1. (a) The Teacher Retirement System of Texas (TRS) may refund installment payments already made, but not credited towards service if:

   1. (1) an installment payment is not made in full within 60 days after the due date;
   2. (2) two or more consecutive monthly payments have been made through a check on an account with insufficient funds or a closed account or through an automatic bank draft for which insufficient funds were available;
   3. (3) a member notifies TRS in writing that he will no longer make payments pursuant to the installment schedule and requests a refund of amounts previously paid; or
   4. (4) the number of partial payments becomes excessive.
2. (b) If TRS refunds payments pursuant to this section, the member is not permitted to use the installment payment method or the payroll deduction method of payment for the same service for a period of three years from the date of the refund. If TRS refunds payments pursuant to this section to a member who was purchasing additional service credit under §25.163 of this title (relating to Service Credit Purchase) and §823.405, Government Code, the termination of the installment agreement results in the permanent loss of eligibility to purchase this service credit, whether through installments payments or any other kind of payment.
3. (c) If TRS refunds payments to a member pursuant to this section and the member later makes payment by lump sum payment or by the installment method for the same service credit for which the refund was made, any fees required by law or rule will be calculated using the new date of payment rather than the date of initial participation in the installment payment method.

Source Note:The provisions of this §25.184 adopted to be effective September 1, 1992, 17 TexReg 5120; amended to be effective September 17, 1997, 22 TexReg 9255; amended to be effective March 8, 2007, 32 TexReg 1079.