| (a) When a member is purchasing TRS service credit
for which the law requires that the actuarial cost or actuarial present
value be deposited and for which the method in this section is referenced
by another section of this title, TRS will calculate the cost using
the cost factors obtained from the Actuarial Cost Tables adopted and
method described in this section. For purposes of this section, TRS
will use the age of the member and the service credit established
by the member on September 1 of the school year in which the cost
of the purchase is established.
(b) The factors for individuals whose membership was
established before September 1, 2007 and who have five years of service
credit on August 31, 2014, and maintain membership in TRS until the
time of purchase, are shown in the tables adopted as part of this
subsection. Within each set of tables, the number of years of service
credit to be purchased will determine which specific table will be
used. Each of the tables cross-references the member's age in rows
with years of credited service (before purchase) in columns. The intersection
of the participant's age and service is the cost per $1,000 of salary.
The cost factor for a participant with more years of service credit
than shown on the table is the same as the factor shown for the highest
number of years of service credit on the table for the participant.
TRS will calculate the cost to purchase service credit under this
section by dividing the participant's salary by 1000 and multiplying
the resulting quotient by the appropriate cost factor obtained from
the table. The tables set forth the cost, per $1,000 of salary, to
purchase from one year to fifteen years of service credit. The number
of years of service credit available for purchase is determined by
the laws and rules applicable to the type of service credit to be
purchased. For the purpose of calculating the required amount for
a member who is not grandfathered to use a three-year salary average
under §51.12 of this title (relating to Applicability of Certain
Laws in Effect Before September 1, 2005), the term "salary" is defined
as follows:
(1) For the upper region of the table (where the factors
appear above the line), salary is the greater of the annual salary
for the last year of credited service or the average of the member's
highest years of compensation calculated on September 1 of the school
year in which the cost of the service credit is established. The fewer
of five years of compensation or all of the member's years of compensation
shall be used for the average; or
(2) For the lower region of the table (where the factors
appear below the line), salary is the average of the member's highest
five years of compensation calculated on September 1 of the school
year in which the cost of the service credit is established. A member's
highest five years of compensation shall be calculated as if the member
were retiring at the time the service credit is purchased. The lower
region of the table (where the factors appear below the line) reflects
those age and service combinations where the purchase of service credit
results in immediate eligibility of the member for unreduced retirement
benefits.
Attached Graphic
(c) For the purpose of calculation of actuarial cost
for service credit for a member described in subsection (b) of this
section who is grandfathered to use a three-year salary average, the
term "salary" shall have the same meaning as in subsection (b) of
this section except that a three-year salary average shall be used
instead of a five-year salary average. Additionally, the cost shall
be 103.5 percent of the cost as calculated under subsection (b) of
this section.
(d) For individuals whose membership was established
on or after September 1, 2007 and who have five years of service credit
on August 31, 2014, and maintain membership in TRS until the time
of purchase, the methodology described in subsection (b) of this section
shall be used to determine cost of additional service credit, but
TRS shall use the factors in the tables adopted as part of this subsection.
If the member is not grandfathered to use a three-year salary average,
the term "salary" shall have the same meaning as in subsection (b)
of this section.
Attached Graphic
(e) If an individual established membership on or after
September 1, 2007 and has five years of service credit on August 31,
2014, and maintains membership in TRS until the time of purchase,
but is grandfathered to use a three-year salary average, the term
"salary" shall have the same meaning as in subsection (b) of this
section except that a three-year salary average shall be used instead
of a five-year salary average. The cost of establishing additional
service credit for a grandfathered member described in this subsection,
shall be 1.035 times the cost as calculated under subsection (d) of
this section.
(f) An individual who first was a member of TRS before
September 1, 2007, but who terminated membership through withdrawal
of accumulated contributions and then again joined TRS on or after
September 1, 2007, and has five years of service credit on August
31, 2014 and maintains membership in TRS until the time of purchase,
is subject to the calculation of cost for additional service credit
under subsections (d) and (e) of this section.
(g) For members who do not have five years of service
credit on August 31, 2014 or whose current membership began after
August 31, 2014, the methodology described in subsections (b) and
(c) of this section shall be used to determine the cost of additional
service credit, but TRS shall use the factors in the tables adopted
as a part of this subsection.
Attached Graphic
(h) For the purpose of calculation of actuarial cost
for service credit for a member described in subsection (g) of this
section who is not grandfathered to use a three-year salary average,
the term "salary" shall have the same meaning as in subsection (b)
of this section.
(i) If the individual did not have five years of service
credit on August 31, 2014 or whose current membership began after
August 31, 2014, but is grandfathered to use a three-year salary average,
the term "salary" shall have the same meaning as in subsection (b)
of this section except that a three-year salary average shall be used
instead of a five-year salary average. The cost of establishing additional
service credit for a grandfathered member described in this subsection
shall be 1.035 times the cost as calculated under subsection (g) of
this section.
(j) The tables adopted in this section shall be used
when the service credit cost is paid on or after September 1, 2023,
or an installment agreement is entered into on or after September
1, 2023.
|
| Source Note: The provisions of this §25.302 adopted to be effective March 8, 2007, 32 TexReg 1079; amended to be effective November 1, 2007, 32 TexReg 7693; amended to be effective January 5, 2012, 36 TexReg 9342; amended to be effective July 17, 2014, 39 TexReg 5432; amended to be effective December 23, 2014, 39 TexReg 10025; amended to be effective September 1, 2019, 44 TexReg 4185; amended to be effective September 1, 2023, 48 TexReg 4519 |
