Part 3.
TEACHER RETIREMENT SYSTEM OF TEXAS
Chapter 25.
MEMBERSHIP CREDIT
Subchapter B. COMPENSATION
34 TAC §25.21
The Teacher Retirement System of Texas (TRS) proposes amendments
to §25.21 concerning compensation subject to deposit and credit. The
proposed amendments clarify the types of monetary compensation that are creditable
and subject to deposit as well as the types of payments that are excluded
from eligible compensation for TRS purposes. The proposed amendments to 25.21
expressly add to the list of payments that are excluded from annual compensation
for TRS purposes certain payments that are paid as an incentive for early
retirement or for terminating employment. In addition, the proposed amendments
clarify that TRS may rely upon employer certifications in determining creditable
compensation or may conduct an investigation to determine if ineligible compensation
has been reported.
Tony Galaviz, Chief Financial Officer, has determined that for each year
of the first five years the section 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.
Mr. Galaviz, Chief Financial Officer, has also determined that the public
benefit will be clarification of provisions relating to compensation for TRS
purpose. 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 proposals will be in effect.
Comments may be submitted to Charles L. Dunlap, Executive Director, 1000
Red River, Austin, Texas 78701.
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 the administration of the funds of the
retirement system and for the transaction of the business of the Board. Other
statutes that support adoption include Gov't Code, Chapter 822, Subchapter
B, §822.201, Gov't Code, Chapter 824, Subchapter C, §824.203, Gov't
Code, Chapter 825, Subchapter E, §825.403 and Subchapter F, §825.505
are affected by proposed changes to §25.21.
No other codes are affected.
§25.21.Compensation Subject to Deposit and Credit.
(a) - (c)
( No change.)
(d)
The following are excluded from annual compensation:
(1)
allowances, including housing, car, and expense allowances;
(2)
reimbursements for expenses;
(3)
payments for accrued sick leave or vacation, except that
continued payments of normal compensation when vacation or sick leave is actually
taken by an employee will be included in annual compensation to the extent
otherwise permitted by this section;
(4)
benefits, except as provided in subsection (c)(1) of this
section, which either are not subject to federal income tax or which will
be subject to federal income tax in a future year;
(5)
bonus payments which are not included in the contract of
employment and for which the employer receives no additional consideration
or value;
(6)
employer payments for fringe benefits, including direct
cash payments in lieu of fringe benefits, except as provided in §25.22
of this title (relating to Contributions to Cafeteria Plans and Deferred Compensation);
(7)
payments, except as provided in subsection (c)(1), (c)(2),
(c)(5), and (c)(8) of this section, made to third parties for the benefit
of a member;
(8)
payments for work as an independent contractor or consultant;
(9)
all nonmonetary compensation;
(10)
active employee health coverage or compensation supplementation
received by an employee under Article 3.50-8, Insurance Code, regardless of
whether the employee receives the amount in cash, uses it for payment of health
care coverage, or uses it for any other option available by law; [
(11)
any other fringe benefit
; and
[
(12)
payments for terminating employment
or paid as an incentive to terminate employment. Examples of such payments
include payments for contract buy-outs, amounts paid pursuant to an agreement
in which the employee agrees to terminate employment or to waive or release
rights to future employment, and amounts paid pursuant to early retirement
incentive programs or other programs intended to increase the compensation
paid to the employee upon receipt of the resignation of the employee or the
waiver or release of rights to future employment. Increased compensation paid
in the final year of employment prior to retirement that exceeds increases
approved by the employer for all employees or classes of employees is presumed
to be payment for terminating employment.
(e)
( No change.)
(f)
TRS may rely upon employer
certifications in determining creditable compensation or may conduct an investigation
to determine whether any ineligible compensation has been reported. At the
request of TRS, employers will provide copies of any records or information
the retirement system requests. Such records may include, but are not limited
to, copies of contracts, work agreements, salary schedules or addenda, board
minutes, payroll records, or other materials that will assist the retirement
system in making a determination.
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 May 12, 2003.
TRD-200302970
Charles L. Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: June 26, 2003
For further information, please call: (512) 542-6115
Chapter 101.
PRACTICE AND PROCEDURE REGARDING CLAIMS
34 TAC §101.6
The Texas County and District Retirement System proposes
an amendment to §101.6, concerning the time for filing retirement applications.
The proposed amendment will allow limited relief to a member when a properly
completed application for service retirement is not timely received by the
system and such failure is not the fault of the member. Historically, retirement
under the system has been inseparably linked to the receipt by the system
of the application rather than its proper execution. This was implemented
for administrative efficiency rather than as a limit on retirement eligibility.
Financial hardship to members resulted in those cases where late receipt of
a properly completed application caused the commencement of benefits to be
deferred by one or two months even though the applicant was not responsible
for the late filing. The proposed amendment provides a mechanism to mitigate
such harsh results by accepting a late filed service retirement application
as timely filed in those instances where the late filing is shown to have
not been due to the member's neglect, indifference or lack of diligence. The
maximum relief available under this proposed rule cannot exceed the equivalent
of two monthly annuity payments.
Tom Harrison, Director of Legal and Governmental Relations for the Texas
County and District Retirement System, has determined that for the first five-year
period the rule is in effect there will be no material fiscal implications
for state or local government as a result of enforcing or administering the
rule.
Mr. Harrison has also determined that for each year of the first five years
the rule is in effect the public benefit anticipated as a result of administering
the rule will be the commencement of service retirement benefits at the date
elected by the eligible member and as certified by the member's employer when
compliance with all other rules for electing a retirement date has occurred.
There will be no costs to small businesses. There are no anticipated economic
costs to persons who are required to comply with the rule as proposed.
Comments on the proposed rule may be submitted to Tom Harrison, Director
of Legal and Governmental Relations, Texas County and District Retirement
System, P.O. Box 2034, Austin, TX 78768-2034.
The rule is proposed under the Government Code, §845.102,
which provides the board of trustees of the Texas County and District Retirement
System with the authority to adopt rules necessary or desirable for efficient
administration of the system.
The Government Code, §844.101, is affected by this proposed rule.
§101.6.Time for Filing of Retirement Applications.
(a)
All applications for retirement, whether for service or
for disability, must be
executed
[
(b) - (d)
(No change)
(e)
If, on an application for service retirement,
a member specifies an effective retirement date after November 30, 2002, and
that application is received by the system after the specified retirement
date, the director may, on his own motion or on good cause shown in a petition
filed with the system, deem the application to have been filed on the last
day of a month ending prior to the date it was received by the system provided
all other requirements set forth in this rule have been met. In no event may
a deemed filing date be earlier than the effective retirement date specified
on the application or the last day of the second calendar month immediately
preceding the date the application was received by the system. The effective
retirement date with respect to an application that is filed under this subsection
is the deemed filing date. A petition filed under this subsection must fully
state the facts and circumstances that show that the member has complied with
all other filing requirements under this rule and that the failure to timely
file the application with the system was not due to the neglect, indifference
or lack of diligence of the member, must state the relief requested, and must
be certified as true and correct. The system shall adjust benefits and make
retroactive payments as appropriate to correctly reflect the service retirement
annuity that is payable to the member based on the effective retirement date
determined under this subsection.
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 May 8, 2003.
TRD-200302856
Tom Harrison
Director of Legal and Governmental Relations
Texas County and District Retirement System
Proposed date of adoption: June 26, 2003
For further information, please call: (512) 637-3230
and
]
.
]
Part 5.
TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
filed
] on or before
the date specified by the member as the effective date of the member's retirement
and except as provided in subsection (e) of this section all applications
for retirement must be filed on or before the date specified as the effective
retirement date
.