34 Tex. Admin. Code § 306.1 - Prior Service Credit for Members of Participating Departments
(a) The governing body of a department that
elects to participate in the pension system and is not merging an existing
pension plan into the pension system may, before the fifth (5th) anniversary of
the date the department begins participation, make a one-time election to
purchase service credit for qualified service performed for the department
before the effective date of departmental participation by the persons who
became members of the pension system on the effective date of the departmental
participation.
(b) The governing
body of a department that elects or has previously elected to participate in
the pension system and is merging or has merged an existing pension plan into
the pension system may at any time purchase service credit for qualified
service performed for the department before the effective date of departmental
participation by the persons who are members of the pension system on the date
the department contracts for the purchase.
(c) The maximum amount of prior service
credit a member may receive under this section is 15 years. Prior service
credit may be purchased for a number of years not to exceed a maximum of 15
years. The pension system shall grant prior service credit under this section
if the governing body of the department or the governing body of the political
subdivision associated with the department agrees in writing to finance the
prior service credit by a lump-sum payment or within a period not to exceed 10
years from the effective date of the election to purchase the service
credit.
(d) The cost to finance the
purchase of prior service credit is based on the actuarially assumed rate of
investment return on fund assets at the time payment for the service credit
begins. The governing body of the department or the governing body of the
political subdivision associated with the department may purchase prior service
credit under subsection (a) of this section based on any contribution rate at
or above the minimum provided by statute or state board rule for the period
purchased and under subsection (b) of this section based on any contribution
rate at or above the current minimum provided by state board rule at the time
payment for the service credit begins. The overall costs associated with the
purchase of prior service credit shall be determined by the pension system
actuary according to generally accepted actuarial standards and must be
determined to be actuarially sound for the cost-sharing pension
system.
(e) To purchase prior
service credit, the governing body of the department or the governing body of
the political subdivision associated with the department must provide the
Executive Director with a detailed, verified record of prior service showing
the amount of qualified service performed for the department before the
effective date of departmental participation by each person who became a member
of the pension system on the effective date of the departmental participation.
The record for each member must include the member's date of birth and entry
date in the department.
(f) The
maximum amount of prior service credit provided by this rule applies only to
prior service credit purchased, or under a written agreement to be financed
that is instituted, on or after September 1, 2019. Prior service credit
purchased, or under a written agreement to be financed, under a procedure
administered by the pension system before September 1, 2019, is subject to the
maximum amount of credit and the terms and value in effect under the pension
system's procedures at the time of purchase or written agreement to
purchase.
(g) Prior service credit
may not be purchased for any service performed prior to September 1, 2019 by a
member who did not satisfy the requirements to be considered a "volunteer" or
"auxiliary employee" under §
861.001, Texas
Government Code, prior to such date.
Notes
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