1. (a) The limitation year used by TCDRS for determining the maximum annual benefit which may be paid under Section 415(b) of the Internal Revenue Code is the calendar year. Notwithstanding anything to the contrary, TCDRS will make no payments of a retirement annuity with respect to a retiree in excess of the annual limit as determined in accordance with Section 415(b) of the Internal Revenue Code and the regulations thereunder.

2. (b) If the benefit recipient is not a participant in the TCDRS Qualified Replacement Benefit Arrangement (34 TAC §§113.1, et seq), the maximum monthly amount of the retirement annuity payable with respect to the retiree during the limitation year shall be the lesser of:

   1. (1) the amount determined under the provisions of Chapter 844 of the Government Code, without regard to the limitations of Section 844.008; or
   2. (2) the amount determined by dividing the annual limit for the limitation year determined in accordance with Section 415(b) of the Internal Revenue Code, by the number of monthly payments scheduled to be paid with respect to the retiree during the limitation year.
3. (c) If the benefit recipient is a participant in the TCDRS Qualified Replacement Benefit Arrangement, the maximum monthly amount of the retirement annuity payable with respect to the retiree shall be the amount determined under the provisions of Chapter 844 of the Government Code, without regard to the limitations of Section 844.008. TCDRS shall cease making monthly payments of the retirement annuity payable with respect to the retiree at that time during the limitation year that the total of payments made with respect to such limitation year equals the maximum annual benefit payable in accordance with Section 415(b) of the Internal Revenue Code.
4. (d) In no event shall the total amount paid during the limitation year be less than the lesser of that amount payable with respect to the retiree as determined under the provisions of Chapter 844 of the Government Code without regard to Section 844.008; or the annual limit for the limitation year determined in accordance with Section 415(b) of the Internal Revenue Code.
5. (e) TCDRS will make retroactive or prospective adjustments to any benefit payment as appropriate to comply with this section.

Source Note:The provisions of this §103.8 adopted to be effective November 1, 1998, 23 TexReg 10885; amended to be effective January 10, 2006, 31 TexReg 170; amended to be effective January 8, 2026, 51 TexReg 158.