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RULE §71.19 Transfer of Service between the Teacher Retirement System of Texas (TRS) and the Employees Retirement System of Texas (ERS)

Published: 2015

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(a) Purpose. These rules are intended to implement
the provisions of the Government Code, Chapter 805, concerning the
transfer of credit between TRS and ERS, and to provide a systematic
method of funding the actuarial value of the annuity resulting from
transferred service.
(b) Forms.
  (1) Applications for transfer will be made using forms
prescribed by ERS.
  (2) ERS will cooperate with TRS in an effort to make
such application forms for ERS comparable to those used by TRS.
(c) Notice.
  (1) A person who elects to transfer service credit
pursuant to these rules must file the appropriate form to make such
transfer not more than 90 days prior to the person's retirement effective
date, but not later than said effective date.
  (2) ERS will notify TRS of the pending transfer not
later than 30 days following said effective date.
(d) Manner of transfer.
  (1) Service credit and assets will be transferred through
electronic and hard copy documentation pursuant to these rules, and
ERS will maintain records of such transfers permanently.
  (2) Any transfer of service credit to ERS must reflect
years of credit, average salary, periods of service, method of calculation,
and the manner used to calculate the time period involved, including
any military credit purchased.
  (3) Any transfer of service credit to ERS must include
specific data regarding the pre-tax and after-tax contributions by
the person, interest owed, earned interest, and any other dollar amount
which will be part of the transfer.
  (4) Assets to fund the portion of the annuity attributable
to service with the TRS will be transferred to ERS pursuant to agreement
with TRS.
  (5) Service transferred from TRS will be established
in an employee class account for the benefit of the member.
(e) Transfer of funds. ERS and TRS agree on the following
method of transferring funds. Each system shall certify on a monthly
basis the total dollar amount of annuities paid by the system which
are attributable to service transferred pursuant to the Government
Code, Chapter 805. The amount certified shall exclude any portion
of annuities paid consisting of post-retirement increases. Each system
shall remit to the other system the amount certified within 30 days
of receipt of such certification. It is recognized that adjustments
will be made from month-to-month as a result of such things as administrative
errors, the death of the annuitant or a beneficiary, return-to-work,
and recovery from disability by an annuitant. The systems will jointly
agree on the administrative and accounting procedures to be established
in order to ensure the transfer of funds pursuant to this section.
(f) Purchase of refunded service.
  (1) A member of TRS who canceled membership in ERS
by taking a refund of his individual account may repurchase his service
credit for the purpose of making a transfer at any time prior to retirement.
Such persons do not have to become a contributing member of ERS in
order to purchase such canceled service credit.
  (2) A person who cancels membership in ERS by taking
a refund of his individual account must meet the general requirements
for reinstatement or purchase of service credit in ERS.
(g) Military credit. Any transferred military service
which would result in a member receiving service credit in excess
of that permitted under ERS rules will not be accepted.
(h) Termination of membership. The transfer of ERS
credit to TRS will terminate membership in ERS, and will cancel all
rights to benefits from ERS based on that service.
(i) Service in the month following retirement. In accordance
with rules adopted by the retirement systems under Texas Government
Code, Chapter 805, as applicable, a retirement shall be canceled,
service credit transfer canceled, and membership reinstated if an
ERS retiree, who transferred service from TRS and retired pursuant
to this chapter, holds a position covered by the retirement system
at which the retiree was last employed during the month following
retirement. A retirement shall be canceled and membership reinstated
if a retiring member has a commitment from his present employer to
be rehired. At the time of retirement, a retiring member must disclose
to the retirement system any commitment from his present employer
to be rehired.

Source Note: The provisions of this §71.19 adopted to be effective September 2, 1993, 18 TexReg 5593; amended to be effective April 20, 1994, 19 TexReg 2550; amended to be effective December 31, 2003, 28 TexReg 11610; amended to be effective September 14, 2008, 33 TexReg 7749; amended to be effective June 10, 2014, 39 TexReg 4485