PART 3. TEACHER RETIREMENT SYSTEM OF TEXAS
CHAPTER 41. HEALTH CARE AND INSURANCE PROGRAMS
SUBCHAPTER A. RETIREE HEALTH CARE BENEFITS (TRS-CARE)
The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS), as trustee of the health benefits program for TRS retirees (TRS-Care) under the Texas Public School Retired Employees Group Benefits Act (Chapter 1575 of the Insurance Code), adopts amended §41.7, relating to the effective date of coverage for an eligible individual who elects to enroll in TRS-Care. The Board adopts the amended section without changes to the proposed text as published in the January 2, 2009, issue of the Texas Register (34 TexReg 37). One of the adopted amendments addresses the effective date of TRS-Care coverage for an eligible surviving spouse or eligible dependent child of a deceased TRS service or disability retiree or deceased active TRS member (together, a Survivor). The other adopted amendment is a non-substantive change that eliminates a redundant explanatory rule reference.
Before §41.7 was amended, the effective date of coverage for a Survivor who was not enrolled in TRS-Care immediately preceding the death of the spouse or parent was the first day of the month following TRS-Care's receipt of a timely submitted enrollment application. As a consequence, a Survivor had to submit his or her enrollment application to TRS-Care before the end of the month in which the spouse or parent died to enroll in TRS-Care and to have coverage become effective on the first day of the immediately following month. In a few situations, a Survivor was not able to submit his or her enrollment application quickly enough to avoid a month's delay in his or her effective date of coverage in TRS-Care. For example, if the active TRS member died in the third week of April, the surviving spouse might not have had enough time to submit the enrollment application before April 30. Consequently, the submission of an enrollment application during the month of May, even though timely under 34 TAC §41.1, relating to initial enrollment periods for TRS-Care, would have resulted in an effective date of coverage of June 1, not May 1. The Board has amended §41.7 to avoid a potential month delay in coverage under TRS-Care.
Subsection (d) of §41.7 is amended to provide that, if the Survivor is not enrolled in TRS-Care immediately preceding the death of the spouse or parent, the Survivor will be allowed to choose an effective date of coverage that is either: (1) the first day of the month following TRS-Care's receipt of an application during the initial enrollment period as described in §41.1; or (2) the first day of the month following the month of the retiree's or member's death, provided TRS-Care receives an application for enrollment in TRS-Care within the initial enrollment period as described in §41.1. Applying the amended rule to the example described in the preceding paragraph, upon the filing of a timely application for enrollment in TRS-Care, the Survivor may elect to have his or her TRS-Care coverage begin on May 1 or on June 1.
In addition, a non-substantive amendment to subsection (c) of §41.7 deletes a repetitive explanatory reference to another rule that already appears in subsection (a) of §41.7.
No comments were received regarding the proposed amendments to §41.7.
Statutory Authority: The Board amends §41.7 under §1575.052 of the Insurance Code, which authorizes TRS to adopt rules reasonably necessary to implement the Texas Public School Retired Employees Group Benefits Act (Chapter 1575 of the Insurance Code), including those relating to periods for enrollment and selection of optional coverage and procedures for enrolling and exercising options under TRS-Care.
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 February 23, 2009.
TRD-200900807
Ronnie G. Jung
Executive Director
Teacher Retirement System of Texas
Effective date: March 15, 2009
Proposal publication date: January 2, 2009
For further information, please call: (512) 542-6438