustees to adopt rules necessary or desirable for the efficient administration of the system.
The Government Code, §843.401, is affected by this proposed rule.
§105.1.Persons Employed by Multiple Subdivisions.
(a) Any person who is
concurrently
employed
by two or more participating subdivisions shall be considered a covered
employee of each [
if that person's combined service with those
subdivisions, if performed for a single employing subdivision, would
constitute that person an employee as that term is defined in the
Texas Government Code, Title 8, Subtitle F
].
(b) Each employee-member shall make monthly
employee
contributions
[
current-service deposits
] at the rate
specified in the participation order of the particular employing subdivision
upon all compensation paid that person by such employer[
, but
excluding any amount paid by such subdivision in excess of the sum
which is that proportion of the "maximum earnings" prescribed for
such period by the governing body of such subdivision, which the compensation
paid such employee by such subdivision bears to the total compensation
paid that person by all participating subdivisions for the period
involved
]. Each employing subdivision shall withhold the
employee
contributions
[
current service deposits
] required
on account of the compensation paid such employee by such subdivision.
(c)
The employee-member may receive only one month
of credited service for any calendar month in which covered service
was performed for two or more participating subdivisions. When determining
an employee-member's retirement eligibility with respect to an employing
subdivision, the credited service for a calendar month in which the
employee-member was also performing covered service for another participating
subdivision shall be counted as credited service performed for the
employing subdivision for which retirement eligibility is being determined.
When determining the retirement eligibility of an employee-member
with respect to both subdivisions simultaneously, credited service
is subject to the general rules of the system for recognizing and
combining service among the several subdivisions but in no event may
credited service for any calendar month be counted twice.
[
Credit
shall similarly be allowed for prior service performed on a part-time
basis for two or more participating subdivisions during the same calendar
periods. The maximum prior-service credit allowed to the member on
account of such service shall not exceed the maximum which the person
would have been granted had the entire service been performed for
and the entire compensation paid by one of the participating subdivisions.
The maximum prior-service credit so computed shall be apportioned
between and charged to the several employing participating subdivisions
in the proportion which the compensation paid to such employee by
the subdivision bears to the total compensation paid to the employee
by all participating subdivisions for the same period. The maximum
prior-service credit so apportioned to a particular subdivision shall
be included in the total of maximum prior-service credits granted
to all of its employee-members and shall be converted to an "allocated
prior-service credit" of such subdivision as provided in the Texas
Government Code, Title 8, Subtitle F.
]
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 23, 2007.
TRD-200703155
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: September 2, 2007
For further information, please call: (512) 637-3230
The Texas County and District Retirement System proposes an amendment to §105.3, concerning optional credited service for qualified military service and §105.4, concerning credited service and optional contributions for qualified military service under the Uniformed Service Employment and Reemployment Rights Act ('USERRA'). These proposed amendments to the rules clarify the distinction between the two provisions for credited service, the limitations on the maximum credited service that can be received, the eligible member's rights under the USERRA to make optional deposits to the system to establish service credit with the subdivision, the manner in which those deposits can be made, and the treatment of the deposits as employee contributions. The proposed amendments also delete surplus and obsolete language that is no longer relevant.
Tom Harrison, Deputy Director and General Counsel of the Texas County and District Retirement System, has determined that, for the first five-year period the proposed amended rules are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.
Mr. Harrison has also determined that, for each year of the first five years the proposed amended rules are in effect, the public benefit anticipated as a result of administering the rules will be the notice to interested parties of the manner in which service and benefits can be accrued and the increased flexibility in the manner that the optional contributions under the USERRA can be made to the system. There will be no costs to small businesses. There are no anticipated economic costs to persons who are required to comply with the rule as proposed.
Comments on the proposed amended rule may be submitted to Tom Harrison, Deputy Director and General Counsel, Texas County and District Retirement System, P.O. Box 2034, Austin, TX 78768-2034.
The amendment to the rule is proposed under the Government Code, §845.102, which directs the board of trustees to adopt rules necessary or desirable for the efficient administration of the system.
The Government Code, §843.601, is affected by these proposed amendments.
§105.3. Optional Credited Service for Active Duty Qualified Military Service.
(a) In this section:
[
(1)
The term "Act" means
the Texas Government Code, Title 8, Subtitle F as amended. Unless
otherwise indicated, all section numbers refer to sections of the
Act.]
(1)
[
(2)
] The term "credited
service" means membership service for determining retirement eligibility
only. Member contributions and monetary credits are not required or
permitted with respect to credited service for qualified military
service established after December 31, 1999.
