CHAPTER 842. MEMBERSHIP - Texas Statutes

GOVERNMENT CODE

TITLE 8. PUBLIC RETIREMENT SYSTEMS

SUBTITLE F. TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM

CHAPTER 842. MEMBERSHIP

SUBCHAPTER A. SUBDIVISION PARTICIPATION

Sec. 842.001. SUBDIVISION PARTICIPATION. (a) A subdivision, in

the manner required for official actions of the subdivision, may

elect to join the retirement system and be subject to the

provisions of this subtitle.

(b) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec. 92(1),

eff. January 1, 2008.

(c) A political subdivision other than a county may participate

in the retirement system only upon approval of the board of

trustees of the system.

(d) Subject to the approval of the board of trustees, an

electing subdivision under this section may begin participation

in the retirement system on the date specified by the

subdivision's governing body.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1985, 69th Leg., ch. 491, Sec. 4, eff. June

12, 1985. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

52.001 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 4, eff. January 1, 2008.

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 92(1), eff. January 1, 2008.

Sec. 842.002. RULES FOR PARTICIPATING SUBDIVISIONS. The board

of trustees may adopt rules concerning:

(1) notices, information, and reports the board of trustees

requires from a subdivision that elects to participate in the

retirement system;

(2) the time that a subdivision that elects to participate in

the retirement system may begin participation and the actions

that subdivision may take in anticipation of board approval under

Section 842.001; and

(3) the powers and duties of a participating subdivision to

adopt orders or resolutions, make elections, and otherwise

exercise decision-making authority concerning the rights and

benefits of the members and annuitants under a plan adopted or

assumed by the subdivision.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

52.002 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989. Amended by Acts 2001, 77th Leg., ch. 122, Sec. 5, eff. Dec.

31, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 5, eff. January 1, 2008.

Sec. 842.004. OPTIONAL GROUP TERM LIFE PROGRAM. (a) A

subdivision participating in the retirement system may elect to

participate in the optional group term life program.

(b) A subdivision that elects to participate in the program may

elect coverage providing postretirement death benefits in

addition to coverage providing in-service death benefits.

(c) A subdivision that elects to participate in the program may

begin participation on the first day of any month after the month

in which the subdivision gives notice of its election to the

board of trustees.

(d) If before November 1 of any year a subdivision gives written

notice of its intention to the retirement system, the subdivision

may terminate coverage under and discontinue participation in the

program. A termination under this subsection is effective on

January 1 of the year following the year in which notice is

given.

(e) If a subdivision has previously discontinued participation

in the program, the board of trustees in its discretion may

restrict the right of the subdivision to participate again.

Added by Acts 1981, 67th Leg., 1st C.S., p. 208, ch. 18, Sec. 40,

eff. Nov. 10, 1981. Renumbered from Vernon's Ann.Civ.St. Title

110B, Sec. 52.0031 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 460, Sec. 1,

eff. Jan. 1, 1992; Acts 1999, 76th Leg., ch. 427, Sec. 2, eff.

Dec. 31, 1999; Acts 2001, 77th Leg., ch. 122, Sec. 6, eff. Dec.

31, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 6, eff. January 1, 2008.

Sec. 842.007. SUBDIVISION NOT AGENT OF SYSTEM. Neither a

subdivision that participates in the retirement system nor any

employee or officer of a participating subdivision has authority

to act as an agent of the retirement system. An action or

inaction on the part of a participating subdivision or its

employee or officer is not binding on the retirement system.

Added by Acts 1993, 73rd Leg., ch. 175, Sec. 2, eff. Jan. 1,

1994.

Sec. 842.0075. ASSUMPTION BY SUCCESSOR SUBDIVISION. (a) The

governing body of a participating subdivision may, with the

consent of the board of trustees and on terms approved by the

board, assume the subdivision account and pension liabilities of

a subdivision that no longer exists, is in the process of

dissolution, is changing its operational form, or no longer has

employees. The account and pension liabilities of a subdivision

described by this subsection may not be assumed if the

subdivision has executed a voluntary termination agreement under

Section 842.052 or if the board has specified a date under

Section 842.053 for the involuntary termination of the

subdivision's participation in the retirement system.

