2005 Texas Government Code CHAPTER 823. CREDITABLE SERVICE

GOVERNMENT CODE

CHAPTER 823. CREDITABLE SERVICE

SUBCHAPTER A. GENERAL PROVISIONS


	§ 823.001. TYPES OF CREDITABLE SERVICE.  The types of 
service creditable in the retirement system are:
		(1)  prior service;                                                           
		(2)  membership service;                                                      
		(3)  military service;  and                                                   
		(4)  equivalent membership service.                                           

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 33.001 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.


	§ 823.002. SERVICE CREDITABLE IN A YEAR.  (a) The board of 
trustees by rule shall determine how much service in any year is 
equivalent to one year of service credit, but in no case may all of a 
person's service in one school year be creditable as more than one 
year of service.  Service that has been credited by the retirement 
system on annual statements for a period of five or more years may 
not be deleted or corrected because of an error in crediting unless 
the error concerns three or more years of service credit or was 
caused by fraud.
	(b)  Expired.                                                                  

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 33.002 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 1995, 74th Leg., ch. 555, § 6, eff. Sept. 1, 1995;  Acts 
2003, 78th Leg., ch. 201, § 44, eff. Sept. 1, 2003.


	§ 823.003. BENEFITS BASED ON SERVICE CREDIT.  Except as 
otherwise provided under the optional retirement program, years of 
service on which the amount of a benefit is based consist of the 
number of years of service credit to which a member is entitled.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 33.003 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.


	§ 823.004. COMPUTATION OF AND PAYMENT FOR CREDIT.  (a) 
All credit for military service, out-of-state service, 
developmental leave, work experience in a career or technological 
field, and service transferred to the retirement system under 
Chapter 805 shall be computed on a September 1 through August 31 
school year.  Payments for service described by this section must be 
completed not later than the later of the member's retirement date 
or the last day of the month in which the member submits a 
retirement application.
	(b)  The retirement system by rule may establish an 
irrevocable employer pick-up of member contributions as described 
by Section 414(h)(2) of the Internal Revenue Code of 1986 (26 U.S.C. 
Section 414(h)(2)) for the purchase of any service credit 
authorized by law.

Added by Acts 1995, 74th Leg., ch. 555, § 7, eff. Sept. 1, 1995.  
Amended by Acts 1997, 75th Leg., ch. 1416, § 3, eff. Sept. 1, 
1997;  Acts 1999, 76th Leg., ch. 1122, § 2, eff. Sept. 1, 1999;  
Acts 2001, 77th Leg., ch. 1229, § 5, eff. Sept. 1, 2001.


	§ 823.005. ACCEPTANCE OF ROLLOVERS AND TRANSFERS FROM 
OTHER PLANS.  Subject to rules adopted by the board of trustees, 
the retirement system shall accept an eligible rollover 
distribution or a direct transfer of funds from another qualified 
plan in payment of all or a portion of any deposit a member is 
permitted to make with the system for credit for service.  The rules 
adopted by the board shall condition the acceptance of a rollover or 
transfer from another plan on the receipt from the other plan of 
information necessary to enable the retirement system to determine 
the eligibility of any transferred funds for tax-free rollover 
treatment or other treatment under federal income tax law.

Added by Acts 1995, 74th Leg., ch. 555, § 7, eff. Sept. 1, 1995.           


	§ 823.006. LIMITS ON ANNUAL CONTRIBUTIONS FOR PURCHASE OF 
SERVICE CREDIT.  Notwithstanding any other provision of this 
subtitle, the retirement system may limit the purchase of service 
credit to the extent required by applicable limits on the amount of 
annual contributions a participant may make to a qualified plan 
under Sections 401(a) and 415(c), Internal Revenue Code of 1986.

Added by Acts 1999, 76th Leg., ch. 1540, § 2, eff. Sept. 1, 1999.  
Amended by Acts 2005, 79th Leg., ch. 1359, § 9, eff. Sept. 1, 
2005.

SUBCHAPTER C. ESTABLISHMENT OF MEMBERSHIP SERVICE


	§ 823.201. CURRENT MEMBERSHIP SERVICE.  (a) Membership 
service is credited in the retirement system for each year in which 
a member is an employee and for which the member renders sufficient 
service for credit under Section 823.002 and makes and maintains 
with the retirement system the deposits required by this subtitle 
or prior law.
	(b)  The board of trustees may adopt rules for the granting 
of membership service credit.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1981, 67th Leg., 1st C.S., p. 202, ch. 18, § 21, 
eff. Nov. 10, 1981.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 33.201 and amended by Acts 1989, 71st Leg., ch. 179, § 
1, eff. Sept. 1, 1989.


