Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 5 - TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM › Chapter 105 - CREDITABLE SERVICE › Section 105.41 - Credited Service and Survivor Benefits Under the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act)

Current through Reg. 49, No. 28; July 12, 2024
(a)
				In accordance with §401(a)(37) of the Internal Revenue Code (§104(a)
				of the HEART Act), the survivors of a member who dies after December 31, 2006,
				while performing qualified military service under the USERRA, are entitled to
				any additional benefits (other than benefit accruals relating to the period of
				qualified military service) that would have been provided under the employer's
				plan had the member resumed employment and then terminated employment on
				account of death.
(b) A deceased
				member described above will receive credited service for the period of the
				deceased member's qualified military service for purposes of determining
				eligibility for a Survivor Annuity in accordance with §844.407 of the Act
				(but such period of qualified military service will not increase the deceased
				member's accrued benefit used to determine the amount of any survivor annuity
				for which the deceased member's survivors may or may not be
				eligible).
(c) A deceased member
				described above will be included in the coverage of any Member Optional Group
				Term Life Program elected by the employer under §842.004 of the Act, with
				the death benefit based on the annualized regular rate of pay or regular salary
				paid the member in accordance with §844.503(c) of the Act during the most
				recent pay period of active employment prior to the commencement of qualified
				military service.
(d) The System
				does not adopt the permissive provisions of §104(b) of the HEART Act, as
				added by §414(u)(9) of the Internal Revenue Code relating to benefit
				accruals. However, pursuant to the authority granted the Board by §845.102
				of the Act, and in conformance with
				26 CFR
				§1.401(a)(4)-11(d)(3)
				relating to rules for imputing military service and periods of disability as
				credited service, any member who, after December 31, 2006, becomes disabled
				(based on the criteria set forth in subparagraphs (A) and (B) of
				§844.303(b)(2) of the Act) while performing the member's qualified
				military service under the USERRA, is entitled to credited service in the
				retirement system for the period of qualified military service under the
				USERRA. However, such period of qualified military service will not increase
				the disabled member's accrued benefit used to determine the amount of any
				service, disability or survivor annuity for which the member or the member's
				survivors may or may not become eligible. The disabled member will be included
				in the coverage of any Member Optional Group Term Life program elected by the
				employer under §842.004 of the Act and not terminated and will, subject to
				§844.502 of the Act, be eligible to receive extended coverage during the
				two years following the onset of disability, provided that sufficient evidence
				of the member's continuous disability and its date of onset is submitted to the
				retirement system on application for a death benefit based on the disabled
				member's compensation described in subsection (c) of this section.
(e) In accordance with §414(u)(12) of
				the Internal Revenue Code (§105(b) of the HEART Act), and effective as of
				January 1, 2009, amounts received by a member as a "differential wage payment"
				(within the meaning of the Internal Revenue Code) for any period that such
				member is not performing services for the employer by reason of qualified
				military service will be treated as "compensation" for purposes of benefit
				accruals under the Act and will be treated as compensation for purposes of the
				Internal Revenue Code to the extent so required.