Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 3 - TEACHER RETIREMENT SYSTEM OF TEXAS › Chapter 25 - MEMBERSHIP CREDIT › Subchapter P - CALCULATION OF FEES AND COSTS › Section 25.302 - Calculation of Actuarial Costs of Service Credit

Current through Reg. 49, No. 28; July 12, 2024
(a) When a member is
				  purchasing TRS service credit for which the law requires that the actuarial
				  cost or actuarial present value be deposited and for which the method in this
				  section is referenced by another section of this title, TRS will calculate the
				  cost using the cost factors obtained from the Actuarial Cost Tables adopted and
				  method described in this section. For purposes of this section, TRS will use
				  the age of the member and the service credit established by the member on
				  September 1 of the school year in which the cost of the purchase is
				  established.
(b) The factors for
				  individuals whose membership was established before September 1, 2007 and who
				  have five years of service credit on August 31, 2014, and maintain membership
				  in TRS until the time of purchase, are shown in the tables adopted as part of
				  this subsection. Within each set of tables, the number of years of service
				  credit to be purchased will determine which specific table will be used. Each
				  of the tables cross-references the member's age in rows with years of credited
				  service (before purchase) in columns. The intersection of the participant's age
				  and service is the cost per $1,000 of salary. The cost factor for a participant
				  with more years of service credit than shown on the table is the same as the
				  factor shown for the highest number of years of service credit on the table for
				  the participant. TRS will calculate the cost to purchase service credit under
				  this section by dividing the participant's salary by 1000 and multiplying the
				  resulting quotient by the appropriate cost factor obtained from the table. The
				  tables set forth the cost, per $1,000 of salary, to purchase from one year to
				  fifteen years of service credit. The number of years of service credit
				  available for purchase is determined by the laws and rules applicable to the
				  type of service credit to be purchased. For the purpose of calculating the
				  required amount for a member who is not grandfathered to use a three-year
				  salary average under §
										51.12 of this title (relating to
				  Applicability of Certain Laws in Effect Before September 1, 2005), the term
				  "salary" is defined as follows:
(1) For the
				  upper region of the table (where the factors appear above the line), salary is
				  the greater of the annual salary for the last year of credited service or the
				  average of the member's highest years of compensation calculated on September 1
				  of the school year in which the cost of the service credit is established. The
				  fewer of five years of compensation or all of the member's years of
				  compensation shall be used for the average; or
(2) For the lower region of the table (where
				  the factors appear below the line), salary is the average of the member's
				  highest five years of compensation calculated on September 1 of the school year
				  in which the cost of the service credit is established. A member's highest five
				  years of compensation shall be calculated as if the member were retiring at the
				  time the service credit is purchased. The lower region of the table (where the
				  factors appear below the line) reflects those age and service combinations
				  where the purchase of service credit results in immediate eligibility of the
				  member for unreduced retirement benefits.
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