(2)
[
(3)
] The term "eligible
member" means a member of an eligible subdivision who has: credited
service in the retirement system for at least the minimum period required
to receive a service retirement annuity from the subdivision at age
60, who has performed
active duty
qualified military service;
and who has been released from military duty under honorable conditions.
(3)
[
(4)
] The term "eligible
subdivision" means a subdivision whose governing board has adopted
the optional authorization for the establishment of credited service
in the retirement system for qualified military service[
under §843.601(c)
].
(4)
[
(5)
]The term "qualified military service" means
active duty
service in the uniformed
services as defined in 38 U.S.C. § 4303(13). It excludes that
service which was performed in a month for which the member has received
credited service in this retirement system under any other provision
of the Act, and that service which is credited by another retirement
system or program established or governed by state law. A member may
not receive more than one month of credited service for any month.
(b) An eligible member may receive one month of credited
service in the retirement system for each month of qualified military
service performed while on active duty.
Except as required under
the USERRA, an
[
An
] eligible member may not accumulate
more than a combined total of 60 months of credited service in the
retirement system for qualified military service under
this section
[
§843.601
] and
§105.4
[
for membership
credited service under §842.109(b)
].
§105.4.Credited Service Under The Uniformed Services Employment And Reemployment Rights Act.
(a) An eligible member may receive
credited
[
current
] service[
credit
] for service in the uniformed
services in accordance with the Uniformed Services Employment and
Reemployment Rights Act (the USERRA) (38 U.S.C. §4301 et seq.).
Notwithstanding any provision to the contrary, the rights and benefits
of an eligible member under the Texas County and District Retirement
System (the System) shall not be less than those rights and benefits
provided by the USERRA.
(b) The following words and terms, when used in this section shall have the following meanings unless the context clearly indicates otherwise.
(1) Eligible member--An employee of a participating subdivision who is or would be considered to be employed in a position eligible for membership but who leaves employment with that subdivision to perform service in the uniformed services; whose employer was notified of the obligation or intention of the employee to perform service in the uniformed services; who is released or discharged from such service on or after December 12, 1994 under honorable conditions; whose cumulative period of service in the uniformed services with respect to that participating subdivision does not exceed five years not including periods excluded under 38 U.S.C. §1412(c); who applies for reemployment with that participating subdivision within 90 days of release or discharge from the uniformed services, or after recovery from an illness or injury incurred in, or aggravated during, the performance of service in the uniformed services (but such recovery period does not exceed two years); and who is reemployed by the participating subdivision.
(2) Uniformed services--The Armed Forces of the United States of America; the Army National Guard and the Air National Guard when engaged in active duty for training, inactive duty training, or full-time National Guard duty; the commissioned corps of the Public Health Service; and any other category of persons designated by the President in time of war or emergency.
(3) Service in the uniformed services--The performance of duty on a voluntary or involuntary basis in a uniformed service under competent authority and includes active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, and a period for which an employee is absent from a position of employment for the purpose of an examination to determine the fitness of the employee to perform such duty.
(4) Participating subdivision--A subdivision [
as
defined in §841.001(14) of the Texas Government Code
] that
is participating in the Texas County and District Retirement System
at the time the eligible member leaves employment with the subdivision
to perform service in the uniformed services; a subdivision that is
not participating in the System at the time the employee leaves employment
with the subdivision to perform service in the uniformed services
but commences participation during the period of the employee's performance
of duty in a uniformed service; or a subdivision participating in
the System that is a [
successive employer as described in §843.203
of the Texas Government Code or
] successor in interest to the
participating
subdivision from which the eligible member left
employment to perform service in the uniformed services.
(c) Certification of Eligibility by Participating Subdivision. An eligible member will be credited with current service in accordance with the USERRA upon certification by the participating subdivision on forms provided by the System:
(1) that the eligible member's reemployment application is timely;
(2) that the eligible member has not exceeded the service limitations set forth in the USERRA;
(3) that the eligible member was not released or discharged from the uniformed service under other than honorable conditions;
(4) of the period in which the eligible member performed service in the uniformed services;
(5) that the eligible member did not receive service credit for the period of uniformed service;
(6) of the estimated compensation that the eligible member would have received from the subdivision but for the period of service in the uniformed services; and
(7) of the eligible member's date of reemployment.
(d)
Credited
[
Crediting of Current
]
Service
and Optional Contributions
under the USERRA.
(1)
Provided the member has not received credited
service for the same month under another provision of Texas Government
Code, Title 8, an
[
An
] eligible member shall be credited
with one month of current service credit for each month or part of
a month in which both of the following occur:
(A) the eligible member performed service in the uniformed services, and
(B) the participating subdivision participated in the System.
