34 Tex. Admin. Code § 71.31 - Credit Purchase Option for Certain Waiting Period Service

(a) A cash balance group member may not establish service credit under this section.

(b) An eligible employee class member may establish service credit for service performed during the waiting period as authorized by Tex. Gov't Code § 813.514 and as provided in this section. The provisions of § 71.14 of this chapter do not apply to service credit established under this section.

(c) An employee class member is eligible to establish service credit under this section if the member:

(1) has completed the waiting period;

(2) has made a retirement contribution in accordance with Tex. Gov't Code § 813.201; and

(3) makes application for the establishment of service credit and payment of the required contributions in accordance with procedures developed by ERS.

(d) An eligible member shall deposit with the system in a lump sum a contribution in the amount determined by the system to be the actuarial present value of the benefit attributable to the service credit established under this section. The tables recommended by the system's actuary and adopted by the board shall be used to determine the actuarial present value. The waiting period service credit tables are adopted by reference and made a part of this rule for all purposes. The 2009 waiting period service credit tables apply to service purchase calculations performed on or after September 1, 2009, and are those tables adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. The 2010 waiting period service credit tables apply only to those employees hired by the state of Texas on or after September 1, 2009, as defined in § 73.2 of this title. The 2010 waiting period service credit tables apply to service purchase calculations performed on or after September 1, 2010, and are those tables adopted by the board on February 23, 2010, based on legislative changes to the retirement plan effective September 1, 2009. The 2014 waiting period service credit tables apply to service purchase calculations performed on or after September 1, 2014, but before September 1, 2018, and are those tables adopted by the board on February 25, 2014, based on assumptions adopted by the board on February 26, 2013, and on legislative changes to the retirement plan effective September 1, 2013. For service purchase calculations performed prior to September 1, 2014, the previously adopted tables apply.

(e) Actuarial present value shall be based on:

(1) the member's age on the date of the deposit required by this subsection;

(2) the earliest date on which the member will become eligible to retire and receive a service retirement annuity after establishing service credit under this section; and

(3) the future employment, compensation, investment and retirement benefit assumptions recommended by the system's actuary and adopted by the board.

(f) Waiting period service credit shall be established in increments of one month.

(g) This section does not apply to service credit transferred as authorized by Tex. Gov't Code Chapter 805.

(h) A member who withdraws contributions and cancels service credit established under this section may not reestablish such credit under Tex. Gov't Code § 813.102 but may again establish credit only as provided by this section.

(i) Credit established under this section may not be used to determine average monthly compensation for the purpose of computing an annuity.

(j) For a member establishing service credit for service performed during the waiting period as authorized by Tex. Gov't Code § 813.514 on or after September 1, 2018, the tables used to determine the actuarial present value of the service credit are those adopted by the board, as adjusted from time to time as required by Tex. Gov't Code § 815.105, in effect on the date the service credit is established.

Notes

34 Tex. Admin. Code § 71.31

The provisions of this §71.31 adopted to be effective March 10, 2004, 29 TexReg 2372; amended to be effective January 10, 2006, 31 TexReg 168; amended to be effective June 9, 2009, 34 TexReg 3517; amended to be effective June 14, 2010, 35 TexReg 5041; amended to be effective June 10, 2014, 39 TexReg 4485; Amended by Texas Register, Volume 41, Number 23, June 3, 2016, TexReg 4045, eff. 6/6/2016; Amended by Texas Register, Volume 43, Number 12, March 23, 2018, TexReg 1875, eff. 3/27/2018; Amended by Texas Register, Volume 47, Number 36, September 9, 2022, TexReg 5497, eff. 9/14/2022