1. (a) Any person receiving a service retirement annuity, who retired after January 1, 2001, may, without forfeiting 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. 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.

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. Except in cases set forth in §31.18 of this title (relating to Bus Driver Exception), employment in a full-time position during any month in the school year in which the retiree retired results in the forfeiture of annuity for that month without regard to the number of days worked.
3. (c) A person who retired after January 1, 2001, and who, during a school year, has already used the exception described in §31.13 of this title (relating to Substitute Service) or §31.14 of this title (relating to One-half Time Employment) is eligible for the exception described in this section during the same school year. However, the permissible substitute service, the employment for work at no more than half time during the same school year, and any combination in the same calendar month of substitute service and one-half time employment must be included in the six months of employment allowed under this section. The six-month exception will be allowed so long as the retiree is eligible and is reported under that exception by the employer. A retiree using the six-month exception must use the first six months of a school year in which any work occurs. In the event the retiree wants to use the six-month exception and has not been reported in that manner, the reporting entity must notify TRS in writing by amending the previous TRS 118, Employment of Retired Member(s), report(s).
4. (d) Except as provided in subsections (h) and (i) of this section, a person who retired after January 1, 2001, and is using the six-month exception, will forfeit an annuity payment for any month in the school year for work in excess of the six-month period. This applies even if the work would otherwise qualify for an exception under §31.13 of this title (relating to Substitute Service) for substitute work or for exceptions applicable to one-half time or less employment, employment as a bus driver, employment in an acute shortage area, or employment as a principal or assistant principal.
5. (e) A retiree may elect to revoke the six month exception by submitting the election in writing and returning any ineligible payments.
6. (f) A retiree employed under the six-month exception who, during the same school year, also works as a substitute or one-half time or less may not be employed in or reported under the substitute or one-half time category during the remaining months of the school year.
7. (g) Paid time off, including sick leave, vacation leave, and compensatory time for overtime worked, is employment for purposes of this section and must be reported to TRS as employment for the calendar month in which it is taken.
8. (h) Beginning with the 2007-2008 school year, a retiree working under the six-month exception does not forfeit the annuity for June for work performed in June if the work the retiree agreed to complete under the contract or work agreement cannot be completed by May 31 and the retiree does not work beyond June 15 of that year.
9. (i) For a retiree working under the six-month exception, time spent attending professional development classes or activities on or after June 16, 2007, is not considered work for purposes of this section provided the professional or staff development classes or activities are not included in the employee's total number of required days of work under a contract or work agreement.

Source Note:The provisions of this §31.15 adopted to be effective March 12, 2003, 28 TexReg 2109; amended to be effective October 30, 2003, 28 TexReg 9288; amended to be effective March 8, 2007, 32 TexReg 1089; amended to be effective May 21, 2008, 33 TexReg 4006.