| (a) Eligibility Criteria. An employee shall be eligible
to make a once-per-lifetime irrevocable election of ORP in lieu of
the applicable retirement system if all of the following criteria
are met:
(1) ORP-eligible Position: Employment in an ORP-eligible
position as defined in subsection (k) of this section;
(2) 100 Percent Effort: Employment in an ORP-eligible
position that is expected to be full-time (i.e., 100 percent effort)
for a period of at least one full semester or four and one-half months.
(A) Initial Eligibility Period. This eligibility requirement
is an employee's initial ORP eligibility period, as defined in §25.3
of this title (relating to Definitions).
(B) Combining of Percent Effort at Different Institutions
Not Permitted. The 100 percent effort requirement shall be satisfied
by employment with only one institution, unless an individual is simultaneously
employed in ORP-eligible positions with more than one component institution
under the same governing board that operates its ORP either as a single
plan for all components or includes the applicable components in the
same plan, in which case, the employee's percent effort at each component
may be combined to meet the minimum 100 percent effort requirement;
(3) First Election Opportunity: No previous opportunity
to elect ORP in lieu of the applicable retirement system during the
current or a prior period of employment at the same or another Texas
public institution of higher education or the Board; and
(4) Active Membership in Retirement System: Current
membership or eligibility for active membership in the applicable
retirement system as provided in subsection (h) of this section.
(b) ORP Participation after Election. Once an employee
makes an election of ORP, the employee's eligibility to continue participating
in ORP shall be determined in accordance with §25.5 of this title
(relating to ORP Vesting and Participation).
(c) Non-Texas ORP Plans. Prior enrollment, participation
or vested status in any plan other than the ORP plan authorized under
Texas Government Code, Chapter 830, shall have no bearing on an employee's
eligibility to elect ORP, except that the employee must be eligible
for active membership in the applicable retirement system as provided
in subsection (h) of this section.
(d) Separate Elections. An election of ORP in lieu
of TRS at a Texas public institution of higher education shall be
considered separate and distinct from an election of ORP in lieu of
ERS at the Board.
(1) An employee's prior election of ORP in lieu of
ERS at the Board on or after September 1, 1994, shall have no bearing
on that person's eligibility to elect ORP in lieu of TRS at a Texas
public institution of higher education.
(2) An election of ORP by a Board employee prior to
September 1, 1994, was made in lieu of TRS; therefore, an institution
shall treat an employee's election of ORP in lieu of TRS at the Board
prior to September 1, 1994, in the same manner as if the election
had been made at an institution.
(3) An employee's prior election of ORP in lieu of
TRS at an institution, or an employee's election of ORP in lieu of
TRS at the Board prior to September 1, 1994, shall have no bearing
on that person's eligibility to elect ORP in lieu of ERS at the Board.
(e) Opportunity to Elect.
(1) The governing board of each Texas public institution
of higher education shall provide an opportunity to all eligible employees
in the component institutions governed by the board to elect ORP in
lieu of TRS in accordance with these rules. The Board shall provide
an opportunity to all eligible employees to elect ORP in lieu of ERS
in accordance with these rules.
(2) Documentation.
(A) ORP employers shall maintain documentation in each
ORP-eligible employee's employment record that an opportunity to elect
ORP was provided. Such documentation shall indicate the beginning
and ending dates of the employee's ORP election period.
(B) The documentation required by this paragraph may
be maintained in an electronic format in accordance with applicable
provisions for such records.
(C) This paragraph applies to employees who become
eligible to elect ORP on or after September 1, 2006, including employees
who are hired for the Fall 2006 semester whose first active duty date
is in the month of August 2006.
(f) 90-Day ORP Election Period. An employee who meets
the eligibility criteria in subsection (a) of this section shall be
provided an ORP election period, as defined in §25.3 of this
title (relating to Definitions), during which an election to participate
in ORP may be made 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, and submitting the ORP election form to the ORP employer
for certification.
(1) Beginning and Ending Dates. The 90-day ORP election
period shall begin on the employee's initial ORP eligibility date,
as defined in §25.3 of this title (relating to Definitions),
and shall end on the earlier of:
(A) the date the employee makes an ORP election 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, and submitting
the ORP election form to the ORP employer for certification; or
(B) the 90th calendar day after the employee's initial
ORP eligibility date, not including the initial ORP eligibility date
and including the 90th calendar day. If the 90th calendar day after
the initial ORP eligibility date falls on a weekend or holiday, the
deadline shall be extended until the first business day after the
90th calendar day.
(2) Written Notification. In accordance with §25.6(h)(2)
of this title (relating to ORP Election Period Dates), each ORP employer
shall, within 15 business days of an ORP-eligible employee's initial
ORP eligibility date, provide written notification to the ORP-eligible
employee that indicates the beginning and ending dates of his or her
ORP election period and the local procedures for submitting the election
form and additional required paperwork.
(3) Once-per-Lifetime Irrevocable Election. An employee
who is eligible to elect ORP shall have only one opportunity during
his or her lifetime, including any future periods of employment in
Texas public higher education, to elect ORP in lieu of the applicable
retirement system, and the election may never be revoked.
(A) Default Election. Failure to elect ORP during the
90-day ORP election period shall be a default election to continue
membership in the applicable retirement system.
(i) ORP in Lieu of TRS. An employee of a Texas public
institution of higher education who does not elect ORP in lieu of
TRS during the 90-day ORP election period shall never again be eligible
to elect ORP in lieu of TRS, even if subsequently employed in an ORP-eligible
position at the same or another Texas public institution of higher
education.
(ii) ORP in Lieu of ERS. An employee of the Board who
does not elect ORP in lieu of ERS during the 90-day ORP election period
shall never again be eligible to elect ORP in lieu of ERS, even if
subsequently employed in an ORP-eligible position at the Board.
(B) Irrevocable. An election of ORP shall be irrevocable.
An employee who elects ORP shall remain in ORP, except as provided
by §25.5(f) and (h) of this title (relating to ORP Vesting and
Participation). A default election of the applicable retirement system,
as described in subparagraph (A) of this paragraph shall be irrevocable.
An employee who fails to elect ORP during the ORP election period
shall remain in the applicable retirement system in accordance with
the laws and rules governing eligibility for the retirement system.
(C) Separate Elections. As provided in subsection (d)
of this section, an election of ORP in lieu of TRS at a Texas public
institution of higher education shall be considered separate and distinct
from an election of ORP in lieu of ERS at the Board; therefore, an
election of ORP in lieu of one retirement system shall not preclude
an eligible employee's election of ORP in lieu of the other retirement
system if subsequently employed in a position that is eligible to
elect ORP in lieu of the other retirement system.
(4) Company Selection Required at Election. An employee
who elects to participate in ORP shall select an ORP company from
the ORP employer's list of authorized companies in conjunction with
the election of ORP. An ORP employer shall establish a policy that
failure to select an authorized company may result in disciplinary
action up to and including termination of employment because retirement
contributions are required by law as a condition of employment.
Cont'd... |
