34 Tex. Admin. Code § 25.303 - Calculation of Actuarial Cost for Purchase of Compensation Credit
(a) When a member
is purchasing TRS compensation credit for which the law requires that the
actuarial cost or actuarial present value be deposited and for which the method
in this section is referenced by another section of this title, TRS will
calculate the cost using the cost factors obtained from the Actuarial Cost
Tables adopted and the method described in this section. TRS will use the age
of the member and the service credit established by the member on September 1
of the school year in which the cost of the purchase is established.
(b) Each of the tables cross-references the
member's age in rows with years of credited service in columns. The
intersection of the participant's age and service is the cost factor that shall
be applied in determining the cost to purchase compensation credit. TRS will
calculate the cost to purchase compensation credit under this section by
dividing the difference between participant's final average salary before and
after the purchase by 1,000 and multiplying the quotient by the appropriate
cost factor obtained from the table. The eligibility of additional compensation
credit available for purchase is determined by the laws and rules applicable to
the type of compensation sought to be credited.
(c) For individuals whose membership was
established before September 1, 2007 and who have five years of service credit
on August 31, 2014, and maintain membership in TRS until the time of purchase,
the methodology described in subsection (b) of this section shall be used to
determine cost of additional compensation credit, but TRS shall use the factors
in the tables adopted as part of this subsection.
(d) For individuals whose
membership was established on or after September 1, 2007 and who have five
years of service credit on August 31, 2014, and maintain membership in TRS
until the time of purchase, the methodology described in subsection (b) of this
section shall be used to determine cost of additional compensation credit, but
TRS shall use the factors in the tables adopted as part of this subsection.
(e) For members who do not
have five years of service credit on August 31, 2014 or whose current
membership began after August 31, 2014, the methodology described in subsection
(b) of this section shall be used to determine the cost of additional
compensation credit, but TRS shall use the factors in the tables adopted as a
part of this subsection.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.