Part 3.
TEACHER RETIREMENT SYSTEM OF TEXAS
Chapter 25.
MEMBERSHIP CREDIT
Subchapter G. PURCHASE OF CREDIT FOR OUT-OF-STATE SERVICE
34 TAC §25.85
The Teacher Retirement System of Texas (TRS) adopts amendments
to §25.85, concerning purchase of out-of-state service credit. The amendments
are adopted without changes to the proposed text published in the October
12, 2001, issue of the
Texas Register
(26
TexReg 7984) and therefore the text will not be republished.
The amendments increase from ten years to fifteen years the maximum amount
of out-of-state service credit that may be purchased, subject to plan qualification
requirements. The amendments reflect changes in the law regarding how much
out-of-state service credit may be purchased and require that purchases are
made consistent with plan qualification requirements.
No comments were received regarding adoption of the amendments.
The amendments are adopted under Government Code, Chapter 825, §825.102,
which authorizes the Board of Trustees of the Teacher Retirement System to
adopt rules for eligibility of membership, the administration of the funds
of the retirement system, and the transaction of business of the Board, and §825.506,
which authorizes the Board to adopt rules necessary for the retirement system
to be a qualified plan. The amendments also are adopted under Government Code,
Chapter 823, §823.401, which authorizes the purchase of out-of-state
service credit.
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 December 20, 2001.
TRD-200108195
Charles L. Dunlap
Executive Director
Teacher Retirement System of Texas
Effective date: January 9, 2002
Proposal publication date: October 12, 2001
For further information, please call: (512) 542-2115
34 TAC §25.162
The Teacher Retirement System of Texas (TRS) adopts amendments
to §25.162, concerning the purchase of one year of service credit for
accumulated state personal or sick leave. The amendments are adopted without
changes to the proposed text published in the October 12, 2001, issue of the
The section implements Government Code §823.403 as amended by the
74th Legislature, 1995. The amendments delete inapplicable language relating
to state and federal restrictions on certain permissive service credit purchases
such as the requirement that a member be employed in a TRS-covered position
at the date of the purchase of the credit. The amendments also delete reference
to Government Code §823.006 relating to the permissive service credit
purchase restrictions associated with the purchase of nonqualified service,
as it is not applicable. In addition, the amendments add new language to clarify
that federal plan qualification requirements and limits under the Internal
Revenue Code do apply.
The amendments were previously adopted on an emergency basis. No comments
were received regarding adoption of the proposal.
The amendments are adopted under the Government Code, Chapter
825, §825.102, which authorizes the Board of Trustees of the Teacher
Retirement System to adopt rules for eligibility for membership and the administration
of the funds of the retirement system. The amendments are also adopted under
Government Code, Chapter 823, §823.403(b), which requires the Board of
Trustees to adopt rules regarding an employer's certification of a member's
accumulated personal or sick leave and under §823.403(d) which authorizes
the Board of Trustees to adopt rates and tables recommended by the actuary.
In addition, Government Code, Chapter 825, §825.506, authorizes the Board
to adopt rules necessary for the retirement system to be a qualified plan.
Other laws relating to these amendments: Government Code, Chapter 821, §821.001(7)
and Insurance Code, Article 3.50-4, §2(10)(A)
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 December 20, 2001.
TRD-200108197
Charles L. Dunlap
Executive Director
Teacher Retirement System of Texas
Effective date: January 30, 2002
Proposal publication date: October 12, 2001
For further information, please call: (512) 542-6115
Subchapter A. RETIREMENT
34 TAC §29.8
The Teacher Retirement System of Texas (TRS) adopts amendments
to §29.8, concerning payment of benefits to designated beneficiaries
under optional retirement payment plans. The amendments are adopted without
changes to the proposed text published in the October 12, 2001, issue of the
The amendments change the description of the persons to whom optional retirement
benefits may be paid after the death of a retiree by removing the language
requiring that the beneficiary be named before retirement. The amendments
conform the rule to changes in the law, which in some situations permits a
new designation of beneficiary after retirement. The amendments also correct
minor grammatical errors.
No comments were received regarding adoption of the amendments.
The amendments are adopted under Government Code, Chapter 825, §825.102,
which authorizes the Board of Trustees of the Teacher Retirement System to
adopt rules for eligibility for membership, the administration of the funds
of the retirement system, and the transaction of business of the Board. The
amendments also are adopted under Chapter 824, subchapters B and C, which
describe the designation of beneficiaries and the payment of service retirement
benefits.
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 December 20, 2001.
