1. (a) The retirement system may establish procedures for the acceptance of an eligible rollover distribution, including a direct trustee-to-trustee transfer, from an eligible retirement plan for the payment of any portion of the deposit a member is permitted to make for the purchase of types of credit in the retirement system, except that the system may not accept the distribution if the system is to separately account for the amounts.
2. (b) A distributee may elect to have any portion of an eligible rollover distribution within the meaning of Section 402(c)(4) of the Internal Revenue Code of 1986 paid in a direct rollover to an eligible retirement plan within the meaning of Section 402(c)(8)(B) of the Internal Revenue Code of 1986 specified by the distributee.
3. (c) The retirement system shall implement this section in a manner that causes the retirement system to be considered a qualified plan under Section 401(a) of the Internal Revenue Code of 1986.

Source Note:The provisions of this §107.3 adopted to be effective May 1, 1993, 18 TexReg 2416; amended to be effective December 31, 2002, 27 TexReg 12371.