(b) Subject to any limitation set by the board of trustees, the

governing body of the assuming subdivision may exercise any

authority with respect to plan provisions applicable to members

and annuitants of the subdivision plan being assumed that the

governing body of that subdivision could have exercised.

(c) Except as otherwise provided by this section, all retirement

plan provisions in effect on the assumption date remain in effect

until changed by the governing body of the assuming subdivision.

(d) As of the assumption date, the account in the subdivision

accumulation fund being assumed and the account of the assuming

subdivision will be treated as one account for the purposes of

receiving allocations under this subtitle and paying benefits

accrued with respect to either subdivision.

(e) The retirement system is not liable to any person for any

claim or loss of benefits resulting from the assumption by

another participating subdivision of the account and pension

liabilities of a subdivision described by Subsection (a).

(f) The board of trustees by rule may establish standards,

definitions, and procedures it considers necessary to administer

this section and shall take reasonable actions and exercise its

discretion in a fair and equitable manner on a case-by-case basis

to preserve accrued benefits.

Added by Acts 2005, 79th Leg., Ch.

506, Sec. 5, eff. January 1, 2006.

Sec. 842.008. PARTIAL ASSUMPTION BY TRANSFEREE SUBDIVISION. If

a function or activity previously performed by employees of a

participating subdivision is transferred to or otherwise taken

over by another participating subdivision and any of the

employees performing the function or activity transfer to and

become employees of the subdivision taking over the function or

activity, with the consent of and on terms approved by the board

of trustees, the pension liabilities accrued by the transferring

employees for service with the transferring subdivision, together

with an appropriate portion of trust assets in the account of the

transferring subdivision, may be treated as and considered to be

a separate account and pension liabilities of the subdivision

taking over the function or activity.

Added by Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 7, eff. January 1, 2008.

SUBCHAPTER A-1. TERMINATION OF PARTICIPATION BY SUBDIVISIONS

Sec. 842.051. GENERAL PROVISIONS. (a) Notwithstanding any

provision of this subchapter to the contrary, to the extent

required by applicable provisions of the Internal Revenue Code of

1986, on termination of a subdivision's participation in the

retirement system or on complete discontinuance of contributions,

each member becomes fully vested in the member's accrued benefit

with respect to the subdivision to the extent funded as of the

date of termination or contribution discontinuance.

(b) The retirement system is not liable to any person for any

claim or loss of benefits resulting from the termination of a

subdivision's participation in the system or the failure of a

subdivision to make required contributions or payments under a

termination agreement.

(c) The board of trustees by rule may establish standards,

definitions, and procedures it considers necessary to administer

this subchapter and shall take reasonable actions and exercise

its discretion in a fair and equitable manner on a case-by-case

basis to preserve accrued benefits.

Added by Acts 2005, 79th Leg., Ch.

506, Sec. 6, eff. January 1, 2006.

Sec. 842.052. VOLUNTARY TERMINATION OF PARTICIPATION. (a) With

the consent of the board of trustees, a subdivision other than a

county may voluntarily terminate its participation in the

retirement system if the subdivision agrees to be contractually

and legally bound, on terms approved by the board, to fund:

(1) all benefits accrued before the date specified in the

termination agreement and payable on or after that date in

accordance with Subsection (e); and

(2) all supplemental annuities.

(b) Beginning with the date specified in the termination

agreement, additional employee contributions or deposits may not

be made to a member's account and additional service with the

subdivision may not be credited to a member, except as authorized

by the board. Except as otherwise provided by this section, all

other retirement plan provisions then in effect remain in effect.

