1. (a) A member or contributing member may purchase eligible service creditable in the retirement system in accordance with the Government Code, Chapter 813. The retirement system shall grant the applicable amount of service credit after each payment made under this section is equal to the amount required to establish one or more months of creditable service.
2. (b) Service credit that may be established or reestablished includes military service credit, service credit previously cancelled, and service credit not previously established.
3. (c) A contributing member of the Employees Retirement System of Texas (ERS) may file with the member's state employer, a contract to establish or reestablish service credit through a monthly payroll deduction installment plan. The state agency shall provide the ERS a signed copy of the contract not later than the date the service purchase contribution is reported to the ERS. Members with payroll deductions that will result in less than the amount required to establish one month of creditable service by fiscal year end will be provided written notice at the time the contract is received by the ERS, that a balloon payment will be due at fiscal year end; otherwise additional interest will accrue on the service cost.
4. (d) The contributing member shall designate the amount to be deducted from the member's salary and deposited each month with the ERS. The total amount deducted in any one fiscal year must equal or exceed the cost to establish one month of service credit. Excess payments of $5.00 or greater will be applied to the next fiscal year service purchase contract, if eligible. In the event the member does not negotiate a new contract within 60 days of a new fiscal year or there is no remaining service for purchase, any overpayment of $5.00 or greater will be refunded to the member. Any remaining credit of less than $5.00 will be deposited as interest toward the last purchase period established and will not be subject to refund.
5. (e) A member who ceases to hold a position or who withdraws authority for payroll deduction while making payments through payroll deduction may contract with the ERS for an alternative method of continuing the payment in accordance with procedures developed by the ERS.
6. (f) The ERS shall develop procedures and forms to be used in connection with this section.
7. (g) A member who has contributed to both the Law Enforcement and Custodial Officer Supplemental Retirement (LECOS) fund and the ERS defined benefit plan will be allowed to purchase previously refunded Commissioned Peace Officer and Custodial Officer (CPO/CO) service and/or employee class service within the defined benefit plan. If a member purchases employee class service only and decides later to retire as a CPO/CO, the member must purchase the unpaid portion of service credit attributable to CPO/CO service, which will include any additional contribution to the LECOS fund plus interest, in order to receive creditable service and retire as a CPO/CO. If the member does not purchase the unpaid portion of the service credit attributable to CPO/CO service, then the service shall only be creditable for the employee class of membership.

Source Note:The provisions of this §71.14 adopted to be effective September 2, 1993, 18 TexReg 5593; amended to be effective September 15, 1997, 22 TexReg 9004; amended to be effective March 15, 2010, 35 TexReg 2200; amended to be effective December 24, 2015, 40 TexReg 9304.