TITLE 34.PUBLIC FINANCE

Part 5. TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM

Chapter 105. CREDITABLE SERVICE

34 TAC §105.3

The Texas County and District Retirement System proposes the adoption of new §105.3 concerning the crediting of service in the retirement system for qualifying service performed in the military.

The proposed rule is necessary to implement and administer the statutory changes made by §19 and §64, Senate Bill 1129, 76th Legislature (1999) to the provisions of the Texas County and District Retirement System Act relating to the optional authorization allowing credited service in the retirement system for qualified military service. The proposed rule describes the eligibility requirements for establishing credited service under the rule, and the manner of calculating the amount of service that is to be credited to an eligible member based on the type of military duty. In addition, the proposed rule describes the eligibility requirements and effective date of an authorization reducing the eligibility period from 10 years to 8 years.

Terry Horton, Director of the Texas County and District Retirement System, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local governments as a result of administering the rule.

Mr. Horton has also determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of administering the rule will be a more clear and complete understanding by subdivisions and members of the manner and procedure by which credited service for qualified military service is calculated and granted. There will be no costs to small business. There are no anticipated costs to persons who are required to comply with the rule as proposed.

Comments on the proposed rule may be submitted to Terry Horton, Director, Texas County and District Retirement System, at P.O. Box 2034, Austin, TX 78768-2034.

The rule is proposed under the Government Code, §845.102, which provides the board of trustees of the Texas County and District Retirement System with the authority to adopt rules necessary or desirable for efficient administration of the system.

The Government Code, §843.601 is affected by this proposed rule.

§105.3.Credited Service for Qualified Military Service.

(a)

In this section:

(1)

The term "Act" means the Texas Government Code, Title 8, Subtitle F as amended. Unless otherwise indicated, all section numbers refer to sections of the Act. The term "credited service" means membership service for determining retirement eligibility only. Member contributions and monetary credits are not required or permitted with respect to credited service for qualified military service established after December 31, 1999.

(2)

The term "eligible member" means a member of an eligible subdivision who has performed, as an employee, at least 10 years of service credited in the retirement system; who does not receive and is not eligible to receive federal retirement payments based on 20 years or more of active federal military duty or its equivalent; who has performed qualified military service; and who has been released from military duty under honorable conditions.

(3)

The term "eligible subdivision" means a subdivision whose governing board has adopted the optional authorization for the establishment of credited service in the retirement system for qualified military service under §843.601(c).

(4)

The term "qualified military service" means service in the uniformed services as defined in 38 U.S.C. §4303(13). It excludes that service which was performed in a month for which the member has received credited service in this retirement system under any other provision of the Act, and that service which is credited by another retirement system or program established or governed by state law. A member may not receive more than one month of credited service for any month.

(b)

An eligible member may receive one month of credited service in the retirement system for each month of qualified military service performed while on active duty. A member may receive one month of credited service in the retirement system for each 12 months or fraction of months of qualified military service performed while on inactive duty. An eligible member may not accumulate more than a combined total of 60 months of credited service in the retirement system for qualified military service under §843.601 and for membership credited service under §842.109(b).

(c)

The governing body of an eligible subdivision that has adopted the Optional Benefit Eligibility Plan Two described by §844.210 may authorize a reduction in the minimum credited service requirement for eligibility to establish credit under §843.601(c) from 10 to 8 years. The reduction may not take effect until January 1 of the year following the year in which the authorization was adopted except that a reduction authorized by an eligible subdivision that begins participation after December 31, 1999 may take effect on the date the subdivision begins participation.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2000.

TRD-200000930

Terry Horton

Director

Texas County and District Retirement System

Proposed date of adoption: March 20, 2000

For further information, please call: (512) 328-8889


Chapter 107. MISCELLANEOUS RULES

34 TAC §107.8, §107.9

The Texas County and District Retirement System proposes amendments to §107.8 relating to the electronic transfer of funds, and §107.9 relating to the electronic filing of documents.

The amendment to §107.8 clarifies that a reversal of an ACH Debit by a subdivision constitutes non-payment of the required contributions with respect to the monthly report. The amendment to §107.9 expands the definition of documents that can be electronically filed. In addition, the amendment clarifies that documents filed electronically by a subdivision will be considered to have been certified by the subdivision, and that documents electronically filed by a principal other than a subdivision will be considered to have been certified by the principal if certifying language appears on the document.

Terry Horton, Director of the Texas County and District Retirement System, has determined that for the first five-year period the amended rules are in effect there will be no fiscal implications for state or local governments as a result of administering the rules.

Mr. Horton has also determined that for each year of the first five years the amended rules are in effect the public benefit anticipated as a result of administering the rules will be a more clear and complete understanding by subdivisions and members of the treatment of ACH Debits and documents filed electronically that require certification. There will be no costs to small business. There are no anticipated costs to persons who are required to comply with the rules as proposed.

Comments on the proposed amendments may be submitted to Terry Horton, Director, Texas County and District Retirement System, at P.O. Box 2034, Austin, TX 78768-2034.

The amendments are proposed generally under the Government Code, §845.102, which provides the board of trustees of the Texas County and District Retirement System with the authority to adopt rules necessary or desirable for efficient administration of the system; and under the Government Code, §845.116(b) which specifically authorizes the board of trustees to adopt rules and procedures relating to the electronic transfer of funds and the electronic filing of documents.

The Government Code, §845.116 is affected by the proposed amendment to §107.8 and the Government Code, §§842.101; 843.304; 843.501; 844.307; 845.403 are affected by the proposed amendment to §107.9.

§107.8.Electronic Transfer of Funds.

(a)-(f)

(No change.)

(g)

The receipt of a monthly report filed under an unrevoked authorization agreement shall be considered to be receipt by the retirement system of the amount required to be contributed for the month based on that report provided that there are sufficient funds available for transfer from the subdivision's designated account on the later of the due date of the report or the date the report is received. An ACH Debit that is reversed by a subdivision or that fails because sufficient funds are not available for transfer constitutes non-payment of the required contributions with respect to that monthly report and, thereafter, such required contributions will not be considered to have been received until the day the funds are actually transferred to the account of the retirement system. A subdivision failing to timely file the required information or remit the required contributions by the due date of the report is subject to a penalty for late reporting in accordance with §107.6 of this title (relating to Penalty for Late Reporting).

§107.9.Electronic Filing of Documents.

(a)

In this section:

(1)

The term "document" means any form, statement, affidavit, application or report (and related attachments) required [ developed retirement system for the administration of the system that is ] to be completed by or on behalf of a principal and filed with the system [ for the purposes of reporting information or making selections ].

(2)-(3)

(No change.)

(b)

All documents required to be filed with the system by or on behalf of a principal in accordance with these rules or the provisions of Subtitle F of Title 8 of the Texas Government Code may be electronically filed. A document requiring certification by a subdivision that is filed with the system shall be considered to have been certified by the subdivision. A document that has been properly completed by a principal (other than a subdivision) or authorized agent of the principal and that is electronically filed with the system shall be considered to have been certified by the principal if certifying language appears on the document.

(c)-(e)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2000.

TRD-200000931

Terry Horton

Director

Texas County and District Retirement System

Proposed date of adoption: March 20, 2000

For further information, please call: (512) 328-8889