1. (a) If permitted under and subject to the provisions of federal law, TCDRS may accept an eligible rollover distribution from another eligible retirement plan in payment of all or a portion of any deposit a member is permitted under applicable law to make with TCDRS for service credit.
2. (b) If permitted under and subject to the provisions of federal law, TCDRS may accept a direct trustee-to-trustee transfer of funds from a plan described under Section 403(b) or Section 457(b) of the Internal Revenue Code in payment of all or a portion of any deposit a member is permitted to make with TCDRS for service credit.
3. (c) In order to authorize the rollover or transfer of funds described in this section, a member shall provide or cause to be provided to TCDRS information sufficient for TCDRS in its sole discretion to reasonably conclude that the contribution is a valid rollover or direct trustee-to-trustee transfer as permitted under federal tax law. If TCDRS later determines that a contribution was an invalid rollover or direct trustee-to-trustee transfer or otherwise not permitted under federal tax law, TCDRS may take any action appropriate, permissible or required by the Internal Revenue Code or regulations issued thereunder, including return of the invalid contribution and, if applicable, any earnings attributed thereto to the member within a reasonable time after the determination and cancellation of any credit purchased with the returned amounts.
4. (d) TCDRS shall construe and administer this section in a manner such that the plan will be considered a qualified plan under Section 401(a) of the Internal Revenue Code, (United States Code, Title 26, §401).

Source Note:The provisions of this §107.8 adopted to be effective January 8, 2026, 51 TexReg 159.