TRD-200108194
Charles L. Dunlap
Executive Director
Teacher Retirement System of Texas
Effective date: January 9, 2002
Proposal publication date: October 12, 2001
For further information, please call: (512) 542-2115
34 TAC §29.80
The Teacher Retirement System of Texas (TRS) adopts new §29.80,
concerning proportionate retirement. The new section is adopted with one non-substantive
change to the proposed text published in the November 9, 2001, issue of the
The new section addresses eligibility for a normal-age retirement annuity
from TRS based on combined service credit. The purpose of the new section
is to allow a person whose combined service credit under the proportionate
retirement program is sufficient to establish eligibility for normal-age retirement
under Government Code §824.202(a) to receive a normal-age retirement
annuity from TRS, though the years of service credit used to compute the TRS
benefit will include only TRS service credit. The section is adopted with
one non-substantive change to the proposed text. Specifically, a hyphen and
the term "age" were inserted after the word "normal" so that the phrase reads
"normal-age retirement annuity."
No comments were received regarding adoption of the proposal.
The new section is adopted under Government Code, Chapter 803, §803.401,
which authorizes the TRS Board of Trustees to adopt rules it finds necessary
to implement the proportionate retirement program. The new section is also
adopted under Government Code, Chapter 825, §825.102, which authorizes
the TRS Board of Trustees to adopt rules for eligibility for membership, the
administration of the funds of the retirement system, and the transaction
of business of the Board.
§29.80.Eligibility for Normal Age Retirement.
Retirees with an effective date of retirement on or after January 31,
2002, and who retire under Chapter 803, Proportionate Retirement Program,
Government Code, and whose combined service credit under this program establishes
eligibility for retirement under Government Code, Chapter 824, §824.202(a),
shall receive a normal-age retirement annuity based only on the actual TRS
service credit.
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 December 20, 2001.
TRD-200108196
Charles L. Dunlap
Executive Director
Teacher Retirement System of Texas
Effective date: January 9, 2002
Proposal publication date: November 9, 2001
For further information, please call: (512) 542-2115
Chapter 71.
CREDITABLE SERVICE
34 TAC §71.29
The Employees Retirement System of Texas (ERS) adopts new §71.29,
concerning the purchase of additional service credit, with changes to the
proposed text as published in the November 9, 2001, issue of the
Texas Register
(26 TexReg 9049). Subsection (c) is amended to clarify
where the public can obtain a copy of the actuarial tables adopted by the
Board of Trustees and used by the system to determine the actuarial present
value of the benefit attributable to the credit established under this section.
Section 71.29 is being adopted to reflect changes made pursuant to the
provisions of §6 of Senate Bill 292, 77th Legislative Session, codified
in Tex. Gov't Code Ann. §813.513.
Six written comments were received from individuals on the proposed new §71.29.
One commenter inquired whether it would be possible to purchase a partial
year rather than a full year and also inquired about making the purchase via
payroll deduction. ERS responds that these matters were previously considered
by ERS, but the administrative difficulty in permitting this at this point
in time, including system programming, is not cost-effective.
One commenter asked what was meant by the word "compensation" for purposes
of the factors used to purchase additional service credit. ERS responds that
Tex. Gov't Code Ann. §811.001(7) defines "compensation" as the compensation
that is reflected in the "monthly compensation" portion of the factors.
Two commenters wanted to purchase service that will be counted as part
of the member's average monthly compensation for service in the class for
the 36 highest months of compensation. ERS responds that additional service
credit is not service for which the member is receiving compensation by the
state of Texas.
Three commenters thought that it was too expensive to purchase the additional
service and that the assumptions were too conservative. ERS responds that
the legislation specifies that the member must deposit the actuarial present
value of the benefits attributable to the purchase of additional service credit.
The tables adopted by the Board are those recommended by ERS' actuaries in
order to comply with the legislation.
Three commenters inquired about the availability of the actuarial tables.
ERS responds that the tables were made available to persons requesting them
with the understanding that they had not yet been approved by the Board of
Trustees. In response to this last comment, ERS proposes an amendment to the
new section as proposed, as indicated above, that clarifies where the public
can obtain a copy of the actuarial tables.
This new section is adopted under Tex. Gov't Code Ann., §815.102,
which provides that the Board of Trustees may adopt rules for the transaction
of any business of the Board, and under Tex. Gov't Code Ann. §813.513,
which permits the Board of Trustees to adopt rules to administer that section.
§71.29.Purchase of Additional Service Credit.
(a)
An eligible member may establish equivalent membership
service credit authorized by §813.513, Texas Government Code, as provided
in this section. The provisions of §71.14 of this title do not apply
to credit established under this section.
