1. (a) When a member is purchasing TRS service credit for which the law requires that the actuarial cost or actuarial present value be deposited and for which the method in this section is referenced by another section of this title, TRS will calculate the cost using the tables and method described in subsections (b), (c), (d), and (e) of this section.

2. (b) To calculate the actuarial cost, TRS will use the cost factors obtained from the Actuarial Cost Tables furnished by the TRS actuary of record. The factors for individuals whose membership was established before September 1, 2007, are shown in the tables adopted as part of this subsection (b) of this section. The factors for individuals whose membership was established on or after September 1, 2007, are shown in the tables described in subsection (d) of this section. Within each set of tables, the number of years of service credit to be purchased will determine which specific table will be used. Each of the tables cross-references the member's age in rows with years of credited service (before purchase) in columns. The intersection of the participant's age and service is the cost per $1,000 of salary. The cost factor for a participant with more years of service credit than shown on the table is the same as the factor shown for the highest number of years of service credit on the table for the participant. TRS will calculate the cost to purchase service credit under this section by dividing the salary by 1000 and multiplying the resulting quotient by the appropriate cost factor obtained from the table. The tables set forth the cost, per $1,000 of salary, to purchase from one year to fifteen years of service credit. The number of years of service credit available for purchase is determined by the laws and rules applicable to the type of service credit to be purchased. For the purpose of calculating the required amount for a member who is grandfathered to use a three-year salary average under §51.12 of this title (relating to Applicability of Certain Laws in Effect before September 1, 2005), the term "salary" is defined as follows:

   1. (1) For the upper region of the table (where the factors appear above the line), salary is the greater of current annual salary or the average of the member's highest years of compensation, with either two or three years of compensation used for the average, depending on whether the member has only two years or has three or more years of service credit at the time of the calculation; or
   2. (2) For the lower region of the table (where the factors appear below the line), salary is the average of the member's highest three years of compensation. A member's highest three years of compensation shall be calculated as if the member were retiring at the time the service credit is purchased. The lower region of the table (where the factors appear below the line) reflects those age and service combinations where the purchase of service credit results in immediate eligibility of the member for unreduced retirement benefits.
      Attached Graphic
      
3. (c) For the purpose of calculation for a member who is not grandfathered to use a three-year salary average, the term "salary" shall have the same meaning as in subsection (b) of this section except that a five-year salary average shall be used instead of a three-year salary average. Additionally, the cost shall be 96 percent of the cost as calculated under subsection (b) of this section when a factor in the upper region of the table is used.
4. (d) For individuals whose membership was established on or after September 1, 2007, the methodology described in subsection (b) of this section shall be used to determine cost, but the retirement system shall use the factors in the tables adopted as part of this subsection (d) of this section. If the member is not grandfathered to use a three-year salary average, the term "salary" shall have the same meaning as in subsection (b) of this section except that a five-year salary average shall be used instead of a three-year salary average.
   Attached Graphic
   
5. (e) If an individual established membership on or after September 1, 2007, but is grandfathered to use a three-year salary average, the term "salary" shall have the same meaning as in subsection (b) of this section. The cost for a grandfathered member who established membership on or after September 1, 2007, shall be 1.04 times the cost as calculated under subsection (d) of this section when a factor in the upper region of the table is used.
6. (f) An individual who first was a member of TRS before September 1, 2007, but who terminated membership through withdrawal of accumulated contributions and then again joined TRS on or after September 1, 2007, is subject to the calculation of cost under subsections (d) and (e) of this section.

Source Note:The provisions of this §25.302 adopted to be effective March 8, 2007, 32 TexReg 1079; amended to be effective November 1, 2007, 32 TexReg 7693.