34 TAC §73.26
The Employees Retirement System of Texas (ERS) adopts new
34 TAC Chapter 73, §73.26, concerning Beneficiary Lineage for Guaranteed
Periodic Payments, without changes to the proposed text as published in the
April 21, 2006, issue of the
Texas Register
(31
TexReg 3363). New §73.26 concerns the lineage of designated beneficiaries
who are eligible to receive guaranteed periodic payments upon the death of
a member or retiree. This new rule is needed to clarify how and to whom the
remainder of any guaranteed periodic payments are to be made when a member
or retiree dies.
New subsections (a) and (b) are adopted to provide that a member or retiree
who selects a guaranteed periodic payment option under a retirement annuity
or death benefit plan may select primary and alternate beneficiaries to receive
any remaining payments upon the death of the member or retiree.
New subsection (c) is adopted to provide for the payment of any remaining
guaranteed periodic payments to any living designated primary beneficiary(s)
at the time of the death of the member or retiree.
New subsection (d) is adopted to provide for the payment of any remaining
guaranteed periodic payments, where there are no living primary designated
beneficiary(s), to any living designated alternate beneficiary(s) at the time
of death of the member or retiree. Additionally, this new subsection provides
that an alternate beneficiary(s) has no further entitlement in any remaining
guaranteed periodic payments where there is a living primary designated beneficiary(s)
at the time of death of the member or retiree.
New subsection (e) is adopted to provide for proportionate sharing when
one of multiple primary beneficiaries dies before all remaining payments have
been made.
New subsection (f) is adopted to clarify that when a designated primary
or alternate beneficiary dies and there are no other living designated beneficiaries,
any remaining payments shall be made to the estate of the deceased designated
primary or alternate beneficiary. Additionally, ERS may pay the estate of
a deceased beneficiary any remaining payments in a lump sum at the actuarial
present value as provided by Texas Government Code §814.011.
New subsection (g) is adopted to reference the applicability of other sections
in the Texas Government Code: §814.006--simultaneous death of members
and beneficiaries; and §814.007--a beneficiary causing the death of a
member or annuitant.
No comments were received concerning the adoption of this new rule.
This new rule is adopted under Texas Government Code §815.102,
which authorizes the board of trustees to adopt rules for the administration
of the funds of the retirement system. This new rule affects no other statutes
beyond Title 8, Subtitle B of the Texas Government Code.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 31, 2006.
TRD-200602986
Paula A. Jones
General Counsel
Employees Retirement System of Texas
Effective date: June 20, 2006
Proposal publication date: April 21, 2006
For further information, please call: (512) 867-7421