	§ 823.203. MEMBERSHIP SERVICE FOR OPTIONAL RETIREMENT 
PROGRAM.  A member may not establish service credit in the 
retirement system for any period when the member was participating 
in the optional retirement program under Chapter 830.

Added by Acts 1999, 76th Leg., ch. 1540, § 3, eff. Sept. 1, 1999.          

SUBCHAPTER D. ESTABLISHMENT OF MILITARY SERVICE


	§ 823.301. CREDITABLE MILITARY SERVICE.  (a) Except as 
provided by Section 823.101(2), military service creditable in the 
retirement system is active federal duty in the armed forces of the 
United States, other than as a student at a service academy, that 
was performed:
		(1)  as a direct result of being inducted or of first 
enlisting for duty on a date when the federal government was 
actively inducting persons into the armed forces under federal 
draft laws;
		(2)  as a reservist or member of the national guard who 
was ordered to duty under the authority of federal law;
		(3)  during a time when the federal government was 
actively inducting persons into the armed forces under federal 
draft laws;  or
		(4)  as a result of voluntarily entering on active 
duty.                    
	(b)  A member may not establish more than five years of 
service credit in the retirement system under this subchapter for 
military service.  Service may be established in one-year 
increments except as otherwise provided by this subchapter.
	(c)  The board of trustees may adopt rules expanding the 
military service creditable in the retirement system in order to 
comply with the requirements of federal law.
	(d)  Military service that is terminated by sentence of a 
court-martial is not creditable under this section.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1987, 70th Leg., ch. 61, § 3, eff. Aug. 31, 1987.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 33.301 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 13, § 1, 
eff. Nov. 12, 1991;  Acts 1997, 75th Leg., ch. 1416, § 5, eff. 
Sept. 1, 1997.


	§ 823.302. MILITARY SERVICE CREDIT.  (a) An eligible 
member may establish service credit in the retirement system for 
military service performed that is creditable as provided by 
Section 823.301.
	(b)  A member eligible to establish military service credit 
is one who has at least five years of service credit in the 
retirement system for actual service in public schools, except that 
a member meeting this condition does not qualify for insurance 
coverage under Chapter 1575, Insurance Code, until the member has 
10 or more years of membership service credit.
	(c)  A member may establish credit under this section by 
depositing with the retirement system for each year of military 
service claimed a contribution in an amount equal to:
		(1)  the member's contributions to the retirement 
system during the most recent full year of membership service that 
preceded the military service, if the military service was 
performed while the person was a member of the retirement system;  
or
		(2)  the member's contributions to the retirement 
system during the first full year of membership service, if the 
military service was performed before the person became a member of 
the retirement system.
	(d)  In addition to the contribution required by Subsection 
(c), a member claiming credit for military service must pay a fee of 
eight percent, compounded annually, of the required contribution 
from the date of first eligibility to the date of deposit.
	(e)  After a member makes the deposits required by this 
section, the retirement system shall grant the member one year of 
military service credit for each year of military service approved.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1981, 67th Leg., 1st C.S., p. 203, ch. 18, § 22, 
eff. Sept. 1, 1982.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 33.302 and amended by Acts 1989, 71st Leg., ch. 179, § 
1, eff. Sept. 1, 1989.  Amended by Acts 1991, 72nd Leg., 1st C.S., 
ch. 13, § 2, eff. Nov. 12, 1991;  Acts 1995, 74th Leg., ch. 555, 
§ 8, eff. Sept. 1, 1995;  Acts 2003, 78th Leg., ch. 1276, § 
10A.521, eff. Sept. 1, 2003.


	§ 823.303. MILITARY LEAVE CREDIT.  A member who performs 
military service creditable in the retirement system but who does 
not establish credit for the service by making the deposits 
required by Section 823.302 is entitled to credit of a year for each 
year of military service performed, if the member requests the 
credit in writing before the later of the date of application for 
retirement or the effective date of retirement.  The credit is 
usable only in determining eligibility for, but not the amount of, 
benefits under Section 824.406.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 33.303 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1997, 75th Leg., ch. 1416, § 7, eff. Sept. 
1, 1997.


