34 TAC §29.61
The Teacher Retirement System of Texas (TRS) adopts a new
§29.61 concerning the administration of the new Deferred Retirement Option
Plan (DROP) passed by the 75th Legislature, 1997. Section 29.61 is adopted
without changes to the proposed text as published in the November 14, 1997,
issue of the
Texas Register
(22 TexReg 11058).
The text will not be republished.
The justification for TRS to adopt this rule is to establish needed administrative
procedures for the distribution of DROP accounts. The rule allows a lump sum,
or installment payments for five or ten years. It also provides the guidance
for the designation of beneficiaries to receive a DROP distribution in the
event of death.
No public comments were made on this proposal.
The new section is adopted 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, House Bill 2644 passed by the 75th
Legislature, 1997, provided authority in the Government Code, §824.804
for the Board of Trustees to determine the number and frequency of installment
payments under the DROP. Further, the Government Code, §824.101(e) and
§824.505 authorize the Board of Trustees to adopt rules relating to beneficiary
designation for accounts payable upon the death of members and annuitants.
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 January
9, 1998.
TRD-9800353
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Effective date: January 29, 1998
Proposal publication date: November 14, 1997
For further information, please call: (512) 370-0592 Ext. 6115