PART 5. TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
CHAPTER 103. CALCULATIONS OR TYPES OF BENEFITS
34 TAC §103.5
The Texas County and District Retirement System (TCDRS)
adopts an amendment to §103.5, concerning compliance by governmental
plans with the benefit distribution requirements under the Internal
Revenue Code. This amendment is adopted without changes to the proposed
text as published in the May 22, 2009, issue of the
Texas Register (34 TexReg 3242). The adopted
amendment tracks new IRS regulations applicable to governmental plans
such as TCDRS recognizing compliance with §401(a)(9) of the Internal
Revenue Code by distributing benefits under a reasonable, good-faith
interpretation of that section.
No comments were received regarding the adoption of this amendment.
The amendment is adopted under the Government Code, §845.102,
which provides the board of trustees with the authority to adopt rules
necessary or desirable for efficient administration of the system.
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 July 1, 2009.
TRD-200902723
Gene Glass
Director
Texas County and District Retirement System
Effective date: July 21, 2009
Proposal publication date: May 22, 2009
For further information, please call: (512) 637-3230
34 TAC §107.3
The Texas County and District Retirement System (TCDRS)
adopts an amendment to §107.3, concerning direct rollovers and
trustee-to-trustee transfers of single sum benefit distributions to
members, surviving spouses, alternate payees, and beneficiaries. This
amended rule is adopted with changes to the proposed text as published
in the May 22, 2009, issue of the Texas Register (34 TexReg 3243). The change is in subsection (d), changing
the wording from §402(e)(11) to §402(c)(11) of the Internal
Revenue Code. The amendment incorporates the recommended language
of the IRS reflecting the options available to distributees under
the Internal Revenue Code for deferring taxes on these single sum
distributions by electing a direct transfer to an eligible plan. The
amendment makes no changes to the amount of benefits distributed.
No comments were received regarding the adoption of this amendment.
The amendment is adopted under the Government Code, §845.102,
which provides the board of trustees with the authority to adopt rules
necessary or desirable for efficient administration of the system.
§107.3.Direct Rollovers and Trustee-to-Trustee Transfers.
(a) The retirement system may establish procedures
for the acceptance of an eligible rollover distribution, including
a direct trustee-to-trustee transfer, from an eligible retirement
plan for the payment of any portion of the deposit a member is permitted
to make for the purchase of types of credit in the retirement system,
except that the system may not accept the distribution if the system
is to separately account for the amounts.
(b) Effective January 1, 1993, a distributee may elect,
at the time and in the manner prescribed by the system, to have any
portion of an eligible rollover distribution paid directly to an eligible
retirement plan specified by the distributee in a direct rollover.
(c) Definitions:
(1) Eligible Rollover Distribution--An eligible rollover
distribution is any distribution of all or any portion of the balance
to the credit of the distributee, except that an eligible rollover
distribution does not include:
(A) any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distributee or the joint lives
(or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of 10 years or more;
(B) any distribution to the extent such distribution
is required under §401(a)(9) of the Internal Revenue Code of
1986; and
(C) the portion of any distribution that is not includable
in gross income.
(2) Eligible Retirement Plan--An eligible retirement plan is:
(A) an individual retirement account described in §408(a)
of the Internal Revenue Code of 1986;
(B) an individual retirement annuity described in §408(b)
of the Internal Revenue Code of 1986;
(C) a qualified trust described in §401(a) of
the Internal Revenue Code of 1986 or an annuity plan described in §403(a)
of the Internal Revenue Code of 1986 that accepts the eligible rollover
distribution;
(D) for distribution made on or after December 31,
2001, an annuity contract described in §403(b) of the Internal
Revenue Code of 1986;
(E) for distributions made on or after December 31,
2001, an eligible plan under §457(b) of the Internal Revenue
Code of 1986 which is maintained by a state, a political subdivision
of a state, or any agency or instrumentality of a state or political
subdivision of a state which agrees to separately account for amounts
transferred into such plan from this system; and
(F) for distributions made on or after December 31,
2007, a Roth IRA described in §408A of the Internal Revenue Code
of 1986;
(3) Distributee--A distributee includes a member or
former member. In addition, the member's or former member's surviving
spouse and the member's or former member's spouse or former spouse
who is the alternate payee under a domestic relations order, as defined
in §109.2 of this title (relating to Definitions), are distributees
with regard to the interest of the spouse or former spouse.
