1. (a) An Employer may by order authorize the establishment of credited service for service performed by employees of a governmental entity that subsequently:

   1. (1) was merged, converted, or otherwise transferred into the Employer; or
   2. (2) transferred the employment of the employees to the Employer.
2. (b) A member eligible for credited service under this section pursuant to an order adopted under Subsection (a) is one who was employed by a governmental entity on the date that the governmental entity was merged, converted or otherwise transferred into the Employer or the date that such member's employment was transferred to the Employer.
3. (c) If a member is eligible for proportionate service under Chapter 803 of the Government Code for the service for the governmental entity described by Subsection (a), then no additional credited service is available under this section.

Source Note:The provisions of this §105.7 adopted to be effective October 23, 2016, 41 TexReg 8205; amended to be effective January 8, 2026, 51 TexReg 158.