	§ 823.304. REEMPLOYED VETERAN'S CREDIT.  (a) A person 
eligible to establish reemployed veteran's credit is one who 
qualifies under the Veteran's Reemployment Rights Act, 38 U.S.C. 
Section 2021 et seq., for the benefits of reemployment in a position 
included within the membership of the retirement system and who is 
entitled under that Act to additional credit and benefits from the 
retirement system because of the person's active duty in the armed 
forces of the United States.
	(b)  A person who receives credit under this section may not 
receive military service credit under Sections 823.301 and 823.302 
for the same service.
	(c)  A person may establish credit under this section by 
depositing with the retirement system for each year of service 
claimed an amount equal to:
		(1)  the member contributions to the retirement system, 
as determined by the retirement system, that the person would have 
made had the person continued to be employed in the person's former 
position covered by the retirement system during the entire period 
of active duty in the armed forces for which the person is to 
receive retirement credit;  and
		(2)  a fee of five percent, compounded annually, of the 
required contribution from the date of the person's first 
eligibility to establish the credit to the date of deposit.
	(d)  To the extent required by the Veteran's Reemployment 
Rights Act and permitted by Sections 401(a) and 415 of the Internal 
Revenue Code of 1986 (26 U.S.C. Sections 401 and 415), the 
retirement system may:
		(1)  grant the person service credit for the period of 
active duty in the armed forces as if the person had been employed 
in a position eligible for membership and credit with the 
retirement system;  and
		(2)  include in relevant benefit computations under 
this subtitle the annual compensation, as determined by the 
retirement system, that would have been otherwise received by the 
person for service covered by the retirement system during any year 
in which the person had active duty in the armed forces.
	(e)  The state shall deposit with the retirement system an 
amount equal to the state contributions, as determined by the 
retirement system, that the state would have made had the person 
continued to be employed in the person's former position covered by 
the retirement system during the entire period of active duty in the 
armed forces for which the person has received service credit under 
this section.  The state shall deposit the required amount with the 
retirement system not later than the 30th day after the date the 
state receives notice from the retirement system of the amount of 
state contributions required for service credit established by a 
person under this section.
	(f)  The board of trustees may adopt rules that modify the 
terms of this section for the purpose of compliance with the 
Uniformed Services Employment and Reemployment Rights Act of 1994 
(38 U.S.C. Section 4301 et seq.).

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 13, § 3, eff. Nov. 
12, 1991.  Amended by Acts 1995, 74th Leg., ch. 555, § 9, eff. 
Sept. 1, 1995.

SUBCHAPTER E. ESTABLISHMENT OF EQUIVALENT MEMBERSHIP SERVICE


	§ 823.401. OUT-OF-STATE SERVICE.  (a) Except as provided 
by Subsection (b), an eligible member may establish equivalent 
membership service credit for employment with a public school 
system maintained wholly or partly by another state or territory of 
the United States or by the United States for children of its 
citizens.  A school receiving funds under 22 U.S.C. Section 2701 is 
considered a public school for the purposes of this section.
	(b)  A member may not establish credit under this section for 
service performed for a public school while a member of the armed 
forces, for which service the member was compensated by the United 
States.
	(c)  A member eligible to establish credit under this section 
is one who has at least five years of service credit in the 
retirement system for actual service in public schools.
	(d)  A member may establish credit under this section by 
depositing with the retirement system for each year of service 
credit the actuarial present value, at the time of deposit, of the 
additional standard retirement annuity benefits that would be 
attributable to the purchase of the service credit under this 
section, based on rates and tables recommended by the retirement 
system's actuary and adopted by the board of trustees
	(e)  A deposit for at least one year of credit must be made 
with an initial application for credit, and all payments for 
service claimed under this section must be made before retirement.
	(f)  The amount of service credit a member may establish 
under this section may not exceed the lesser of the number of years 
of membership service credit the member has in the retirement 
system for actual service in public schools or 15 years.
	(g)  After a member makes the deposits required by this 
section, the retirement system shall grant the member one year of 
equivalent membership service credit for each year of service 
approved.  The retirement system may not use service credit granted 
under this section in computing a member's annual average 
compensation.
	(h)  Repealed by Acts 2003, 78th Leg., ch. 201, § 61(2) 
and Acts 2003, 78th Leg., ch. 1231, § 9(2).
	(i)  In determining the amount of a contribution under 
Subsection (d) required of a member who did not work full time or 
worked fewer days or months than full-time employees in similar 
positions, the retirement system shall compute an annual rate of 
compensation from the member's reported compensation.
	(j)  The board of trustees may adopt rules providing for the 
adoption of a reciprocal agreement with a state or territory of a 
member's previous employment for the payment for service credit 
established under this section through the transfer from the state 
or territory to the retirement system of contributions made on 
behalf of the member in the form of an eligible rollover 
distribution as provided by Section 401(a)(31), Internal Revenue 
Code of 1986, and its subsequent amendments.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1981, 67th Leg., 1st C.S., p. 203, ch. 18, § 23, 
eff. Sept. 1, 1982.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 33.401 and amended by Acts 1989, 71st Leg., ch. 179, § 
1, eff. Sept. 1, 1989.  Amended by Acts 1993, 73rd Leg., ch. 812, 
§ 2, eff. Sept. 1, 1993;  Acts 1995, 74th Leg., ch. 84, § 1, 
eff. May 15, 1995;  Acts 1995, 74th Leg., ch. 555, § 10, eff. 
Sept. 1, 1995;  Acts 1997, 75th Leg., ch. 1416, § 8, eff. Sept. 1, 
1997;  Acts 1999, 76th Leg., ch. 1540, § 4, eff. Sept. 1, 1999;  
Acts 2001, 77th Leg., ch. 454, § 1, eff. Sept. 1, 2001;  Acts 
2003, 78th Leg., ch. 201, § 61(2), eff. Sept. 1, 2003;  Acts 
2003, 78th Leg., ch. 1231, § 9(2), eff. Sept. 1, 2004;  Acts 
2005, 79th Leg., ch. 1359, § 10, eff. Sept. 1, 2005.