(c) Beginning with the date specified in the termination

agreement, the subdivision's account in the subdivision

accumulation fund ceases to receive allocations under this

subtitle for any prior, current, or future plan year, except as

authorized by the board.

(d) On full performance of the termination agreement, the

subdivision is released from all liability for its accrued

benefits and supplemental annuities. The retirement system shall

make transfers from the subdivision's account to the appropriate

funds within the system in amounts actuarially equivalent to the

accrued benefits and supplemental annuities. The retirement

system shall pay any amounts remaining in the subdivision's

account after satisfaction of all the subdivision's pension

liabilities to the subdivision or its governmental successor in

interest in accordance with Section 845.317(b).

(e) On full performance of the termination agreement, each

member who has not received a refund of accumulated contributions

becomes fully vested in the member's accrued benefits with

respect to the subdivision and is immediately eligible to retire

with a service retirement annuity or to take a distribution of

the accrued benefits in a lump sum, regardless of age, service,

or employment.

(f) A member vested under Subsection (e) or Section 842.051(a)

is an eligible member under Section 844.407. For the purpose of

determining any death benefit payable under Section 844.402, the

member's individual account consists only of the deposits and

contributions made by the member and the accumulated interest

attributable to those amounts.

Added by Acts 2005, 79th Leg., Ch.

506, Sec. 6, eff. January 1, 2006.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 8, eff. January 1, 2008.

Sec. 842.053. INVOLUNTARY TERMINATION OF PARTICIPATION. (a)

The board of trustees by order may terminate the participation of

a subdivision other than a county if the board determines that:

(1) the subdivision has failed to perform in accordance with a

termination agreement under Section 842.052;

(2) the subdivision has ceased to exist, is in the process of

dissolving, or is changing its operational form;

(3) benefits accrued for service with the subdivision may be at

risk of forfeiture;

(4) the retirement system no longer serves as an effective

program for providing retirement, disability, and death benefits

to the employees of the subdivision because of the action or

inaction of the subdivision or because of a significant change in

covered payroll, number of contributing members, workforce

composition, general revenues, or other circumstances of the

subdivision; or

(5) the continued participation of the subdivision is not in the

best interest of the retirement system, the subdivision, the

employees of the subdivision, or the other participating

subdivisions.

(b) Beginning with a date specified by the board, additional

employee deposits or contributions may not be made to a member's

account with the subdivision and additional service with the

subdivision may not be credited to a member, except as authorized

by the board. Except as otherwise provided by this subchapter,

all other retirement plan provisions then in effect remain in

effect.

(c) Beginning with a date specified by the board, the

subdivision's account in the subdivision accumulation fund ceases

to receive allocations under this subtitle for any prior,

current, or future plan year except as authorized by the board.

(d) Beginning with a date specified by the board, the retirement

system shall value the accrued benefits and supplemental

annuities with respect to the subdivision's participation as

immediately payable under this subchapter. If the assets in the

subdivision's account exceed the actuarial equivalent value of

pension benefits, the subdivision is released from all liability

with respect to the accrued benefits and supplemental annuities.

The retirement system shall make transfers from the subdivision's

account to the appropriate funds within the system in amounts

actuarially equivalent to all accrued benefits and supplemental

annuities. The retirement system shall pay any amount remaining

in the subdivision's account after satisfaction of all the

subdivision's pension liabilities to the subdivision or its

governmental successor in interest in accordance with Section

845.317(b).

(e) If the actuarial equivalent value of pension benefits

exceeds the assets in the subdivision's account, the subdivision

or its governmental successor in interest may make a contribution

in any amount to the subdivision's account. The retirement

system shall transfer the assets of the subdivision's account in

the subdivision accumulation fund to appropriate funds within the

system and allocate the assets as provided by Sections

842.054-842.057.

Added by Acts 2005, 79th Leg., Ch.

506, Sec. 6, eff. January 1, 2006.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 9, eff. January 1, 2008.

