Texas Administrative Code
Title 19 - EDUCATION
Part 1 - TEXAS HIGHER EDUCATION COORDINATING BOARD
Chapter 25 - OPTIONAL RETIREMENT PROGRAM
Subchapter A - OPTIONAL RETIREMENT PROGRAM
Section 25.4 - Eligibility to Elect ORP
Universal Citation: 19 TX Admin Code ยง 25.4
Current through Reg. 49, No. 38; September 20, 2024
(a) Eligibility Criteria. An employee shall be eligible to make a once-per-lifetime irrevocable election of ORP in lieu of the applicable retirement system if all of the following criteria are met:
(1) ORP-eligible
Position: Employment in an ORP-eligible position as defined in subsection (k)
of this section;
(2) 100 Percent
Effort: Employment in an ORP-eligible position that is expected to be full-time
(i.e., 100 percent effort) for a period of at least one full semester or four
and one-half months.
(A) Initial Eligibility
Period. This eligibility requirement is an employee's initial ORP eligibility
period, as defined in §
25.3 of
this title (relating to Definitions).
(B) Combining of Percent Effort at Different
Institutions Not Permitted. The 100 percent effort requirement shall be
satisfied by employment with only one institution, unless an individual is
simultaneously employed in ORP-eligible positions with more than one component
institution under the same governing board that operates its ORP either as a
single plan for all components or includes the applicable components in the
same plan, in which case, the employee's percent effort at each component may
be combined to meet the minimum 100 percent effort requirement;
(3) First Election Opportunity: No
previous opportunity to elect ORP in lieu of the applicable retirement system
during the current or a prior period of employment at the same or another Texas
public institution of higher education or the Board; and
(4) Active Membership in Retirement System:
Current membership or eligibility for active membership in the applicable
retirement system as provided in subsection (h) of this section.
(b) ORP Participation after Election. Once an employee makes an election of ORP, the employee's eligibility to continue participating in ORP shall be determined in accordance with § 25.5 of this title (relating to ORP Vesting and Participation).
(c) Non-Texas ORP Plans. Prior enrollment, participation or vested status in any plan other than the ORP plan authorized under Texas Government Code, Chapter 830, shall have no bearing on an employee's eligibility to elect ORP, except that the employee must be eligible for active membership in the applicable retirement system as provided in subsection (h) of this section.
(d) Separate Elections. An election of ORP in lieu of TRS at a Texas public institution of higher education shall be considered separate and distinct from an election of ORP in lieu of ERS at the Board.
(1) An employee's prior election of ORP in
lieu of ERS at the Board on or after September 1, 1994, shall have no bearing
on that person's eligibility to elect ORP in lieu of TRS at a Texas public
institution of higher education.
(2) An election of ORP by a Board employee
prior to September 1, 1994, was made in lieu of TRS; therefore, an institution
shall treat an employee's election of ORP in lieu of TRS at the Board prior to
September 1, 1994, in the same manner as if the election had been made at an
institution.
(3) An employee's
prior election of ORP in lieu of TRS at an institution, or an employee's
election of ORP in lieu of TRS at the Board prior to September 1, 1994, shall
have no bearing on that person's eligibility to elect ORP in lieu of ERS at the
Board.
(e) Opportunity to Elect.
(1) The governing board of each
Texas public institution of higher education shall provide an opportunity to
all eligible employees in the component institutions governed by the board to
elect ORP in lieu of TRS in accordance with these rules. The Board shall
provide an opportunity to all eligible employees to elect ORP in lieu of ERS in
accordance with these rules.
(2)
Documentation.
(A) ORP employers shall
maintain documentation in each ORP-eligible employee's employment record that
an opportunity to elect ORP was provided. Such documentation shall indicate the
beginning and ending dates of the employee's ORP election period.
(B) The documentation required by this
paragraph may be maintained in an electronic format in accordance with
applicable provisions for such records.
(C) This paragraph applies to employees who
become eligible to elect ORP on or after September 1, 2006, including employees
who are hired for the Fall 2006 semester whose first active duty date is in the
month of August 2006.
