1. (a) Any person receiving a service retirement annuity may, without affecting payment of the annuity, be employed on as much as full time for no more than six months in a school year if the work meets the requirements in subsection (b) of this section and the person complies with the requirements of subsection (c) of this section.

2. (b) The work must occur:

   1. (1) in no more than six months in a school year; and
   2. (2) in a school year that begins after the retiree's effective date of retirement or no earlier than October 1 if the effective date of retirement is August 31.
3. (c) A person must elect in writing on a form prescribed by the Teacher Retirement System of Texas (TRS) to take advantage of the exception described by this section. A person who, during a school year, has already used the exception described in §31.3 of this title (relating to Permissible Substitute Employment) for substitute work or in §31.7 of this title (relating to Regular Employment Having No Effect on Annuity) for work at no more than half time is eligible to elect this exception during the same school year; however, the permissible substitute employment or the employment for work at no more than half time during the same school year must be included in the six months of employment allowed under this section. A person who has been employed in Texas public education during a school year and has forfeited service retirement benefits because the person did not qualify for one of the exceptions described in §31.3 of this title or §31.7 of this title is eligible to elect this exception during the same school year. The election must be made no later than 30 days after the person receives notice from TRS that the person's annuity payments must be forfeited in the months for which TRS received notice from the employer that the person was employed on more than a half time basis without having completed the election form. To avoid notice of forfeiture and interruption of annuity payments, the person should submit the election to TRS no later than the last day of the first month of employment on as much as full time that is subject to the exception described in this section. The person making the election must designate on the form the six months during which the exception is to apply. For the election to be effective, the employer of the person must certify on the election form that the employment will be reported to TRS. A separate election form must be filed for each school year that the person wishes this exception to apply.
4. (d) A person will forfeit annuity payment for any month in the school year outside the six-month period designated on the person's election form during which the person works in any position in a Texas public educational institution. This applies even if the work would otherwise qualify for an exception under §31.3 of this title (relating to Permissible Substitute Employment) for substitute work or §31.7 of this title (relating to Regular Employment Having No Effect on Annuity) for no more than half time employment. However, substituting or work at no more than half time during the designated six months will be treated as any other employment permitted during that period.
5. (e) The election of the exception described in this section may not be modified or revoked after the person receives an annuity payment under it. A person may not designate a period of less than six months for the exception to apply unless the remaining time in the school year during which it can apply requires it.
6. (f) Employers must submit to TRS the election forms signed by their employees if and when certified by the employer as required by subsection (c) of this section. Employers will report separately to TRS all work in a school year by persons with an election of this exception in effect. Substituting or work at no more than half time by a person with the election in effect will not be reported under those categories, but as work under this exception.

Source Note:The provisions of this §31.12 adopted to be effective December 4, 1985, 10 TexReg 4539; amended to be effective November 23, 1987, 12 TexReg 4200; amended to be effective January 24, 1992, 17 TexReg 254.