| (C) requires student status as a condition of employment.
(4) Combining of Percent Effort at Different Institutions
Not Permitted. When calculating an employee's percent effort to determine
whether a position is non-benefits-eligible as provided in paragraph
(3) of this subsection, an institution shall include only the individual's
employment with that institution. For example, an individual who is
simultaneously employed at 25 percent effort with Institution A and
at 50 percent effort with Institution B shall not be eligible to participate
in ORP at Institution A even though he or she may already be participating
at Institution B based on a minimum 50 percent effort at Institution
B. An exception may be made for an individual who is simultaneously
employed with more than one component institution under the same governing
board that operates its ORP either as a single plan for all components
or includes the applicable components in the same plan. In this case,
the employee's percent effort at each component may be combined to
meet the minimum 50 percent effort requirement.
(5) Regardless of Vested Status. An employee shall
not be eligible to participate in ORP while employed in a non-benefits-eligible
position regardless of his or her ORP vested status.
(6) No Effect on ORP Eligibility. Because a non-benefits-eligible
position is not eligible for TRS, employment in a non-benefits-eligible
position normally shall have no effect on an employee's ORP eligibility
status upon his or her subsequent return to a benefits-eligible position,
regardless of vested status.
(7) Alternate Plan at Certain Community Colleges. Participation
in an alternate retirement plan for part-time employees who are not
eligible for TRS at a community college that has opted out of the
federal social security program shall have no effect on a person's
ORP eligibility status upon his or her subsequent return to a benefits-eligible
position.
(h) Retirement System Membership after ORP Vesting.
A vested ORP participant shall not be eligible for active membership
in the applicable retirement system unless he or she terminates all
employment with the ORP employer and becomes employed in a position
that is eligible for the applicable retirement system with an employer
that does not offer ORP.
(1) ORP in Lieu of TRS. A vested ORP participant who
elected ORP in lieu of TRS shall not be thereafter eligible for TRS
membership, unless he or she terminates employment with all Texas
public institutions of higher education and becomes employed in a
TRS-eligible position with the Texas public school system (e.g., Independent
School Districts, regional educational service centers) or any other
Texas public educational institution or agency that is covered by
TRS but does not offer ORP in lieu of TRS, which will require the
participant to become a member of TRS. Such an individual (i.e., one
who has had active TRS membership since terminating ORP participation),
upon becoming subsequently reemployed with any Texas public institution
of higher education:
(A) shall not resume participation in ORP; and
(B) shall not thereafter be eligible to participate
in ORP in lieu of TRS ever again, regardless of the individual's previous
ORP vested status, employment in an ORP-eligible position, or if the
individual's TRS membership was canceled by withdrawal of employee
contributions following termination of employment from the TRS-covered
position.
(2) ORP in Lieu of ERS. A vested ORP participant who
elected ORP in lieu of ERS shall not thereafter be eligible for ERS
membership, unless he or she terminates employment with the Board
and becomes employed in an ERS-eligible position with a Texas state
agency that does not offer ORP in lieu of ERS, which will require
the participant to become a member of ERS. Such an individual (i.e.,
one who has had active ERS membership since terminating ORP participation),
upon becoming subsequently reemployed with the Board:
(A) shall not resume participation in ORP; and
(B) shall not be eligible to participate in ORP in
lieu of ERS ever again, regardless of the individual's previous ORP
vested status, employment in an ORP-eligible position, or if the individual's
ERS membership was canceled by withdrawal of employee contributions
following termination of employment from the ERS-covered position.
(i) ORP Retirees Not Eligible to Participate. ORP retirees,
as defined in §25.3 of this title (relating to Definitions),
who later return to employment with the same or another Texas public
institution of higher education or with the Board in what would otherwise
be considered a benefits-eligible position shall not be eligible to
participate in ORP, with the following exceptions:
(1) ORP retirees who enrolled in retiree group insurance
on or before June 1, 1997;
(2) employees who elected ORP in lieu of ERS at the
Board and who, after terminating employment with the Board and enrolling
in retiree group insurance as an ORP retiree from the Board, subsequently
become employed in an ORP-eligible position at a Texas public institution
of higher education;
(3) employees who elected ORP in lieu of TRS at a Texas
public institution of higher education and who, after terminating
employment with all Texas public institutions of higher education
and enrolling in retiree group insurance as an ORP retiree from a
Texas public institution of higher education, subsequently become
employed in an ORP-eligible position at the Board; and
(4) ORP retirees who enroll in retiree group insurance
as part of a phased retirement program.
(A) Definition. For the purposes of this subsection,
a phased retirement program shall be a locally designed option that
is offered by a limited number of institutions as a means of transitioning
active employees to retired status through a contractual agreement
that requires the employee to meet certain milestones during the contractual
period, which is typically one or two years, such as a reduction in
percentage of effort and/or enrollment in retiree group insurance
prior to termination of employment. At the end of the contractual
period, the employee is considered to be in a retired status for all
purposes.
(B) Exemption. ORP participants who are covered by
a phased retirement program agreement shall remain eligible for ORP
contributions during the contractual period as long as they maintain
at least 50 percent effort, even after they are required to enroll
in retiree group insurance as an ORP retiree. Once the contractual
period has expired, the participant shall no longer be exempt from
the provisions of this subsection.
(5) ORP retirees who meet the exceptions described
in paragraphs (1) through (4) of this subsection shall not be considered
eligible to participate in ORP or to elect ORP in lieu of the retirement
system from which they did not retire unless they meet the same eligibility
criteria as employees who have not established ORP retiree status.
(j) Termination of Participation. An employee shall
terminate participation in ORP only upon death, retirement (including
disability retirement), or termination of employment with all Texas
public institutions of higher education (if the election of ORP was
in lieu of TRS) or termination of employment with the Board (if the
election of ORP was in lieu of ERS).
(1) Employment Transfer is not a Termination. A participant's
transfer of employment between Texas public institutions of higher
education without a break in service, as defined in §25.3 of
this title (relating to Definitions), shall not be considered a termination
of employment for ORP purposes, unless the new position is non-benefits-eligible,
as defined in subsection (g) of this section.
(2) Transfer of Funds is not a Termination. A transfer
of ORP funds between ORP accounts or ORP companies (contract exchange)
shall not be considered a termination of employment for ORP purposes.
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| Source Note: The provisions of this §25.5 adopted to be effective May 23, 2004, 29 TexReg 5079; amended to be effective November 28, 2005, 30 TexReg 7873; amended to be effective August 30, 2016, 41 TexReg 6484 |