(f) 90-Day ORP Election Period. An employee who meets the eligibility criteria in subsection (a) of this section shall be provided an ORP election period, as defined in § 25.3 of this title (relating to Definitions), during which an election to participate in ORP may be made by signing the TRS 28 ORP election form (or its successor) or, for employees of the Board, the ORP election form provided by the Board, and submitting the ORP election form to the ORP employer for certification.
(1) Beginning and Ending Dates. The 90-day
ORP election period shall begin on the employee's initial ORP eligibility date,
as defined in §
25.3 of
this title (relating to Definitions), and shall end on the earlier of:
(A) the date the employee makes an ORP
election by signing the TRS 28 ORP election form (or its successor) or, for
employees of the Board, the ORP election form provided by the Board, and
submitting the ORP election form to the ORP employer for certification;
or
(B) the 90th calendar day after
the employee's initial ORP eligibility date, not including the initial ORP
eligibility date and including the 90th calendar day. If the 90th calendar day
after the initial ORP eligibility date falls on a weekend or holiday, the
deadline shall be extended until the first business day after the 90th calendar
day.
(2) Written
Notification. In accordance with §
25.6(h)(2)
of this title (relating to ORP Election Period Dates), each ORP employer shall,
within 15 business days of an ORP-eligible employee's initial ORP eligibility
date, provide written notification to the ORP-eligible employee that indicates
the beginning and ending dates of his or her ORP election period and the local
procedures for submitting the election form and additional required
paperwork.
(3) Once-per-Lifetime
Irrevocable Election. An employee who is eligible to elect ORP shall have only
one opportunity during his or her lifetime, including any future periods of
employment in Texas public higher education, to elect ORP in lieu of the
applicable retirement system, and the election may never be revoked.
(A) Default Election. Failure to elect ORP
during the 90-day ORP election period shall be a default election to continue
membership in the applicable retirement system.
(i) ORP in Lieu of TRS. An employee of a
Texas public institution of higher education who does not elect ORP in lieu of
TRS during the 90-day ORP election period shall never again be eligible to
elect ORP in lieu of TRS, even if subsequently employed in an ORP-eligible
position at the same or another Texas public institution of higher
education.
(ii) ORP in Lieu of ERS.
An employee of the Board who does not elect ORP in lieu of ERS during the
90-day ORP election period shall never again be eligible to elect ORP in lieu
of ERS, even if subsequently employed in an ORP-eligible position at the
Board.
(B) Irrevocable.
An election of ORP shall be irrevocable. An employee who elects ORP shall
remain in ORP, except as provided by §
25.5(f)
and (h) of this title (relating to ORP
Vesting and Participation). A default election of the applicable retirement
system, as described in subparagraph (A) of this paragraph shall be
irrevocable. An employee who fails to elect ORP during the ORP election period
shall remain in the applicable retirement system in accordance with the laws
and rules governing eligibility for the retirement system.
(C) Separate Elections. As provided in
subsection (d) of this section, an election of ORP in lieu of TRS at a Texas
public institution of higher education shall be considered separate and
distinct from an election of ORP in lieu of ERS at the Board; therefore, an
election of ORP in lieu of one retirement system shall not preclude an eligible
employee's election of ORP in lieu of the other retirement system if
subsequently employed in a position that is eligible to elect ORP in lieu of
the other retirement system.
(4) Company Selection Required at Election.
An employee who elects to participate in ORP shall select an ORP company from
the ORP employer's list of authorized companies in conjunction with the
election of ORP. An ORP employer shall establish a policy that failure to
select an authorized company may result in disciplinary action up to and
including termination of employment because retirement contributions are
required by law as a condition of employment.
(5) Waiver of Retirement System Benefits. An
election of ORP shall be a waiver of the employee's rights to any benefits that
may have accrued from prior membership in the applicable retirement system,
other than benefits resulting from transfers of service credit between the
applicable retirement systems and reinstatement of withdrawn service credit
under the ERS/TRS service transfer law, even if the participant has met the
applicable system's vesting requirement. Except as provided by §
25.5(f)
and (h) of this title (relating to ORP
Vesting and Participation) and the ERS/TRS service transfer law, an ORP
participant shall not be eligible to become an active member of the applicable
retirement system or receive any benefits from the system other than a return
of employee contributions that may have been deposited with the system (and
accrued interest, if any).