Sec. 842.054. CLASS A. In a case of involuntary termination

under Section 842.053, the retirement system shall make a

proportionate transfer to the individual account of each member

of the subdivision eligible to retire based on the ratio that the

member's current service credit bears to the total current

service credit of the class. The transfer to a member's

individual account may not exceed 100 percent of the member's

current service credit.

Added by Acts 2005, 79th Leg., Ch.

506, Sec. 6, eff. January 1, 2006.

Sec. 842.055. CLASS B. If any assets remain after the transfers

are made under Section 842.054, the retirement system shall make

a proportionate transfer to the individual account of each member

of the subdivision not eligible to retire based on the ratio that

the member's current service credit bears to the total current

service credit of the class. The transfer to a member's

individual account may not exceed 100 percent of the member's

current service credit.

Added by Acts 2005, 79th Leg., Ch.

506, Sec. 6, eff. January 1, 2006.

Sec. 842.056. CLASS C. If any assets remain after the transfers

are made under Sections 842.054 and 842.055, the retirement

system shall make a transfer to the current service annuity

reserve fund in an amount computed as necessary to fund the

supplemental annuities of the annuitants of the subdivision and a

transfer to the individual account of each member of the class

eligible to retire in an amount that equals the multiple matching

credits and prior service credits of the member. If necessary,

the retirement system shall proportionately reduce an

individual's total credits or supplemental annuity, as

applicable, based on the ratio that the individual's total

actuarial equivalent of benefits described by this section bears

to the aggregate total actuarial equivalent of all those benefits

of the class.

Added by Acts 2005, 79th Leg., Ch.

506, Sec. 6, eff. January 1, 2006.

Sec. 842.057. CLASS D. If any assets remain after the transfers

are made under Sections 842.054, 842.055, and 842.056, the

retirement system shall make a proportionate transfer to the

individual account of each member not eligible to retire based on

the ratio that the sum of the member's multiple matching credits

and prior service credits bears to the total multiple matching

credits and prior service credits of the class. The transfer to a

member's individual account may not exceed 100 percent of the

member's multiple matching credits and prior service credits.

Added by Acts 2005, 79th Leg., Ch.

506, Sec. 6, eff. January 1, 2006.

Sec. 842.058. BENEFITS. (a) After the transfers, allocations,

and any necessary reductions described by Sections

842.054-842.057 have been made, each member who has not received

a refund of accumulated contributions becomes fully vested in the

member's accrued benefits with respect to the subdivision to the

extent funded and is immediately eligible to retire with a

service retirement annuity or to take a distribution of the

accrued benefits in a lump sum, regardless of age, service, or

employment.

(b) A member vested under this section or Section 842.051(a) is

an eligible member under Section 844.407. For the purpose of

determining any death benefit payable under Section 844.402, the

member's individual account consists only of the deposits and

contributions made by the member and the accumulated interest

attributable to those amounts.

Added by Acts 2005, 79th Leg., Ch.

506, Sec. 6, eff. January 1, 2006.

SUBCHAPTER B. MEMBERSHIP

Sec. 842.101. GENERAL MEMBERSHIP REQUIREMENT. (a) Except as

otherwise provided by this subchapter, a person who is not a

member becomes a member of the retirement system on the latest

of:

(1) the date the subdivision's participation in the retirement

system becomes effective, if the person is a subdivision employee

on that date;

(2) the date the person becomes a subdivision employee; or

(3) January 1, 2006, if the person is an employee of a

participating subdivision on that date and was previously

excluded from retirement system membership.

(b) Except as otherwise provided by this subtitle or by rules

adopted by the board of trustees, the rights and benefits of a

member are determined separately with respect to each subdivision

with which the member has credited service.

(c) If a person's status as a temporary employee ceases, and the

person becomes an employee within the meaning of this subtitle,

the subdivision shall certify the change to the retirement

system, and the person becomes a member effective on the date of

the certification, but without credit for the period during which

the person was a temporary employee.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1981, 67th Leg., 1st C.S., p. 209, ch. 18,

Sec. 42, eff. Nov. 10, 1981; Acts 1985, 69th Leg., ch. 491, Sec.

