1. (a) Purpose. These rules are intended to implement the provisions of the Government Code, Chapter 805, concerning the transfer of credit between the TRS and the ERS, and to provide a systematic method of funding the actuarial value of the annuity resulting from transferred service.

2. (b) Forms.

   1. (1) Applications for transfer will be made using forms prescribed by the ERS.
   2. (2) The ERS will cooperate with the TRS in an effort to make such application forms for the ERS comparable to those used by the TRS.

3. (c) Notice.

   1. (1) A person who elects to transfer service credit pursuant to these rules must file the appropriate form to make such transfer not more than 90 days prior to the person's retirement effective date, but not later than said effective date.
   2. (2) The ERS will notify the TRS of the pending transfer not later than 30 days following said effective date.

4. (d) Manner of transfer.

   1. (1) Service credit and assets will be transferred through electronic and hard copy documentation pursuant to these rules, and the ERS will maintain records of such transfers permanently.
   2. (2) Any transfer of service credit to the ERS must reflect years of credit, average salary, periods of service, method of calculation, and the manner used to calculate the time period involved, including any military credit purchased.
   3. (3) Any transfer of service credit to the ERS must include specific data regarding the pre-tax and after-tax contributions by the person, penalty interest, earned interest, and any other dollar amount which will be part of the transfer.
   4. (4) Assets to fund the portion of the annuity attributable to service with the TRS will be transferred to the ERS pursuant to agreement with the TRS.
   5. (5) Service transferred from the TRS will be established in an employee class account for the benefit of the member.
5. (e) Transfer of funds. The ERS and the TRS agree on the following method of transferring funds. Each system shall certify on a monthly basis the total dollar amount of annuities paid by the system which are attributable to service transferred pursuant to the Government Code, Chapter 805. The amount certified shall exclude any portion of annuities paid consisting of post-retirement increases. Each system shall remit to the other system the amount certified within 30 days of receipt of such certification. It is recognized that adjustments will be made from month-to-month as a result of such things as administrative errors, the death of the annuitant or a beneficiary, return-to-work, and recovery from disability by an annuitant. The systems will jointly agree on the administrative and accounting procedures to be established in order to ensure the transfer of funds pursuant to this section.

6. (f) Purchase of refunded service.

   1. (1) A member of the TRS who canceled membership in the ERS by taking a refund of his individual account may repurchase his service credit for the purpose of making a transfer at any time prior to retirement. Such persons do not have to become a contributing member of the ERS in order to purchase such canceled service credit.
   2. (2) A person who cancels membership in the ERS by taking a refund of his individual account must meet the general requirements for reinstatement or purchase of service credit in the ERS.
7. (g) Military credit. Any transferred military service which would result in a member receiving service credit in excess of that permitted under the ERS rules will not be accepted.
8. (h) Termination of membership. The transfer of ERS credit to the TRS will terminate membership in the ERS, and will cancel all rights to benefits from the ERS based on that service.
9. (i) Service in the month following retirement. A retirement shall be cancelled and membership reinstate if a member, who transferred service and retired pursuant to this chapter, holds a position during the month following retirement with the retirement system on which benefits are based.

Source Note:The provisions of this §71.19 adopted to be effective September 2, 1993, 18 TexReg 5593; amended to be effective April 20, 1994, 19 TexReg 2550; amended to be effective December 31, 2003, 28 TexReg 11610.