(g) Participation Start Date. The first day that ORP contributions are made shall be determined as follows:
(1) Election on Initial ORP Eligibility Date.
(A) Employees of Institutions of Higher
Education.
(i) New Employees. For new
employees who sign the TRS 28 ORP election form (or its successor) on or before
their initial ORP eligibility date, the participation start date shall be the
initial ORP eligibility date (i.e., first day of ORP-eligible
employment).
(ii) Transfers within
Same Institution. For employees who transfer from a non-ORP-eligible position
to an ORP-eligible position within the same institution and who sign the TRS 28
ORP election form (or its successor) on or before their initial ORP eligibility
date, the participation start date shall be the initial ORP eligibility date
(i.e., first day of ORP-eligible employment), unless the initial ORP
eligibility date is not the first day of the month, in which case, to avoid
dual contributions to both TRS and ORP during the same month, as provided in
§
25.6(a)(4)
of this title (relating to No Dual Contributions), the participation start date
shall be the first day of the month following the month in which the initial
ORP eligibility date falls.
(B) Employees of the Board.
(i) New Employees. For new Board employees
who sign the ORP election form provided by the Board on or before their initial
ORP eligibility date, the participation start date shall be the initial ORP
eligibility date (i.e., first day of ORP-eligible employment).
(ii) Transfers within the Board. For Board
employees who transfer from a non-ORP- eligible position at the Board to an
ORP-eligible position at the Board, and who sign the ORP election form provided
by the Board on or before their initial ORP eligibility date, the participation
start date shall be the initial ORP eligibility date (i.e., first day of
ORP-eligible employment), unless the initial ORP eligibility date is not the
first day of the month, in which case, to avoid dual contributions to both ERS
and ORP during the same month, as provided in §
25.6(a)(4)
of this title, the participation start date shall be the first day of the month
following the month in which the initial ORP eligibility date falls.
(2) Election After
Initial ORP Eligibility Date. The participation start date for ORP-eligible
employees who sign the TRS 28 ORP election form (or its successor) or, for
employees of the Board, the ORP election form provided by the Board, after
their initial ORP eligibility date, shall be the first day of the month
following the date that the form is signed, with the following exceptions:
(A) During Month of Initial ORP Eligibility
Date. ORP employers may establish a policy that employees who elect ORP by
signing the TRS 28 ORP election form (or its successor) or, for employees of
the Board, the ORP election form provided by the Board, after their initial ORP
eligibility date but before the end of the month in which the initial ORP
eligibility date falls may be treated as if they had signed the form on or
before their initial ORP eligibility date as provided by paragraph (1) of this
subsection, provided the employee earns enough compensation between the date of
the election and the end of the month in which the initial ORP eligibility date
falls to cover the employee's ORP contribution for the entire month.
(B) After Month of Initial ORP Eligibility
Date: ORP employers may establish a policy that employees who elect ORP by
signing the TRS 28 ORP election form (or its successor) or, for employees of
the Board, the ORP election form provided by the Board, after the month in
which their initial ORP eligibility date falls, but before the end of the month
in which the form is signed, may start participating in the month in which the
form is signed rather than the first of the following month, provided the
employee earns enough compensation between the date of the election and the end
of the month in which the form is signed to cover the employee's ORP
contribution for the entire month. To avoid partial month payments,
contributions for these participants shall be based on salary earned during the
entire month in which the form is signed.
(C) Retirement System Membership Before
Election. As provided in subsection (i) of this section, ORP-eligible employees
who elect ORP after their initial ORP eligibility date, except as provided in
subparagraph (A) of this paragraph, shall be reported as members of the
applicable retirement system for any months prior to their election of
ORP.
(h) Active Membership in Retirement System Requirement. Participation in ORP shall be an alternative to active membership in the applicable retirement system.
