Part 3.
TEACHER RETIREMENT SYSTEM OF TEXAS
Chapter 31.
EMPLOYMENT AFTER RETIREMENT
Subchapter A. GENERAL PROVISIONS
34 TAC §§31.1 - 31.3
The Teacher Retirement System of Texas (TRS) proposes amendments
to §§31.1, 31.2, and 31.3, concerning employment after retirement.
The sections being amended relate to definitions, monthly certified statement,
and the application of the exceptions only to effective retirements. The proposed
amendments have been adopted on an emergency basis and are published in this
issue of the
Texas Register
.
The proposed amendments are being made in order comply with HB 2169, which
took effect when signed by the Governor on June 20, 2003. The proposed amendments
to §31.1 add the definition of a third party entity. The proposed amendments
to §31.2 add a requirement that the monthly certified statement of all
employment of TRS service or disability retirees furnished by reporting entities
must include information regarding employees of third party entities if the
employees are service or disability retirees who were first employed on or
after May 24, 2003 and are performing duties or providing services on behalf
of or for the benefit of the reporting entity. In addition the amendments
to §31.3 include language providing that employment by a third party
entity is considered employment by a Texas public educational institution
unless the retiree does not perform duties or provide services on behalf of
or for the benefit of the institution or the retiree was first employed by
the third party entity before May 24, 2003.
Tony Galaviz, Chief Financial Officer, has determined that for each year
of the first five years the sections as amended will be in effect, there will
be no fiscal implications to state or local governments as a result of enforcing
or administering the sections as proposed.
Mr. Galaviz has also determined that the public benefit will be clarification
of the provisions relating to employment after retirement as well as notification
to reporting entities and retirees of the employment after retirement provisions
specifically relating to those retirees employed by a third party entity.
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 sections
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 sections
for proposal.
The amendments are proposed 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. The amendments
are also proposed under House Bill 2169, 78th Legislature, Regular Session,
which provides that employment of a retiree by a third party entity may be
considered employment by a TRS covered employer for purposes of employment
after retirement.
No other codes are affected.
§31.1.Definitions.
(a)
School year--For purposes of employment after retirement,
a twelve-month period beginning on September 1 and ending on August 31 of
the calendar year.
(b)
Substitute--For purposes of employment after retirement,
a person who serves on a daily, on-call basis in a position normally filled
by another regular employee. Service as a substitute that does not meet this
definition is not eligible substitute service for purposes of an exception
to forfeiture of annuity payments.
(c)
Third party entity--For purposes
of employment after retirement, an entity retained by a Texas public educational
institution to provide personnel to the institution who perform duties or
provide services that employees of that institution would otherwise perform
or provide.
§31.2.Monthly Certified Statement.
A reporting entity shall furnish Teacher Retirement System of Texas
(TRS) a monthly certified statement of all employment of TRS service or disability
retirees.
Effective June 20, 2003, the certified statement must include
information regarding employees of third party entities if the employees are
service or disability retirees who were first employed by the third party
entity on or after May 24, 2003 and are performing duties or providing services
on behalf of or for the benefit of the reporting entity.
The statement
shall contain information necessary for the executive director or his designee
to classify employment as one of the following:
(1)
substitute service;
(2)
employment that is not more than one-half time;
(3)
employment under the six month exception;
(4)
employment under the acute shortage area exception;
(5)
employment under the principal or assistant principal exception;
(6)
employment under the bus driver exception;
(7)
full-time employment;
(8)
trial employment of disability retiree for three months;
or
(9)
employment of a service retiree who retired before January
1, 2001.
§31.3.Exceptions Apply only to Effective Retirements.
The exceptions to forfeiture of annuities provided in this chapter
apply only to persons who have effectively retired by ending all employment
as described in Government Code, §824.002 and §29.15 of this title
(relating to Termination of Employment) and who do not revoke retirement by
becoming employed in any position by Texas public educational institutions
in the month immediately following the person's effective date of retirement
(or in the two months immediately following the person's effective date of
retirement if the effective date of retirement is May 31 under §29.14
of this title (relating to Eligibility for Retirement at the End of May)).
Employment by a third party entity is considered employment by a Texas public
educational institution unless the retiree does not perform duties or provide
services on behalf of or for the benefit of the institution or the retiree
was first employed by the third party entity before May 24, 2003.
A
person who has not effectively retired or who revokes retirement because of
premature return to employment is not eligible for a retirement annuity and
is required to return all annuity or lump sum payments to TRS.
