34 Tex. Admin. Code § 25.82 - Cost
(a) Except as provided by subsections (g) and
(h) of this section, the cost of establishing out-of-state service credit is
the actuarial cost, as determined by TRS, of the additional standard annuity
retirement benefits that would be attributable to the out-of-state service
credit purchased under this section.
(b) To calculate the actuarial cost, TRS will
use the cost factors and method described in §
25.302 of this title (relating to
Calculation of Actuarial Cost).
(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% applies.
(d)
No credit will be applied to the cost of a year of out-of-state service credit
for any TRS contributions made in the same school year.
(e) The date of first eligibility to purchase
credit for any year of out-of-state service shall be the latest of the
following dates:
(1) the date the member
received 5 years' credit for service in the public schools of Texas;
(2) the date state law made the out-of-state
service available for TRS service credit;
(3) the date in which the member qualified to
deposit payment for each year of out-of-state service under the one for two
rule in effect until March 20, 1975;
(4) the date the member completed one year of
creditable service in the public schools of Texas after relevant out-of-state
service.
(f) No deposits
for out-of-state service credit may be made before the member accumulates 5
years of credit for service in the public schools of Texas.
(g) A member may establish out-of-state
service credit by paying the deposits and fees required in subsection (h) of
this section if the member meets all applicable requirements to purchase
out-of-state service credit and if:
(1) the
person was a member of TRS on December 31, 2005;
(2) the out-of-state service was performed
before January 1, 2006, including service in the 2005-2006 school year that
began before January 1, 2006; and
(3) the member makes payment for the
out-of-state service credit, or enters into an installment agreement for
payment, not later than August 31, 2013.
(h) The cost of establishing out-of-state
service credit under subsection (g) of this section is 12% per year of the full
annual salary rate for the first year of service in Texas which is both after
the out-of-state service and after September 1, 1956. Annual salary is limited
to $8,400 for years prior to September 1, 1969, and $25,000 for years after
September 1969 but before September 1, 1979. For years starting on or after
September 1, 1979, TRS will apply any relevant creditable compensation
limitations to determine the full salary rate. Cost will not be based on years
granted for substitute service. In addition a crediting fee of 8.0% compounded
annually of the amount of deposits due and paid shall be charged from the end
of the school year in which the member was first eligible to purchase credit
for such service until payment for the credit is received.
Notes
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