Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 11 - TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM › Chapter 306 - CREDITABLE SERVICE FOR MEMBERS OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM › Section 306.1 - Prior Service Credit for Members of Participating Departments

Current through Reg. 49, No. 28; July 12, 2024
(a) The governing body of a department that
				elects to participate in the pension system and is not merging an existing
				pension plan into the pension system may, before the fifth (5th) anniversary of
				the date the department begins participation, make a one-time election to
				purchase service credit for qualified service performed for the department
				before the effective date of departmental participation by the persons who
				became members of the pension system on the effective date of the departmental
				participation.
(b) The governing
				body of a department that elects or has previously elected to participate in
				the pension system and is merging or has merged an existing pension plan into
				the pension system may at any time purchase service credit for qualified
				service performed for the department before the effective date of departmental
				participation by the persons who are members of the pension system on the date
				the department contracts for the purchase.
(c) The maximum amount of prior service
				credit a member may receive under this section is 15 years. Prior service
				credit may be purchased for a number of years not to exceed a maximum of 15
				years. The pension system shall grant prior service credit under this section
				if the governing body of the department or the governing body of the political
				subdivision associated with the department agrees in writing to finance the
				prior service credit by a lump-sum payment or within a period not to exceed 10
				years from the effective date of the election to purchase the service
				credit.
(d) The cost to finance the
				purchase of prior service credit is based on the actuarially assumed rate of
				investment return on fund assets at the time payment for the service credit
				begins. The governing body of the department or the governing body of the
				political subdivision associated with the department may purchase prior service
				credit under subsection (a) of this section based on any contribution rate at
				or above the minimum provided by statute or state board rule for the period
				purchased and under subsection (b) of this section based on any contribution
				rate at or above the current minimum provided by state board rule at the time
				payment for the service credit begins. The overall costs associated with the
				purchase of prior service credit shall be determined by the pension system
				actuary according to generally accepted actuarial standards and must be
				determined to be actuarially sound for the cost-sharing pension
				system.
(e) To purchase prior
				service credit, the governing body of the department or the governing body of
				the political subdivision associated with the department must provide the
				Executive Director with a detailed, verified record of prior service showing
				the amount of qualified service performed for the department before the
				effective date of departmental participation by each person who became a member
				of the pension system on the effective date of the departmental participation.
				The record for each member must include the member's date of birth and entry
				date in the department.
(f) The
				maximum amount of prior service credit provided by this rule applies only to
				prior service credit purchased, or under a written agreement to be financed
				that is instituted, on or after September 1, 2019. Prior service credit
				purchased, or under a written agreement to be financed, under a procedure
				administered by the pension system before September 1, 2019, is subject to the
				maximum amount of credit and the terms and value in effect under the pension
				system's procedures at the time of purchase or written agreement to
				purchase.
(g) Prior service credit
				may not be purchased for any service performed prior to September 1, 2019 by a
				member who did not satisfy the requirements to be considered a "volunteer" or
				"auxiliary employee" under §
									861.001, Texas
				Government Code, prior to such date.