Part 5.
TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
Chapter 101.
PRACTICE AND PROCEDURE REGARDING CLAIMS
34 TAC §101.2
The Texas County and District Retirement System proposes
an amendment to §101.2, concerning the scope and application of the rules
adopted under Part 5 of Title 34, Administrative Code. This amendment states
the equitable authority granted by the board to the director to suspend, modify,
or grant an exception to the operation of a rule in an individual case in
the interest of fairness and equity, and limits the application of the director's
decision to that case only. The authority may not be used to enlarge or diminish
any substantive rights or powers, and may not be exercised in a manner that
would cause harm or injury to the system or any other party, or that would
be impermissible for a qualified plan under §401(a) of the Internal Revenue
Code. This rule as amended is necessary to clearly specify the director's
authority to grant equitable relief from the application of a rule in appropriate
cases to avoid undue hardships, and the limits and effects of the exercise
of that authority.
Tom Harrison, Deputy Director and General Counsel of 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 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 availability of equitable relief from the harshness of
a rule when appropriate in individual cases. 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 amended rule may be submitted to Tom Harrison,
Deputy Director and General Counsel, 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.
No section of the Government Code is affected by this proposed rule.
§101.2.Scope and Application .
(a)
These rules shall govern the procedure for the
institution, conduct, and determination of all claims arising under the Act
, and the administration of such other matters as are set forth under this
Part 5 of Title 34, Administrative Code
. They shall not be construed
so as to enlarge, diminish, modify, or alter the jurisdiction, powers, or
authority of the system or the substantive rights of any person.
(b)
Subject to the limitation described
in subsection (a), the director is authorized to suspend, modify or grant
an exception to the operation of a rule under this Part 5 of Title 34 in individual
cases as equity and fairness require to avoid undue hardship, where to do
so will not prejudice the system or cause delay or inconvenience in its management
or administration, or cause harm or injury to another party, or cause an impermissible
suspension, modification, or exception to a mandatory qualification requirement
under §401(a) of the Internal Revenue Code of 1986.
(c)
The decision to suspend, modify
or grant an exception to the operation of a rule in an individual case is
within the sole and exclusive discretion of the director. A determination
by the director to grant or deny relief is final and not appealable by any
person. A determination by the director to grant relief to any person does
not create a right or privilege in any other person to an exception, suspension
or modification to a rule, or excuse a failure to comply with a rule in all
of its particulars.
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 9, 2005.
TRD-200501848
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: June 19, 2005
For further information, please call: (512) 637-3230
34 TAC §103.2
The Texas County and District Retirement System proposes
an amendment to §103.2, concerning the optional benefit forms that may
be selected by the participant. The proposed amendment includes the optional
100% joint and survivor annuity with a ‘pop-up’ feature that increases
the monthly annuity amount to the standard benefit if the designated beneficiary
predeceases the retiree. The 25% joint and survivor benefit option has been
replaced by the new option. The proposed amendment also references the statutory
section which sets forth the order of distribution of unrecovered contributions
in the event the retirement annuity terminates before all individual contributions
have been recovered. This rule as amended will appropriately reflect the statutory
changes made to the available optional benefit forms and the order of distribution
of unrecovered contributions.
Tom Harrison, Deputy Director and General Counsel of 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 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 accurate information available to the membership regarding
an optional benefit form that is of greater value and utility to a segment
of the retiring membership than an option that heretofore has been rarely
selected. 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 amended rule may be submitted to Tom Harrison,
Deputy Director and General Counsel, Texas County and District Retirement
System, P.O. Box 2034, Austin, TX 78768-2034.
The amendment 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.
No sections of the Government Code are affected by this proposed amendment.
§103.2.Additional Optional Benefits.
(a)
A member entitled to retirement may elect to receive, in
lieu of a standard [
(1)
Option 1: after the retiree’s death, the reduced
annuity is payable throughout the life of a person designated by the retiree;
(2)
Option 2: after the retiree’s death, one-half of
the reduced annuity is payable throughout the life of a person designated
by the retiree;
(3)
Option 3: if the retiree dies before 60 monthly annuity
payments have been made, the remainder of the 60 payments are payable to the
retiree’s beneficiary or, if one does not exist, to the retiree’s
estate;
(4)
Option 4[
(5)
Option
5
[
(6)
Option
6
[
(7)
Option
7
[
(b)
If [
[
[(2)
to the estate of the retiree, if the
designated beneficiary predeceased the 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 May 9, 2005.
TRD-200501849
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: June 19, 2005
For further information, please call: (512) 637-3230
34 TAC §103.6
The Texas County and District Retirement System proposes
an amendment to §103.6, concerning the inclusion in the retirement benefit
calculation of those deposits received after the effective retirement date.