6, eff. June 12, 1985; Acts 1987, 70th Leg., ch. 63, Sec. 3, eff.

May 6, 1987. Renumbered from Vernon's Ann.Civ.St. Title 110B,

Sec. 52.101 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1,

eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 245,

Sec. 2, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 621, Sec.

5, eff. Jan. 1, 2004.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 7, eff. January 1, 2006.

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 10, eff. January 1, 2008.

Sec. 842.104. COUNTY HOSPITAL EMPLOYEES. (a) If a county

elects to participate in the retirement system, the commissioners

court of the county may elect to deny membership to the employees

of a county hospital governed by Chapter 263, Health and Safety

Code.

(b) After making an election under this section, the

commissioners court may at any time reverse its decision and

require that county hospital employees become members on a date

fixed by order of the commissioners court.

(c) If the commissioners court reverses an election under this

section and requires the employees of a county hospital to become

members of the retirement system, for the purposes of this

subtitle the employees of the county hospital comprise a separate

subdivision from other county employees.

(d) If on the effective date of participation in the retirement

system a county is not operating a county hospital, the order or

resolution of the commissioners court electing to participate in

the system does not include employees of a hospital later

established or operated by the county. The commissioners court

may elect to have the employees of a hospital later established

or operated by the county participate in the retirement system as

a unit, which for purposes of this subtitle comprises a

subdivision separate from other county employees.

(e) The commissioners court is the governing body of a county

hospital for the purposes of this subtitle.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

52.104 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 460, Sec. 2,

eff. Jan. 1, 1992; Acts 2001, 77th Leg., ch. 122, Sec. 7, eff.

Dec. 31, 2001.

Sec. 842.105. STATUS AS AN EMPLOYEE. For the purposes of this

subtitle, a person has the standing of an employee in a

participating subdivision if the person is an employee, other

than a temporary employee, of a community supervision and

corrections department that has executed a contract with the

participating subdivision under Section 76.006, Government Code.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

52.105 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 427, Sec. 6,

eff. Dec. 31, 1999.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 8, eff. January 1, 2006.

Sec. 842.106. MULTIPLE RETIREMENT SYSTEM MEMBERSHIP. A person

who is a member of this retirement system and another state or

local retirement system authorized under Section 67, Article XVI,

Texas Constitution, may receive a benefit from this system only

to the extent that the amount of the benefit is computed solely

on the member's accumulated contributions and service credit in

this system. Service credited by another retirement system may

not be used to determine eligibility for a benefit in this

retirement system except as provided by Chapter 803.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1985, 69th Leg., ch. 602, Sec. 14, eff.

Sept. 1, 1985. Renumbered from Vernon's Ann.Civ.St. Title 110B,

Sec. 52.106 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1,

eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 709,

Sec. 1, eff. Aug. 26, 1991; Acts 1999, 76th Leg., ch. 427, Sec.

7, eff. Dec. 31, 1999; Acts 2001, 77th Leg., ch. 122, Sec. 8,

eff. Dec. 31, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 11, eff. January 1, 2008.

Sec. 842.107. OPTIONAL MEMBERSHIP. (a) A subdivision may

authorize to be a member of the retirement system a person who is

accruing benefits in another statewide retirement system for

service in an elected or appointed judicial or district office or

as an employee of the state or a governmental unit of the state

during the same period the person is receiving supplemental

compensation from the subdivision. A person described by this

subsection who is first included for optional membership after

December 31, 2005, may not contribute to the employees saving

fund or receive any service credit for any supplemental

compensation received before the date the subdivision makes the

person eligible to become a member.

(b) The board by rule may establish reasonable restrictions and

limitations on the granting of membership and service credit

under this section.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1981, 67th Leg., 1st C.S., p. 209, ch. 18,

Sec. 44, eff. Nov. 10, 1981; Acts 1987, 70th Leg., ch. 63, Sec.