(1) A TRS retiree shall not be eligible to
elect ORP in lieu of TRS at a Texas public institution of higher
education.
(2) An ERS retiree shall
not be eligible to elect ORP in lieu of ERS at the Board.
(i) Automatic Retirement System Enrollment. A new employee at a Texas public institution of higher education who is eligible to elect ORP in lieu of TRS shall be automatically enrolled in TRS until an election to participate in ORP is made by signing the TRS 28 ORP election form (or its successor) and submitting the TRS 28 to the institution for certification as provided in subsection (g) of this section. A new Board employee who is eligible to elect ORP in lieu of ERS shall be automatically enrolled in ERS until an election to participate in ORP is made by signing the ORP election form provided by the Board and submitting the ORP election form to the Board as provided in subsection (g) of this section.
(j) Dual Employment in TRS/ORP Positions at Different Employers.
(1) Simultaneous
Retirement Plan Membership Not Permitted.
(A)
Dual Employment with Institution and Non-Higher Education TRS-Covered Employer.
(i) Active TRS Membership not Permitted. A
member of TRS who is employed in the Texas public school system (including all
Texas Independent School Districts and regional educational service centers) or
with any other Texas public educational institution or state agency that is
covered by TRS but does not offer ORP in lieu of TRS, and who concurrently
becomes employed in an ORP-eligible position with a Texas public institution of
higher education and elects to participate in ORP, may not remain an active
member of TRS as an employee of the non-higher education TRS-covered employer
once ORP participation has started at the institution.
(ii) No TRS Contributions. Notwithstanding
the participant's employment in what would otherwise be considered a
TRS-eligible position at a non-higher education TRS-covered employer, TRS
contributions may not be made for the participant by that employer while he or
she is actively participating in ORP, but shall resume if the employee is
required to return to active TRS membership as provided in paragraph (2) of
this subsection.
(B)
Dual Employment with Different Institutions.
(i) Active TRS Membership not Permitted. A
member of TRS who is employed with a Texas public institution of higher
education in a position that is eligible for TRS but is not ORP-eligible and
who becomes concurrently employed with another Texas public institution of
higher education in a position that is ORP-eligible and who elects to
participate in ORP, may not remain an active member of TRS once ORP
participation has started.
(ii)
Retirement Contributions.
(I) No TRS
Contributions. Notwithstanding the participant's employment in what would
otherwise be considered a TRS-eligible position at an institution, TRS
contributions may not be made for the participant by that institution while he
or she is actively participating in ORP at another institution, but shall
resume if the employee is required to return to active TRS membership as
provided in paragraph (2) of this subsection.
(II) Before Vesting in ORP. An employee who
elects ORP at one institution while concurrently employed in what would
otherwise be a TRS-eligible position at another institution is not eligible for
ORP contributions based on the participant's TRS-only employment prior to the
participant vesting in ORP.
(III)
After Vesting in ORP. Once the participant vests in ORP, the institution
employing the participant in a position that would otherwise be eligible for
TRS shall enroll him or her in ORP.
(2) Returning to TRS.
(A) Dual Employment with Institution and
Non-Higher Education TRS-Covered Employer.
(i) Termination of Employment with
Institution. If the individual described in paragraph (1)(A) of this subsection
terminates all employment with the institution while concurrently employed in a
TRS-eligible position with a non-higher education TRS-covered employer, then,
regardless of ORP vesting status, he or she shall return to active TRS
membership with the non-higher education TRS-covered employer and shall be
ineligible for any future ORP participation in lieu of TRS, even if
subsequently employed in an ORP-eligible position with the same or another
institution.
(ii) Transfer to
Non-ORP Eligible Position at Institution. If, prior to meeting the ORP vesting
requirement, the individual described in paragraph (1)(A) of this subsection
transfers to a position at the institution that is not ORP-eligible but is
eligible for TRS, then he or she shall return to active TRS membership with
both the institution and the non-higher education TRS-covered employer and
shall be ineligible for any future ORP participation in lieu of TRS, even if
subsequently employed in an ORP-eligible position with the same or another
institution.
