Texas Administrative Code
Title 34 - PUBLIC FINANCE
Part 5 - TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
Chapter 103 - CALCULATIONS OR TYPES OF BENEFITS
Section 103.5 - Benefit Distribution Requirements
Universal Citation: 34 TX Admin Code ยง 103.5
Current through Reg. 49, No. 38; September 20, 2024
(a) The following words and terms, when used in this section shall have the following meanings unless the context clearly indicates otherwise.
(1) Proportionate
retirement system--A public retirement system other than the Texas County and
District Retirement System (TCDRS) that participates in the Proportionate
Retirement Program.
(2) Required
distribution date--March 31 of the year following the later of the year in
which the member separates from service or the year in which the member attains
age 70 and one-half.
(3) Separates
from service--The termination of employment with a subdivision participating in
the TCDRS.
(b) General Rules:
(1) A member who has separated from
service with a participating subdivision may receive a refund of the
accumulated contributions in the member's individual account with respect to
that subdivision at any time after separation from service and before
retirement from that subdivision.
(2) A member must receive a refund of the
accumulated contributions in the member's individual accounts or retire from
the TCDRS on or before the member's required distribution date.
(3) The remaining interest of a deceased
retiree's benefit must continue to be distributed as rapidly as the method of
distribution being used before the retiree's death.
(4) The entire interest that becomes payable
because of the death of a member who has a designated beneficiary as defined in
regulations to §401(a)(9) of the Internal Revenue Code must be distributed
over the life of the designated beneficiary or over a period not extending
beyond the life expectancy of the designated beneficiary. A distribution under
this provision after December 31, 1995, must:
(A) begin not later than the last day of the
calendar year following the calendar year in which the member died, if payable
to a person other than the decedent's spouse; or
(B) begin not later than the last day of the
calendar year following the year in which the member died or the last day of
the calendar year in which the decedent would have attained the age of 70 and
one-half, if payable to the surviving spouse, unless the surviving spouse dies
before payments begin, in which case the beginning of payments may not be
deferred beyond the last day of the calendar year following the calendar year
in which the surviving spouse dies.
(5) The entire interest that becomes payable
because of the death of a member who does not have a designated beneficiary
must be distributed within five years of the death of the member.
(6) For a distribution made by the retirement
system to which §401(a)(9) of the Internal Revenue Code applies, the
system shall apply the minimum distribution requirements of §401(a)(9) of
the Internal Revenue Code of 1986 in a manner that complies with a reasonable
good faith interpretation of §401(a)(9).
(c) Application:
(1) A member who is eligible to retire from
the TCDRS, with or without combining the member's credited service with a
proportionate retirement system, must receive a refund of the accumulated
contributions in the member's individual account or retire on or before the
member's required distribution date without regard to whether that member is
actively participating in a proportionate retirement system.
(2) A member who is not actively
participating in the TCDRS or a proportionate retirement system, and who is not
eligible to retire from the TCDRS on the member's required distribution date
must receive a refund of the accumulated contributions in the member's
individual account on the member's required distribution date.
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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