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 2, 2003.
TRD-200304089
Charles L. Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: September 25, 2003
For further information, please call: (512) 542-6115
34 TAC §§31.11 - 31.18
The Teacher Retirement System of Texas (TRS) proposes amendments
to §§31.11-31.18 concerning employment after retirement. The sections
relate to employment resulting in forfeiture of service retirement annuity,
exceptions to forfeiture of service retirement annuity, substitute service,
one-half time employment, six-month exception, acute shortage area exception,
principal or assistant principal exception, and the bus driver exception.
The proposed amendments have been adopted on an emergency basis and are published
in this issue of the
Texas Register
.
The amendments are being proposed in order to comply with HB 2169 and HB
3237, which took effect when signed by the Governor on June 20, 2003. The
proposed amendments to §31.11, §31.12, and §§31.14-31.18
include language providing that employment by a third party entity is considered
employment by a Texas public educational institution unless the retiree does
not perform duties or provide services on behalf of or for the benefit of
the institution or the retiree was first employed by the third party entity
before May 24, 2003. In addition, amendments to §31.13-31.15 relate to
substitute service and clarify that effective September 1, 2003, substitute
service and half-time employment may be combined in the same calendar month
without forfeiting the annuity payment for that month.
Tony Galaviz, Chief Financial Officer, has determined that for each year
of the first five years the sections as amended will be in effect, there will
be no fiscal implications to state or local governments as a result of enforcing
or administering the sections as proposed.
Mr. Galaviz has also determined that the public benefit will be clarification
of the provisions relating to employment after retirement and notification
to reporting entities and retirees of the employment after retirement provisions
specifically relating to those retirees employed by a third party entity.
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 sections
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 sections
for proposal.
The amendments are proposed 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. The amendments
are also proposed under House Bill 2169, 78th Legislature, Regular Session,
which provides that employment of a retiree by a third party entity may be
considered employment by a TRS covered employer for purposes of employment
after retirement. The amendments are also proposed under House Bill 3237,
78th Legislature, Regular Session, which provides that retirees may combine
substitute service and one-half time employment in the same calendar month
without forfeiting the annuity payment for that month.
No other codes are affected.
§31.11.Employment Resulting in Forfeiture of Service Retirement Annuity.
(a)
A person who retired prior to January 1, 2001, and who
is receiving a service retirement annuity may be employed in any capacity
in Texas public education without forfeiture of benefits for the months of
employment.
(b)
A person who retired after January 1, 2001, and who is
receiving a service retirement annuity, is not entitled to an annuity payment
for any month in which the retiree is employed by a Texas public educational
institution, unless the employment meets the requirements for an exception
to forfeiture of payments under this chapter.
Effective June 20, 2003
and for purposes of this chapter, employment by a third party entity is considered
employment by a Texas public educational institution unless the retiree does
not perform duties or provide services on behalf of or for the benefit of
the institution or the retiree was first employed by the third party entity
before May 24, 2003.
(c)
A person who is receiving a service retirement annuity
may be employed in private schools, public schools in other states, in private
business, or in other entities that are not TRS-covered employers without
forfeiting their annuities.
(d)
This chapter applies only to persons retired under TRS.
It does not apply to persons retired under other retirement or pension systems.
§31.12.Exceptions to Forfeiture of Service Retirement Annuity.
A person who is receiving a service retirement annuity who retired
after January 1, 2001, forfeits the annuity for any month in which the retiree
is employed by a public educational institution covered by TRS, except in
the cases set forth in §31.13 of this chapter (relating to Substitute
Employment), §31.14 of this chapter (relating to One-half Time Employment), §31.15
of this chapter (relating to Six Month Exception), §31.16 of this chapter
(relating to the Acute Shortage Area Exception), §31.17 of this chapter
(relating to the Principal/Assistant Principal Exception), and §31.18
of this chapter (relating to the Bus Driver Exception).
Effective June
20, 2003 employment by a third party entity is considered employment by a
Texas public educational institution unless the retiree does not perform duties
or provide services on behalf of or for the benefit of the institution or
the retiree was first employed by the third party entity before May 24, 2003.
§31.13.Substitute Service.
(a)
Any person receiving a service retirement annuity who retired
after January 1, 2001, may work in a month as a daily substitute in a public
educational institution without forfeiting the annuity payment for that month,
provided the pay for work as a substitute does not exceed the daily rate of
substitute pay established by the employer.
