Texas Administrative Code

Texas Administrative Code

TITLE 34	PUBLIC FINANCE
PART 3	TEACHER RETIREMENT SYSTEM OF TEXAS
CHAPTER 25	MEMBERSHIP CREDIT
SUBCHAPTER A	SERVICE ELIGIBLE FOR MEMBERSHIP
RULE §25.4	Substitutes

(a) Persons who serve as substitutes in positions otherwise eligible for membership may qualify for membership provided that they serve for at least 90 days in one school year and purchase the service credit.

(b) For purposes of this title, a substitute is a person who serves on a temporary basis in the place of a current employee. A substitute may be paid no more than the daily rate of pay set by the employer.

(c) Membership may be established and credit received by verifying the number of days worked as a substitute and salary earned and paying the actuarial cost required under §25.43 of this title (relating to Cost for Unreported Service or Compensation). Verification must be made in a form prescribed by the retirement system and is subject to the deadlines for verification of unreported service under §25.47 of this title (relating to Deadline for Verification).

(d) In no event shall verification of substitute service be accepted after a member has retired from the system and his or her first monthly annuity payment has been issued or after the effective date of a member's participation in the Deferred Retirement Option Plan (DROP).

(e) Required actuarial costs must be paid before any benefits based on the verified substitute service are paid by TRS on behalf of the member or before the verified service is used to determine eligibility for benefits. Members claiming credit for such service will be assessed a fee for delinquent deposits, if applicable, as provided in §25.43 of this title.

(f) Payment for substitute service required in subsection (e) of this section will be accepted and credit granted only as permissible under the Internal Revenue Code.

(g) Substitute service purchased as provided in this section shall be included in the school year in which it was rendered in counting the amount of service provided in order to receive a year of service credit under §25.131 of this title (relating to Required Service).

Source Note: The provisions of this §25.4 adopted to be effective January 1, 1976; amended to be effective January 1, 1979, 3 TexReg 4439; amended to be effective March 12, 2003, 28 TexReg 2093; amended to be effective April 4, 2006, 31 TexReg 2868; amended to be effective April 1, 2011, 36 TexReg 1828; amended to be effective January 1, 2016, 40 TexReg 9724; amended to be effective June 8, 2023, 48 TexReg 2859