34 Tex. Admin. Code § 25.43 - Cost for Unreported Service or Compensation
(a)
Except as provided by §
25.28(g) of this
title (relating to Payroll Report Dates) and subsections (e), (f), and (g) of
this section, the cost of establishing unreported service or compensation
credit is the actuarial cost, as determined by TRS, of the additional standard
annuity retirement benefits that would be attributable to the unreported
service or compensation credit purchased under this subchapter.
(b) To calculate the actuarial cost of
purchasing a year of unreported service credit, TRS will use the cost factors
and method described in §
25.302 of this title (relating to
Calculation of Actuarial Cost for Service Credit). To calculate the actuarial
cost of purchasing unreported compensation credit, TRS will use the factors and
method as set forth in §
25.303 of this title (relating to
the Calculation of Actuarial Cost for Purchase of Compensation
Credit).
(c) The purchase cost
described in this section assumes a lump-sum deposit will be made. If deposits
are made under an installment agreement, a non-refundable installment fee of 9
percent applies.
(d) If a member
has membership service and contributions in the same school year as the year in
which the unreported service was rendered, TRS shall adjust the actuarial cost
as calculated under subsection (b) of this section proportionately by applying
a ratio, the numerator of which is the number of TRS-covered service days
rendered by the member and the denominator of which is 90 days of service
required for a year of membership service credit.
(e) A member may establish unreported service
or compensation credit by paying the deposits and fees required in subsection
(f) of this section if the member meets all applicable requirements to purchase
unreported service or compensation credit and if:
(1) the person otherwise meets all
eligibility requirements of §
825.403, Government
Code;
(2) the service for which
credit is sought to be established was rendered, or the compensation for which
credit is sought was paid, before September 1, 2011; and
(3) the person makes payment for the credit,
or enters into an installment agreement for payment, not later than August 31,
2013.
(f) The cost of
establishing unreported service or compensation credit under subsection (e) of
this section is the amount of deposits previously required but not paid plus a
fee computed at the rate of 5 percent per annum of the deposits due from the
end of the school year in which the deposits were due or the end of the
1974-1975 school year, whichever is later, until the date of payment.
(g) For purposes of this section, workers'
compensation paid as temporary wage replacement pay may be reported or verified
to TRS until the end of the school year following the school year in which it
is paid. If the workers' compensation is reported or verified to TRS no later
than the end of the school year following the school year in which it is paid,
member contributions on the workers' compensation paid are required to
establish the compensation and service credit associated with the workers'
compensation. The member contributions on the worker's compensation must be
paid in full in a lump sum by the end of the school year following the year in
which the workers' compensation was paid. If the workers' compensation is not
reported or verified and member contributions are not paid by the end of the
school year following the year in which the workers' compensation is paid, the
member may establish the service and compensation as unreported compensation as
provided in this section.
Notes
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