Employment by a third party
entity is considered employment by a Texas public educational institution
unless the retiree does not perform duties or provide services on behalf of
or for the benefit of the institution or the retiree was first employed by
the third party entity before May 24, 2003, and may not be combined with the
substitute service exception without forfeiting the annuity payment except
as provided in this chapter.
The exception described in this section
is not available to retirees who have elected the exception described in §31.15
of this chapter (relating to Six Month Exception). The exception described
in this section does not apply for the first month after the person's effective
date of retirement (or the first two months if the person's retirement date
has been set on May 31 under §29.14 of this title (relating to Eligibility
for Retirement at the End of May) or under §29.21 of this title (relating
to Effective Date for Disability Retirement).
(b)
A retiree who reports for duty as a daily substitute during
any day and works any portion of that day shall be considered to have worked
one day.
§31.14.One-half Time Employment.
(a)
A person who is receiving a service retirement annuity
may be employed on a one-half time basis without forfeiting annuity payments
for the months of employment.
Employment by a third party entity is considered
employment by a Texas public educational institution unless the retiree does
not perform duties or provide services on behalf of or for the benefit of
the institution or the retiree was first employed by the third party entity
before May 24, 2003.
(b)
One-half time employment measured in clock hours shall
not in any month exceed one-half of the time required for a full time position
in a calendar month or 92 clock hours, whichever is less. Because the time
required for a full time position may vary from month to month, determination
of one-half-time will be made on a calendar month basis. Actual course instruction
in state-supported colleges (including junior colleges), universities, and
public schools shall not exceed during any calendar month one-half the normal
load for full-time employment at the same teaching level.
(c)
For bus drivers, "one-half time" employment shall in no
case exceed 12 days in any calendar month, unless the retiree qualifies for
the bus driver exception in §31.18 of this chapter (relating to Bus Driver
Exception). Work by a bus driver for any part of a day shall count as a full
day for purposes of this section.
(d)
This exception and the exception for substitute service
may be used during the same school year provided the substitute service and
one-half time employment do not occur in the same month.
Effective September
1, 2003, this exception and the exception for substitute service may be used
during the same calendar month without forfeiting the annuity only if the
total number of days that the retiree works in those positions in that month
does not exceed the number of days per month for work on a one-half time basis.
§31.15.Six-Month Exception.
(a)
Any person receiving a service retirement annuity, who
retired after January 1, 2001, may, without forfeiting payment of the annuity,
be employed on as much as full time for no more than six months in a school
year if the work meets the requirements in subsection (b) of this section
and the person complies with the requirements of subsection (c) of this section.
Employment by a third party entity is considered employment by a Texas public
educational institution unless the retiree does not perform duties or provide
services on behalf of or for the benefit of the institution or the retiree
was first employed by the third party entity before May 24, 2003.
(b)
The work must occur:
(1)
in no more than six months in a school year; and
(2)
in a school year that begins after the retiree's effective
date of retirement or no earlier than October 1 if the effective date of retirement
is August 31.
(c)
A person who retired after January 1, 2001, and who, during
a school year, has already used the exception described in §31.13 of
this chapter (relating to Substitute Service) or §31.14 of this chapter
(relating to One-half Time Employment) is eligible for the exception described
in this section during the same school year. However, the permissible substitute
service
,
[
(d)
A person who retired after January 1, 2001, and is using
the six-month exception, will forfeit an annuity payment for any month in
the school year for work in excess of the six-month period. This applies even
if the work would otherwise qualify for an exception under §31.13 of
this chapter (relating to Substitute Service) for substitute work or for exceptions
applicable to one-half time or less employment, employment as a bus driver,
employment in an acute shortage area, or employment as a principal or assistant
principal.
(e)
A retiree may elect to revoke the six month exception by
submitting the election in writing and returning any ineligible payments.
(f)
A retiree employed under the six-month exception who, during
the same school year, also works as a substitute or one-half time or less
may not be employed in or reported under the substitute or one-half time category
during the remaining months of the school year.
§31.16.Acute Shortage Area Exception.
(a)
A person who is retired under Government Code, §824.202(a)
without reduction for retirement at an early age and who teaches at least
one classroom hour per day in an acute shortage area in accordance with Government
Code, §824.602(a)(5) will be considered eligible for the employment after
retirement exception described in that section.
Employment by a third
party entity is considered employment by a Texas public educational institution
unless the retiree does not perform duties or provide services on behalf of
or for the benefit of the institution or the retiree was first employed by
the third party entity before May 24, 2003.