The proposed amendment establishes a 60-day period in which post-retirement
deposits must be received by the system so that they may be included in the
calculation of the benefit. A 60-day window is a reasonable period for an
employer to determine and submit employee contributions attributable to the
retiree’s final regular pay period and payments for unused vacation
and sick leave. Recalculations of annuities resulting from deposits received
later than 60 days after the effective retirement date are disruptive to the
efficient administrative operation of the system. Recalculations may still
be made for additional deposits received after the 60-day window as a result
of the correction of a reporting error. This rule as amended supports the
efficient administration of the system by encouraging employers to be diligent
in timely delivering to the system all required contributions and information.
Tom Harrison, Deputy Director and General Counsel of 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 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 improved efficiency of the system in performing its administrative
responsibility to accurately and timely determine the benefit payable to a
retiring member and put that benefit in pay status. 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 amended rule may be submitted to Tom Harrison,
Deputy Director and General Counsel, Texas County and District Retirement
System, P.O. Box 2034, Austin, TX 78768-2034.
The amendment 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.
No sections of the Government Code are affected by this proposed amendment.
§103.6.Recalculation of Retirement Annuities to Include Post-Retirement Deposits.
(a)
If a contribution that would otherwise be credited to the
member’s individual account in the
system
[
(b)
The following deposits shall be treated as additional accumulated
contributions for purposes of recalculating the retirement annuity:
(1)
employee contributions attributable to compensation for
services performed while a member of the
system
[
(2)
employee contributions attributable to compensation for
services performed while a member of the
system
[
(3)
employee contributions deposited as a result of a correction
of a reporting error made in accordance with the Government Code, §842.112.
(c)
A retirement annuity subject to this section will be recalculated
as of the effective retirement date by taking into account the additional
accumulated contributions and the related increases in current service credit
and matching credit. The recalculated retirement annuity will be based on
the age of the retiree (and the age of the beneficiary in the case of a joint
and survivor option) as of the effective retirement date.
(d)
The recalculated retirement annuity is payable only prospectively
beginning with the month following the month in which the retirement system
receives the deposit.
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 9, 2005.
TRD-200501850
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: June 19, 2005
For further information, please call: (512) 637-3230
34 TAC §103.7
The Texas County and District Retirement System proposes
an amendment to §103.7, concerning the restoration of service credits
pursuant to a subdivision’s order under Government Code §843.003.
An order under that section authorizes a member to reinstate service credits
forfeited because of a withdrawal of the member’s account by paying
to the system the amount withdrawn and a 5% per annum withdrawal charge. The
payment of the amount withdrawn is deposited to the member’s individual
account for the crediting of interest in accordance with the TCDRS Act. An
eligible member under this section is a member who is an employee of the subdivision
on January 1st, the effective date of the order. An eligible member may pay
the required amount at any time on or after that date. To be credited with
interest for the year under the TCDRS Act, the payment must be included in
the member’s opening account balance on January 1 of that year. The
proposed amendment requires the member to make the payment on or before December
15, for crediting to the member’s account on the following January 1.
A member has sufficient time (eleven and one-half months) during the year
to submit the payment so that it will be included in the following January
1 opening account balance for the crediting of interest. If the payment is
received by the system after December 15, the deposit will not be treated
as accumulated contributions for the crediting of interest at year’s
end until the next following January 1. The mid-December cutoff for crediting
the payment is necessary because of the heavy volume of end-of-year processing
for refunds, retirements and subdivision change orders. This rule as amended
is necessary for the efficient operation of the systems.
Tom Harrison, Deputy Director and General Counsel of 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 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 improved efficiency of the system in performing its administrative
responsibility to timely and promptly pay refunds and retirements. There will
be no costs to small businesses. There are no anticipated material economic
costs to persons who are required to comply with the rule as proposed.
Comments on the proposed amended rule may be submitted to Tom Harrison,
Deputy Director and General Counsel, Texas County and District Retirement
System, P.O. Box 2034, Austin, TX 78768-2034.
The amendment 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.
Government Code, §843.003 is affected by this proposed amendment.
§103.7.Determination of Reestablished Credit.
(a)
Except as provided in subsection (b) of this section, for
purposes of determining the current service credit and multiple matching credit
of the member under Texas Government Code, §843.403, the amount deposited
by the member (excluding the withdrawal charge and the amounts described in
subsection (b) of this section) after December 31, 1998, to reestablish credit
in the retirement system shall be considered to be accumulated contributions
made by the member to the retirement system during the calendar year of deposit.
The percentage to be used for the determination of the multiple matching credit
of the member with respect to such deposit is that percentage adopted by the
governing board of the authorizing subdivision and in effect during the month
in which the deposit is made. The multiple matching credit percentage may
be increased by the governing board on the terms provided by the Government
Code, Chapter 844, Subchapter H.
