34 Tex. Admin. Code § 71.19 - Transfer of Service between the Teacher Retirement System of Texas (TRS) and the Employees Retirement System of Texas (ERS)
(a) A cash balance group member may not
transfer credit under this section.
(b) Purpose. These rules are intended to
implement the provisions of Tex. Gov't Code Chapter 805 concerning the transfer
of credit between TRS and ERS and to provide a systematic method of funding the
actuarial value of the annuity resulting from transferred service.
(c) Forms.
(1) Applications for transfer shall be made
using forms prescribed by ERS.
(2)
ERS shall cooperate with TRS in an effort to make such application forms for
ERS comparable to those used by TRS.
(d) Notice.
(1) A person who elects to transfer service
credit pursuant to these rules must file the appropriate form to make such
transfer not more than 90 days prior to the person's retirement effective date
but not later than the effective date.
(2) ERS shall notify TRS of the pending
transfer not later than 30 days following the effective date.
(e) Manner of transfer.
(1) Service credit and assets shall be
transferred through electronic and hard copy documentation pursuant to these
rules, and ERS shall maintain records of such transfers permanently.
(2) Any transfer of service credit to ERS
shall reflect years of credit, average salary, periods of service, method of
calculation, and the manner used to calculate the time period involved,
including any military credit purchased.
(3) Any transfer of service credit to ERS
shall include specific data regarding the pre-tax and after-tax contributions
by the person, interest owed, earned interest, and any other dollar amount
which will be part of the transfer.
(4) Assets to fund the portion of the annuity
attributable to service with TRS shall be transferred to ERS pursuant to
agreement with TRS.
(5) Service
transferred from TRS shall be established in an employee class account for the
benefit of the member.
(f) Transfer of funds. ERS and TRS agree on
the following method of transferring funds. Each system shall certify on a
monthly basis the total dollar amount of annuities paid by the system which is
attributable to service transferred pursuant to Tex. Gov't Code Chapter 805.
The amount certified shall exclude any portion of annuities paid consisting of
post-retirement increases. Each system shall remit to the other system the
amount certified within 30 days of receipt of such certification. It is
recognized that adjustments will be made from month-to-month as a result of
such things as administrative errors, the death of the annuitant or a
beneficiary, return-to-work, and recovery from disability by an annuitant. The
systems shall jointly agree on the administrative and accounting procedures to
be established in order to ensure the transfer of funds pursuant to this
section.
(g) Purchase of refunded
service.
(1) A member of TRS who canceled
membership in ERS by taking a refund of an individual account may repurchase
the canceled service credit for the purpose of making a transfer at any time
prior to retirement. Such persons do not have to become contributing members of
ERS in order to purchase such canceled service credit.
(2) A person who cancels membership in ERS by
taking a refund of an individual account must meet the general requirements for
reinstatement or purchase of service credit in ERS.
(h) Military credit. Any transferred military
service which would result in a member receiving service credit in excess of
that permitted under ERS rules shall not be accepted.
(i) Termination of membership. The transfer
of ERS credit to TRS shall terminate membership in ERS and shall cancel all
rights to benefits from ERS based on that service.
(j) Service in the month following
retirement. In accordance with rules adopted by the retirement systems under
Tex. Gov't Code Chapter 805, as applicable, a retirement shall be canceled,
service credit transfer canceled, and membership reinstated if, during the
month following retirement, an ERS retiree who transferred service from TRS and
retired pursuant to this chapter holds a position covered by the retirement
system at which the retiree was last employed. A retirement shall be canceled
and membership reinstated if a retiring member has a commitment from the
member's present employer to be rehired. At the time of retirement, a retiring
member must disclose to the retirement system any commitment to be
rehired.
Notes
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