1. (a) When used in this section, the term "employer" has the meaning given in §821.001(7), Government Code.
2. (b) For school years prior to the 2013-2014 school year, for each report month a retiree is enrolled in the health benefits program (TRS-Care) provided pursuant to the Texas Public School Retired Employees Group Benefits Act and working for an employer or a third party entity as defined in §824.601, Government Code, in a position eligible for membership in TRS, the employer that reports the retiree on the Employment of Retired Members Report shall pay the monthly surcharge described in this section to the Retired School Employees Group Insurance Fund (the Fund).
3. (c) Beginning September 1, 2013, for each report month a retiree is enrolled in TRS-Care and working for an employer for more than the equivalent of four clock hours for each work day in that calendar month, the employer that reports the employment of the retiree on the Employment of Retired Members Report to TRS shall pay monthly to the Fund a surcharge established by the Board of Trustees of TRS.
4. (d) The criteria used to determine if the retiree is working more than the equivalent of four clock hours for each work day in that calendar month are the same as the criteria for determining one-half time employment under §31.14 of this title (relating to One-half Time Employment).
5. (e) The surcharge is also owed by the employer on any retiree who is enrolled in TRS-Care, is working for a third party entity but is working for more than the equivalent of four clock hours for each work day in that calendar month and who is considered an employee of that employer under §824.601(d) of the Government Code.

6. (f) The surcharge under this section is not owed:

   1. (1) by an employer for any retiree who retired from TRS before September 1, 2005; or
   2. (2) by an employer for a retiree reported as working under the exception for Substitute Service as provided in §31.13 of this title (relating to Substitute Service) unless that retiree combines Substitute Service under §31.13 of this title with other employment with the same or another employer or third party entity in the same calendar month. For each calendar month that the retiree combines substitute service and other employment as described so that the work exceeds one-half time as described in §31.14(e) of this title, the surcharge is owed by each employer as provided in this section.
7. (g) A retiree who is enrolled in TRS-Care, is working for an employer or third party entity for more than the equivalent of four clock hours for each work day in that calendar month, and is reported on the Employment of Retired Members Report to TRS shall inform the employer of all employers of the retiree and all employers of any other retiree enrolled under the same account identification number. An employer who reports to TRS the employment of a retiree who is enrolled in TRS-Care and is working more than the equivalent of four clock hours for each work day in that calendar month shall inform TRS as soon as possible in writing of the name, address, and telephone number of any other employer that employs the retiree or any other retiree who is also enrolled under the same account identification number.
8. (h) If more than one employer reports the employment of a retiree who is enrolled in TRS-Care to TRS during any part of a month, the surcharge under this section required to be paid into the Fund by each reporting employer for that month is the total amount of the surcharge due that month divided by the number of reporting employers. The pro rata share owed by each employer is not based on the number of hours respectively worked by the retiree for each employer, nor is it based on the number of days respectively worked during the month by the retiree for each employer.
9. (i) If a retiree who is enrolled in TRS-Care is employed concurrently by one or more employers in more than one position, the surcharge is owed if the combined employment is for more than the equivalent of four clock hours for each work day in that calendar month. If the employment is with more than one employer, the surcharge will be paid according to subsection (h) of this section by each employer.
10. (j) For school years prior to the 2013-2014 school year, if a retiree who is enrolled in TRS-Care is employed concurrently in more than one position and one of the positions is eligible for TRS membership and one is not, the surcharge is owed on the combined employment. If the employment is with more than one employer, the surcharge will be paid according to subsection (h) of this section by each employer.
11. (k) For school years prior to the 2013-2014 school year, if a retiree who is enrolled in TRS-Care is employed in a position eligible for TRS membership, the surcharge will be paid according to subsection (h) of this section by each employer on all subsequent employment, whether eligible for membership or not, with a TRS-covered employer for the same school year.
12. (l) The employer shall maintain the confidentiality of any information provided to the employer under this section and shall use the information only as needed to carry out the purposes stated in this section and related applicable rules or statutes.

Source Note:The provisions of this §41.4 adopted to be effective January 10, 2006, 31 TexReg 166; amended to be effective June 8, 2008, 33 TexReg 4331; amended to be effective June 28, 2012, 37 TexReg 4601; amended to be effective June 20, 2013, 38 TexReg 3801.