34 Tex. Admin. Code § 107.8 - Electronic Transfer of Funds
(a) In
this section:
(1) The term "ACH" (Automated
Clearing House) means the legal framework of rules and operational procedures
adopted by financial institutions for the electronic transfer of
funds.
(2) The term "ACH Credit"
means an ACH transaction initiated by a subdivision for the electronic transfer
of funds from the account of a subdivision to the account of the retirement
system.
(3) The term "ACH Debit"
means an ACH transaction initiated by the retirement system for the electronic
transfer of funds from the account of a subdivision to the account of the
retirement system.
(4) The term
"electronic transfer of funds" means the transfer of funds, other than by
check, draft or similar paper instrument, that is initiated electronically to
order, instruct, or authorize a financial institution to debit or to credit an
account.
(5) The term
"pre-authorized direct debit" means the method available to a subdivision for
electronically paying required contributions by granting a continuing
authorization to the retirement system to initiate an ACH Debit each month for
the electronic transfer of funds from the designated bank account of the
subdivision to the account of the retirement system in an amount equal to the
contributions required to be paid based on the monthly report as
filed.
(6) The term "wire transfer"
generally means a single transaction, initiated by a subdivision, in which
funds are electronically transferred to the account of the retirement system
using the Federal Reserve Banking System rather than the ACH.
(b) Monthly amounts required to be
contributed to the retirement system in accordance with Chapter 845 of the
Texas Government Code may be made by pre-authorized direct debits (ACH Debits),
ACH Credits, wire transfers, or checks.
(c) A subdivision may elect to use the
pre-authorized direct debit method of payment by filing a signed authorization
agreement with the retirement system in which the subdivision has designated a
single bank account from which all transfers will be made.
(d) The authorization agreement entered into
for this purpose constitutes continuing authority for the retirement system to
initiate a direct debit of the subdivision's designated bank account each month
and shall be effective with respect to each monthly report of the subdivision,
whether filed by mail or by electronic transmission in accordance with §
107.9 of this title (relating to
Electronic Filing of Documents).
(e) An authorization agreement shall remain
in effect until the retirement system receives either a written revocation of
the agreement, or a subsequent written agreement, which automatically revokes
the existing authorization. A new authorization agreement must be filed if
there is any change in the designated bank account. The retirement system, in
its sole discretion, may terminate the authorization agreement by mailing
written notice to the subdivision. Thereafter, the subdivision must remit all
contributions by check, ACH Credit, or wire transfer.
(f) Following receipt of a monthly report
filed under an unrevoked authorization agreement, the retirement system will
initiate an ACH Debit in the amount required to be contributed for that month
based on the report; however the actual transfer of funds from the
subdivision's designated account will not occur prior to the due date of the
report.
(g) The receipt of a
monthly report filed under an unrevoked authorization agreement shall be
considered to be receipt by the retirement system of the amount required to be
contributed for the month based on that report provided that there are
sufficient funds available for transfer from the subdivision's designated
account on the later of the due date of the report or the date the report is
received. An ACH Debit that is reversed by a subdivision or that fails because
sufficient funds are not available for transfer constitutes non-payment of the
required contributions with respect to that monthly report and, thereafter,
such required contributions will not be considered to have been received until
the day the funds are actually transferred to the account of the retirement
system. A subdivision failing to timely file the required information or remit
the required contributions by the due date of the report is subject to a
penalty for late reporting in accordance with §
107.6 of this title (relating to
Penalty for Late Reporting; Waiver of Penalty).
(h) Except as provided in subsection (g) of
this section, amounts sent to the system by electronic transfer of funds are
received on the date the funds are credited to the system's account.
Notes
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