TITLE 34.PUBLIC FINANCE

Part 4. EMPLOYEES RETIREMENT SYSTEM OF TEXAS

Chapter 73. BENEFITS

34 TAC §73.43

The Employees Retirement System of Texas (ERS) proposes new rule 34 TAC §73.43, concerning the deduction from an ERS annuity for certain membership fees. This section is added to further comply with and conform to Senate Bill 292, 77th Legislature, Regular Session, as it relates to the addition of Texas Government Code §814.009.

New subsection (a) of §73.43 authorizes, in a manner specified by the System, a deduction by a person who receives an annuity from ERS.

New subsection (b) of §73.43 provides that certain state employee organizations must certify to ERS that they meet the requirements of a state employee organization as specified in Texas Government Code §814.009(a)(2).

New subsection (c) of §73.43 authorizes ERS to provide a state employee organization such identifying information as the System deems necessary to identify a person who has elected to participate in the deduction program.

New subsection (d) of §73.43 provides that a person who disputes any aspect of a membership fee deduction must seek resolution through the applicable state employee organization and that the system is not liable or responsible for any damages or consequences related to any dispute or deduction.

Paula A. Jones, General Counsel, has determined that for the first five-year period the rule is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the rule, and small businesses and individuals will not be affected.

Ms. Jones also determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be clarification on the new benefit of deducting certain membership fee(s) from an annuity. There are no known anticipated economic costs to persons who are required to comply with the rule as proposed.

Comments on the proposed new rule 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 deadline for receiving comments is 10:00 a.m. on Monday, June 6, 2005.

The new rule is proposed under Texas Government Code, §814.009(c), which provides authorization for the board of trustees to adopt rules governing the deduction from an ERS annuity and Texas Government Code §815.102(a)(2), which provides authorization for the board of trustees to adopt rules for the administration of the funds of the retirement system.

No other statutes are affected by this proposed new rule.

§73.43.Deduction from Annuity for Certain Membership Fees.

(a) A person who receives an annuity from the Employees Retirement System of Texas (System) may authorize, in the manner specified by the System, one or more deductions from the person's monthly annuity to pay membership fees in a state employee organization as provided by Texas Government Code §814.009.

(b) An organization that meets the certification requirement specified in Texas Government Code §814.009(a)(2) must certify to the System that the requirement has been met before participating in the membership fee deduction program and at such other times as may be determined by the System.

(c) The System may provide to a state employee organization such identifying information, as the System considers necessary, to properly identify a person who elects to participate in the membership fee deduction program.

(d) The System is not liable or responsible for any damages or consequences resulting from a person's authorization or cancellation of a deduction under this section. A person who disputes any aspect of an authorization or cancellation must seek resolution through the applicable state employee organization.

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 April 25, 2005.

TRD-200501690

Paula A. Jones

General Counsel

Employees Retirement System of Texas

Earliest possible date of adoption: June 5, 2005

For further information, please call: (512) 867-7421