1. (a) In this section the term "ineligible benefit payment" means that portion of a payment or distribution, other than a Group Term Life benefit payment, made by TCDRS to, or on behalf of, a living or deceased person who was not legally entitled to the payment at the time it was made. An ineligible benefit payment is a receivable of TCDRS.
2. (b) In this section the term "recipient" means the person or persons who, directly or indirectly, received an ineligible benefit payment.
3. (c) If a repayment of an ineligible benefit payment issued from the Pension Trust Fund as described in Section 845.305(b) of the Government Code is not received by TCDRS, TCDRS may offset the amount of the ineligible benefit payment against benefit payments from the Pension Trust Fund otherwise due the recipient.
4. (d) If the Director determines that an ineligible benefit payment issued from the Pension Trust Fund as described in Section 845.305(b) of the Government Code is not recoverable, the receivable shall be charged against the general reserves account of the endowment fund provided the ineligible benefit payment was not the result of an error or omission of a participating Employer. If the Director determines that an ineligible benefit payment made from the Group Term Life Fund is not recoverable, the receivable shall be charged against the Group Term Life Fund.
5. (e) If the Director determines that the ineligible benefit payment issued from the Pension Trust Fund was the result of an error or omission of a participating Employer and determines that the payment is not recoverable, the receivable shall be charged against the Employer's account in the Employer's accumulation fund.
6. (f) In making his or her determination, the Director may consider the amount of the ineligible benefit payment, the likelihood of repayment, the costs of recovery, and any other fact or circumstance which the Director considers to be relevant in finding that further efforts for the recovery of the payment are not in the best interests of TCDRS, its members and annuitants.

Source Note:The provisions of this §107.6 adopted to be effective January 8, 2026, 51 TexReg 159.