| (a) Except as provided in subsection (e) of this section,
a person who elected to participate in ORP and participated in ORP
for at least one year and who was reported to TRS in error as described
in §830.108, Government Code, must be restored to participation
in ORP and may not receive a distribution of benefits from TRS based
on the ineligible participation.
(b) Each employer that reported the person in error
to TRS must, within 30 calendar days of receiving the request from
TRS, certify on a form prescribed by TRS that the person was reported
in error to TRS; the amount of the person’s compensation that
was creditable for ORP purposes and the amount of participant contributions
that should have been contributed to ORP for each school year that
the person was employed by that employer and reported in error to
TRS; and the amount, if any, of employer contributions made to TRS
under §§825.4041, 825.406, 825.407, or 825.4071, Government
Code, based on the employment of the person reported to TRS in error.
(c) The person reported to TRS in error must provide
information required by TRS to make a direct trustee-to-trustee transfer
to the trustee of the person's ORP plan account of authorized amounts
and complete any forms prescribed and required by TRS to make the
direct trustee-to-trustee transfer of funds, including the agreement
of the trustee of the person’s ORP plan account to accept the
transfer in accordance with §830.108(d)(2)(B), Government Code.
The trustee must also agree to separately account for any after-tax
funds that are part of the direct trustee-to-trustee transfer. Authorized
amounts include the amount of participant contributions that should
have been made to ORP plus an amount representing earnings authorized
by §830.108. If the amount of ineligible member contributions
received by TRS is less than the amount of participant contributions
that should have been made to ORP, then TRS may only make a direct
trustee-to-trustee transfer of an amount equal to the amount of ineligible
TRS member contributions plus authorized earnings. TRS may not pay
or transfer any amount of required ORP participant contributions that
exceed the amount of ineligible member contributions received by TRS.
(d) Each employer that reported the person in error
to TRS and that made employer contributions in error to TRS under
§§825.4041, 825.406, 825.407, or 825.4071, Government Code,
must provide the certification required in subsection (b) and receive
the approval of TRS before taking a credit for the employer contributions
through the TRS employer reporting system. Earnings on the employer
contributions paid in error to TRS are not authorized for payment
by TRS and may not be taken as a credit through the employer reporting
system.
(e) If within 180 days of notice by TRS of the reporting
error, the person does not have or cannot establish an ORP account;
cannot obtain the required certification from the employer(s) that
reported the person in error to TRS; cannot obtain the approval of
the trustee of the person's ORP plan account to receive the direct
trustee-to-trustee transfer of funds from TRS; or does not provide
the forms required for TRS to make the direct trustee-to-trustee transfer
of funds to the person's ORP plan account, TRS is authorized to pay
directly to the person reported in error to TRS the ineligible TRS
member contributions equal to the amount of ORP member contributions
received by TRS that should have been contributed to ORP plus the
amount representing earnings on amounts authorized by §830.108.
(f) TRS must make a direct payment to the person of
the amount of ineligible TRS member contributions deposited in error
with TRS that exceed the amount of ORP participant contributions that
should have been paid to the person's ORP account and any amounts
paid by the person to purchase TRS service credit while ineligible
to participate in TRS. The amount of direct payment to the person
reported in error to TRS under this subsection does not include earnings
that are authorized on amounts transferred to the person's ORP account
by §830.108 or paid directly to the person pursuant to subsection
(e).
(g) An employer of a person who elected ORP but was
reported in error to TRS may not take a credit through the TRS employer
reporting system of any member or employer contributions authorized
in §830.108(c)(2) without the knowledge and express approval
of TRS.
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