4, eff. May 6, 1987. Renumbered from Vernon's Ann.Civ.St. Title

110B, Sec. 52.107 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 2001, 77th Leg., ch. 122, Sec. 8,

eff. Dec. 31, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 9, eff. January 1, 2006.

Sec. 842.108. WITHDRAWAL OF ACCUMULATED CONTRIBUTIONS. (a) A

member who has separated from employment with a participating

subdivision may submit an application to withdraw the member's

accumulated contributions attributable to service with that

subdivision. A withdrawal cancels the person's service credit

attributable to service with that subdivision on the date the

retirement system makes payment of any portion of the member's

accumulated contributions.

(b) Except for a membership terminated under prior law or in

accordance with Section 842.109(b), interest is computed on the

balance in the member's individual account in the employees

saving fund on January 1 of the year of withdrawal through the

month before the month in which the withdrawal occurs.

(c) If a person eligible to receive a withdrawal or another

non-periodic distribution elects to have all or a portion of the

distribution paid directly to an eligible retirement plan and

specifies the plan to which the distribution is to be paid on

forms approved by the board of trustees, the retirement system

shall make the payment in the form of a direct trustee-to-trustee

transfer but is under no obligation to determine whether the

other plan in fact is an eligible retirement plan for that

purpose.

(d) Notwithstanding Subsection (c), the board of trustees shall

adopt rules to administer this section as necessary to maintain

the retirement system as a qualified plan under Section 401(a) of

the Internal Revenue Code of 1986. The rules may include the

adoption of definitions and limitations relating to

distributions, eligible recipients, and eligible retirement

plans.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

52.108 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989. Amended by Acts 1993, 73rd Leg., ch. 175, Sec. 4, eff. Jan.

1, 1994; Acts 1999, 76th Leg., ch. 427, Sec. 8, eff. Dec. 31,

1999; Acts 2001, 77th Leg., ch. 122, Sec. 8, eff. Dec. 31, 2001;

Acts 2003, 78th Leg., ch. 621, Sec. 6, eff. Jan. 1, 2004.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 10, eff. January 1, 2006.

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 92(3), eff. January 1, 2008.

Acts 2009, 81st Leg., R.S., Ch.

300, Sec. 4, eff. January 1, 2010.

Sec. 842.109. TERMINATION OF MEMBERSHIP. (a) A person

terminates membership in the retirement system by:

(1) retirement from all participating subdivisions with which

the person has service credit; or

(2) withdrawal of all of the person's accumulated contributions.

(b) Unless terminated under Subsection (a), a person's

membership in the retirement system terminates on the earlier of

the date of the person's death or the last day of the month

ending before the person's required beginning date determined in

accordance with Section 841.010.

(c) A member of the retirement system who leaves employment with

a participating subdivision to perform and does perform qualified

military service in the uniformed services, as that term is

defined in the Uniformed Services Employment and Reemployment

Rights Act of 1994 (38 U.S.C. Section 4301 et seq.), that meets

the requirements of that Act is not absent from service and

continues to accumulate credited service with that subdivision

if:

(1) the person applies for reemployment with the same

subdivision not later than the 90th day after the date the person

is discharged from military service under honorable conditions or

released from hospitalization continuing after being discharged

under honorable conditions for a period of not more than two

years; and

(2) the person is reemployed by the same participating

subdivision.

(d) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec. 92(4),

eff. January 1, 2008.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

52.109 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989. Amended by Acts 1991, 72nd Leg., ch. 460, Sec. 3, eff. Jan.

1, 1992; Acts 1999, 76th Leg., ch. 427, Sec. 9, eff. Dec. 31,

1999; Acts 2001, 77th Leg., ch. 122, Sec. 8, eff. Dec. 31, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 11, eff. January 1, 2006.

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 12, eff. January 1, 2008.

