| (a) Under Tex. Gov't Code §820.103, the system
shall calculate the gain sharing interest rate based on the investment
returns of the total combined ERS retirement trust fund as of August
31 of each of the applicable fiscal years, using the Global Investment
Performance Standards for calculating and reporting investment performance.
The total combined ERS retirement trust fund does not include amounts
associated with the State Employees Group Benefits Program or the
Texa$aver program.
(b) Each fiscal year, the system shall apply the gain
sharing interest rate as follows:
(1) for a cash balance group member, the rate shall
be multiplied by the member's accumulated account balance as of the
end of the preceding fiscal year;
(2) for a cash balance annuitant, the rate shall be
multiplied by the amount of the annuitant's cash balance annuity payment
as of the end of the preceding fiscal year; and
(3) for an annuitant who retired after August 31 but
before the application of the gain sharing interest rate, the rate
shall be multiplied by the amount of the annuitant's initial cash
balance annuity payment.
(c) A person may not receive gain sharing interest
as both a cash balance group member and a cash balance annuitant during
the same fiscal year.
(d) The gain sharing interest rate shall be applied
no earlier than December 1.
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