(4) Direct Rollover--A direct rollover is a payment
by the system to the eligible retirement plan specified by the distributee.
(d) The system shall, upon the request of a beneficiary
of a deceased member who is not a distributee, within the meaning
of subsection (c)(3) of this section, transfer a lump sum distribution
to the trustee of an individual retirement account established under §408
of the Internal Revenue Code of 1986 in accordance with the provisions
of §402(c)(11) of the Internal Revenue Code.
(e) Notwithstanding anything in this section to the
contrary, a distribution shall not fail to be an eligible rollover
distribution merely because a portion of the distribution consists
of after-tax contributions which are not includible in gross income.
However, such portion may be paid only to an individual retirement
account or annuity described in Internal Revenue Code §408(a)
or (b), or to a qualified defined contribution plan described in Internal
Revenue Code §401(a) or §403(a) that agrees to separately
account for amounts so transferred, including separate accounting
for the portion of such distribution which is includible in gross
income and the portion of such distribution which is not so includible.
(f) The retirement system shall implement this section
in a manner that causes the retirement system to be considered a qualified
plan under §401(a) of the Internal Revenue Code of 1986. It is
the responsibility of the distributee or beneficiary to determine
that the transferee plan is an eligible plan for receiving a transfer
pursuant to this rule.
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 July 1, 2009.
TRD-200902725
Gene Glass
Director
Texas County and District Retirement System
Effective date: July 21, 2009
Proposal publication date: May 22, 2009
For further information, please call: (512) 637-3230
34 TAC §107.16
The Texas County and District Retirement System (TCDRS)
adopts new §107.16, concerning the holding and managing of trust
assets for the exclusive benefit of participants and their beneficiaries.
This new rule is adopted without changes to the proposed text as published
in the May 22, 2009, issue of the Texas Register (34 TexReg 3244). The adopted rule expands on the language
contained in the TCDRS Act by setting forth the requirement for qualification
in its particulars and describing the limitations on the use of plan
assets for anything other than the exclusive benefit of the participants
and their beneficiaries. The adopted rule states in detailed language
the absolute prohibition against the diversion of trust assets in
violation of the qualification requirement.
No comments were received regarding the adoption of this new rule.
The new rule is adopted under the Government Code, §845.102,
which provides the board of trustees with the authority to adopt rules
necessary or desirable for efficient administration of the system.
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 July 1, 2009.
TRD-200902724
Gene Glass
Director
Texas County and District Retirement System
Effective date: July 21, 2009
Proposal publication date: May 22, 2009
For further information, please call: (512) 637-3230
34 TAC §109.12
The Texas County and District Retirement System (TCDRS)
adopts an amendment to §109.12, concerning the form of distribution
to the alternate payee of a benefit awarded under a Domestic Relations
Order qualified by TCDRS. The amendment is adopted without changes
to the proposed text as published in the May 22, 2009, issue of the
Texas Register (34 TexReg 3244).
The amendment changes the amount payable as a lump sum in lieu
of an annuity to the alternate payee from $15,000 to $25,000.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Government Code, §845.102,
which provides the board of trustees with the authority to adopt rules
necessary or desirable for efficient administration of the system.
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 July 1, 2009.
TRD-200902726
Gene Glass
Director
Texas County and District Retirement System
Effective date: July 21, 2009
Proposal publication date: May 22, 2009
For further information, please call: (512) 637-3230
CHAPTER 302. GENERAL PROVISIONS RELATING TO THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM
CHAPTER 107. MISCELLANEOUS RULES
CHAPTER 109. DOMESTIC RELATIONS ORDERS
PART 11. OFFICE OF THE FIRE FIGHTERS' PENSION COMMISSIONER