(b)
A retiree eligible to work under the acute shortage area
exception must elect in writing on a form prescribed by TRS to take advantage
of the exception no later than the end of the first month of employment under
the exception or 30 days after the date of employment, whichever is later.
(c)
If the form is not received and the retiree continues to
work on a full time basis for more than six months, the annuity payments will
be suspended each month in which work is performed until the election form
is received by TRS.
(d)
In the event the retiree elects to use the acute shortage
area exception and has not been reported in that manner, the reporting entity
must notify TRS in writing by amending the previous TRS 118, Employment of
Retired Member(s), report(s).
(e)
The 12 month separation period required under Government
Code, §824.602(a)(5) for the acute shortage area exception may be any
12 consecutive months following the month of retirement so long as the retiree
is not employed in any position or capacity by a public educational institution
covered by TRS during any part of each of the 12 months.
Employment by
a third party entity as described in subsection (a) of this section is considered
employment by a public educational institution covered by TRS for purposes
of this subsection.
§31.17.Principal or Assistant Principal Exception.
(a)
A person who has retired under Government Code, §824.202(a)
without reduction for retirement at an early age and who is hired as and performs
the duties of a principal or assistant principal as certified by the employer
in accordance with Government Code, §824.602(a)(6) will be considered
eligible for employment after retirement under the exception described in
this section.
Employment by a third party entity is considered employment
by a Texas public educational institution unless the retiree does not perform
duties or provide services on behalf of or for the benefit of the institution
or the retiree was first employed by the third party entity before May 24,
2003.
(b)
A retiree must elect in writing on a form prescribed by
TRS to take advantage of the exception described by this section no later
than the end of the first month of employment under this section or 30 days
after the date of employment, whichever is later.
(c)
If the form is not received and the retiree continues to
work on a full time basis for more than six months the annuity payments will
be suspended each month work is performed until the election form is received
by TRS.
(d)
In the event the retiree elects to use the principal or
assistant principal exception and has not been reported in that manner, the
reporting entity must notify TRS in writing by amending the previous TRS 118,
Employment of Retired Member(s), report(s).
(e)
For the principal or assistant principal exception, the
12 month separation period required by Government Code, §824.602 may
be any 12 consecutive months following the month of retirement so long as
the retiree is not employed in any position or capacity by a public educational
institution during any part of each of the 12 months.
Employment by a
third party entity as described in subsection (a) of this section is considered
employment by a public educational institution covered by TRS for purposes
of this subsection.
§31.18.Bus Driver Exception.
(a)
A retiree who retired under Government Code, §824.202(a)
without reduction for retirement at an early age and who drives at least one
Texas Education Agency (TEA) approved bus route per day will be considered
eligible for the bus driver exception under Government Code, §824.602(a)(6).
Employment by a third party entity is considered employment by a Texas public
educational institution unless the retiree does not perform duties or provide
services on behalf of or for the benefit of the institution or the retiree
was first employed by the third party entity before May 24, 2003.
(b)
In the event the retiree wants to use the bus driver exception
but has not been reported in that manner, the reporting entity must notify
TRS in writing by amending the previous TRS 118, Employment of Retired Member,
report(s).
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 2, 2003.
TRD-200304090
Charles L. Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: September 25, 2003
For further information, please call: (512) 542-6115
34 TAC §§31.31 - 31.34
The Teacher Retirement System of Texas (TRS) proposes amendments
to §§31.31, 31.32, 31.33, and 31.34 concerning employment after
retirement. The sections being amended relate to employment resulting in forfeiture
of disability retirement annuity and exceptions to such forfeiture for disability
retirees, specifically, half-time employment up to 90 days, substitute service
up to 90 days, and employment up to three months on a one-time only trial
basis. The proposed amendments have been adopted on an emergency basis and
are published in this issue of the
Texas Register
.
The amendments are being proposed in order to comply with HB 2169 and HB
3237 which took effect when signed by the Governor on June 20, 2003. The proposed
amendments to §§31.31-31.34 include language providing that employment
by a third party entity is considered employment by a Texas public educational
institution unless the retiree does not perform duties or provide services
on behalf of or for the benefit of the institution or the retiree was first
employed by the third party entity before May 24, 2003. The proposed amendments
to §31.32 and §31.34 relating to substitute service clarify that
effective September 1, 2003, substitute service and half-time employment may
be combined in the same calendar month without forfeiting the annuity payment
for that month.
