34 TAC §41.53
The Teacher Retirement System of Texas (TRS) proposes a new §41.53
concerning the 90-day waiting period for supplemental compensation payment
to eligible active public school employees. The proposed 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 proposal has been adopted on an
emergency basis and is published in this issue of the
Texas Register
.
In accordance with House Bill 3459, 78th Legislature, Regular Session,
the proposed 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 has failed to report an individual eligible for supplemental
compensation.
Tony Galaviz, Chief Financial Officer, has determined that for each year
of the first five years the proposed section will be in effect, there will
be no fiscal implications to state or local governments as a result of enforcing
or administering the section as proposed. There will be no measurable effect
on local employment or the local economy as a result of the proposal. Any
economic costs to local governments required to comply with the proposed new
rule are the result of the legislative enactment of House Bill 3459, 78th
Legislature, Regular Session.
Mr. Galaviz has also determined that the public benefit will be to provide
notice and clarification to employers of the provisions relating to the 90-day
waiting period for supplemental compensation for affected employees. He has
also determined that there will be no anticipated economic cost to the public,
small businesses, or to the persons who are required to comply with the sections
as proposed for each year of the first five years the section will be in effect.
Comments may be submitted in writing to Charles L. Dunlap, Executive Director,
1000 Red River, Austin, Texas 78701. To be considered, written comments must
be received by TRS no later than 30 days after publication of the section
for proposal.
The new section is proposed 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. In addition,
the new section is proposed under House Bill 3459, 78th Legislature, Regular
Session, Section 57 that requires a waiting period for the supplemental compensation.
Insurance Code, article 3.50-8 or Insurance Code, Chapter 1580 is affected
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 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 August 18, 2003.
TRD-200305335
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: November 21, 2003
For further information, please call: (512) 542-6115