1. (a) A department that elects to participate in the pension system may, at the first meeting of the local board, elect to purchase service credit for service performed by the persons who became members on the effective date of departmental participation.
2. (b) The pension system shall grant prior service credit under this section if the department agrees in writing to finance the prior service credit by a lump-sum payment or within a period not to exceed 10 years from the effective date.
3. (c) The cost to finance the purchase of prior service credit is based on the actuarially assumed rate of investment return on fund assets at the time payment for the credit begins.
4. (d) The commissioner shall furnish to each participating department that agrees to purchase prior service credit a record of member prior service to be completed and returned to the commissioner showing the amount of prior service performed by each member of the department. The record must be signed by the chair and secretary of the local board and the administrative head of the department and be accompanied by a copy of the minutes of the local board showing approval of the amounts of prior service credit given the members.

Source Note:The provisions of this §306.1 adopted to be effective October 2, 2005, 30 TexReg 6061.