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TITLE 34PUBLIC FINANCE
PART 4EMPLOYEES RETIREMENT SYSTEM OF TEXAS
CHAPTER 69MEMBERSHIP, ANNUITY TERMINATION, AND REFUNDS
RULE §69.3Termination of Annuities

(a) The annuity of an elected official shall be terminated if:

  (1) the elected official is convicted of a qualifying felony committed while in office; and

  (2) the conduct underlying the qualifying felony arose directly from the official duties of the elected official's office.

(b) The annuity of a corrections officer shall be terminated if:

  (1) the corrections officer is convicted of a qualifying felony; and

  (2) the conduct underlying the qualifying felony arose directly from the person's service as a corrections officer.

(c) If the elected official or corrections officer is receiving an annuity at the time that the system receives notice of the conviction, the final annuity payment shall be paid on the last day of the month following the month in which the system receives the notice of conviction.

(d) If the annuity of an elected official or corrections officer is terminated pursuant to subsection (a) or (b) of this section, the system shall issue a refund of the person's remaining service retirement annuity contributions, including service purchase funds, with interest, unless the annuity is subject to an order of a court awarding any part of the annuity to a spouse, former spouse, or other alternate payee. A refund under this section is subject to an order of a court awarding all or part of the person's service retirement annuity contributions to a former spouse as provided by Tex. Gov't Code §810.003(f), except as otherwise provided by §69.4 and §69.5 of this chapter.

(e) The system shall reinstate the annuity and refund payments withheld during the suspension period, with interest, or if not retired shall reinstate membership and canceled service credit if:

  (1) the conviction is overturned on appeal or the elected official or corrections officer meets all requirements for innocence under Tex. Civ. Prac. and Rem. Code §103.001(a)(2); and

  (2) the system receives a completed application for reinstatement and a payment equal to the refund provided under subsection (d) of this section, not later than the 120th day after the conviction is overturned or the person meets all requirements for innocence.

(f) Interest under this chapter shall be calculated at the rate provided by Tex. Gov't Code §815.311 in effect at the time the system reinstates the annuity.

(g) Subject to applicable federal law, an elected official or a corrections officer whose annuity is terminated under this chapter is no longer an annuitant for purposes of Tex. Ins. Code Chapter 1551. Coverage shall terminate on the first day of the month following the final annuity payment.

(h) Service credit previously earned in any class by an elected official or corrections officer whose annuity is terminated under this chapter is no longer creditable service and may not be used, transferred, or repurchased under Tex. Gov't Code Chapters 803, 805, or 813 or under §833.102 or §838.102 unless the system reinstates the annuity because the conviction has been overturned or the person has met all requirements for innocence. If the conviction has been overturned or the person has met all requirements for innocence, interest shall be calculated as if there was no suspension period.

(i) A decision by the system under this chapter constitutes final agency action and no administrative appeal from the decision is available.


Source Note: The provisions of this §69.3 adopted to be effective December 29, 2021, 46 TexReg 9059

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