Tony Galaviz, Chief Financial Officer, has determined that for each year
of the first five years the sections as amended will be in effect, there will
be no fiscal implications to state or local governments as a result of enforcing
or administering the sections as proposed.
Mr. Galaviz has also determined that the public benefit will be clarification
of the provisions relating to employment after retirement and notification
to reporting entities and retirees of the employment after retirement provisions
specifically relating to those retirees employed by a third party entity.
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 sections
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 sections
for proposal.
The amendments are proposed 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. The amendments are also proposed
under House Bill 2169, 78th Legislature, Regular Session, which provides that
employment of a retiree by a third party entity may be considered employment
by a TRS covered employer for purposes of employment after retirement. The
amendments are also proposed under House Bill 3237, 78th Legislature, Regular
Session, which provides that retirees may combine substitute service and one-half
time employment in the same calendar month without forfeiting the annuity
payment for that month.
No other codes are affected.
§31.31.Employment Resulting in Forfeiture of Disability Retirement Annuity.
(a)
A person receiving a disability retirement annuity forfeits
the annuity payment in any month in which the retiree is employed by a public
educational institution covered by TRS, unless the employment falls within
one of the exceptions set forth in this subchapter.
Employment by a third
party entity is considered employment by a Texas public educational institution
unless the retiree does not perform duties or provide services on behalf of
or for the benefit of the institution or the retiree was first employed by
the third party entity before May 24, 2003.
(b)
A person receiving a disability retirement annuity may
not exercise the exceptions applicable to service retirees in §31.15
of this chapter (relating to Six Month Exception); §31.16 of this chapter
(relating to Acute Shortage Area Exception); §31.17 of this chapter (relating
to Principal or Assistant Principal Exception); and §31.18 of this chapter
(relating to Bus Driver Exception).
§31.32.Half-time Employment Up to 90 Days.
(a)
Any person receiving a disability retirement annuity may,
without affecting payment of the annuity, be employed for a period not to
exceed 90 days during any school year by public educational institution covered
by TRS on as much as one-half the full time load for the particular position
according to the personnel policies of the employer.
Employment by a
third party entity is considered employment by a Texas public educational
institution unless the retiree does not perform duties or provide services
on behalf of or for the benefit of the institution or the retiree was first
employed by the third party entity before May 24, 2003.
Total substitute
service under §31.33 of this chapter and half-time employment may not
exceed 90 days during any school year.
Effective September 1, 2003, substitute
service under §31.33 of this chapter and half-time employment may be
combined in the same calendar month only if the total number of days that
the disability retiree works in those positions in that month do not exceed
the number of days per month for work on a one-half time basis.
This
exception does not apply for the first month after the retiree's effective
date of retirement (or the first two months if the person's retirement date
has been set on May 31 under §29.14 of this title (relating to Eligibility
for Retirement at the End of May) or under §29.21 of this title (relating
to Effective Date for Disability Retirement)).
(b)
"One-half time" employment measured in clock hours must
never exceed one-half of the time required for the full time position in a
calendar month or 92 clock hours, whichever is less, and may not exceed a
total of 90 days in a school year. Determination of one-half time will be
made on a calendar month basis as the full time load may vary from month to
month. Actual course instruction in state-supported colleges (including junior
colleges), universities, and public schools shall not exceed during any month
one-half the normal load for full-time employment at the same teaching level.
(c)
"One-half time" employment for bus drivers shall in no
case exceed 12 days in any calendar month. Work by a bus driver for any part
of a day shall count as full day for purposes of this section.
§31.33.Substitute Service Up to 90 Days.
(a)
A person receiving a disability retirement annuity may
work as a substitute in a month without forfeiting the annuity for that month
subject to the same conditions as apply to service retirees except that the
total substitute service and one-half time employment in the school year may
not exceed 90 days. This exception does not apply for the first month after
the retiree's effective date of retirement (or the first two months if the
person's retirement date has been set on May 31 under §29.14 of this
title (relating to Eligibility for Retirement at the End of May) or under §29.21
of this title (relating to Effective Date for Disability Retirement)).
Employment by a third party entity is considered employment by a Texas public
educational institution unless the retiree does not perform duties or provide
services on behalf of or for the benefit of the institution or the retiree
was first employed by the third party entity before May 24, 2003.
(b)
Any disability retiree who reports for duty as a substitute
during any day and works any portion of that day shall be considered to have
worked one day.
§31.34.Employment Up to Three Months on a One-Time Only Trial Basis.
