1. (a) Tables for calculation of optional factors.

   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 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%.
   3. (3) 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. The option tables, along with the adjustments described in this subsection are adopted by reference and made a part of this rule for all purposes.
2. (b) Option factors. All optional annuities for service retirement, disability retirement, and death benefit plans under the JRS-I are calculated using the 1981 factors. Option factors for service retirement, disability retirement, and for death benefit plans for a member of the JRS-II are calculated using the 1992 factors. All option factors have been developed by the actuaries and are adopted by reference subject to the limitations of this subsection. Both sets of option factors 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.

3. (c) Formula for JRS-II reduction factors for death before age 65.

   1. (1) A death benefit annuity of the Judicial Retirement System of Texas Plan Two on behalf of a member dying before age 65 while not eligible for an unreduced service retirement benefit is reduced for each whole or partial calendar month that occurs during the period from the date of death to the 65th birthday, including the months that contain the dates of death and birthday. For the first 120 months (ages 55-64), the annuity is reduced by one-third of 1.0% per month. For the next 60 months (ages 50-54), the annuity is reduced by one-fourth of 1.0% per month. For the next 60 months (ages 45-49), the annuity is reduced by one-sixth of 1.0% per month. For the next 120 months (ages 35-44), the annuity is reduced by one-twelfth of 1.0% per month.
   2. (2) A death benefit annuity on behalf of a member dying before age 65 while eligible for an unreduced service retirement benefit (i.e., with 25 or more years of service credit) shall not be reduced for age.
   3. (3) JRS-II reduction factors for death before age 65 have been developed by the actuaries and are adopted by reference subject to the limitations of this subsection. The set of reduction factors is 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.
4. (d) Reserve factors. The reserve factors for JRS-II are adopted by reference and made a part of this rule for all purposes. 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.
5. (e) Dollar limitations for maximum annual benefit. Service retirement annuities shall conform to dollar limitations and applicable adjustments under the Internal Revenue Code of 1986, §415 (26 United States Code §415) as determined by the federal commissioner of internal revenue.

Source Note:The provisions of this §77.11 adopted to be effective June 27, 1990, 15 TexReg 3429; amended to be effective January 10, 1991, 16 TexReg 42; amended to be effective December 13, 1991, 16 TexReg 6938.