1. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Board or trustee--The Board of Trustees of the Teacher Retirement System of Texas.
   2. (2) Program--The Texas Public School Employees Group Insurance Program.
   3. (3) Plan year--A plan year begins on the first day of September and ends on the last day of the following August.

2. (b) Eligibility requirements. In order to be eligible to participate in the program a school district must meet the following requirements.

   1. (1) Enrollment rate requirements. A participating school district must initially enroll and thereafter maintain at least a 75% employee enrollment rate in the program. If a school district's employee rate drops below 75%, that school district may not remain in the program beyond the current plan year. The trustee may waive this requirement in instances where it determines that there will be no significant adverse financial impact on the program.
   2. (2) Administrative fees. A school district that elects to participate must accept the schedule of administrative fees adopted by the board.
   3. (3) Acknowledgment of separate status of pension funds. Prior to participation in the program, each school district shall acknowledge that the pension fund of the Teacher Retirement System of Texas is a trust fund separate from the School Employees Group Insurance Fund and may not be diverted, under state constitutional and federal law, to the financing of employees' insurance benefits. Prior to participation in the program, each school district shall acknowledge that the Teacher Retirement System of Texas serves as an administrator for the program and does not guarantee the adequacy of the fund supporting such program nor does it provide any guarantees concerning the payment of claims incurred under the program. Prior to participation in the program, each school district shall agree that at no time shall it attempt to hold or hold the Teacher Retirement fund liable for any payment, funding, or liability arising out of the Texas Public School Employees Group Insurance Program.
   4. (4) Application to participate. A public school district wishing to participate in the program must apply to do so no less than six months prior to the start of the plan year.
3. (c) Discontinuance of participation. A participating school district may choose to discontinue participation in the program at the end of a plan year. If a school district discontinues participation in the program, the school district shall be ineligible to participate in the program for the two-year period following the discontinuance.

Source Note:The provisions of this §41.13 adopted to be effective November 24, 1995, 20 TexReg 9447; amended to be effective November 25, 1998, 23 TexReg 11655.