(a)
Any person receiving a disability retirement annuity may,
without forfeiting payment of the annuity, be employed on a one-time only
trial basis on as much as full time for a period of no more than three consecutive
months in a school year if the work meets the requirements in subsection (b)
of this section and the person complies with the requirements of subsection
(c) of this section.
Employment by a third party entity is considered
employment by a Texas public educational institution unless the retiree does
not perform duties or provide services on behalf of or for the benefit of
the institution or the retiree was first employed by the third party entity
before May 24, 2003.
(b)
The work must occur:
(1)
in a period, designated by the employee, of no more than
three consecutive months of a school year; and
(2)
in a school year that begins after the retiree's effective
date of retirement or no earlier than October 1 if the effective date of retirement
is August 31.
(c)
A retiree must elect in writing on a form prescribed by
TRS to take advantage of the exception described by this section no later
than the end of the first month of employment under this section or 30 days
after the date of employment, whichever is less.
(d)
Working any portion of a month counts as working a full
month for purposes of this section.
(e)
The three month exception permitted under this section
is in addition to the 90 days of work allowed in §31.33 of this chapter
(relating to Substitute Service up to 90 Days)
or §31.32 of this
chapter (relating to Half-time Employment Up to 90 Days)
for a disability
retiree.
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 2, 2003.
TRD-200304091
Charles L. Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: September 25, 2003
For further information, please call: (512) 542-6115
Chapter 81.
INSURANCE
34 TAC §81.1, §81.5
The Employees Retirement System of Texas (ERS) proposes amendments
to Title 34, Texas Administrative Code, §81.1 and §81.5, concerning
Definitions and Eligibility in the Texas Employees Group Benefits Program
(GBP). These sections are amended to comply with and conform to Acts of the
78th Legislature and to update the rules for changes under the Texas Insurance
Code, Chapter 1551.
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 simplified administration of the GBP in accordance with
recent changes to the law. It should be noted that there may be existing rules
within Chapter 81 that are not presently being amended but that may conflict
with recently enacted legislation. To the extent of any conflict, applicable
statutory law shall control. 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 Texas Insurance Code, §1551.052
which provides authorization for the Board of Trustees to adopt rules necessary
to carry out its statutory duties and responsibilities.
No other statutes are affected by the proposed amendments.
§81.1.Definitions.
The following words and terms, when used in this chapter, shall have
the following meanings, unless the context clearly indicates otherwise.
(1)
Accelerated life benefit--An amount of term life insurance
to be paid in advance of the death of an insured employee, annuitant, or dependent,
as requested by the employee or annuitant and approved by the carrier, in
accordance with the terms of the group term life plan as permitted by
Chapter 1551.254 of the
[
(2)
Act--
The Texas Employees Group Benefits Act, Act of
the 77th Legislature, 2001, as amended (the Insurance Code), Chapter 1551
[
(3) - (8)
(No change.)
[(9)
Committee or GBAC--The Group Benefits
Advisory Committee as established by the Act, §18. ]
(9)
[
(10)
[
(11)
[
(A)
the natural child of an employee/retiree;
(B)
a legally adopted child (including a child living with
the adopting parents during the period of probation);
(C)
a stepchild whose primary place of residence is the employee/retiree's
household;
(D)
a foster child whose primary place of residence is the
employee/retiree's household and who is not covered by another governmental
health program;
(E)
a child whose primary place of residence is the household
of which the employee/retiree is head and to whom the employee/retiree is
legal guardian of the person;
(F)
a child who is in a parent-child relationship to the employee/retiree,
provided the child's primary place of residence is the household of the employee/retiree,
the employee/retiree provides the necessary care and support for the child,
and if the natural parent of the child is 21 years of age or older, the natural
parent does not reside in the same household;
(G)
a child who is considered a dependent of the employee/retiree
for federal income tax purposes and who is a child of the employee/retiree's
child;
(H)
an eligible child, as defined in this subsection, for whom
the employee/retiree must provide medical support pursuant to a valid order
from a court of competent jurisdiction; or
(I)
a child eligible under
Chapter 1551.004
[
(12)
[
(13)
[
(14)
[
(15)
[
(16)
[
(17)
[
[(19)
HealthSelect Plus--The optional managed
care plan of health coverage fully self-insured by the Employees Retirement
System of Texas and administered by a qualified carrier of HMO on a regular
basis.]
