(a) §844.703 of the Texas Government Code provides
that the board may establish criteria for the circumstances under
which a subdivision's prior service contribution rate must be based
on an amortization period shorter than the standard amortization period
approved by the board.
(b) If the system determines that the following conditions
apply to a newly participating subdivision, then, if approved by the
director and recommended by the System's actuary, the prior service
contribution rate must be based on an amortization period of five
years. The conditions are:
(1) The subdivision has five or fewer employees; and
(2) All the employees will be eligible to retire within
five years of the subdivision's participation date.
(c) If conditions other than those listed in subsection
(b) of this section exist that cause the subdivision's prior service
contribution rate based on the standard amortization period to be
an unreasonable method of funding the prior service contributions,
then the board must approve any special amortization period recommended
by the system's actuary.
Source Note: The provisions of this §107.18 adopted to be effective April 30, 2015, 40 TexReg 2281