Sec. 825.411. PAYROLL DEDUCTIONS FOR SERVICE CREDIT

(a) A contributing member who is otherwise eligible may establish or reestablish service creditable in the retirement system by making payments as provided by this section in lieu of lump-sum payments otherwise authorized or required by this subtitle or payments under Section 825.410. Except as provided by Subsection (c), the retirement system shall permit a member to purchase service credit over a period of up to five years under an agreement under this section.

(b) A payment authorized by this section consists of a monthly payroll deduction in an amount not less than one-twelfth of the contribution required to establish at least one year of service credit, including any required interest and membership fee, except as provided by Subsection (c).

(c) Payments to establish service credit by a member who plans to retire in less than a year may be made by payroll deduction for a period determined by the retirement system.

(d) Payroll deductions for payments under this section shall be made and submitted to the retirement system at the times and in the manner provided for member contributions under Section 825.403.

(e) The retirement system shall credit a member's payments made under this section to a suspense account in the trust fund until the sum of the payments equals the amount required for one year of service credit, at which time the retirement system shall deposit the payments in the appropriate accounts in the trust fund and grant the applicable amount of service credit.

(f) A member who, while making payments under this section, ceases to hold a position covered by the retirement system or withdraws the authority for payroll deductions may:

(1) contract with the retirement system for an alternative method of continuing the payments;

(2) receive a prorated amount of service based on the payments made; or

(3) receive a refund of payments credited to the suspense account and not transferred to a trust fund account.

(g) Payments may not be made under this section to establish service credit of a person who has retired or died, except that a beneficiary may make payment in a lump sum for the remainder of service credit for which payments were begun before the member's death.

(h) The retirement system may adopt rules to administer this section.

Added by Acts 1997, 75th Leg., ch. 964, Sec. 4, eff. Sept. 1, 1997.