| (a) A cash balance group member may not transfer credit
under this section.
(b) Purpose. These rules are intended to implement
the provisions of Tex. Gov't Code Chapter 805 concerning the transfer
of credit between TRS and ERS and to provide a systematic method of
funding the actuarial value of the annuity resulting from transferred
service.
(c) Forms.
(1) Applications for transfer shall be made using forms
prescribed by ERS.
(2) ERS shall cooperate with TRS in an effort to make
such application forms for ERS comparable to those used by TRS.
(d) Notice.
(1) A person who elects to transfer service credit
pursuant to these rules must file the appropriate form to make such
transfer not more than 90 days prior to the person's retirement effective
date but not later than the effective date.
(2) ERS shall notify TRS of the pending transfer not
later than 30 days following the effective date.
(e) Manner of transfer.
(1) Service credit and assets shall be transferred
through electronic and hard copy documentation pursuant to these rules,
and ERS shall maintain records of such transfers permanently.
(2) Any transfer of service credit to ERS shall reflect
years of credit, average salary, periods of service, method of calculation,
and the manner used to calculate the time period involved, including
any military credit purchased.
(3) Any transfer of service credit to ERS shall include
specific data regarding the pre-tax and after-tax contributions by
the person, interest owed, earned interest, and any other dollar amount
which will be part of the transfer.
(4) Assets to fund the portion of the annuity attributable
to service with TRS shall be transferred to ERS pursuant to agreement
with TRS.
(5) Service transferred from TRS shall be established
in an employee class account for the benefit of the member.
(f) Transfer of funds. ERS and 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
is attributable to service transferred pursuant to Tex. Gov't 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 30 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 shall jointly agree on
the administrative and accounting procedures to be established in
order to ensure the transfer of funds pursuant to this section.
(g) Purchase of refunded service.
(1) A member of TRS who canceled membership in ERS
by taking a refund of an individual account may repurchase the canceled
service credit for the purpose of making a transfer at any time prior
to retirement. Such persons do not have to become contributing members
of ERS in order to purchase such canceled service credit.
(2) A person who cancels membership in ERS by taking
a refund of an individual account must meet the general requirements
for reinstatement or purchase of service credit in ERS.
(h) Military credit. Any transferred military service
which would result in a member receiving service credit in excess
of that permitted under ERS rules shall not be accepted.
(i) Termination of membership. The transfer of ERS
credit to TRS shall terminate membership in ERS and shall cancel all
rights to benefits from ERS based on that service.
(j) Service in the month following retirement. In accordance
with rules adopted by the retirement systems under Tex. Gov't Code
Chapter 805, as applicable, a retirement shall be canceled, service
credit transfer canceled, and membership reinstated if, during the
month following retirement, an ERS retiree who transferred service
from TRS and retired pursuant to this chapter holds a position covered
by the retirement system at which the retiree was last employed. A
retirement shall be canceled and membership reinstated if a retiring
member has a commitment from the member's present employer to be rehired.
At the time of retirement, a retiring member must disclose to the
retirement system any commitment to be rehired.
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| Source Note: The provisions of this §71.19 adopted to be effective September 2, 1993, 18 TexReg 5593; amended to be effective April 20, 1994, 19 TexReg 2550; amended to be effective December 31, 2003, 28 TexReg 11610; amended to be effective September 14, 2008, 33 TexReg 7749; amended to be effective June 10, 2014, 39 TexReg 4485; amended to be effective September 14, 2022, 47 TexReg 5497 |