(2) On or before the last day of the fifth calendar year following the year in which the eligible member was reemployed, the eligible member may, but is not required to, deposit with the System any or all employee contributions that would have been deposited to the member's individual account for each period during which the member performed service in the uniformed services if the eligible member had been employed with the participating subdivision during the period of uniformed service. Deposits under this provision are considered to be employee contributions made in the calendar year of deposit for purposes of employer matching and are subject to the following rules:
(A) The total deposits may not exceed the amount the eligible member would have been required to contribute had the eligible member remained continuously employed by the participating subdivision throughout the period of service in the uniformed services.
(B) The compensation upon which allowable deposits will be calculated is the estimated compensation that the eligible member would have received from the subdivision but for the period of service in the uniformed services.
(C) For purposes of determining the
months
[
amount
] of
credited
[
current
] service[
credit
] and allowable
deposits
[
monetary credit
],
months of uniformed service and estimated compensation shall be calculated
from the later of the date the eligible member entered uniformed service
or the date the participating subdivision commenced participation
in the System.
(D) Within the allowable period for making deposits and subject to the maximum total amount of deposits, an eligible member may make deposits at any time and in any amount.
(E) Deposits
may
[
must
] be paid
directly to the System by the eligible member
or by the employer
through payroll deduction.
[
, will be treated as after-tax
contributions, and
]
Optional deposits made under this section
are employee contributions and
may not be returned until the
member terminates from [
all covered
] employment
with
the participating employer
[
in this System
].
(F) Deposits will be allocated prospective interest only, and in the same manner as interest is allocated on member contributions to individual accounts.
[
(G)
Deposits, when received
by the System, shall be credited to the eligible person's individual
account and shall be considered to be contributions attributable to
the months of uniformed service performed beginning with the earliest
month of uniformed service.]
[(H) For vesting and funding purposes, current service credit, and any monetary credit arising from voluntary deposits, shall be considered as having been earned through service with the reemploying subdivision, and as having been credited during the period of uniformed service.]
(G)
[
(I)
] An eligible member receiving
credited
service[
credit
] under this section for a specific month may not receive
credited
service
[
credit
] for the same month under any other provision
of the Texas Government Code, Title 8[
, Subtitle F
].
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 23, 2007.
TRD-200703150
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: September 2, 2007
For further information, please call: (512) 637-3230
The Texas County and District Retirement System (system) proposes an amendment to §107.9, concerning the electronic filing of documents. The amendment to the rule extends the deadline for the electronic filing of documents from 5:00 p.m. to midnight of the day of the deadline. As the system has extended its working hours within various departments and by various employees, midnight will be a time that can be applied universally and consistently for all electronic filing purposes.
Tom Harrison, Deputy Director and General Counsel of the Texas County and District Retirement System, has determined that, for the first five-year period the proposed amended rules are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.
Mr. Harrison has also determined that, for each year of the first five years the proposed amended rules are in effect, the public benefit anticipated as a result of administering the rule will be the universal and consistent treatment for documents filed electronically across all system departments. There will be no costs to small businesses. There are no anticipated economic costs to persons who are required to comply with the rule as proposed.
Comments on the proposed new rule may be submitted to Tom Harrison, Deputy Director and General Counsel, Texas County and District Retirement System, P.O. Box 2034, Austin, TX 78768-2034.
The amendment to the rule is proposed under the Government Code, §845.102, which directs the board of trustees to adopt rules necessary or desirable for the efficient administration of the system.
The Government Code, §845.116, is affected by the proposed amendment.
§107.9.Electronic Filing of Documents.
(a) In this section:
(1) The term "document" means any form, statement, affidavit, application or report (and related attachments) required to be completed by or on behalf of a principal and filed with the system.
(2) The term "electronically filed" means the filing of data transmitted to the retirement system by the communication of information by facsimile or in the form of digital electronic signals transformed by computer and stored in any medium.
(3) The term "principal" means the member, beneficiary, annuitant, or subdivision on whose behalf the document is electronically filed.
(b) All documents required to be filed with the system by or on behalf of a principal in accordance with these rules or the provisions of Subtitle F of Title 8 of the Texas Government Code may be electronically filed. A document requiring certification by a subdivision that is filed with the system shall be considered to have been certified by the subdivision. A document that has been properly completed by a principal (other than a subdivision) or authorized agent of the principal and that is electronically filed with the system shall be considered to have been certified by the principal if certifying language appears on the document.
