34 TAC §103.7
The Texas County and District Retirement System proposes
an amendment to §103.7, concerning the determination of the amount of
reestablished credit in the retirement system. The amendment is being proposed
to exclude certain repayments from the procedure for computing the amount
of reestablished credit unless a merger agreement provides otherwise. Including
repayments of amounts transferred from a local pension system and the accumulated
interest earned by such amounts in the computation for determining the amount
of reestablished credit could produce a greater benefit than would be produced
if the member's credit had never been canceled.
Terry Horton, Director 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
administering the rule.
Mr. Horton 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 preservation of retirement benefits for rehired public
employees and the protection of public funds from the cost of providing unintended
windfall benefits. There will be no cost to businesses. There will be no costs
to persons subject to the proposed rule.
Comments on the proposed amendment may be submitted to Terry Horton, Director,
Texas County and District Retirement System, P.O. Box 2034, Austin, Texas,
78768-2034.
The amendment is proposed 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.
The Government Code, §843.403 is affected by this proposed amendment.
§103.7.Determination of Reestablished Credit.
(a)
Except as provided in subsection (b) of this section,
for
[
For
] purposes of determining the current service credit
and multiple matching credit of the member under
Texas
[
the
] Government Code, §843.403, the amount deposited by the member
(excluding the withdrawal charge
and the amounts described in subsection
(b) of this section
) after December 31, 1998
,
to reestablish
credit in the retirement system [
pursuant to §843.003 of that code
] shall be considered to be accumulated contributions made by the member
to the retirement system during the calendar year of deposit. The percentage
to be used for the determination of the multiple matching credit of the member
with respect to such deposit is that percentage adopted by the governing board
of the authorizing subdivision and in effect during the month in which the
deposit is made. The multiple matching credit percentage may be increased
by the governing board on the terms provided by the Government Code, Chapter
844, Subchapter H.
(b)
The portion of the member's deposit that is a repayment
of the amount transferred from a local pension system to the member's individual
account in this retirement system pursuant to a merger under Texas Government
Code, §842.006 and the accumulated interest attributable to such transferred
amount shall not be considered when determining the current service credit
and multiple matching credit of the member under subsection (a) of this section
unless the merger agreement provides otherwise.
[
This section shall
apply to those deposits made after December 31, 1998 to reestablish credit
in the retirement system in accordance with the Government Code, §843.003(c).
]
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
April 30, 1999.
TRD-9902559
Terry Horton
Director
Texas County and District Retirement System
Proposed date of adoption: June 24, 1999
For further information, please call: (512) 328-8889