TITLE 34.PUBLIC FINANCE

Part 4. EMPLOYEES RETIREMENT SYSTEM OF TEXAS

Chapter 85. FLEXIBLE BENEFITS

34 TAC §85.9

The Employees Retirement System of Texas (ERS) proposes amendments to §85.9, concerning the Payment of Claims from Reimbursement Accounts of the Flexible Benefits Program. Section 85.9 is amended to update the dependent care reimbursement rules.

Paula A. Jones, General Counsel, has determined that for the first five-year period the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rules.

Ms. Jones also determined that for each year of the first five years the rules are in effect the public benefit anticipated as a result of enforcing the rules will be updated information and clarification of the rules. There will be no affect on small businesses. There are no known anticipated economic costs to persons who are required to comply with the rules as proposed.

Comments on the proposed rule amendments may be submitted to Paula A. Jones, General Counsel, Employees Retirement System of Texas, P.O. Box 13207, Austin, Texas, 78711-3207, or e-mail Ms. Jones at pjones@ers.state.tx.us.

The amendments are proposed under Insurance Code, Art. 3.50-2, §4A and affect Insurance Code Art. 3.50-2, §13B.

No other statutes are affected by this amendment.

§85.9.Payment of Claims from Reimbursement Accounts.

(a)

(No change.)

(b)

Reimbursement of claims to participants.

(1)-(3)

(No change.)

(4)

Dependent care reimbursement shall at no time exceed the greater of the balance of the participant's account for the plan year[ , ] at the time of the reimbursement , or an amount equal to the monthly salary reduction amount .

(5)

(No change.)

(c)-(d)

(No change.)

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 7, 2000.

TRD-200004729

Sheila W. Beckett

Executive Director

Employees Retirement System of Texas

Earliest possible date of adoption: August 20, 2000

For further information, please call: (512) 867-7125