Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 4 - EMPLOYEES RETIREMENT SYSTEM OF TEXAS › Chapter 85 - FLEXIBLE BENEFITS › Section 85.13 - Funding

Current through Reg. 49, No. 28; July 12, 2024
(a) Expenses of administration. Any expenses
				incurred in the administration of the flexible benefits plan will be paid from
				the State Employees Cafeteria Trust Fund. An administrative fee to defray costs
				of administering the plan may be imposed on any, or each, reimbursement account
				as the board of trustees determines to be necessary.
(b) Employee Contributions.
(1) Contributions to the flexible benefits
				plan by active duty employees may be made only through payroll salary
				reduction. An employee who elects to participate in the health care and
				dependent care reimbursement plans must authorize, on an election form, the
				exact amount of salary reduction, in addition to any monthly administrative
				fee.
(2) Eligible health care
				reimbursement account participants on inactive employment status must continue
				to contribute to their health care reimbursement account with after-tax dollars
				paid directly to the Employees Retirement System of Texas in the exact amount
				of the election, plus any administrative fees.
(3) The minimum amount a participant may
				elect to reduce his salary on a monthly basis for each reimbursement account is
				$15. The maximum amount an employee may elect to reduce his salary on a monthly
				basis for each reimbursement account is limited to the amount stipulated in
				§
										85.5(b) and
				(c) of this title (relating to Benefits). Any
				administrative fee for a reimbursement account is in addition to these minimum
				and maximum amounts.
(4) When a
				participant receives no salary in a pay period, no salary reduction will be
				made for that pay period and no catch-up salary reduction will subsequently be
				permitted, except as described in §
										85.9(d)(2)
				of this title (relating to Payment of Claims from Reimbursements Accounts) for
				health care reimbursement account participants.
(5) In situations where there are
				insufficient salary dollars to fund the amount of the salary reduction and
				fees, no salary reduction will be made, except as indicated in paragraph (6) of
				this subsection, for that pay period and no catch-up reduction will
				subsequently be permitted, except as described in §
										85.9(d)(2)
				of this title for health care reimbursement account participants.
(6) In the event an employee has elected to
				participate in more than one flexible benefits plan optional benefit and the
				employee's pay is sufficient to pay for one or more, but not all of the
				flexible benefits plan contributions, then payment of the flexible benefits
				plan contributions shall be made in the following order: health care
				reimbursement and dependent care reimbursement.
(7) If a participant elects to change
				contributions due to a qualifying life event (QLE), the plan administrator
				shall reimburse eligible claims based on the contribution in place when they
				occurred. Claims incurred during the initial enrollment period shall be
				reimbursed up to the amount of the participant's original contribution
				election. The plan administrator shall treat the remainder of the plan year
				following the QLE as a new coverage period, and claims incurred in this time
				period shall be reimbursed up to the amount of the new contribution
				election.