(18)
[
(19)
[
(20)
[
(21)
[
(22)
[
(23)
[
(24)
[
(25)
[
(26)
[
(A)
is authorized by the Act to participate in the program
as a retiree;
(B)
on August 31, 1992, was a participant in a group insurance
program administered by an institution of higher education; or
(C)
on the date of retirement, meets the service credit requirements
of the Act for participation in the program as an annuitant; and
(i)
on August 31, 2001, was an eligible employee with a department
whose employees are authorized to participate in the program and, on the date
of retirement has three years of service with such a department; or
(ii)
on August 31, 2001, had three years of service as an eligible
employee with a department whose employees are authorized to participate in
the program.
(27)
[
(28)
[
(29)
[
§81.5.Eligibility.
(a)
Full-time employees. A full-time employee, elected officer,
or appointed officer of the State of Texas is eligible for automatic coverage
upon completion of the waiting period established in Section 1551.1055 of
the Act. However, an employee of an institution of higher education and the
employee's eligible dependents are eligible for coverage on the first day
that an employee performs services as an employee of an institution of higher
education only if
[
(1)
the full amount of premiums are paid for
the employee's coverage from the first date of employment through the completion
of the waiting period defined in §1551.1055(a) of the Act;
(2)
any premiums paid as provided in paragraph
(1) of this subsection shall not be paid using money appropriated from the
general revenue fund; and
(3)
any institution of higher education electing
to pay the premium for any employee as described in this subsection must do
so for all eligible full-time employees.
(b)
Part-time employees. A part-time employee or other employee
who is not eligible for automatic coverage becomes eligible for coverage
upon completion of the waiting period established in §1551.1055 of the
Act and
upon application to participate in the program, subject to the
provisions of §81.7(b) of this title (relating to Enrollment).
(1)
However, a part-time employee of an institution
of higher education and the employee's eligible dependents are eligible for
coverage on the first day that a part-time employee performs services as a
part-time employee of an institution of higher education only if
(A)
the full amount of premiums are paid for the part-time
employee's coverage from the first date of employment through the completion
of the waiting period defined in §1551.1055(a) of the Act;
(B)
any premiums paid as provided in subparagraph (A) of this
paragraph shall not be paid using money appropriated from the general revenue
fund; and
(C)
any institution of higher education electing to pay any
portion of the premium for any part-time employee as described in this subsection
or in §1551.101(e)(2) must do so for all eligible similarly situated
part-time employees.
(2)
An institution of higher education is
also not prohibited from contributing a portion or all of the required premium
for certain part-time employees described by §1551.101(e)(2) of the Act
only if:
(A)
the premiums not paid by the general revenue
fund are paid by the institution of higher education with funds that are not
appropriated from the general revenue fund;
(B)
any institution of higher education electing
to pay the premiums for any part-time employee as described in §1551.101(e)(2)
of the Act must do so for all eligible part-time employees described therein;
and
(C)
any premiums paid as provided in subparagraph
(A) of this paragraph must be paid from the first date of the part-time employee's
initial enrollment.
(c) - (l)
(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, 2003.
TRD-200304109
Paula A. Jones
General Counsel
Employees Retirement System of Texas
Earliest possible date of adoption: August 17, 2003
For further information, please call: (512) 867-7125
Subchapter B. EMPLOYMENT AFTER SERVICE RETIREMENT
or
] the employment for work at no more than
half time during the same school year
, and any combination in the same
calendar month of substitute service and one-half time employment
must
be included in the six months of employment allowed under this section. The
six-month exception will be allowed so long as the retiree is eligible and
is reported under that exception by the employer. A retiree using the six-month
exception must use the first six months of a school year in which any work
occurs. In the event the retiree wants to use the six-month exception and
has not been reported in that manner, the reporting entity must notify TRS
in writing by amending the previous TRS 118, Employment of Retired Member(s),
report(s).
Subchapter C. EMPLOYMENT AFTER DISABILITY RETIREMENT
Part 4.
EMPLOYEES RETIREMENT SYSTEM OF TEXAS
Article 3.50-6,
] Insurance Code.
Accelerated life benefit payment may be requested only upon diagnosis of a
terminal condition and only once during the lifetime of the insured employee,
annuitant, or dependent. A terminal condition is a non-correctable health
condition that with reasonable medical certainty will result in the death
of the insured within 12 months.
The Texas Employees Uniform Group Insurance Benefits Act, Chapter
79, Acts of the 64th Legislature, 1975, as amended (the Insurance Code, Article
3.50-2)
].
(10)
] Contract year--A contract
year begins on the first day of September and ends on the last day of the
following August.