(iii) Transfer to
Non-Benefits-Eligible Position at Institution. In accordance with §
25.5(g)
of this title (relating to Employment in a Non-Benefits-Eligible Position), an
individual described in paragraph (1)(A) of this subsection who transfers to a
non-benefits-eligible position at the institution shall not be eligible for ORP
contributions and shall not be eligible for active TRS membership. This
individual shall remain ineligible for TRS contributions at the non-higher
education TRS-covered employer while employed in the non-benefits-eligible
position at the institution. If this individual subsequently terminates all
employment with the institution, then the provisions in clause (i) of this
subparagraph will apply.
(B) Dual Employment with Different
Institutions.
(i) Termination of Employment in
ORP-eligible Position Before Vesting. If, prior to satisfying the ORP vesting
requirement, the individual described in paragraph (1)(B) of this subsection
terminates ORP participation by terminating employment or transferring to a
non-ORP-eligible position with the same institution while concurrently employed
in a TRS-eligible position with another Texas public institution of higher
education, then he or she shall return to active TRS membership and shall be
ineligible for any future ORP participation in lieu of TRS, even if
subsequently employed in an ORP-eligible position with the same or another
institution.
(ii) Termination of
Employment in ORP-eligible Position After Vesting. If, after satisfying the ORP
vesting requirement, the individual described in paragraph (1)(B) of this
subsection terminates employment in the ORP-eligible position by terminating
employment with the institution or transferring to a non-ORP-eligible position
while concurrently employed in a TRS-eligible position with another Texas
public institution of higher education, then he or she shall not return to TRS
membership and shall continue to make ORP contributions at the other
institution based on the employment in the TRS-eligible position (i.e., a
benefits-eligible position) as provided in paragraph (1)(B)(ii)(III) of this
subsection.
(iii) Transfer to
Non-Benefits-Eligible Position. In accordance with §
25.5(g)
of this title, an individual described in paragraph (1)(B) of this subsection
who transfers from the ORP-eligible position to a non-benefits-eligible
position at the same institution shall not be eligible for ORP contributions at
that institution and shall not be eligible for active TRS membership at either
institution while employed in the non-benefits-eligible position.
(I) Termination Before Vesting in ORP. If
this individual terminates employment in the non-benefits-eligible position
before satisfying the ORP vesting requirement, then the provisions in clause
(i) of this subparagraph for an individual who terminates employment in an
ORP-eligible position before vesting in ORP will apply.
(II) Termination After Vesting in ORP. If
this individual terminates employment in the non-benefits-eligible position
after satisfying the ORP vesting requirement, then the provisions in clause
(ii) of this subparagraph for an individual who terminates employment in an
ORP-eligible position after vesting will apply.
(k) Eligible Positions. The following positions shall be considered ORP-eligible. Only those employees who fill ORP-eligible positions and who meet the eligibility requirements established in this chapter shall be eligible to elect ORP or to continue participating in ORP prior to vesting.
(1)
Faculty Member--A member of the faculty whose duties include teaching and/or
research as a principal activity, as defined in §
25.3 of
this title (relating to Definitions), and who holds the title of professor,
associate professor, assistant professor, instructor, lecturer, or equivalent
faculty title, including "visiting professor" if the position is at least one
full semester in duration.
(2)
Faculty Administrator--An administrator responsible for teaching and research
faculty whose principal activity, as defined in §
25.3 of
this title (relating to Definitions), is planning, organizing, and directing
the activities of faculty and who holds the title of dean, associate dean,
assistant dean, director, department chair, or head of academic
department.
(3) Executive
Administrator--An administrator who holds the title of chancellor, deputy
chancellor, vice chancellor, associate vice chancellor, assistant vice
chancellor, or the equivalent, and an administrator who holds the title of
president, executive vice president, provost, vice president, associate vice
president, assistant vice president, or the equivalent.
