34 TAC §41.53
The Teacher Retirement System of Texas (TRS) adopts on an
emergency basis new §41.53 concerning the 90-day waiting period for supplemental
compensation payment to eligible active public school employees. The new section
implements a 90-day waiting period for the supplemental compensation offered
to eligible employees of school districts, participating charter schools,
other educational districts whose employees are members of TRS, and regional
educational services who are hired on or after September 1, 2003, when the
employee is not already a TRS member on the date of employment. The new section
is adopted on an emergency basis pursuant to §2001.034 of the Government
Code, which allows a state agency to adopt an emergency rule if a requirement
of state or federal law requires adoption of the rule on less than 30 days
notice. The new section is also adopted in accordance with §2001.006
of the Government Code, which allows a state agency to adopt rules and take
other administrative action in preparation for the implementation of legislation
that has become law but has not taken effect. The new section is simultaneously
proposed for permanent adoption in this issue of the
Texas Register
.
In accordance with House Bill 3459, 78th Legislature, Regular Session,
the new section sets forth the requirement of a 90-day waiting period for
an individual who begins employment on or after September 1, 2003, and is
not a member of TRS (including through withdrawal of contributions) as of
the date of employment, with an entity eligible to receive and hold in trust
supplemental compensation. The new section provides that the date of eligibility
for the supplemental compensation shall be determined by the process set forth
in rule 34 TAC §25.34(c) (relating to Administration of Membership Waiting
Period) and it describes the date of employment for the purpose of administering
the section. In addition, the new section requires an entity to correct any
report on which the entity has erroneously included an individual who was
not eligible or on which the entity has failed to report an individual eligible
for supplemental compensation.
This emergency adoption is necessary because TRS and affected employers
are required to comply with the relevant provisions of House Bill 3459, 78th
Legislature, Regular Session, including preparation of communication for affected
employees, modification of procedures and programming of payroll systems to
implement the new waiting period. TRS finds that the requirements of state
law require the adoption of the new section on fewer than 30 days notice.
The agency has determined that this section is necessary and appropriate in
accordance with Government Code §2001.006, which allows the agency to
adopt rules and take other administrative action in preparation for the implementation
of legislation that has become law but has not taken effect.
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 and under Insurance Code, article 3.50-8,
section 4, which authorizes TRS to adopt rules to implement the article. The
new section is also adopted under House Bill 3459, 78th Legislature, Regular
Session, section 57. As described above, the section is also adopted under
Government Code §2001.034.
Insurance Code, article 3.50-8 or Insurance Code, Chapter 1580 is affective
by the proposal.
§41.53.Waiting Period for Supplemental Compensation.
(a)
For an individual who begins employment on or after September
1, 2003, with an entity eligible to receive and to hold in trust supplemental
compensation under Insurance Code Article 3.50-8 or Insurance Code Chapter
1580 ("entity" or "entities") and that individual is not a member of TRS as
of the date of employment, eligibility for supplemental compensation begins
on the first calendar day after the end of a 90 calendar day waiting period.
(b)
For purposes of this section, an individual who is not
considered to be a TRS member includes an individual who previously terminated
membership in the retirement system through withdrawal of contributions and
did not resume membership prior to a date of employment that is on or after
September 1, 2003.
(c)
In determining the date of eligibility for supplemental
compensation for an individual who is subject to the waiting period, an entity
shall follow the process set out in §25.34(c) of this title (Relating
to Administration of Membership Waiting Period).
(d)
For the purpose of administering this section, the date
of employment means the date on which an employee begins to perform service
for an entity and the service is of a type that would otherwise qualify the
individual for membership in the TRS pension plan, as provided under Chapter
25, Subchapter A, of this title, if the individual were not subject to the
waiting period described in this section.
(e)
On the 91st calendar day of employment, an individual who
is otherwise qualified to receive supplemental compensation is eligible to
receive the full monthly supplemental compensation distribution, starting
with the first day of the calendar month in which the 91st day falls.
(f)
An entity shall correct any report on which the entity
has erroneously included an individual who was not eligible for supplemental
compensation or has failed to report an individual who was eligible for supplemental
compensation as required by §41.42(g) of this title (Relating to Payment
of Supplemental Compensation). The entity may be subject to a change in funding
as set out in §41.42(g) of this title (Relating to Supplemental Compensation).
(g)
Upon request by TRS, an entity or an individual subject
to this section shall provide copies of, or otherwise make available any information
that TRS determines us necessary to administer this section.
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 August 18, 2003.
TRD-200305333
Charles L. Dunlap
Executive Director
Teacher Retirement System of Texas
Effective Date: September 1, 2003
Expiration Date: December 30, 2003
For further information, please call: (512) 542-6115