1. (a) Adoption of tables for calculation of benefits.

   1. (1) The 1981 reduction factors for optional forms of retirement annuities are independent of the sex of the member and of the nominee and are based on the GA-51 male mortality table projected with Scale C to 1970 with an age set forward of one year for retiring members and an age set back of four years for nominees. The interest assumption is 5.0%.
   2. (2) The 1984 reduction factors for optional forms of retirement annuities are independent of the sex of the member and of the nominee and are based on the UP-1984 table with an age set back for retiring members of four years for Option 3, two years for Option 4, and one year for Options 1, 2, and 5, and an age set back of eight years for nominees. The interest assumption is 9.0%.
   3. (3) The reduction factors for earlier than normal retirement are independent of the sex of the member and are based on the GA-51 male mortality table projected with Scale C to 1970 with an age set forward of one year for retiring members. The interest assumption is 5.0%.
   4. (4) The 1992 reduction factors for optional forms of retirement annuities are independent of the gender of the member and the beneficiary and are based on the 1983 group annuity mortality table. The interest rate assumption is 8.5%.
   5. (5) Copies of these tables are available from the executive director of the Employees Retirement System of Texas at 18th and Brazos Streets, P.O. Box 13207, Austin, Texas 78711-3207. Tables, along with the adjustments described in paragraphs (1)-(4) of this subsection, are adopted by reference and made a part of this rule for all purposes.
2. (b) Reduction factors for early retirement or death. The actuaries have developed reduction factors for early retirement or death in accordance with the mortality tables adopted by the board. Those tables are adopted by reference and made a part of this rule for all purposes. They are available from the executive director of the Employees Retirement System at 18th and Brazos Streets, P.O. Box 13207, Austin, Texas 78711-3207.

3. (c) Reduction factors for Options 1 through 5.

   1. (1) Adoption of tables. The option factors adopted by reference effective September 21, 1981, are hereinafter called the 1981 factors and are retained for the purposes described in this section. The 1984 factors, effective December 19, 1983, are adopted by reference subject to the limitations of this subsection. The 1992 option factors, developed by the actuaries, are adopted by reference effective September 1, 1991. Sets of factors are available from the executive director of the Employees Retirement System at 18th and Brazos Streets, P.O. Box 13207, Austin, Texas 78711-3207.

   2. (2) Factors for use by the Employees Retirement System.

      1. (A) The 1981 factors are continued in effect for all optional annuities for service retirements and death benefit plans which are calculated subsequent to the adoption of the 1984 tables, but which have effective dates of December 31, 1983, or before.
      2. (B) All optional annuities for service retirement or death benefit plans which have effective dates of September 1, 1982, through December 31, 1983, will be recalculated beginning with the January 1984 payment using the higher of the 1981 factors or the 1984 factors for the option selected. No retroactive adjustments will be made.
      3. (C) All optional annuities for service retirements and death benefit plans calculated with effective dates of January 1, 1984, through August 31, 1985, will be based on the higher of the 1981 factors or the 1984 factors for the option selected. All annuities for service retirement with effective dates of September 1, 1985, through August 31, 1991, and death benefit plans effective on or after September 1, 1985, will be based on the 1984 factors. All service and disability annuities with a retirement date of September 30, 1991, and forward will be based on the 1992 factors.

4. (d) Reserve factors.

   1. (1) The reserve factors vary by sex as well as age. For service retirement and death benefit plan Option 1, the reserve factors are based on the UP-1984 table with an age set back of one year for males and an age set back of eight years for females. For disability retirement, the mortality basis is 85% of the 1965 RRB disabled annuitants mortality table for males and 55% of the 1965 RRB disabled annuitants mortality table for females. Those tables are adopted by reference and made a part of this rule for all purposes. Copies of these mortality tables are available from the executive director of the Employees Retirement System of Texas at 18th and Brazos Streets, P.O. Box 13207, Austin, Texas 78711-3207.
   2. (2) The reserve factors for retirements with an effective date of January 31, 1991-August 31, 1991, shall be those developed by the actuaries and based on the actuarial assumptions adopted by the board in September 1990. Reserve factors for retirements after September 1, 1991, based on the actuarial assumptions adopted by the board in September 1990, shall be those developed by the actuaries to recognize the pop-up feature. Reserve factors for disability retirement annuities effective after September 1, 1991, shall be based on assumptions developed by the actuaries and adopted by the board in November 1991. The reserve factors are adopted by reference and made a part of this rule for all purposes. Copies of these reserve tables are available from the executive director of the Employees Retirement System of Texas at 18th and Brazos Streets, P.O. Box 13207, Austin, Texas 78711-3207.
5. (e) Reserve factor tables for use in computing sick leave credit. The reserve factor tables described in subsection (d) of this section are adopted by reference and made a part of this rule for all purposes and shall be used to calculate the amount required to be paid by a state agency to fund sick leave credit. Copies of these tables are available from the executive director of the Employees Retirement System of Texas at 18th and Brazos Streets, P.O. Box 13207, Austin, Texas 78711-3207.

Source Note:The provisions of this §73.21 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective April 26, 1983, 8 TexReg 1217; amended to be effective January 11, 1984, 8 TexReg 5533; amended to be effective April 18, 1984, 9 TexReg 1894; amended to be effective December 14, 1987, 12 TexReg 4533; amended to be effective November 23, 1989, 14 TexReg 5934; amended to be effective January 10, 1991, 16 TexReg 42; amended to be effective December 13, 1991, 16 TexReg 6937; amended to be effective April 20, 1994, 19 TexReg 2550.