TITLE 34.PUBLIC FINANCE

Part 3. TEACHER RETIREMENT SYSTEM OF TEXAS

Chapter 41. INSURANCE PROGRAMS

Subchapter C. TEXAS SCHOOL EMPLOYEES GROUP HEALTH

34 TAC §41.33

The Teacher Retirement System of Texas (TRS) adopts amendments on an emergency basis to §41.33 concerning the Texas School Employees Uniform Group Health Coverage Program ("Program"). The section was adopted on an emergency basis and published in the March 15, 2002 issue of the Texas Register (27 TexReg 1951). The section defines certain terms used in rules relating to the Program. The amendments are adopted on an emergency basis pursuant to §2001.034 of the Government Code, which allows a state agency to adopt emergency amendments if a requirement of state or federal law requires adoption on less than 30 days notice.

In accordance with Insurance Code article 3.50-7, the amendments add or clarify definitions of terms such as "dependent." These terms, in conjunction with other TRS rules, provide notice to participating entities and their employees of the requirements for eligibility in the Program.

This emergency adoption is necessary because TRS is required to comply with timelines under House Bill 3343, 77th Legislature, including Insurance Code article 3.50-7 and sections 5.01 through 5.07 of Acts 2001, 77th Leg., ch. 1187 including requirements in section 5.01 that TRS develop coverage plans "with coverage beginning September 1, 2002." TRS finds that these requirements of state law require the adoption of the new sections on fewer than 30 days notice.

The amendments are adopted on an emergency basis under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for, among other things, the transaction of business of the board. The amendments are also adopted under House Bill 3343, which was passed by the 77th Legislature, 2001, including Insurance Code article 3.50-7, which authorizes TRS to adopt rules relating to various matters including applicable definitions. Insurance Code article 3.50-7, §3(c) further authorizes TRS, as trustee, to "adopt rules relating to the program as considered necessary by the trustee." As described above, the amendments are also adopted under Government Code §2001.034.

There are no other codes affected.

§41.33. Definitions Applicable to the Texas School Employees Uniform Group Health Coverage Program.

The following words and terms when used in subchapter C or in connection with the administration of Insurance Code §3.50-7 shall have the following meanings unless the context clearly indicates otherwise.

(1) Dependent -- All individuals described by Insurance Code 3.50-7, section 2(3), including an unmarried child under 25 years of age ("child") who is described by any one of the following subsections at all times during which the child is receiving coverage under the TRS-ActiveCare Program.

(A) A child under the legal guardianship of a full-time or part-time employee;

(B) A full-time or part-time employee's grandchild whose primary residence is the household of that full-time or part-time employee if the child is a dependent of the full-time or part-time employee for federal income tax purposes; or

(C) A child in a regular parent-child relationship with a full-time or part-time employee, meaning that the child's primary residence is the household of that full-time or part-time employee, that full-time or part-time employee provides at least 50% of the child's support, neither of the child's natural parents reside in that household, and that full-time or part-time employee has the legal right to make decisions regarding the child's medical care.

(2) [ (1) ] Full-time employee -- A participating member who:

(A) is currently employed by a participating entity;

(B) is eligible for [ TRS ] membership in the Teacher Retirement System of Texas based on current full-time service as described by §25.1 of this title (relating to Full-Time Service), or based on current employment as a bus driver as described by §25.2 of this title (relating to Bus Drivers); and

(C) is not receiving coverage as an employee or retiree from [ of an institution that participates in ] a uniform group insurance program under the Texas Employees Uniform Group Insurance Benefits Act (Insurance Code article 3.50-2) or the Texas State College and University Employees Uniform Group Insurance Benefits Act (Insurance Code article 3.50-3) or the Texas Public School Employees Group Insurance Program established under Insurance Code article 3.50-4 (TRS-Care).

(3) [ (2) ] Participating entity -- An entity participating in the TRS-ActiveCare program including a school district; another educational district whose employees are members of the retirement system; a regional education service center; and a charter school that meets the requirements of Insurance Code article 3.50-7. An entity is considered to be participating in the TRS-ActiveCare program on and after the first date coverage becomes effective for its employees.

(4) [ (3) ] Participating member -- A person defined by Government Code §§822.001 and 822.002 whose membership in the retirement system has not been terminated as described by Government Code §§822.003 - 822.006 and who is currently contributing to the Teacher Retirement System of Texas pension trust fund in accordance with Government Code §825.403.

(5) [ (4) ] Part-time employee -- An individual who is currently employed by a participating entity for 10 hours or more each week; and:

(A) is not a full-time employee; [ neither a participating member nor a full-time employee; ]

(B) is not a retiree who waived coverage under the Texas Public School Employees Group Insurance Program established under Insurance Code article 3.50-4 (TRS-Care); and [ currently employed by a participating entity for 10 hours or more each week;and ]

(C) is not receiving coverage as an employee or retiree from [ of an instituion that participating in ] a uniform group insurance program under the Texas Employees Uniform Group Insurance Benefits Act (Insurance Code article 3.50-2) or the Texas State College and University Employees Uniform Group Insurance Benefits Act (Insurance Code article 3.50-3) or the Texas Public School Employees Group Insurance Program established under Insurance Code article 3.50-4 (TRS-Care).

(6) Plan year -- A plan year begins on the first day of September and ends on the last day of the following August.

(7) [ (5) ] TRS-ActiveCare program -- The Texas School Employees Uniform Group Health Coverage Program established by Insurance Code article 3.50-7.

(8) [ (6) ] Trustee or TRS -- The Teacher Retirement System of Texas acting in its capacity as trustee under Insurance Code article 3.50-7.

This agency hereby certifies that the emergency adoption 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 June 6, 2002.

TRD-200203503

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Effective Date: June 6, 2002

Expiration Date: July 24, 2002

For further information, please call: (512) 542-6115