	§ 823.402. DEVELOPMENTAL LEAVE.  (a) An eligible member 
may establish equivalent membership service credit for 
developmental leave that is creditable in the retirement system.
	(b)  Developmental leave creditable in the retirement system 
is absence from membership service for a school year that is 
approved by the member's employer for study, research, travel, or 
another purpose designed, as determined by the employer, to improve 
the member's professional competence.
	(c)  A member eligible to establish credit under this section 
is one who:    
		(1)  has at least five years of service credit in the 
retirement system;  and
		(2)  is an employee of a public school at the time the 
credit is sought.    
	(d)  On or before the date a member takes developmental 
leave, the member shall file with the retirement system a notice of 
intent to take developmental leave, and the member's employer shall 
file with the retirement system a certification that the leave 
meets the requirements of Subsection (b).
	(e)  A member may establish credit under this section by 
depositing with the retirement system for each year of 
developmental leave claimed an amount equal to the sum of:
		(1)  the rate of member contributions required during 
the year of leave, times the member's annual rate of compensation 
during the member's most recent year of creditable service that 
preceded the year of leave;  plus
		(2)  the amount that the state would have contributed 
had the member performed membership service during the year of 
leave at the member's annual rate of compensation during the most 
recent year of service that preceded the leave.
	(f)  A member may not establish more than two years of 
equivalent membership service credit under this section.
	(g)  A member may not establish credit under this section 
after the end of the first creditable school year that begins after 
the developmental leave has ended.  The retirement system may not 
use credit established under this section in computing service 
retirement benefits until the member has at least 10 years of 
service credit for actual service in public schools.
	(h)  If credit established under this section is not used in 
determining benefits, all deposits made under this section are 
refundable to the member or, if applicable, the member's 
beneficiary.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 33.402 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1993, 73rd Leg., ch. 812, § 3, eff. Sept. 
1, 1993;  Acts 1997, 75th Leg., ch. 1416, § 9, eff. Sept. 1, 1997.


	§ 823.403. CREDIT FOR ACCUMULATED PERSONAL OR SICK 
LEAVE.  (a) A member who retires from an employer as defined by 
Section 821.001(7) based on service or a disability is entitled to 
membership service credit in the retirement system for the member's 
state personal or sick leave that has accumulated and is unused on 
the last day of employment pursuant to the terms of this section.  
State personal or sick leave is creditable in the retirement system 
in the amount of one year of service credit for 50 days or more, or 
400 hours or more, of accumulated state personal or sick leave.  An 
accumulation of less than 50 days is not creditable.  Not more than 
five days of unused state personal or sick leave may be accumulated 
per year.  Credit established under this section may be used only 
for the purpose of calculating benefits under Section 824.203.
	(b)  The employer shall, under rules adopted by the 
retirement system, certify the amount of a member's accumulated 
state personal or sick leave on the last day of employment before 
retirement.
	(c)  On receipt of a certification under Subsection (b) and 
payment under Subsection (d) of this section, the retirement system 
shall grant any credit to which a retiree who is a subject of the 
certification is entitled.  The increase in the annuity payment 
begins with the first payment that becomes due after certification 
and payment.
	(d)  In order to receive credit, the member shall pay to the 
retirement system at the time service credit is granted under this 
section the actuarial present value of the additional standard 
retirement annuity benefits under the option selected by the member 
that would be attributable to the conversion of the unused state 
personal or sick leave into the service credit based on rates and 
tables recommended by the actuary and adopted by the board of 
trustees.
	(e)  In accordance with local policy, the employer from which 
the retiring member was compensated on the member's last day of 
employment may reimburse an employee for all or part of the cost of 
purchasing service credit under this section.

