| (a) The governing body of a department that elects
to participate in the pension system and is not merging an existing
pension plan into the pension system may, before the fifth (5th) anniversary
of the date the department begins participation, make a one-time election
to purchase service credit for qualified service performed for the
department before the effective date of departmental participation
by the persons who became members of the pension system on the effective
date of the departmental participation.
(b) The governing body of a department that elects
or has previously elected to participate in the pension system and
is merging or has merged an existing pension plan into the pension
system may at any time purchase service credit for qualified service
performed for the department before the effective date of departmental
participation by the persons who are members of the pension system
on the date the department contracts for the purchase.
(c) The maximum amount of prior service credit a member
may receive under this section is 15 years. Prior service credit may
be purchased for a number of years not to exceed a maximum of 15 years.
The pension system shall grant prior service credit under this section
if the governing body of the department or the governing body of the
political subdivision associated with the department agrees in writing
to finance the prior service credit by a lump-sum payment or within
a period not to exceed 10 years from the effective date of the election
to purchase the service credit.
(d) The cost to finance the purchase of prior service
credit is based on the actuarially assumed rate of investment return
on fund assets at the time payment for the service credit begins.
The governing body of the department or the governing body of the
political subdivision associated with the department may purchase
prior service credit under subsection (a) of this section based on
any contribution rate at or above the minimum provided by statute
or state board rule for the period purchased and under subsection
(b) of this section based on any contribution rate at or above the
current minimum provided by state board rule at the time payment for
the service credit begins. The overall costs associated with the purchase
of prior service credit shall be determined by the pension system
actuary according to generally accepted actuarial standards and must
be determined to be actuarially sound for the cost-sharing pension
system.
(e) To purchase prior service credit, the governing
body of the department or the governing body of the political subdivision
associated with the department must provide the Executive Director
with a detailed, verified record of prior service showing the amount
of qualified service performed for the department before the effective
date of departmental participation by each person who became a member
of the pension system on the effective date of the departmental participation.
The record for each member must include the member's date of birth
and entry date in the department.
(f) The maximum amount of prior service credit provided
by this rule applies only to prior service credit purchased, or under
a written agreement to be financed that is instituted, on or after
September 1, 2019. Prior service credit purchased, or under a written
agreement to be financed, under a procedure administered by the pension
system before September 1, 2019, is subject to the maximum amount
of credit and the terms and value in effect under the pension system's
procedures at the time of purchase or written agreement to purchase.
(g) Prior service credit may not be purchased for any
service performed prior to September 1, 2019 by a member who did not
satisfy the requirements to be considered a "volunteer" or "auxiliary
employee" under §861.001, Texas Government Code, prior to such
date.
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| Source Note: The provisions of this §306.1 adopted to be effective October 2, 2005, 30 TexReg 6061; amended to be effective August 26, 2007, 32 TexReg 5185; amended to be effective July 11, 2010, 35 TexReg 5898; amended to be effective August 31, 2014, 39 TexReg 6868; amended to be effective October 18, 2015, 40 TexReg 7102; amended to be effective December 31, 2019, 44 TexReg 8333 |
