1. (a) The sponsoring employer is responsible for the correction of an error arising from an act or omission of the employer that results in a person contributing more or less than the correct amount to the system or receiving more or less credited service, service credit or benefits than the person is rightfully entitled to receive under the system.
2. (b) The employer may initiate the correction process by filing an application with the system for an adjustment to the person's record. The application must adequately describe the error and set forth the terms of the adjustment to be made to the person's record.
3. (c) A person seeking an adjustment to a record based on an act or omission of the subdivision must apply to the sponsoring employer for a correction of the error. The system will not receive applications for record adjustments from any person other than an employer. If the system receives information relating to a possible error from a person other than an employer, the system shall forward the information to the appropriate employer.

4. (d) If the director is provided with satisfactory evidence of the error, the director may at his discretion accept the application and order an adjustment to the person's record in accordance with the terms set forth in the application provided:

   1. (1) The terms of the adjustment on the face of the application would not grant the person a right, status or benefit not otherwise available under Texas Government Code, Title 8, Subtitle F;
   2. (2) The terms of the adjustment are reasonable and can be feasibly implemented and administered by the system; and
   3. (3) The terms of the adjustment can be implemented without causing financial instability with respect to the employer's participation in the system or causing a reduction in the accrued benefit of any other member or annuitant of the employer.
5. (e) In this section the term "record" means all information and amounts relating to the person and the person's beneficiary and includes information and amounts relating to the person's individual account, contributions, deposits, credited service, service credit and benefits.
6. (f) In this section the term "individual account" means the separate account maintained for a member consisting of the member's contributions, deposits and accumulated interest credited to the account for the benefit of the member.
7. (g) In this section the term "credited service" means months of service recognized for purposes of retirement eligibility.
8. (h) In this section the term "service credit" means the monetary credits granted to a member who performs service for a participating employer.
9. (i) In this section the term "filed" means received by the system.
10. (j) In this section the term "accepted" means approved by the system for making adjustments to a person's record in accordance with the terms of the application.
11. (k) The application of a sponsoring employer under this section may be filed at any time.
12. (l) All applications filed under this section with the system must be certified by the sponsoring employer before the application may be accepted.
13. (m) Depending on the nature of adjustment requested pursuant to this section, the director may require that the application must be approved by the governing board of the employer or by the county judge or chief operating officer of the employer before it may be accepted by the system.
14. (n) If the terms of the adjustment as set forth on the application specify a change to the person's months of credited service, that adjustment will be made upon acceptance of the application and receipt by the system of the amount that would have been contributed by the member for those specified months. The system will not accept any payments due under this section from any person other than an employer.
15. (o) If the terms of the adjustment as set forth on the application specify a change to the person's individual account balance, service credit or benefit, that adjustment may not be made until the system receives any payment necessary to implement the terms of the adjustment. The system will not accept any payments due under this section from any person other than an employer.
16. (p) With respect to certain errors that are the subject of an adjustment under this section, the sponsoring employer may request the system to provide a description of what the person's record would show if no error had occurred. This description may include changes to amounts of employee contributions, accumulated interest, prior service credit, current service credit, multiple matching credit, retirement benefits, or retirement eligibility dates. Evidence showing dates of service and the compensation that was paid to the member by the employer for such service should be submitted to the system in order that the system may accurately determine any changes.
17. (q) The application may specify adjustments in any amounts that do not exceed the changes to the person's record determined as if there had been no error.
18. (r) An application for an adjustment is not an application for retirement; however, a retirement application may be filed simultaneously with an application for adjustment. An adjustment to a person's prior service credit may not be made if the application is filed more than five years after the date the person became a member of the sponsoring employer.
19. (s) Adjustments to service credits or benefits shall be considered as part of, and funded in the same manner as, any other pension liabilities of the employer.
20. (t) The director may implement the terms of the proposed adjustment to the extent that the funding of the pension liabilities attributable to the adjustments proposed by the employer do not cause financial instability with respect to the employer's participation in the system or cause a reduction in accrued benefits of any other members or annuitants. This may include partial implementation or implementation of the adjustments in stages.

Source Note:The provisions of this §105.5 adopted to be effective July 20, 2004, 29 TexReg 6968; amended to be effective January 1, 2006, 30 TexReg 7887; amended to be effective December 30, 2012, 37 TexReg 10249.