| (a) In this section:
(1) "Code" means the Internal Revenue Code of 1986,
as amended.
(2) "§401(a)(9) requirements" means the requirements
under §401(a)(9) of the code and Treasury Regulations §1.401(a)(9)-1
through §1.401(a)(9)-9.
(b) The annual benefit based on the service of a member
may not exceed the amount permitted by the code and related regulations
for the appropriate year, including, without limitation, §415(b)
of the code. If the aggregated benefit otherwise payable under the
pension system and any other defined benefit plan maintained by a
political subdivision that has contributed to the fund on behalf of
the member would otherwise exceed the benefits allowable under federal
law, the reduction in benefits must first be applied to the extent
possible from the other plan, and only after those reductions, from
the fund.
(c) A retirement annuity or benefits to a qualified
beneficiary under the pension system may not begin after the deadlines
provided under the code and related regulations, including, without
limitation, the deadlines provided by subsection (d) of this section.
(d) All distributions under the fund must at all times
comply with and conform to the §401(a)(9) requirements, and any
distribution required under the incidental death benefits requirements
of §401(a) of the code will be treated as a distribution under
the §401(a)(9) requirements. This subsection overrides any distribution
options inconsistent with the §401(a)(9) requirements. The pension
system shall develop procedures to ensure that distributions comply
with the §401(a)(9) requirements, including the requirement that
a member's entire interest under the pension system will be distributed,
or begin to be distributed, to the member no later than April 1 of
the year after the later of the year in which the member ceases performing
qualified service for a participating department or with respect to
a member who attains age 70-1/2 on or before December 31, 2019, the
year in which the member attains age 70-1/2, or with respect to a
member who attains age 70-1/2 after December 31, 2019, the year in
which the member attains age 72.
(e) If the annual compensation of a member is ever
taken into account for any purpose of the fund, that annual compensation
may not exceed the limit in effect under §401(a)(17) of the code,
as periodically adjusted in accordance with guidelines provided by
the United States Secretary of the Treasury.
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| Source Note: The provisions of this §302.2 adopted to be effective October 2, 2005, 30 TexReg 6060; amended to be effective July 21, 2009, 34 TexReg 4741; amended to be effective October 18, 2015, 40 TexReg 7099; amended to be effective December 31, 2019, 44 TexReg 8332; amended to be effective July 5, 2020, 45 TexReg 4527 |
