1. (a) The cost of establishing out-of-state service is 12% per year of the full annual salary rate for the first year of service in Texas which is both after the out-of-state service and after September 1, 1956. Annual salary is limited to $8,400 for years prior to September 1, 1969, and $25,000 for years after September 1969 but before September 1, 1979. No limit exists for years after September 1, 1979. In addition a crediting fee of 8.0% compounded annually of the amount of deposits due and paid shall be charged from the end of the school year in which the member was first eligible to purchase credit for such service until payment for the credit is received. The date of first eligibility to purchase credit for any year of out-of-state service shall be the latest of the following dates:

   1. (1) the date the member received 10 years' credit for service in the public schools of Texas;
   2. (2) the date the Teacher Retirement Law made the out-of-state service available for credit;
   3. (3) the date in which the member qualified to deposit payment for each year of out-of-state service under the one for two rule in effect until March 20, 1975;
   4. (4) the date the member completed one year of creditable service in the public schools of Texas after relevant out-of-state service.
2. (b) No deposits for out-of-state service credit may be made before the member accumulates 10 years of credit for service in the public schools of Texas.

Source Note:The provisions of this §25.82 adopted to be effective January 1, 1976; amended to be effective September 26, 1979, 4 TexReg 3305; amended to be effective October 1, 1982, 7 TexReg 3367.