1. (a) After TRS receives notice from the administrative law judge under §43.301(c) of this chapter (relating to Proposals for Decision and Exceptions), the executive director shall review the proposal for decision of the administrative law judge and render a decision in the proceeding, except as provided by §43.303 of this title (relating to Proposals for Decision and Exceptions regarding Eligibility for Disability Retirement).The executive director may accept or modify the proposed conclusions of law or proposed findings of fact or may vacate or modify an order issued by an administrative law judge in the manner set forth in subsection (c) of this section. If changes are made, the decision shall state in writing the specific reason and legal basis for each change. A copy of the decision shall be served on the parties.
2. (b) The executive director's decision shall be based upon the existing record in the case, including any exceptions and replies to exceptions filed with the administrative law judge.

3. (c) The executive director, in the executive director's sole discretion may take the following actions:

   1. (1) modify, refuse to accept, or delete any proposed finding of fact or conclusion of law made by the administrative law judge;
   2. (2) make alternative findings of fact and conclusions of law;
   3. (3) vacate or modify an order issued by the administrative law judge and remand to the administrative law judge, if necessary; and
   4. (4) make a final decision on a contested case.

4. (d) In exercising the director's discretion, the executive director, may consider but is not limited to the following grounds for changing a finding of fact or conclusion of law or for making a final decision in a contested case that is contrary to the recommendation of the administrative law judge:

   1. (1) the administrative law judge did not properly apply or interpret applicable law, retirement system rules, written policies provided to the administrative law judge, or prior administrative decisions;
   2. (2) a prior administrative decision on which the administrative law judge relied is incorrect or should be changed;
   3. (3) a technical error in a finding of fact should be changed;
   4. (4) a finding of fact of the administrative law judge is against the weight of the evidence;
   5. (5) a finding or conclusion or other action of the administrative law judge would alter the terms of the plan; or
   6. (6) the change is pursuant to a fiduciary responsibility.
5. (e) The executive director may delegate any of the authority under this subchapter to the deputy director or another TRS employee for any appeal.

Source Note:The provisions of this §43.302 adopted to be effective January 2, 2025, 49 TexReg 10651.