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 92(4), eff. January 1, 2008.

Sec. 842.110. RESUMPTION OF SERVICE AFTER WITHDRAWAL OR

RETIREMENT. (a) Except as provided by Subsection (b), a person

who has withdrawn the person's accumulated contributions or who

has retired from a participating subdivision with a service

retirement annuity based on a bona fide termination of employment

and with a break in service of not less than one calendar month

resumes membership in the retirement system without repayment of

the amount distributed or cancellation of the person's annuity if

the person becomes an employee of any participating subdivision.

(b) A person who resumes employment with the same subdivision

from which the person was previously employed and does not meet

the requirements of Subsection (a) is considered not to have been

eligible for a withdrawal and not to have retired with respect to

that subdivision. The person's membership will be restored, the

person's service retirement annuity will be canceled, and the

person must return any amounts distributed and payments received.

Appropriate adjustments will be made for any amounts not

returned.

(c) A membership established under the requirements of

Subsection (a) is considered to be a new membership for the

purposes of beneficiary determinations and benefit selections.

(d) After terminating employment with a participating

subdivision, a member who has previously retired with a service

retirement annuity under this subtitle and who meets the

requirements of Subsection (a) is eligible to apply for and

receive an additional standard or optional service retirement

annuity or a refund of the member's accumulated contributions for

service with the subdivision, without regard to any age or

credited service requirement, except as provided by Subsection

(f).

(e) On the death of a member who meets the requirement of

Subsection (d), a person may apply for and receive an optional

service retirement annuity or a refund of the decedent's

accumulated contributions in the manner provided by Subsection

(d), except as provided by Subsection (f).

(f) The waiver of an age or credited service requirement under

this section does not apply to a person who becomes eligible to

retire solely as a result of a subdivision's termination of

participation under Subchapter A-1, Chapter 842.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1985, 69th Leg., ch. 491, Sec. 7, eff. June

12, 1985. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

52.110 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989. Amended by Acts 1993, 73rd Leg., ch. 175, Sec. 5, eff. Jan.

1, 1994; Acts 1995, 74th Leg., ch. 245, Sec. 3, 4, eff. Sept. 1,

1995; Acts 1999, 76th Leg., ch. 427, Sec. 10, eff. Dec. 31, 1999;

Acts 2001, 77th Leg., ch. 122, Sec. 8, eff. Dec. 31, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 12, eff. January 1, 2006.

Acts 2009, 81st Leg., R.S., Ch.

300, Sec. 5, eff. January 1, 2010.

Acts 2009, 81st Leg., R.S., Ch.

300, Sec. 6, eff. January 1, 2010.

Sec. 842.112. CORRECTION OF ERRORS. (a) The retirement system

may correct an error caused by an act or omission of the

retirement system by any appropriate means.

(b) If an act or omission of a participating subdivision causes

a person to receive more or less credited service, service

credit, or benefits than the person is entitled to receive, the

correction of the error is the responsibility of the subdivision.

(c) An error caused by an act or omission of a participating

subdivision may be corrected:

(1) by the subdivision on its own motion if approved by the

retirement system and if satisfactory proof of the error is

submitted to the retirement system; or

(2) through a judicial or quasi-judicial proceeding between the

person and the participating subdivision resulting in a judgment,

order, or settlement agreement that meets the requirements of

Section 842.113.

(d) A person seeking the correction of an error relating to

membership, rights, benefits, or benefit payments under the

retirement system must timely provide to the appropriate

subdivision or the retirement system written notice specifically

describing the error. The written notice must be received before

the first anniversary of the earlier of the date the person

discovers the error or the date a reasonable, diligent person

should have discovered the error.

(e) If the act of a third person causes the retirement system to

make a payment of a survivor benefit or death benefit to someone

other than the person entitled to the payment, the system shall,

after receiving credible evidence of an erroneous payment,

determine the beneficiary entitled to the benefit and, if

necessary, adjust future payments to the extent practicable to

ensure that the present value of the remainder of the benefit

will be paid to the person entitled to it.