(11)
] Department--Commission, board,
agency, division, institution of higher education, or department of the State
of Texas created as such by the constitution or statutes of this state, or
other governmental entity whose employees or retirees are authorized by the
Act to participate in the program.
(12)
] Dependent--The spouse of
an employee or retiree and unmarried children under 25 years of age, including:
Section 3(a)(8)B
] of the Act, provided that the child's mental retardation
or physical incapacity is a medically determinable condition which prevents
the child from engaging in self-sustaining employment, that the condition
commences before the date of the child's 25th birthday, and that satisfactory
proof of such condition and dependency is submitted by the employee/retiree
within 31 days following such child's attainment of age 25 and at such intervals
thereafter as may be required by the system.
(13)
] Eligible to receive an annuity--Refers
to a person who, in accordance with the Act, meets all requirements for retirement
from a state retirement program or the Optional Retirement Program.
(14)
] Employee--A person authorized
by the Act to participate in the program as an employee.
(15)
] Employing office--For a retiree
covered by this program, the office of the Employees Retirement System of
Texas in Austin, Texas or the retiree's last employing department; for an
active employee, the employee's employing department.
(16)
] Evidence of insurability--Such
evidence required by a qualified carrier for approval of coverage or changes
in coverage pursuant to the rules of §81.7(h) of this title (relating
to Enrollment and Participation).
(17)
] Former COBRA unmarried child--a
child of an employee or retiree who is unmarried; whose
GBP
[
UGIP
] coverage as a dependent has ceased; and who upon expiration of
continuation coverage under the Consolidated Omnibus Budget Reconciliation
Act, Public Law 99-272 (COBRA) reinstates
GBP
[
UGIP
]
coverage.
(18)
] HealthSelect of Texas--The
statewide point-of-service plan of health coverage fully self-insured by the
Employees Retirement System of Texas and administered by a qualified carrier
or HMO.
(20)
] HMO--A health maintenance
organization approved by the board to provide health care benefits to eligible
participants in the program in lieu of participation in the program's HealthSelect
of Texas plan.
(21)
] Insurance premium expenses--Any
out-of-pocket premium incurred by a participant, or by a spouse or dependent
of such participant, as payment for coverage provided under the program that
exceeds the state's or institution's contributions offered as an employee
benefit by the employer. The types of premium expense covered by the premium
conversion plan include out-of-pocket premium for group term life, health
(including HMO premiums), AD&D, and dental, but do not include out-of-pocket
premium for long or short term disability or dependent term life.
(22)
] Leave without pay--The status
of an employee who is certified by a department administrator to be absent
from duty for an entire calendar month, who does not receive any compensation
for that month, and who has not received a refund of retirement contributions
based upon the most recent term of employment.
(23)
] ORP--The Optional Retirement
Program as provided in the Government Code, Chapter 830.
(24)
] Placement for adoption--A
person's assumption and retention of a legal obligation for total or partial
support of a child in anticipation of the person's adoption of such child.
(25)
] Preexisting condition--Any
injury or sickness, for which the employee received medical treatment, or
services, or took prescribed drugs or medicines during the three-month period
immediately prior to the effective date of such coverage. However, if the
evidence of insurability requirements set forth in §81.7(h) of this title
must first be satisfied, the three-month period for purposes of determining
the preexisting conditions exclusion will be the three-month period immediately
preceding the date of the employee's completed application for coverage.
(26)
] Premium conversion plan--A
separate plan, under the Internal Revenue Code, §79 and §106, adopted
by the board of trustees and designed to provide premium conversion as described
in §81.7(f) of this title.
(27)
] Program--
The Texas Employees
Group Benefits Act
[
The Texas Employees Uniform Group Insurance
Program
] as established by the board.
(28)
] Retiree--An employee who
retires or is retired and who:
(29)
] Salary--The salary to be
used for determining optional term life and disability income limitations
will be the employee's regular salary, including longevity, shift differential,
hazardous duty pay, and benefit replacement pay, received by the employee
as of the employee's first day of active duty within a contract year. No other
component of compensation shall be included. Non-salaried elective and appointive
officials and members of the legislature may use the salary of a state district
judge or their actual salary as of September 1 of each year.
(30)
] System--The Employees Retirement
System of Texas.
(31)
] TRS--The Teacher Retirement
System of Texas.
on the first day he or she begins active duty
with the state. For an elected or appointed officer, the first day of active
duty shall be the day he or she takes the oath of office.
]
Chapter 87.
DEFERRED COMPENSATION