| (a) "Required beginning date" means that April 1 of
the calendar year following the later of (i) the calendar year in
which the member attains the applicable age, or (ii) the calendar
year in which the member terminates employment with all participating
municipalities. For purposes of this section, "applicable age" means
the following ages, unless otherwise provided under Section 401(a)(9)(c)
of the Internal Revenue Code, as amended from time to time:
(1) age 70 if born before July 1, 1949;
(2) age 72 if born after June 30, 1949 and before January
1, 1951;
(3) age 73, if born on or after January 1, 1951.
(b) General Rules.
(1) In accordance with Internal Revenue Code Section
401(a)(9), a member must withdraw (refund) or rollover all accumulated
contributions credited to that member's individual account pursuant
to § 852.103 or retire from TMRS on or before the member's required
beginning date.
(2) With respect to §854.003(d) and §854.104(f)
of the Act, and notwithstanding any provision of the system to the
contrary, the system shall comply with Internal Revenue Code §401(a)(9),
including the minimum distribution incidental benefits rule of Internal
Revenue Code §401(a)(9)(G), Treasury Regulations §§1.401(a)(9)-2
through 1.401(a)(9)-9 and all additional provisions prescribed in
revenue rulings, notices, and other guidance published in the Internal
Revenue Bulletins, pursuant to a reasonable and good faith interpretation
of Internal Revenue Code §401(a)(9).
(3) The system may establish and revise, from time
to time, procedures to locate any member whose information is missing,
inaccurate or incomplete.
(c) Forfeiture of Benefits. Pursuant to §854.104(f)
of the Act and subject to subsections (b)(2), (b)(3), and (d) of this
section, if, after the system has made a reasonable effort to locate
a member and obtain a completed application, a member has not refunded
or rolled over their individual account or begun to receive payment
of a service retirement annuity or disability retirement annuity before
their required beginning date, then effective as of the member's required
beginning date:
(1) no further interest credits will be applied to
the member's individual account pursuant to §855.306(b) of the
Act, and
(2) the member's accumulated contributions and eligibility
to receive a service retirement annuity or disability retirement annuity
under the Act shall be forfeited in accordance with Treasury Regulation §1.411(a)-4(b)(6).
(d) Reinstatement of Benefits. If a member (or a beneficiary
of any such member) whose benefits have been forfeited pursuant to
subsection (c) of this section, files a complete application for withdrawal
(refund) or for retirement from TMRS, the system will reinstate the
member's account and right to receive retirement benefits under the
Act, without interest or adjustment for earnings after the date of
such forfeiture and, as applicable:
(1) refund the amount of accumulated contributions
credited to the member's individual account as of the required beginning
date in accordance with §852.103 of the Act; or
(2) pay an annuity, pursuant to §§854.103,
854.104 or 854.105 of the Act, calculated in accordance with subsection
(e) of this section; provided however, that any annuity payments attributable
to the period of time between the required beginning date and the
last day the first month following the date that a complete retirement
application is received ("delayed beginning date"), shall be permanently
forfeited and shall not be restored.
(e) To comply with Internal Revenue Code §401(a)(9),
the calculation of the retirement annuity payable pursuant to subsection
(d) of this section shall modify §§854.002(b) and (c) of
the Act to calculate the prior and current service annuity amounts
using the member's age and the member's individual account balance
as of the member's required beginning date.
(f) An annuity payable pursuant to subsection (d) of
this section in accordance with §854.004 of the Act shall become
payable as of the delayed beginning date and no payments shall be
paid for the period of time from the member's required beginning date
to the delayed beginning date.
(g) This section shall apply to any member who is eligible
to retire from TMRS and has terminated employment with all participating
municipalities, without regard to whether that member is contributing
to a system that participates in the Proportionate Retirement Program
set forth in Chapter 803 of the Texas Government Code.
(h) The beneficiary of a member who dies after the
member's required beginning date but before a member's delayed beginning
date may apply for benefits pursuant to §854.105 of the Act,
however such benefits shall be calculated in accordance with subsections
(e) and (f) of this section.
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