(b)
The portion of the member’s deposit that is a repayment
of the amount transferred from a local pension system to the member’s
individual account in this retirement system pursuant to a merger under Texas
Government Code, § 842.006 and the accumulated interest attributable
to such transferred amount shall not be considered when determining the current
service credit and multiple matching credit of the member under subsection
(a) of this section unless the merger agreement provides otherwise.
(c)
For purposes of determining
the interest to be credited to the member’s individual account, a deposit
made under this section that is received by the system on or before December
15, will be included in the member’s account as accumulated contributions
on the following January 1. A deposit received after December 15 will not
be included as accumulated contributions in the determination of the interest
to be credited to the member’s individual account until January 1 of
the next following year.
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 9, 2005.
TRD-200501851
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: June 19, 2005
For further information, please call: (512) 637-3230
34 TAC §107.2
The Texas County and District Retirement System proposes
new rule §107.2, concerning the payment by members to purchase forfeited
service credits in accordance with Government Code §843.0031. This section
of the code authorizes a current member who has forfeited benefits by previously
withdrawing the member’s individual account to pay to the system for
deposit to the member’s account, a lump-sum in any amount that does
not exceed the actuarial present value of the benefits that would be attributable
to the withdrawn amount. The payment, which can be made at any time during
employment, will be deposited to the member’s individual account as
accumulated contributions for crediting with interest in accordance with the
TCDRS Act. However, the payment and all accumulated interest relative to the
payment are excluded from the determination of the member’s current
service credit and multiple matching credits. To be credited with interest
under the TCDRS Act for a specific year, the payment must be included in the
member’s opening account balance on January 1 of that year. The proposed
new rule requires the member to make the payment on or before December 15,
for crediting to the member’s account on the following January 1. If
the payment is received by the system after December 15, the deposit will
not be treated as accumulated contributions for the crediting of interest
until the next following January 1. The mid-December cutoff for crediting
the payment is necessary because of the heavy volume of end-of-year processing
for refunds, retirements and subdivision change orders. This new rule is necessary
for the efficient operation of the systems.
Tom Harrison, Deputy Director and General Counsel of 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 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 improved efficiency of the system in performing its administrative
responsibility to timely and promptly pay refunds and retirements. There will
be no costs to small businesses. There are no anticipated material economic
costs to persons who are required to comply with the rule as proposed.
Comments on the proposed new rule may be submitted to Tom Harrison, Deputy
Director and General Counsel, Texas County and District Retirement System,
P.O. Box 2034, Austin, TX 78768-2034.
The new 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.
Government Code, §843.0031 is affected by this proposed new rule.
§107.2. Payments by Members to Purchase Forfeited Benefits.
(a)
Pursuant to Government Code, §843.0031,
a member who has withdrawn accumulated contributions from the system and is
a member with another participating subdivision or again becomes a contributing
member with any participating subdivision may at any time before retirement
pay to the system for deposit to the member’s individual account a lump-sum
in any amount that does not exceed the actuarial present value of the additional
benefits that would have been attributable to the withdrawn contributions.
(b)
An amount paid under subsection (a) of this section will
be deposited to the member’s individual account as accumulated contributions
and credited with interest as allowed by Government Code, Title 8, Subtitle
F.
(c)
The amount paid under subsection (a) of this section together
with all accumulated interest attributable to that amount is not subject to
employer matching and will be excluded from the determination of the member’s
current service credit and multiple matching credits.
(d)
For purposes of determining the interest to be credited
to the amount paid under subsection (a) of this section, a payment that is
received by the system on or before December 15, will be included in the member’s
account as accumulated contributions on the following January 1. A payment
received after December 15 will not be included as accumulated contributions
in the determination of the interest to be credited to the member’s
individual account until January 1 of the next following year.
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 9, 2005.
TRD-200501852
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: June 19, 2005
For further information, please call: (512) 637-3230
34 TAC §107.5
The Texas County and District Retirement System proposes
an amendment to §107.5, concerning the termination of membership resulting
from the withdrawal of all accumulated contributions by a member, and the
cancellation of a withdrawal application and reinstatement of accounts. The
proposed amendment clarifies that the date of membership termination and closing
of accounts is the date shown on the first check the system sends or causes
to be sent as payment of any portion of the member’s accumulated contributions.
In the ordinary course of the distribution process, withdrawal checks are
routinely mailed no later than the next business day after production, and
represent the entire account balance of the member as shown in system records.
