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RULE §310.10Voluntary Payments by Departments to Retirees and Beneficiaries

(a) The governing body of a participating department, as authorized by this section, may make one or more supplemental payments to retirees and other beneficiaries of the pension system, or may provide an increase in the amount of annuities paid to retirees and other beneficiaries of the pension system. The governing body of a participating department may choose to apply a supplemental payment or increase in annuities to all retirees and beneficiaries as of the date of the payment or increase or to only those whose benefits are derived from a person who was eligible to retire under §308.1(a) of this title (relating to Eligibility for Retirement Annuity) or with a specified greater number of years of qualified service.

(b) An increase in benefits may consist of:

  (1) an additional payment that does not exceed the greater of $50 or 100 percent of a retiree's monthly scheduled payment;

  (2) an annuity increase based on the 12-month increase in the Consumer Price Index for All Urban Consumers as of December of the preceding year;

  (3) an increase to allow each annuity to reach a minimum monthly amount;

  (4) an increase that adds to each annuity a specified amount for each whole year of credited service for the participating department; or

  (5) a percentage increase to each annuity.

(c) Before it may implement a supplemental payment or annuity increase under this section, the governing body of a participating department shall:

  (1) obtain from the Executive Director a determination from the pension system's actuary that the participating department's payments to the pension system will be sufficient to finance the anticipated additional benefits; and

  (2) contract with the Executive Director to make quarterly payments to the pension system that are necessary to finance the increase in benefits.

(d) A supplemental payment or increase in benefits must apply to all retirees in the same annuity classification but may be based on persons who qualified for an annuity under a previously lower contribution rate.

Source Note: The provisions of this §310.10 adopted to be effective August 26, 2007, 32 TexReg 5187; amended to be effective February 1, 2009, 34 TexReg 440; amended to be effective August 31, 2014, 39 TexReg 6871; amended to be effective October 18, 2015, 40 TexReg 7104; amended to be effective December 31, 2019, 44 TexReg 8335

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