| (5) Waiver of Retirement System Benefits. An election
of ORP shall be a waiver of the employee's rights to any benefits
that may have accrued from prior membership in the applicable retirement
system, other than benefits resulting from transfers of service credit
between the applicable retirement systems and reinstatement of withdrawn
service credit under the ERS/TRS service transfer law, even if the
participant has met the applicable system's vesting requirement. Except
as provided by §25.5(f) and (h) of this title (relating to ORP
Vesting and Participation) and the ERS/TRS service transfer law, an
ORP participant shall not be eligible to become an active member of
the applicable retirement system or receive any benefits from the
system other than a return of employee contributions that may have
been deposited with the system (and accrued interest, if any).
(g) Participation Start Date. The first day that ORP
contributions are made shall be determined as follows:
(1) Election on Initial ORP Eligibility Date.
(A) Employees of Institutions of Higher Education.
(i) New Employees. For new employees who sign the TRS
28 ORP election form (or its successor) on or before their initial
ORP eligibility date, the participation start date shall be the initial
ORP eligibility date (i.e., first day of ORP-eligible employment).
(ii) Transfers within Same Institution. For employees
who transfer from a non-ORP-eligible position to an ORP-eligible position
within the same institution and who sign the TRS 28 ORP election form
(or its successor) on or before their initial ORP eligibility date,
the participation start date shall be the initial ORP eligibility
date (i.e., first day of ORP-eligible employment), unless the initial
ORP eligibility date is not the first day of the month, in which case,
to avoid dual contributions to both TRS and ORP during the same month,
as provided in §25.6(a)(4) of this title (relating to No Dual
Contributions), the participation start date shall be the first day
of the month following the month in which the initial ORP eligibility
date falls.
(B) Employees of the Board.
(i) New Employees. For new Board employees who sign
the ORP election form provided by the Board on or before their initial
ORP eligibility date, the participation start date shall be the initial
ORP eligibility date (i.e., first day of ORP-eligible employment).
(ii) Transfers within the Board. For Board employees
who transfer from a non-ORP-eligible position at the Board to an ORP-eligible
position at the Board, and who sign the ORP election form provided
by the Board on or before their initial ORP eligibility date, the
participation start date shall be the initial ORP eligibility date
(i.e., first day of ORP-eligible employment), unless the initial ORP
eligibility date is not the first day of the month, in which case,
to avoid dual contributions to both ERS and ORP during the same month,
as provided in §25.6(a)(4) of this title, the participation start
date shall be the first day of the month following the month in which
the initial ORP eligibility date falls.
(2) Election After Initial ORP Eligibility Date. The
participation start date for ORP-eligible employees who sign the TRS
28 ORP election form (or its successor) or, for employees of the Board,
the ORP election form provided by the Board, after their initial ORP
eligibility date, shall be the first day of the month following the
date that the form is signed, with the following exceptions:
(A) During Month of Initial ORP Eligibility Date. ORP
employers may establish a policy that employees who elect ORP by signing
the TRS 28 ORP election form (or its successor) or, for employees
of the Board, the ORP election form provided by the Board, after their
initial ORP eligibility date but before the end of the month in which
the initial ORP eligibility date falls may be treated as if they had
signed the form on or before their initial ORP eligibility date as
provided by paragraph (1) of this subsection, provided the employee
earns enough compensation between the date of the election and the
end of the month in which the initial ORP eligibility date falls to
cover the employee's ORP contribution for the entire month.
(B) After Month of Initial ORP Eligibility Date: ORP
employers may establish a policy that employees who elect ORP by signing
the TRS 28 ORP election form (or its successor) or, for employees
of the Board, the ORP election form provided by the Board, after the
month in which their initial ORP eligibility date falls, but before
the end of the month in which the form is signed, may start participating
in the month in which the form is signed rather than the first of
the following month, provided the employee earns enough compensation
between the date of the election and the end of the month in which
the form is signed to cover the employee's ORP contribution for the
entire month. To avoid partial month payments, contributions for these
participants shall be based on salary earned during the entire month
in which the form is signed.
(C) Retirement System Membership Before Election. As
provided in subsection (i) of this section, ORP-eligible employees
who elect ORP after their initial ORP eligibility date, except as
provided in subparagraph (A) of this paragraph, shall be reported
as members of the applicable retirement system for any months prior
to their election of ORP.
(h) Active Membership in Retirement System Requirement.
Participation in ORP shall be an alternative to active membership
in the applicable retirement system.
(1) A TRS retiree shall not be eligible to elect ORP
in lieu of TRS at a Texas public institution of higher education.
(2) An ERS retiree shall not be eligible to elect ORP
in lieu of ERS at the Board.
(i) Automatic Retirement System Enrollment. A new employee
at a Texas public institution of higher education who is eligible
to elect ORP in lieu of TRS shall be automatically enrolled in TRS
until an election to participate in ORP is made by signing the TRS
28 ORP election form (or its successor) and submitting the TRS 28
to the institution for certification as provided in subsection (g)
of this section. A new Board employee who is eligible to elect ORP
in lieu of ERS shall be automatically enrolled in ERS until an election
to participate in ORP is made by signing the ORP election form provided
by the Board and submitting the ORP election form to the Board as
provided in subsection (g) of this section.
(j) Dual Employment in TRS/ORP Positions at Different
Employers.
(1) Simultaneous Retirement Plan Membership Not Permitted.
(A) Dual Employment with Institution and Non-Higher
Education TRS-Covered Employer.
(i) Active TRS Membership not Permitted. A member of
TRS who is employed in the Texas public school system (including all
Texas Independent School Districts and regional educational service
centers) or with any other Texas public educational institution or
state agency that is covered by TRS but does not offer ORP in lieu
of TRS, and who concurrently becomes employed in an ORP-eligible position
with a Texas public institution of higher education and elects to
participate in ORP, may not remain an active member of TRS as an employee
of the non-higher education TRS-covered employer once ORP participation
has started at the institution.
(ii) No TRS Contributions. Notwithstanding the participant's
employment in what would otherwise be considered a TRS-eligible position
at a non-higher education TRS-covered employer, TRS contributions
may not be made for the participant by that employer while he or she
is actively participating in ORP, but shall resume if the employee
is required to return to active TRS membership as provided in paragraph
(2) of this subsection.
(B) Dual Employment with Different Institutions.
(i) Active TRS Membership not Permitted. A member of
TRS who is employed with a Texas public institution of higher education
in a position that is eligible for TRS but is not ORP-eligible and
who becomes concurrently employed with another Texas public institution
of higher education in a position that is ORP-eligible and who elects
to participate in ORP, may not remain an active member of TRS once
ORP participation has started.
(ii) Retirement Contributions.
(I) No TRS Contributions. Notwithstanding the participant's
employment in what would otherwise be considered a TRS-eligible position
at an institution, TRS contributions may not be made for the participant
by that institution while he or she is actively participating in ORP
at another institution, but shall resume if the employee is required
to return to active TRS membership as provided in paragraph (2) of
this subsection.
(II) Before Vesting in ORP. An employee who elects
ORP at one institution while concurrently employed in what would otherwise
be a TRS-eligible position at another institution is not eligible
for ORP contributions based on the participant's TRS-only employment
prior to the participant vesting in ORP.
Cont'd... |
