1. (a) The Executive Director shall bill governing bodies of participating departments semi-annually on the last business day of February and August.

2. (b) Each billing shall include, as appropriate, charges for:

   1. (1) monthly contributions for participating members and any corresponding Part Two contributions, if applicable;
   2. (2) optional annuity increases or supplemental payments;
   3. (3) annuity payments funded by the governing entity or by department contributions;
   4. (4) prior service contributions;
   5. (5) late-payment interest charges; and
   6. (6) unpaid administrative penalties.
3. (c) At least 30 days before the last business day of February and of August, the Executive Director shall send to the chair of the local board of each participating department a semi-annual pension roster report (Roster) that includes the name of each person who performs emergency services for the department and is identified as a member of the pension system, and the name of each person who is receiving pension payments under a funding arrangement with the plan.
4. (d) The local board shall verify the accuracy of the Roster report, and shall enroll each person who performs service as a volunteer or auxiliary employee as a member of the system as required by Government Code Section 862.002.
5. (e) Upon request by the local board chair, the Executive Director will provide the local board chair with an updated roster for certification.
6. (f) The local board shall meet and certify, by signature of the chairman, the accuracy of the Roster report and return the signed report to the Executive Director no later than the fifth day before the last day of the billing period.
7. (g) Based on the certified roster, on the last day of the month of the billing period, an invoice shall be generated by the system and provided to the governing entity. Payments are due within 30 days of the invoice date. Late payments accrue interest at the current actuarially assumed rate of investment return on fund assets.

8. (h) In this section:

   1. (1) The term "ACH" (Automated Clearing House) means the legal framework of rules and operational procedures adopted by financial institutions for the electronic transfer of funds.
   2. (2) The term "ACH Credit" means an ACH transaction initiated by the governing body of a participating department for the electronic transfer of funds from the account of the governing body to the account of the pension system.
   3. (3) The term "ACH Debit" means an ACH transaction initiated by the pension system for the electronic transfer of funds from the account of the governing body of a participating department to the account of the pension system.
   4. (4) The term "electronic funds transfer" means the transfer of funds, other than by check, draft or similar paper instrument, that is initiated electronically to order, instruct, or authorize a financial institution to debit or to credit an account.
   5. (5) The term "pre-authorized direct debit" means the method available to the governing body of a participating department for electronically paying required contributions by granting a continuing authorization to the pension system to initiate an ACH Debit for the electronic transfer of funds from the designated bank account of the governing body to the account of the pension system in an amount equal to the contributions required to be paid.
   6. (6) The term "wire transfer" generally means a single transaction, initiated by the governing body of a participating department, in which funds are electronically transferred to the account of the pension system using the Federal Reserve Banking System rather than the ACH.
9. (i) Amounts required to be contributed to the pension system in accordance with Chapter 865 of the Texas Government Code may be made by preauthorized direct debits (ACH Debits), electronic funds transfer, or by wire transfer.
10. (j) The governing body of a participating department may elect to use the preauthorized direct debit method of payment by filing a signed authorization agreement with the pension system in which the governing body has designated a single bank account from which all transfers will be made.
11. (k) The authorization agreement entered into for this purpose constitutes continuing authority for the pension system to initiate a direct debit of the governing body's designated bank account.
12. (l) An authorization agreement remains in effect until the pension system receives either a written revocation of the agreement, or a subsequent written agreement, which automatically revokes the existing authorization. A new authorization agreement must be filed if there is any change in the designated bank account. The pension system, in its sole discretion, may terminate the authorization agreement by mailing written notice to the governing body. Thereafter, the governing body must remit all contributions by check, electronic funds transfer, wire transfer, or other monetary means approved by the Executive Director. The alternative method of payment may include a fee to recover the cost of administering this subsection.
13. (m) On the 30th day after the invoice date, the pension system will initiate an ACH Debit in the amount of the invoice. The actual transfer of funds from the ACH designated account will not occur before the due date of the invoice.
14. (n) An ACH Debit that is reversed by a governing body or that fails because sufficient funds are not available for transfer constitutes nonpayment of the required contributions and, thereafter, the required contributions will not be considered to have been received until the day the funds are actually transferred to the account of the pension system. Such unpaid funds may be subject to interest charges.

Source Note:The provisions of this §310.8 adopted to be effective October 2, 2005, 30 TexReg 6063; amended to be effective September 1, 2006, 31 TexReg 5811; amended to be effective January 8, 2013, 38 TexReg 153; amended to be effective August 31, 2014, 39 TexReg 6870; amended to be effective October 18, 2015, 40 TexReg 7104; amended to be effective September 10, 2017, 42 TexReg 4657.