However, delayed deposits by the employer may require the issuance of a supplemental
check in the amount of these late deposits. Additionally, the date shown on
the first check marks the beginning of the 60-day period in which the member
may return all checks thereby canceling the withdrawal application and reinstating
the account or accounts. The member must return the check or checks issued
by the system rather than remit a reimbursement of the amount received. The
rule as amended supports the efficient administration of the system in instances
where two or more checks are issued pursuant to a withdrawal application by
defining a single date for purposes of termination of membership and closing
of accounts. Additionally, exceptions and special processing are avoided by
limiting the opportunity for reinstatement to the timely return of the actual
checks rather than reimbursement of the amount paid.
Tom Harrison, Deputy Director and General Counsel of 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 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 improved efficiency of the system in establishing a clear
and identifiable date for the termination of accounts while allowing relief
to members who timely act to rescind their previous actions. 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 amended rule may be submitted to Tom Harrison,
Deputy Director and General Counsel, Texas County and District Retirement
System, P.O. Box 2034, Austin, TX 78768-2034.
The amendment 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.
Government Code, §842.108 is affected by this proposed amendment.
§107.5.[
(a)
If a member files an application to withdraw
[
(b)
If a person files an application for withdrawal of
accumulated contributions, the accounts that are the subject of the application
will be closed as of the date shown on the first check which the system sends
or causes to be sent as payment of any portion of the accumulated contributions.
[
(c)
An application for withdrawal
of accumulated contributions may be cancelled and the accounts that were the
subject of the application reinstated retroactive to the date of closure provided
no check issued by or on behalf of the system with respect to the application
has been cashed or deposited and all such checks are returned to the system
within 60 days of the date shown on the first check sent as payment of any
portion of the accumulated contributions.
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 9, 2005.
TRD-200501853
Tom Harrison
Deputy Director and General Counsel
Texas County and District Retirement System
Earliest possible date of adoption: June 19, 2005
For further information, please call: (512) 637-3230
Chapter 103.
CALCULATIONS OR TYPES OF BENEFITS
service or disability
] retirement benefit,
one of the following optional benefits, each of which is a reduced monthly
annuity
[
allowance
] that is the actuarial equivalent of the
standard retirement benefit, payable during the lifetime of the retiree, but
with the provision that:
A
]: if the retiree dies before 120
monthly annuity payments have been made, the remainder of the 120 payments
are payable to the retiree’s beneficiary or, if one does not exist,
to the retiree’s estate;
4B
]: after the retiree’s
death, [
one-fourth of
] the reduced annuity is payable throughout
the life of a person designated by the retiree
, except that if the designated
person predeceases the retiree, the annuity payable throughout the remaining
life of the retiree is the annuity that would be payable if the retiree had
chosen a standard retirement annuity
;
4C
]: after the retiree’s
death, three-fourths of the reduced annuity is payable throughout the life
of a person designated by the retiree;
4D
]: if the retiree dies
before 180 monthly annuity payments have been made, the remainder of the 180
payments are payable to the retiree’s beneficiary or, if one does not
exist, to the retiree’s estate.
monthly
] payments under
a standard
or
[
an
] optional retirement
benefit
[
annuity
described in subsection (a) of this section
] cease before the sum of
all
such
[
the monthly
] payments equals or exceeds the
amount of accumulated contributions in the individual account in the
employees
[
employee
] saving fund at the time of retirement
of the member on whose service the annuity was based, a lump-sum benefit equal
to the amount by which the accumulated contributions exceed the sum of all
such
[
monthly
] payments made under the annuity is payable
in the manner described in Government Code §844.402.
[
:
]
(1)
to the designated beneficiary,
if living, or if not living, to the estate of the designated beneficiary,
if the designated beneficiary survived the retiree; or]
System
]
is deposited after the member’s effective retirement date, the retirement
annuity shall be recalculated
in accordance with this section
.
System
]
but deposited
within 60 days
after the effective retirement date
of the member;
System
]
but deposited
within 60 days
after the
death
[
effective retirement date
] of a deceased member; and,
Chapter 107.
MISCELLANEOUS RULES
Date of ] Termination of Membership on Withdrawal; Cancellation of Withdrawal Application [ Payment of Refund; Cancellation of Refund ].
The date on which the retirement system mails, or electronically transfers
payment of
] all accumulated contributions credited to a member’s
individual accounts in the employees saving fund pursuant to §842.108(b),
Government Code,
the date shown on the first check the system sends or
causes to be sent as payment of any portion of the member’s accumulated
contributions
is the date on which the person’s membership in
the [
retirement
] system terminates under §842.109 of that
code as a result of that payment.
If the retirement system receives the amount withdrawn from a
person’s account within 60 days after the date the refund was mailed
or electronically transferred, together with the person’s written request
to be reinstated as a member, if the refund terminated membership, the person’s
account shall be reopened as if the payment to the member had not been made.
]
Chapter 109.
DOMESTIC RELATIONS ORDERS