(4) Other Key Administrator--An administrator
other than a faculty administrator or an executive administrator whose position
is considered a key administrative position within the institution's
organizational structure and that meets the requirements of this paragraph. The
most common position titles in this category are director or associate
director, but included titles may vary by institution based on differences in
organizational structure, size, mission, etc. All positions in this category,
including positions with the title of director or associate director, shall
meet the following criteria:
(A) serves as
director or other administrative head of a major department or budget entity,
as defined in §
25.3 of
this title (relating to Definitions), excluding the title of assistant director
unless the assistant director position has responsibility for what is
considered a major department or budget entity that is within a larger
department or budget entity, as may be the case at large
institutions;
(B) is responsible
for the preparation and administration of the budget, policies, and programs of
the major department or budget entity;
(C) usually reports to the office of a
chancellor, president, vice chancellor, vice president, dean, or equivalent;
and
(D) is generally and
customarily recruited from the same pool of candidates that other colleges and
universities across the nation are recruiting from for this type of position
by, for example, advertising in national publications such as the Chronicle of
Higher Education or in newsletters or websites of national professional
associations or at meetings of such associations.
(E) A position shall not be considered
ORP-eligible under this category unless it can be reasonably demonstrated that
all of the applicable criteria have been met. If there is significant ambiguity
concerning whether a position meets the criteria for this category, the default
finding shall be that the position is not ORP-eligible.
(5) Librarian--A professional librarian who
holds, at a minimum, a master's degree in library science or information
science, and whose principal activity, as defined in §
25.3 of
this title (relating to Definitions), is library services.
(6) Athletic Coach--An athletic coach,
associate athletic coach, or assistant athletic coach whose principal activity,
as defined in §
25.3 of
this title (relating to Definitions), is coaching, excluding an athletic
trainer, and excluding an athletic director or assistant athletic director
unless the principal activity is coaching rather than administrative.
(A) Athletic trainers may be included in the
"professional" category if the position requires the trainer to be a
physician.
(B) Athletic directors
whose principal activity is not coaching normally shall be included in one of
the administrator categories.
(7) Professional--An employee whose principal
activity, as defined in §
25.3 of
this title (relating to Definitions), is performing the duties of a
professional career position, including, but not necessarily limited to,
physician, attorney, engineer, and architect, that meets the following
criteria:
(A) requires a terminal
professional degree in a recognized professional career field that requires
occupation-specific knowledge and appropriate professional licensure;
(B) is a non-classified position;
and
(C) is generally and
customarily recruited from the same pool of candidates that other colleges and
universities across the nation are recruiting from for this type of position
by, for example, advertising in national publications such as the Chronicle of
Higher Education or in newsletters of national professional associations or at
meetings of such associations.
(D)
A position shall not be considered ORP-eligible under this category unless it
can be reasonably demonstrated that all of the applicable criteria have been
met. If there is significant ambiguity concerning whether a position meets the
criteria for this category, the default finding shall be that the position is
not ORP-eligible.
(8)
Board Administrative Staff--A member of the executive or professional staff of
the Board, as determined by the Commissioner of Higher Education, who fills a
position with the following requirements:
(A)
college graduation and prior experience in higher education or experience of
such kind and amounts to provide a comparable background; and
(B) national mobility requirements similar to
those of faculty.
(l) Position-Required Qualifications. An employee who meets the qualifications of a "professional" or a "librarian" as defined in subsection (k) of this section shall not be considered eligible to elect ORP as a professional or librarian unless the position requires the professional or librarian qualifications, respectively, as a principal activity. For example, an attorney who fills a position that does not require that the position be filled by an attorney shall not be considered ORP-eligible based solely on the fact that the person is an attorney.
(m) Counselors. The eligibility of counselors shall be determined as follows.
(1) Faculty.
If the institution has established policies that consider and treat counselors
in the same manner as faculty in such areas as, for example, employment
contracts, oversight, and work schedules, then ORP eligibility for a counselor
position shall be determined under the same requirements as a faculty position,
except that the principal activity shall be counseling rather than teaching
and/or research, and the title shall be counselor rather than the faculty
titles listed in that category.
