Part III.
Teacher Retirement System of Texas
Chapter 29.
Benefits
Retirement
34 TAC §29.21
The Teacher Retirement System of Texas (TRS) proposes a new
§29.21 concerning tables to figure life expectancy needed to administer
a new law found at §824.1012 of the Government Code. The new law allows
a retiree receiving a benefit with a life-time payment available to beneficiary,
to change the named beneficiary under certain circumstances. When a retiree
selects a new beneficiary under an Option 1, 2, or 5 (life-time benefits
for the beneficiary), the system must know what life expectancy to use. The
benefit will be paid for the shorter of the remainder of the life expectancy
of the beneficiary designated as of the effective date of the retiree's retirement
or the remainder of the new beneficiary's life. These tables supply that
needed information.
Ronnie Jung, TRS Chief Financial Officer, has determined that for the first
five-year period the section is in effect, there will be no fiscal implications
for state and local government as a result of enforcing or administering
the new rule.
Mr. Jung also has determined that for each year of the first five years
the new rule is in effect that the public benefit anticipated from the section
is that the TRS will have the needed tables to administer the new law. There
will be no effect on small business. There is no anticipated economic cost
to persons who are required to comply with the proposed section. While there
will be an economic impact on the old and new beneficiary, those costs were
considered and are built into the law.
Comments on the proposal must be submitted in writing to: Charles L. Dunlap,
Executive Director, Teacher Retirement System, 1000 Red River, Austin, Texas
78701-2698, within 30 days of publication in the
Texas Register
.
The new rule is proposed under the Government Code, Chapter 825,
§ 825.102, which provides the Board of Trustees of the Teacher Retirement
System with the authority to adopt rules for the administration of the funds
of the retirement system. In addition. §824.1012 of the Government Code
allows the changes in beneficiary designations which this rule addresses.
Government Code, §824.1012 is affected by this proposed action.
§29.21. Beneficiary Tables.
Tables for Unisex Joint Beneficiary Life furnished by Watson Wyatt
Worldwide, Consulting Actuaries, will be used in calculating a life expectancy
under Section 824.1012 of the Government Code. A fraction of a year shall
be converted to whole months with any partial month being rounded upward
to a full month. Life expectancy shall be determined as of the date of the
retirement in question and the age of the original beneficiary at that time.
The Teacher Retirement System of Texas adopts Watson Wyatt Worldwide's August
1997 Tables for Unisex Joint Beneficiary Life.
Figure 1: 34 TAC §29.21
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
January 12, 1998.
TRD-9800412
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed possible date of adoption: February 27, 1998
For further information, please call: (512) 370-0592
34 TAC §41.12
The Teacher Retirement System of Texas (TRS) proposes amendments
to §41.12 concerning the certification process with public schools for
TRS Insurance. New law passed by the 75th Legislature found at §22.004
of the Education Code requires rules with the information outlined in the
amended language. It is a requirement for each school district to provide
the information outlined in the amended section. There is also a new date
for submission outlined in the law as well as a new reference to the pertinent
law.
Ronnie Jung, TRS Chief Financial Officer, has determined that for the first
five-year period the section is in effect, there will be no fiscal implications
for state and local government as a result of enforcing or administering
the section.
Mr. Jung also has determined that for each year of the first five years
the section is in effect that the public benefit anticipated from the section
is that more relevant data will be submitted to TRS for the determination
of comparability. There will be no effect on small business. There may be
a economic cost to persons who are required to comply with the proposed section.
Comments on the proposal must be submitted in writing to: Charles L. Dunlap,
Executive Director, Teacher Retirement System, 1000 Red River, Austin, Texas
78701-2698, within 30 days of publication in the
Texas Register
.
The amendments are proposed under the Government Code, Chapter
825, §825.102, which provides the Board of Trustees of the Teacher Retirement
System with the authority to adopt rules for the administration of the funds
of the retirement system. In addition, the Education Code, §22.004 provides
the requirements on the substance of the rule and on submitting the certification.
Education Code,§22.004, is affected by this proposed action.
§41.12. Certification of Insurance Coverage
(a)
The Executive Director of TRS shall determine
the comparability of a school district's group health coverage to the coverage
provided under the Texas Employees Uniform Group Insurance Benefits Act (Texas
Insurance Code, Article 3.50-2). In making that decision the following factors
shall be considered:
(1)
the deductible amount for service provided
inside and outside of the network;
(2)
the coinsurance percentages for service
provided inside and outside of the network;
(3)
the maximum amount of coinsurance
payments a covered person is required to pay;
(4)
the amount of the copayment for an
office visit;
(5)
the schedule of benefits and the
scope of coverage;
(6)
the lifetime maximum benefit amount;
and
(7)
verification that the coverage is
issued by a provider licensed to do business in this state by the Texas Department
of Insurance or is provided by a risk pool authorized under Chapter 172,
Local Government Code, or that a district is capable of covering the assumed
liabilities in the case of coverage provided through district self-insurance.
(b)
For the purposes of this decision, comparable
means similar, but not identical.
(c)
TRS staff, under the direction of the
executive director, will develop a methodology and criteria for comparison
determination.
(d)
[
[
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
January 12, 1998.
TRD-9800413
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: February 27, 1998
For further information, please call: (512) 370-0592
Chapter 41.
Insurance
(a)
] Each public school district
shall
report
[
certify
] the districts compliance with
the Education Code,
§ 22.004(c)
[
13.913(a)
], to
the executive director of the Teacher Retirement System of Texas by
November
[
February
] 1 of each school year.
The report
must reflect the district group health coverage plan in effect on November
1 and must include all information required by statute and any additional
information requested by TRS staff to complete the certification.
(b)
The executive director may establish
the necessary procedures to be followed in certifying compliance. The certification
must include a copy of the district's current contract for group health coverage.
The certification procedures may require the district to compare its plan
to specific features of the coverage provided under the Texas Employees Uniform
Group Insurance Benefits Act (Vernon's Texas Insurance Code, Article 3.50-2).
]
Chapter 51.
General Administration