| (a) Purpose. These rules are intended to implement
the provisions of the Government Code, Chapter 805, concerning the
transfer of credit between the Teachers Retirement System of Texas
and the Employees Retirement System of Texas and to provide a systematic
method of funding the actuarial value of the annuity resulting from
transferred service.
(b) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Receiving system--The system which will pay benefits
based upon service credit transferred from the other system.
(2) Transferring system--The system from which service
credit is transferred for the purpose of obtaining additional benefits
from the other system.
(3) TRS--The Teacher Retirement System of Texas.
(4) ERS--The Employees Retirement System of Texas.
(5) Crediting system--means the system in which service
credit is established prior to any transfer.
(6) ORP--The Optional Retirement Program described
in Government Code, Chapter 830.
(7) Cash Balance Group Member--a member of ERS receiving
or eligible to receive a retirement benefit under Government Code,
Chapter 820.
(c) Cash Balance Group Members. Cash balance group
members are not eligible to transfer TRS service credit to ERS nor
ERS service credit to TRS.
(d) Forms.
(1) Applicants for transfer must use forms prescribed
by the receiving system.
(2) Applicants for the establishment of any service
credit must use the forms prescribed by the crediting system.
(3) The systems will cooperate in adopting forms necessary
to facilitate the exchange of information between the systems.
(e) Notice.
(1) A person electing to transfer service credit pursuant
to this section must file the appropriate form with the receiving
system not later than the person's intended effective date of retirement
or the last day of the month in which their retirement application
is filed, whichever is later.
(2) A beneficiary eligible to transfer service to the
receiving system for the payment of death benefits shall make the
election on an application form not later than 90 days after the date
of death of the member, unless both systems agree to extend the deadline
for an election, but in any event the beneficiary shall make the election
before either system has paid the death benefit.
(3) The receiving system will notify the transferring
system of the pending transfer not later than 30 days following date
of receipt of an application form.
(f) Manner of Transfer.
(1) Service credit and funds will be transferred through
electronic and hard copy documentation pursuant to this section, and
the receiving system will maintain records of such transfers permanently.
(2) The transferring system shall provide documentation
of years of credit, periods of service, military service credit, average
salary, method of calculation of service credit and average salary,
information necessary to comply with all federal tax regulations,
interest credited, fees and interest paid, and any other dollar amount
which will be a part of the transfer.
(g) Transfer of funds. The ERS and the 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 are based on service credit transferred pursuant to Government
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 thirty
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 will jointly
agree on the administrative and accounting procedures to be established
in order to ensure the transfer of funds pursuant to this section.
(h) Reinstatement of withdrawn service credit.
(1) An ERS member with at least 36 months service credit
in ERS may reinstate service credit in TRS that was canceled by the
person's withdrawal of a TRS membership account.
(2) Such reinstatement of TRS credit shall be in the
amounts and rates applicable to TRS members eligible to repurchase
such credit.
(3) A TRS member with three years' service credit may
reinstate, through ERS, service credit canceled by withdrawal of an
ERS membership account if the TRS member is also current member of
ERS but is not a cash balance group member.
(4) No service credit may be transferred based in whole
or in part upon reinstated credit under this section unless the applicant
meets all conditions for membership, amount of service credit, and
payments required for the reinstatement of the credit.
(5) Any TRS membership service credit reinstated under
this subsection may be applied toward the service credit requirements
of TRS laws and rules for the purchase of out-of-state, military or
other special service credit.
(i) Termination of membership. The transfer of TRS
service credit to ERS will terminate TRS membership and cancel all
rights to benefits from TRS based on that service.
(j) Service in the month following retirement. Both
TRS and ERS laws require a separation from employment with any employer
covered by the respective system for a period following a member's
effective retirement date as a condition for retirement with a benefit
from the respective system. A member retiring under TRS whose last
place of employment is with an ERS-covered employer shall provide
a certification of termination of employment to TRS in the manner
directed by the retirement system, specifying the last date of employment.
With respect to a service or disability retirement by persons using
credit transferred between the systems, the following provisions apply:
(1) An ERS retiree whose last place of employment is
with a TRS-covered employer must be off the payroll of any TRS-covered
employer for the first full calendar month following retirement under
ERS, or the ERS retirement will be canceled. A TRS retiree whose last
place of employment is with an ERS-covered employer must be off the
payroll of any ERS-covered employer for the first full calendar month
following retirement under the TRS, or the TRS retirement will be
canceled.
(2) An ERS retiree whose last place of employment is
with an ERS-covered employer may begin work for a TRS-covered employer
after retirement under ERS without a one month break in service. A
retiree from the TRS whose last place of employment is with a TRS-covered
employer may begin work for an ERS-covered employer after retirement
under TRS without a one month break in service.
(k) Average salary.
(1) In determining average salary used in computing
benefits available to a person transferring credit under this section,
the receiving system will use the higher of the average salary derived
solely from the service originally established in each system respectively.
In comparing average salaries and determining benefits payable, the
receiving system shall accept the transferring system's determination
of its average salary, applying all laws and policies of the transferring
system in the calculation of that system's average salary.
(2) Each system will be responsible for determining
its respective average salary. The transferring system will certify
its average salary to the receiving system.
(3) If there is less service than is required in the
applicable formula to compute the average salary in TRS under the
laws and rules applicable to that system, the average salary will
be computed using salaries for the service for which credit was established.
This average salary shall be used in the comparison of average salaries
to determine which system's average salary is higher.
(l) Transfer of Certain State Employees to ERS.
(1) Certain state employees have been transferred to
ERS membership as a result of legislation enacted by the 73rd Texas
Legislature, Regular Session. Among these are employees of the Texas
Education Agency, employees of the Texas Surplus Property Agency transferred
to the General Services Commission, some employees of the Texas Rehabilitation
Commission, the Texas School for the Deaf, the Texas School for the
Blind, the Higher Education Coordinating Board, and the Texas Youth
Commission. Such employees are eligible to transfer TRS credit to
ERS for benefit purposes under the Government Code, Chapter 805 subject
to the modifications contained in this section.
Cont'd... |
