Section 306.1 - Prior Service Credit for Members of Participating Departments(a) The governing body of a department that elects to participate in the pension system and is not merging an existing pension plan into the pension system may, before the fifth (5th) anniversary of the date the department begins participation, make a one-time election to purchase service credit for qualified service performed for the department before the effective date of departmental participation by the persons who became members of the pension system on the effective date of the departmental participation.(b) The governing body of a department that elects or has previously elected to participate in the pension system and is merging or has merged an existing pension plan into the pension system may at any time purchase service credit for qualified service performed for the department before the effective date of departmental participation by the persons who are members of the pension system on the date the department contracts for the purchase.(c) The maximum amount of prior service credit a member may receive under this section is 15 years. Prior service credit may be purchased for a number of years not to exceed a maximum of 15 years. The pension system shall grant prior service credit under this section if the governing body of the department or the governing body of the political subdivision associated with the department agrees in writing to finance the prior service credit by a lump-sum payment or within a period not to exceed 10 years from the effective date of the election to purchase the service credit.(d) The cost to finance the purchase of prior service credit is based on the actuarially assumed rate of investment return on fund assets at the time payment for the service credit begins. The governing body of the department or the governing body of the political subdivision associated with the department may purchase prior service credit under subsection (a) of this section based on any contribution rate at or above the minimum provided by statute or state board rule for the period purchased and under subsection (b) of this section based on any contribution rate at or above the current minimum provided by state board rule at the time payment for the service credit begins. The overall costs associated with the purchase of prior service credit shall be determined by the pension system actuary according to generally accepted actuarial standards and must be determined to be actuarially sound for the cost-sharing pension system.(e) To purchase prior service credit, the governing body of the department or the governing body of the political subdivision associated with the department must provide the Executive Director with a detailed, verified record of prior service showing the amount of qualified service performed for the department before the effective date of departmental participation by each person who became a member of the pension system on the effective date of the departmental participation. The record for each member must include the member's date of birth and entry date in the department.(f) The maximum amount of prior service credit provided by this rule applies only to prior service credit purchased, or under a written agreement to be financed that is instituted, on or after September 1, 2019. Prior service credit purchased, or under a written agreement to be financed, under a procedure administered by the pension system before September 1, 2019, is subject to the maximum amount of credit and the terms and value in effect under the pension system's procedures at the time of purchase or written agreement to purchase.(g) Prior service credit may not be purchased for any service performed prior to September 1, 2019 by a member who did not satisfy the requirements to be considered a "volunteer" or "auxiliary employee" under § 861.001, Texas Government Code, prior to such date.34 Tex. Admin. Code § 306.1
The provisions of this §306.1 adopted to be effective October 2, 2005, 30 TexReg 6061; amended to be effective August 26, 2007, 32 TexReg 5185; amended to be effective July 11, 2010, 35 TexReg 5898; amended to be effective August 31, 2014, 39 TexReg 6868; Amended by Texas Register, Volume 40, Number 41, October 9, 2015, TexReg 7102, eff. 10/18/2015; Amended by Texas Register, Volume 44, Number 52, December 27, 2019, TexReg 8333, eff. 12/31/2019