1. (a) In a proceeding relating to a member's eligibility for disability retirement, an administrative law judge's proposal for decision shall be reviewed by the board of trustees.
2. (b) After TRS receives notice from the administrative law judge under §43.301(c) of this chapter (relating to Proposals for Decision and Exceptions), the board of trustees shall review the proposal for decision of the administrative law judge and render a decision in the proceeding. The board of trustees 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 (d) 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.
3. (c) The decision of the board of trustees shall be based upon the existing record in the case, including any exceptions and replies to exceptions filed with the administrative law judge.

4. (d) The board of trustees, in the board'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.

5. (e) In exercising the board's discretion, the board of trustees 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.
6. (f) The board of trustees shall consider a proposal for decision under this section in open meeting to the extent required by law. The board in its sole discretion may determine whether to hear oral argument from the parties when considering a proposal for decision under this section.

Source Note:The provisions of this §43.303 adopted to be effective January 2, 2025, 49 TexReg 10651.