| (a) Service retirement benefits and disability retirement
benefits for which the first benefit payment is payable before January
1, 2018, shall be calculated under the following rules:
(1) The annuity purchase rate is calculated on the
basis of the UP-1984 table with an age setback of five years for retirees
and an age setback of 10 years for beneficiaries, with a 30% reserve
refund assumption for the standard benefit.
(2) Annuity purchase rates are based on the respective
retiree's and beneficiary's attained ages in years.
(b) For benefits payable on or after January 1, 2018,
service retirement benefits and disability retirement benefits shall
be calculated under the following rules:
(1) The annuity purchase rate for the portion of the
benefit that is associated with service credit that accrued before
January 1, 2018, and all future interest earned and employer matching
attributable to this portion shall be calculated based on the assumptions
described in subsection (a)(1) of this section.
(2) The annuity purchase rate for the portion of the
benefit that is associated with service credit that accrues on or
after January 1, 2018 and is not included in amounts described in
(b)(1) above shall be calculated on a generational mortality basis
using the RP-2000 Combined Mortality Table, with a one-year set forward
for males and no set forward for female, projected to 2014 using Scale
AA and for projections after 2014 using 110% of MP-2014 Ultimate Projection
Scale, with a 32.79% reserve refund assumption for the standard benefit.
Mortality assumptions for these calculations are blended 50% male
and 50% female for retirees, and blended 30% male and 70% female for
beneficiaries.
(3) The annuity purchase rates are based on the respective
retiree's and beneficiary's attained age in years and months regardless
of when the service credit was accrued.
(4) For purposes of this rule, service credit means
the monetary credits allowed a member for service for a participating
employer as defined in Section 841.001(16) of the Texas Government
Code.
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| Source Note: The provisions of this §103.1 adopted to be effective July 27, 1976, 1 TexReg 1929; amended to be effective July 25, 1977, 2 TexReg 2654; amended to be effective October 7, 1981, 6 TexReg 3599; amended to be effective October 24, 1985, 10 TexReg 3977; amended to be effective October 23, 1991, 16 TexReg 5781; amended to be effective January 10, 2016, 41 TexReg 487 |