(b)
A member is eligible to establish credit under this section
in the membership class in which the member holds a position if the member:
(1)
has 120 months of service credit for one or more periods
of time during which the member held a position in a membership class and
the required contributions were made;
(2)
is actively contributing to the system at the time credit
is established; and
(3)
is not eligible to establish other credit or service.
(c)
An eligible member shall deposit with the system in a lump
sum a contribution in the amount determined by the system to be the actuarial
present value of the benefit attributable to the credit established under
this section. The tables recommended by the actuaries and adopted by the board
shall be used by the system to determine the actuarial present value. Such
tables are incorporated herein by reference and shall be available from the
System's executive director, Employees Retirement System of Texas at 18th
and Brazos Streets, P. O. Box 13207, Austin, Texas 78711-3207. The actuarial
present value shall be based on:
(1)
the member's age on the date of the deposit required by
this subsection;
(2)
the earliest date on which the member will become eligible
to retire and receive a service retirement annuity after establishing credit
under this section; and
(3)
the future employment, compensation, investment and retirement
benefit assumptions recommended by the actuaries and adopted by the board.
(d)
Credit shall be established in increments of 12 months
of credit, except that a member who may become eligible to retire by establishing
fewer than 12 months of credit may establish the minimum number of months
of credit necessary for the member to become eligible to retire.
(e)
A member who establishes credit under this section shall
certify that the member is not eligible to establish other credit or service
and shall waive any and all right to establish such credit or service that
the member had on the date of the deposit required by subsection (c) of this
section. This subsection does not apply to service credit transferred as authorized
by Chapter 805, Texas Government Code.
(f)
Credit established under this section may not be used to
compute the amount of a disability retirement annuity, or to determine average
monthly compensation for the purpose of computing a service retirement annuity.
(g)
A member who withdraws contributions and cancels credit
established under this section may not reestablish such credit under §813.102,
Texas Government Code, but may again establish credit as provided in this
section.
(h)
The provisions of §813.503, Texas Government Code,
do not apply to credit established under this section.
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 December 19, 2001.
TRD-200108115
Sheila W. Beckett
Executive Director
Employees Retirement System of Texas
Effective date: January 8, 2002
Proposal publication date: November 9, 2001
For further information, please call: (512) 867-7125
34 TAC §73.31
The Employees Retirement System of Texas (ERS) adopts amendments
to §73.31, concerning adjustments to annuities, without changes to the
proposed text as published in the November 9, 2001, issue of the
Texas Register
(26 TexReg 9049).
Section 73.31 is amended in order to reflect changes consistent with and
related to those required to be made pursuant to the provisions of §45
of Senate Bill 292, 77th Legislative Session.
No comments were received concerning these amendments.
The amendments are adopted under Tex. Gov't Code Ann. §814.602,
which provides that the Board of Trustees may adopt rules that adjust or modify
annuities as necessary to be consistent with changes in plan design, as well
as under Tex. Gov't Code Ann. §815.102, which provides that the Board
of Trustees may adopt rules for the transaction of any business of the Board.
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 December 19, 2001.
TRD-200108117
Sheila W. Beckett
Executive Director
Employees Retirement System of Texas
Effective date: January 8, 2002
Proposal publication date: November 9, 2001
For further information, please call: (512) 867-7125
34 TAC §81.7
The Employees Retirement System of Texas (ERS) adopts amendments
to §81.7, concerning Enrollment and Participation in the Texas Employees
Uniform Group Insurance Program (UGIP), without changes to the proposed text
as published in the November 9, 2001, issue of the
Texas Register
(26 TexReg 9050).
Section 81.7 is amended in order to update and clarify the rules pertaining
to additional or alternative coverages as they relate to members of the Texas
National Guard or any of the reserve components of the United States armed
forces who are assigned to active military duty.
No comments were received concerning these amendments.
The amendments are adopted under Tex. Ins. Code, article 3.50-2, §4A,
which provides authorization for the Board of Trustees to adopt rules necessary
to carry out its statutory duty and responsibilities.
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 December 19, 2001.
TRD-200108118
Sheila W. Beckett
Executive Director
Employees Retirement System of Texas
Effective date: January 8, 2002
Proposal publication date: November 9, 2001
For further information, please call: (512) 867-7125
Subchapter L. OTHER SPECIAL SERVICE CREDIT
Chapter 29.
BENEFITS
Subchapter G. PROPORTIONATE RETIREMENT
Part 4.
EMPLOYEES RETIREMENT SYSTEM OF TEXAS
Chapter 73.
BENEFITS
Chapter 81.
INSURANCE
Chapter 87.
DEFERRED COMPENSATION