1. (a) Any person receiving a service retirement annuity who retired after January 1, 2001, may work in a month as a daily substitute in a public educational institution without forfeiting the annuity payment for that month, provided the pay for work as a substitute does not exceed the daily rate of substitute pay established by the employer. Employment by a third party entity is considered employment by a Texas public educational institution unless the retiree does not perform duties or provide services on behalf of or for the benefit of the institution or the retiree was first employed by the third party entity before May 24, 2003, and may not be combined with the substitute service exception without forfeiting the annuity payment except as provided in this chapter. The exception described in this section is not available to retirees who have elected the exception described in §31.15 of this chapter (relating to Six Month Exception). The exception described in this section does not apply for the first month after the person's effective date of retirement (or the first two months if the person's retirement date has been set on May 31 under §29.14 of this title (relating to Eligibility for Retirement at the End of May) or under §29.21 of this title (relating to Effective Date for Disability Retirement).
2. (b) A retiree who reports for duty as a daily substitute during any day and works any portion of that day shall be considered to have worked one day.

Source Note:The provisions of this §31.13 adopted to be effective March 12, 2003, 28 TexReg 2109; amended to be effective October 30, 2003, 28 TexReg 9288.