(2)
Staff. If the institution has established policies that consider and treat
counselors in the same manner as staff rather than faculty, in such areas as,
for example, employment contracts, oversight, and work schedules, then ORP
eligibility for a counselor position shall not be determined under the faculty
category. Depending on the duties and required qualifications, a counselor who
is considered staff rather than faculty may meet the criteria for one of the
non-faculty ORP-eligible positions.
(n) Review of Positions for ORP Eligibility.
(1) Comprehensive Review. ORP employers shall
periodically conduct a comprehensive review of all non-classified positions to
ensure that ORP eligibility requirements are being applied fairly and
consistently across all departments and divisions.
(2) New Position. ORP employers shall analyze
newly created non-classified positions for ORP eligibility determination and
shall maintain proper documentation of the analysis and determination for
future reference.
(3) Re-classified
Position. ORP employers shall re-classify a position as ORP-eligible if changes
in the position's responsibilities or the employer's organizational structure
result in a position that meets the ORP-eligibility requirements.
(A) Option to Elect ORP. ORP employers shall
provide the incumbent in a position that is re-classified as ORP-eligible an
opportunity to elect ORP as if newly hired into the position.
(B) Initial ORP Eligibility Date. The
incumbent's initial ORP eligibility date, as defined by §
25.3 of
this title (relating to Definitions), shall be the date that the
re-classification is effective, unless the re-classification is retro-active to
a prior month, in which case, the initial ORP eligibility date shall be the
date that the employee is notified of the re-classification.
(o) Administrative Errors.
(1) Orientation Procedures. Each ORP
employer shall develop and implement effective orientation and enrollment
procedures to ensure appropriate and timely processing of newly eligible
employees' retirement plan choices, including procedures for both new employees
and current employees who transfer to an ORP-eligible position.
(2) Rectification. In the event an
administrative error occurs which prevents the normal processing of an
ORP-eligible employee's election, the ORP employer shall rectify the error as
soon as practicable and in a manner that results in a situation that is as
close to the originally expected outcome as possible, within applicable federal
statutes, laws, and regulations, including IRS correction procedures, and state
statutes, laws, and rules.
(3)
Documentation and Prevention. When an administrative error occurs, the ORP
employer shall:
(A) maintain documentation of
the error and the actions taken by the ORP employer to address the problem,
with a copy placed in the employee's file; and
(B) immediately develop and implement
appropriate administrative procedures to avoid such errors in the
future.
(4) Failure to
Notify Error. If an ORP employer fails to notify an ORP-eligible employee of
his or her eligible status on or before the employee's initial ORP eligibility
date, the ORP employer shall notify the eligible employee as soon as the
oversight is discovered.
(A) An employee who
becomes eligible to participate in ORP and is notified by the ORP employer of
the opportunity to participate in the program after the first day and before
the 91st day after the date the employee becomes eligible must elect to
participate in the program before the later of:
(i) the 91st day after the date the employee
becomes eligible; or
(ii) the 31st
day after the date the employee receives notice of the opportunity to
participate in the program.
(B) An employee who becomes eligible to
participate in ORP and is notified by the ORP employer of the opportunity to
participate in the program on or after the 91st day after the date the employee
becomes eligible must be notified by the employer before the 151st day after
the date the employee becomes eligible. The employee must elect to participate
in the program before the later of:
(i) the
151st day after the date the employee becomes eligible; or
(ii) the 31st day after the date the employee
receives notice of the opportunity to participate in the program.
(C) The participation start date
shall be determined in accordance with subsection (g) of this
section.
(p) Texas Commissioner of Education.
(1) ORP
Eligibility. Notwithstanding other provisions in this chapter, the Texas
Commissioner of Education shall be eligible to elect ORP in lieu of
ERS.
(2) Employment in Higher
Education. Notwithstanding other provisions in this chapter, a Texas public
institution of higher education shall, for the purpose of determining ORP
eligibility for a former Texas Commissioner of Education who is subsequently
employed by the institution, treat an election of ORP in lieu of ERS made by
the Texas Commissioner of Education at the Texas Education Agency in the same
manner as if the election of ORP had been made in lieu of TRS at another Texas
public institution of higher education.
Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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