Added by Acts 1991, 72nd Leg., ch. 882, § 1, eff. Sept. 1, 1992.  
Amended by Acts 1995, 74th Leg., ch. 260, § 36, eff. May 30, 
1995.


	§ 823.404. WORK EXPERIENCE BY CAREER OR TECHNOLOGY 
TEACHER.  (a) An eligible member may establish equivalent 
membership service credit for one or two years of work experience 
for which the member is entitled to salary step credit under Section 
21.403(b), Education Code.
	(b)  A member is eligible to establish equivalent membership 
service credit under this section if the member has at least five 
years of membership service credit.
	(c)  A member may establish credit under this section by 
depositing with the retirement system, for each year of service, 
the actuarial present value, at the time of deposit, of the 
additional standard retirement annuity benefits that would be 
attributable to the conversion of the work experience into service 
credit based on rates and tables recommended by the actuary and 
adopted by the board of trustees.
	(d)  After a member makes the deposits required by this 
section, the retirement system shall grant the member one year of 
equivalent membership service credit for each year of service 
approved.

Added by Acts 1999, 76th Leg., ch. 1122, § 1, eff. Sept. 1, 1999.          


	§ 823.406. CREDIT PURCHASE OPTION FOR CERTAIN 
SERVICE.  (a) A member may establish membership service credit 
under this section only for service performed during a 90-day 
waiting period to become a member after beginning employment.
	(b)  A member may establish service credit under this section 
by depositing with the retirement system, for each month of service 
credit, the actuarial present value, at the time of deposit, of the 
additional standard retirement annuity benefits that would be 
attributable to the purchase of the service credit under this 
section, based on rates and tables recommended by the retirement 
system's actuary and adopted by the board of trustees.
	(c)  After a member makes the deposits required by this 
section, the retirement system shall grant the member one month of 
equivalent membership service credit for each month of credit 
approved.
	(d)  The retirement system shall deposit the amount of the 
actuarial present value of the service credit purchased in the 
member's individual account in the employees saving account.
	(e)  The board of trustees may adopt rules to administer this 
section.       

Added by Acts 2003, 78th Leg., ch. 201, § 45, eff. Sept. 1, 2003.          

SUBCHAPTER F. REINSTATEMENT OF SERVICE CREDIT


	§ 823.501. CREDIT CANCELED BY MEMBERSHIP 
TERMINATION.  (a) An eligible person who has terminated membership 
in the retirement system by withdrawal of contributions or absence 
from service may reinstate in the system the service credit 
canceled by the termination.
	(b)  A person eligible to reinstate service credit under this 
section is one who is a member of the retirement system at the time 
the service is reinstated.
	(c)  A member may reinstate canceled credit under this 
section by depositing with the retirement system:
		(1)  the amount withdrawn or refunded;  plus                                  
		(2)  a reinstatement fee of six percent, compounded 
annually, of the amount withdrawn or refunded from the date of 
withdrawal or refund to the date of redeposit.
	(d)  The retirement system shall determine in each case the 
amount of money to be deposited by a member reinstating service 
credit under this section. The system may not provide benefits 
based on the service until the determined amount has been fully 
paid.
	(e)  Service credit canceled by a withdrawal of 
contributions not authorized by Section 822.005 is required to be 
reinstated under this section.
	(f)  A member may have an account that was terminated by 
absence from service reactivated by requesting the reactivation in 
writing.  The beneficiary of a decedent who was a member at the time 
of death may have an account that was terminated by the decedent's 
absence from service reactivated by requesting the reactivation in 
writing before the first payment of a death benefit.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1981, 67th Leg., 1st C.S., p. 203, ch. 18, § 24, 
eff. Sept. 1, 1982.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 33.501 and amended by Acts 1989, 71st Leg., ch. 179, § 
1, eff. Sept. 1, 1989.  Amended by Acts 1993, 73rd Leg., ch. 812, 
§ 4, eff. Sept. 1, 1993;  Acts 1997, 75th Leg., ch. 1416, § 10, 
eff. Sept. 1, 1997;  Acts 1999, 76th Leg., ch. 1540, § 5, eff. 
Sept. 1, 1999.