Texas Register, Volume 30, Number 43, Pages 6973-7094, October 28, 2005 Page: 7,013
6973-7094 p. ; 28 cm.View a full description of this periodical.
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(c) Form and Timing of Payments. Payments under this Ar-
rangement shall be paid by the applicable Employer to each Participant
at the time and in the form and manner as the System may direct. Any
election made by an Eligible Member with regard to the distribution
of Benefits under the System, including the designation of a named
beneficiary, as defined in 841.001(4) of the Act, shall be equally ap-
plicable to and binding on such Eligible Member and on all persons
who at any time have or claim to have any interest in connection with
payments under this Arrangement.
(d) Effect on TCDRS. Any Benefit payable under the Retire-
ment Plan of the Employer established under TCDRS shall be paid
solely in accordance with the terms and provisions thereof and shall
be subject to 415 of the Code and other applicable tax limitations;
nothing in this Arrangement shall operate or be construed in any way
to modify, amend or affect the Benefits payable thereunder.
(e) Tax Withholding. All payments under this Arrangement
shall be subject to and reduced by applicable federal, state and local
income, payroll and other tax withholding requirements and all other
applicable deductions required by this Arrangement or by law.
(f) Participation Determined Annually. Participation in the
Arrangement shall be determined annually for each plan year. In any
plan year, benefits shall only be paid under the Arrangement to a Par-
ticipant after the date in the plan year that the benefits paid to such
person from TCDRS under the Retirement Plan of the Employer have
reached the maximum annual benefit that can be paid by TCDRS under
Code 415 for that plan year. The date the maximum annual benefit
payment from TCDRS is reached is the beginning date of participation
by the Participant for that plan year. The beginning date of a Partic-
ipant's participation in the Arrangement may change from plan year
to plan year as the amount payable under this Arrangement is rede-
termined. An individual's participation in the Arrangement will cease
for any plan year or portion of a plan year for which the individual's
Benefit is not limited by Code 415.
(g) No Election to Defer Compensation. No election shall be
provided at any time to a Participant or any other individual, directly
or indirectly, to defer compensation under the Arrangement.
113.4. Administration.
(a) Administrator. TCDRS shall be the Administrator of the
Arrangement and shall be responsible for the supervision and con-
trol of the operation and administration of the Arrangement, except as
otherwise provided herein. Subject to the authority of the Board, TC-
DRS shall have the exclusive right and full discretion to construe and
interpret the Arrangement, to establish rules and procedures for its op-
eration and administration, and to decide any and all questions of fact,
actuarial valuation, interpretation, definition or administration arising
under or in connection with the administration of the Arrangement.
The interpretation and construction of any provisions of the Arrange-
ment by the Administrator and its exercise of any discretion granted
under the Arrangement shall be binding and conclusive on all persons
who at any time have or claim to have any interest whatever under this
Arrangement.
(b) Contributions and Payments.
(1) As soon as administratively feasible following the re-
ceipt of Employer contributions, TCDRS shall segregate from each
Employer's contributions the portion of the contributions necessary to
make the payments due to Benefit Recipients of that Employer for the
next payment period and for any applicable expenses under this Ar-
rangement. Notwithstanding the foregoing, if TCDRS determines, in
its sole discretion, that the allocation of contributions to the Arrange-
ment would jeopardize the actuarial soundness of the Retirement Plan
of the Employer, TCDRS shall cease to segregate contributions for theArrangement and shall notify the participating Employer and affected
Benefit Recipients.
(2) Contributions segregated for payments and expenses
under the Arrangement shall be separately accounted for and shall be
used exclusively for payments and expenses under the Arrangement
and shall not be commingled with any other assets of TCDRS.
(3) Within a reasonable period of time before each pay-
ment date, TCDRS shall distribute to each participating Employer the
gross amount necessary, as determined by TCDRS, to satisfy such Em-
ployer' s liability for amounts due on such payment date under the Ar-
rangement.
(4) The Employer from whom the Eligible Member retired
or died while a Member with respect to such Employer shall be solely
responsible for paying any amounts received from TCDRS and due
to the Participant under the terms of the Arrangement. TCDRS shall
have no obligation to pay any amounts due under the terms of the
Arrangement.
(5) The Employer shall be responsible for satisfying all tax
withholding, payroll tax payments, other applicable tax payments and
reporting requirements applicable to the Arrangement, if any, and shall
be responsible for administering all payments due under the Arrange-
ment.
(c) Plan Unfunded. This Arrangement shall at all times be
entirely unfunded within the meaning of the federal tax laws. Nothing
contained herein shall be construed as providing for assets to be held in
trust for the Participants. No Participant or any other person shall have
any interest in any assets of TCDRS or any Employer by reason of the
right to receive a payment under the Arrangement. Nothing contained
herein shall be construed as a guarantee by TCDRS, any Employer,
or any other entity or person that the assets of the Employer will be
sufficient to pay any benefit hereunder.
(d) Appeal Procedure. In the event a dispute arises between
the Employer and the Administrator relating to the determination of
the Administrator or the interpretation, operation or administration of
this Arrangement, the Administrator's decision shall be final, conclu-
sive and binding unless the Employer submits an appeal directly to
the Board within 20 days from the date of notice of the decision, for
consideration and action in accordance with the administrative review
procedures set forth in 34 TAC 101.19 - 101.23. The action of the
Board, taken on its own motion or as the result of an appeal, is final,
conclusive, and binding.
113.5. Amendment and Termination.
(a) Amendment and Termination of the Arrangement. The
Board reserves the right, in its sole discretion, to amend or terminate
the Arrangement at any time and from time to time. By way of ex-
ample, and not limitation, the Arrangement may be amended or termi-
nated to eliminate all payments with respect to any Member or other
individual who has not become eligible to participate in the Arrange-
ment as of the date of such amendment or termination by reason of
retirement or death in accordance with 113.3(a) of this chapter. In
addition, an amendment or termination may be retroactive to the extent
that the Board deems such action necessary, in its sole discretion, to
maintain the tax-qualified status of the System or the status of this Ar-
rangement as a qualified governmental excess benefit arrangement as
defined in Code 415(m) or to avoid jeopardizing the actuarial sound-
ness of the Retirement Plan of the Employer.
(b) Termination of Employer's Participation.
(1) An Employer may terminate its participation in the Ar-
rangement at any time with the consent of and on terms established by
the Administrator.PROPOSED RULES October 28, 2005 30 TexReg 7013
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Texas. Secretary of State. Texas Register, Volume 30, Number 43, Pages 6973-7094, October 28, 2005, periodical, October 28, 2005; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth97316/m1/40/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.