(f) The retirement system is not liable to any person for any

payments described by Subsection (e) made before the date the

system receives credible evidence of an erroneous payment. Any

payments made before that date are a complete discharge of the

system's responsibility for those payments and benefits.

(f-1) If, pursuant to a valid application for a withdrawal or

for retirement, the retirement system issues a check made payable

to the applicant, properly addressed as directed on the

application and sent by first-class mail, and the check is

negotiated by any person, the system is not liable to any person

with respect to the payment after the first anniversary of the

date the check was mailed.

(f-2) If, pursuant to a valid application for a withdrawal or

for retirement, the retirement system causes funds to be

electronically transferred to the account specified on the

application, the system is not liable to any person for that

payment or any claim relating to the payment beginning on the

date of the transfer.

(g) A recipient who receives a payment to which the recipient is

not entitled holds the payment in constructive trust for the

person entitled to the payment.

Added by Acts 1995, 74th Leg., ch. 245, Sec. 5, eff. Sept. 1,

1995. Amended by Acts 1999, 76th Leg., ch. 427, Sec. 12, eff.

Dec. 31, 1999; Acts 1999, 76th Leg., ch. 427, Sec. 13, eff. Sept.

1, 1999; Acts 2001, 77th Leg., ch. 122, Sec. 9, eff. Dec. 31,

2001; Acts 2003, 78th Leg., ch. 621, Sec. 7, eff. Jan. 1, 2004.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 13, eff. January 1, 2006.

Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 13, eff. January 1, 2008.

Sec. 842.113. JUDGMENTS, ORDERS, AND SETTLEMENT AGREEMENTS. (a)

If, as a result of a suit against a participating subdivision in

a court of competent jurisdiction or as a result of a complaint

or grievance against a participating subdivision filed with the

United States Equal Employment Opportunity Commission, the civil

rights division of the Texas Workforce Commission, or a county

civil service commission, a judgment or order is issued or a

settlement agreement is executed, the terms of which require that

a person's membership record be adjusted with respect to the

person's account balance, service credit, or credited service,

the retirement system shall make appropriate adjustments if:

(1) the judgment or order has become final and is no longer

subject to appeal;

(2) a certified copy of the judgment, order, or settlement

agreement accompanies the application; and

(3) the retirement system receives payment on behalf of the

person in an amount equal to the contributions the person would

have made to the system if the acts or omissions that resulted in

the order, judgment, or settlement agreement requiring an

adjustment to the person's membership record had not occurred or,

if restoration of a refunded account is required, the system

receives payment on behalf of the person in an amount equal to

the amount withdrawn.

(b) The retirement system may not implement an order, judgment,

or settlement agreement in a manner that would grant a person a

status, right, or benefit not otherwise available under this

subtitle.

(c) The retirement system may seek, or require the parties to

seek, clarification or modification of any judgment or order, or

may require the parties to provide a binding agreement as to the

interpretation of any settlement if the director determines that

the terms of the judgment, order, or agreement are unclear or

cannot be feasibly implemented by the system.

Added by Acts 2005, 79th Leg., Ch.

506, Sec. 13, eff. January 1, 2006.

Sec. 842.114. BURDEN OF PROOF. (a) A person disputing the

validity of a form, application, or other document filed with the

retirement system has the burden of proving the document to be

false, fraudulent, or otherwise invalid.

(b) A person seeking a correction based on an error caused by an

act or omission of the retirement system or a subdivision has the

burden of proving the error and the act or omission causing the

error.

(c) A person described by Subsection (a) or (b) has the burden

of showing:

(1) reasonableness and diligence in discovering the invalidity

or error; and

(2) timeliness in notifying the retirement system or the

appropriate subdivision.

Added by Acts 2007, 80th Leg., R.S., Ch.

873, Sec. 14, eff. January 1, 2008.