| (a) The Executive Director shall bill the governing
body of a political subdivision associated with a participating department
semi-annually on the last business day of February and August.
(b) Each billing shall include, as appropriate, charges
for:
(1) monthly Part One contributions for participating
members and any corresponding Part Two contributions, if applicable;
(2) optional annuity increases or supplemental payments;
(3) annuity payments funded by the governing body of
the political subdivision associated with the participating department
or the governing body of the participating department;
(4) prior service contributions;
(5) late-payment interest charges; and
(6) unpaid administrative penalties.
(c) At least 30 days before the last business day of
February and of August, the Executive Director shall send to the chair
of the local board of each participating department a semi-annual
pension roster report (Roster) that includes the name of each person
who performs emergency services or support services, if applicable,
for the participating department and is identified as a member of
the pension system, and the name of each person who is receiving pension
payments under a funding arrangement with the plan.
(d) The local board shall verify the accuracy of the
Roster report and shall work with the participating department head
to enroll each person who is performing or has performed emergency
services or support services, if applicable, for the participating
department since the date of the last verified Roster and who is not
listed on the Roster as a member of the pension system as required
by §862.002, Texas Government Code.
(e) Upon request by the local board chair or the participating
department head, the Executive Director will provide an updated Roster
for certification.
(f) The local board shall meet and certify, by signature
of the chairman, the accuracy of the Roster report and return the
signed Roster report to the Executive Director no later than the fifth
day before the last day of the billing period.
(g) Based on the certified Roster, on the last day
of the month of the billing period, an invoice shall be generated
by the pension system and provided to the governing body of the political
subdivision associated with the participating department. Payments
are due within 30 days of the invoice date. Late payments accrue interest
at the current actuarially assumed rate of investment return on fund
assets.
(h) In this section:
(1) The term "ACH" (Automated Clearing House) means
the legal framework of rules and operational procedures adopted by
financial institutions for the electronic transfer of funds.
(2) The term "ACH Credit" means an ACH transaction
initiated by the governing body of a political subdivision or the
governing body of a participating department for the electronic transfer
of funds from the account of the governing body of the political subdivision
or the governing body of the participating department to the account
of the pension system.
(3) The term "ACH Debit" means an ACH transaction initiated
by the pension system for the electronic transfer of funds from the
account of the governing body of a political subdivision or the governing
body of a participating department to the account of the pension system.
(4) The term "electronic funds transfer" means the
transfer of funds, other than by check, draft or similar paper instrument,
that is initiated electronically to order, instruct, or authorize
a financial institution to debit or to credit an account.
(5) The term "pre-authorized direct debit" means the
method available to the governing body of a political subdivision
or the governing body of a participating department for electronically
paying required contributions by granting a continuing authorization
to the pension system to initiate an ACH Debit for the electronic
transfer of funds from the designated bank account of the governing
body of the political subdivision or the governing body of the participating
department to the account of the pension system in an amount equal
to the contributions required to be paid.
(6) The term "wire transfer" generally means a single
transaction, initiated by the governing body of a political subdivision
or the governing body of the participating department, in which funds
are electronically transferred to the account of the pension system
using the Federal Reserve Banking System rather than the ACH.
(i) Amounts required to be contributed to the pension
system in accordance with Chapter 865 of the Texas Government Code
may be made by preauthorized direct debits (ACH Debits), electronic
funds transfer, or by wire transfer.
(j) The governing body of a political subdivision or
the governing body of a participating department may elect to use
the preauthorized direct debit method of payment by filing a signed
authorization agreement with the pension system in which the governing
body of the political subdivision or the governing body of the participating
department has designated a single bank account from which all transfers
will be made.
(k) The authorization agreement entered into for this
purpose constitutes continuing authority for the pension system to
initiate a direct debit of the governing body of the political subdivision's
or the governing body of the participating department's designated
bank account.
(l) An authorization agreement remains in effect until
the pension system receives either a written revocation of the agreement,
or a subsequent written agreement, which automatically revokes the
existing authorization. A new authorization agreement must be filed
if there is any change in the designated bank account. The pension
system, in its sole discretion, may terminate the authorization agreement
by mailing written notice to the governing body of the political subdivision
or the governing body of the participating department, as applicable.
Thereafter, the governing body of the political subdivision or the
governing body of the participating department must remit all contributions
by check, electronic funds transfer, wire transfer, or other monetary
means approved by the Executive Director. The alternative method of
payment may include a fee to recover the cost of administering this
subsection.
(m) On the 30th day after the invoice date, the pension
system will initiate an ACH Debit in the amount of the invoice. The
actual transfer of funds from the ACH designated account will not
occur before the due date of the invoice.
(n) An ACH Debit that is reversed by a governing body
of a political subdivision or the governing body of the participating
department or that fails because sufficient funds are not available
for transfer constitutes nonpayment of the required contributions
and, thereafter, the required contributions will not be considered
to have been received until the day the funds are actually transferred
to the account of the pension system. Such unpaid funds may be subject
to interest charges.
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| Source Note: The provisions of this §310.8 adopted to be effective October 2, 2005, 30 TexReg 6063; amended to be effective September 1, 2006, 31 TexReg 5811; amended to be effective January 8, 2013, 38 TexReg 153; amended to be effective August 31, 2014, 39 TexReg 6870; amended to be effective October 18, 2015, 40 TexReg 7104; amended to be effective September 10, 2017, 42 TexReg 4657; amended to be effective December 31, 2019, 44 TexReg 8335 |
