Section 29.61 - Distribution(a) When a member who has participated in the Deferred Retirement Option Plan (DROP) retires, the system shall distribute the accumulated amount in the member's DROP account in one of the following manners: (2) in yearly or monthly increments over a five-year period;(3) in yearly or monthly increments over a ten-year period; or(4) a roll-over as authorized by law.(b) Interest shall be credited to the DROP account until final distribution is made. The initial DROP distribution shall be due and payable at the same time as the first annuity payment. Thereafter, monthly payments shall be payable on the first of each succeeding month until the payment period has expired. Yearly distributions, after the initial yearly distribution, shall be due on the anniversary of the date the initial distribution was due and payable.(c) A member must elect the form of distribution at the time of retirement. No distribution shall be made until all necessary documents for payment of retirement or death benefits are received by TRS.(d) Payment of DROP installments selected by a retiree under subsection (a) of this section will continue to the beneficiary upon the death of the annuitant for the remainder of the payment period. A retiree or beneficiary of a retiree receiving a DROP distribution may make a one-time election to accelerate installment payments to a lump sum amount representing the remaining DROP account balance at the time of final distribution.(e) In the event of the death of a member participating in the DROP, the accumulated amount in the DROP account including credited interest shall be paid to the DROP beneficiary or in the absence of a DROP beneficiary as indicated in subsection (f) of this section. Payment may be eligible for rollover to the extent provided by law.(f) A member participating in the DROP or a DROP annuitant shall separately designate one or more beneficiaries to receive any DROP benefits due in the event of death. DROP beneficiaries need not be the same persons named to receive other payments from the retirement system upon the death of the member or annuitant. At the death of a member participating in DROP and in the absence of a designated DROP beneficiary the payment of any DROP distribution will be made to the beneficiary eligible to receive any death benefits. At the death of a DROP annuitant and in the absence of a designated DROP beneficiary the payment of any DROP distribution will be made to the beneficiary designated to receive any retirement benefits. If there is no designated beneficiary for retirement benefits, payment of any DROP distribution will be made to the beneficiary eligible to receive any survivor benefits.34 Tex. Admin. Code § 29.61
The provisions of this §29.61 adopted to be effective January 29, 1998, 23 TexReg 559; amended to be effective March 12, 2003, 28 TexReg 2106; amended to be effective March 8, 2007, 32 TexReg 1087