Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 5 - TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM › Chapter 103 - CALCULATIONS OR TYPES OF BENEFITS › Section 103.4 - Certification of Prior Service and Average Prior Service Compensation

Current through Reg. 49, No. 28; July 12, 2024
(a) Pursuant to §§843.101 - 843.104
				of the Texas Government Code, a subdivision must certify to the system the
				service performed by employees of the subdivision before the subdivision's
				participation in the retirement system became effective and must also certify
				the average prior service compensation of those members.
(b) The subdivision must certify each
				member's prior service by calculating one month of credited service for each
				calendar month during which the member performed at least one day of service
				for the subdivision, other than as a temporary employee, prior to the month
				that includes the subdivision's effective participation date.
(c) The subdivision must certify each
				member's average prior service compensation by multiplying the member's most
				recent annual rate of compensation as determined in subsection (d) of this
				section by .97, and dividing this product by twelve.
(d) The most recent annual rate of
				compensation is determined based on the definition prescribed in §
									844.503
				of the Texas Government Code concerning computation of current annual
				compensation for purposes of group term life insurance. The subdivision shall
				compute the most recent annual rate of compensation for a member by converting
				to an annual basis the regular rate of pay of the member for the most recent
				regular hour worked and proportionally reducing that annual basis figure if the
				member is not employed in a full time position. The most recent annual rate of
				compensation of a member who is exempt from the minimum wage and maximum hour
				requirements of the federal Fair Labor Standards Act (29 U.S.C. Section
				201 et seq.) and who is paid on a salary
				basis is computed by converting to an annual basis the regular salary paid to
				the member for the most recent pay period of active employment.
(e) The system shall provide the subdivision
				a worksheet for the subdivision to enter the data concerning the months of
				prior service worked as defined in subsection (b) of this section, to enter the
				data concerning the most recent rate of annual compensation as defined in
				subsection (d) of this section, and to calculate the average prior service
				compensation as described in subsection (c) of this section. The subdivision
				shall be responsible for entering the data, making the calculations, and then
				certifying the results to the system.
(f) Upon receipt of the prior service
				certification and the average prior service compensation certification, the
				system will review the data, validate the calculations, and make any necessary
				corrections in the event of a discrepancy between the subdivision's
				certifications and the system's validation. If the calculation of average prior
				service compensation as mandated by this section is infeasible for any reason,
				the system may approve an alternate method to determine average prior service
				compensation as long as the calculation is reasonable and consistently
				applied.
(g) A subdivision must
				certify the prior service and average prior service compensation of all
				eligible members no later than 30 days after the subdivision's effective date
				of participation. In the case of a member eligible for prior service credit
				under §
									843.102(a)(2)
				of the Texas Government Code, the subdivision must make the certification no
				later than 30 days after the six month period of re-employment. Calculations of
				prior service credit are governed by the law in effect at the time of the
				calculation. The system may extend the time periods set forth in this
				subsection.
(h) If, under §
									843.201
				of the Texas Government Code, a subdivision has acquired a public facility or
				assumed a governmental function, the date of acquisition or assumption shall be
				the effective date of participation for purposes of calculating the prior
				service and average prior service compensation of those members eligible under
				that section.