(c) The retirement system, in its sole and exclusive discretion, may:
(1) accept an electronically transmitted document for filing, in which case the system will not provide notice of acceptance;
(2) conditionally accept an electronically transmitted document for filing provided that the original is received by the system within a time certain as indicated in a notice sent to the principal; or,
(3) decline to accept an electronically transmitted document for filing, in which case the system shall send notice to the principal that the electronically transmitted document has not been accepted.
(d) An electronically transmitted document is not received
in the system offices until the earlier of the time its receipt is
recorded by the system's computer or the time the electronically transmitted
document is printed from the system's fax machine. An electronically
transmitted document accepted for filing is considered to be filed
at the time it is received. A filing deadline that falls on a Saturday,
Sunday or legal holiday will be extended to the next following business
day. For purposes of meeting a filing deadline, an electronically
transmitted document must be received by the system before
midnight
[
5:00 p.m. on the day
] of the filing deadline.
(e) It is solely the responsibility of the principal to ensure that the system has received an electronically transmitted document.
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 23, 2007.
TRD-200703152
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: September 2, 2007
For further information, please call: (512) 637-3230
The Texas County and District Retirement System proposes an amendment to §107.12, concerning the payment of benefits due on the death of an annuitant. Legislation passed by the 77th Legislature changed the TCDRS Act such that an annuity was payable through the month of death rather than through the month preceding the month of death. This had the effect of causing a final payment due the deceased annuitant to be made after the date of death. The decedent's file can not be closed until these payments are distributed. These final amounts generally represent one monthly payment, and frequently there is no surviving beneficiary or spouse, or a beneficiary or spouse can not be found to accept the final payment, and there will be no estate administration. In such cases, this rule will allow the system, after making diligent efforts to discover or locate a beneficiary or spouse and after determining that there will be no estate administration, to pay these modest amounts in trust to a relative of the decedent. The rule is broad enough to apply to situations where there have been payments outstanding or suspended but due the deceased annuitant (subject to the $5000 ceiling), as well as to those instances in which a retiree group term life benefit becomes payable and a surviving beneficiary or spouse can not be located and there will be no estate administration. Surplus and obsolete language has also been removed from the rule.
Tom Harrison, Deputy Director and General Counsel of the Texas County and District Retirement System, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.
Mr. Harrison has also determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of administering the rule will be the elimination of administrative costs and complexities to the system and the deceased annuitant's family in instances where the amounts are minor and the expenses of a more formal administration are not cost effective and are likely to merely delay the distribution of the benefit to the decedent's family. Distribution of this minor benefit in trust to a relative of the decedent will allow immediate use by the family of the benefit and closure of the participant's file. There will be no costs to small businesses. There are no anticipated economic costs to persons who are required to comply with the rule as proposed.
Comments on the proposed new rule may be submitted to Tom Harrison, Deputy Director and General Counsel, Texas County and District Retirement System, P.O. Box 2034, Austin, TX 78768-2034.
The amendment to the rule is proposed under the Government Code, §845.505(i), which authorizes the board of trustees to provide by rule for management of claimed benefits.
The Government Code, §845.506, is affected by this proposed rule.
§107.12.Payments Due or Suspended on Death of Annuitant.
[
(a)
Payments under an annuity that
is suspended as a result of a retiree's reemployment prior to January
1, 2006, under Section 842.110, Government Code, are payable, if the
retiree dies before making an application for distribution of the
accumulated payments, to the surviving beneficiary that had been selected
at the time of the retirement for which the annuity originally was
being paid.
]
(a)
[
(b)
] Payments of an annuity that are due
a deceased annuitant
and have not been made
,
or have been made but
are
not
negotiable after
[
negotiated on
] the
annuitant's
[
date of
]
death [
of an annuitant
] are payable to the
valid surviving
beneficiary of the annuitant on file with the retirement system
[
for the annuity
] on the date of the annuitant's death.
If
there is no surviving beneficiary, the payments are payable to the
annuitant's spouse. If there is no surviving spouse, the payments
are payable to the executor or administrator of the annuitant's estate.
(b) If the total value of the payments described above is not more than $5,000, and there is no surviving beneficiary or spouse (or diligent efforts by the system to discover, locate and correspond with a surviving beneficiary or spouse have proven fruitless); and no petition for the appointment of an administrator or executor is pending or has been granted; and a small estates affidavit has not been filed with the system; then upon application, the system may, but is not required to, issue payment (including any optional group term life benefit), in trust to a relative of the decedent who would have a right of inheritance assuming the decedent had died intestate without relatives of a closer degree.
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 23, 2007.
TRD-200703184
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: September 2, 2007
For further information, please call: (512) 637-3230