TITLE 34. PUBLIC FINANCE

PART 4. EMPLOYEES RETIREMENT SYSTEM OF TEXAS

CHAPTER 67. HEARINGS ON DISPUTED CLAIMS

The Employees Retirement System of Texas (ERS) adopts amendments to 34 Texas Administrative Code (TAC) Chapter 67, concerning Hearings on Disputed Claims, by amending §67.201 (Procedures Governing Bid Protests), without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 631). The amendments were approved by the ERS Board of Trustees at its March 5, 2025 meeting. This rule will not be republished.

Section 67.201 is amended in order to clarify the rule and its interaction with other rules and statutes, to remove the requirement that copies of bid protests be sent to interested parties, and to enhance public understanding of the rule.

No comments were received on the proposed rule amendments.

The amendments are adopted under Tex. Gov't Code §815.102, which provides authorization for the ERS Board of Trustees to adopt rules necessary for the administration of the funds of the retirement system and regarding the transaction of any other business of the Board.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 27, 2025.

TRD-202501047

Cynthia Hamilton

General Counsel and Chief Compliance Officer

Employees Retirement System of Texas

Effective date: April 16, 2025

Proposal publication date: January 31, 2025

For further information, please call: (877) 275-4377

CHAPTER 73. BENEFITS

The Employees Retirement System of Texas (ERS) adopts amendments to 34 Texas Administrative Code (TAC) Chapter 73, concerning Benefits, by amending §73.21 (Reduction Factor for Age and Retirement Option) and adding §73.22 (Increasing Annuity Option), without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 632). The amendments and new rule were approved by the ERS Board of Trustees at its March 5, 2025 meeting. This chapter will not be republished.

Section 73.21 is amended in order to clarify that the tables described in the rule continue to govern benefits payable after August 31, 2022. Section 73.22 is added to clarify how ERS will administer the new increasing annuity option described in Tex. Gov't Code §814.110 for ERS retirees and their designated beneficiaries.

No comments were received on the proposed rule amendments and new rule.

The amendments and new rule are adopted under Tex. Gov't Code §814.110, which authorizes the ERS Board of Trustees to adopt rules for the implementation of the new increasing annuity option; §815.105, which requires the Board to adopt mortality, service, and other tables based on actuarial reports; and Tex. Gov't Code §815.102, which authorizes the Board to adopt rules necessary for the administration of the funds of the retirement system and regarding the transaction of any other business of the Board.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 27, 2025.

TRD-202501048

Cynthia Hamilton

General Counsel and Chief Compliance Officer

Employees Retirement System of Texas

Effective date: April 16, 2025

Proposal publication date: January 31, 2025

For further information, please call: (877) 275-4377

CHAPTER 76. CASH BALANCE BENEFIT

The Employees Retirement System of Texas (ERS) adopts amendments to 34 Texas Administrative Code (TAC) Chapter 76, concerning Benefits, by repealing §76.6 (Optional Cash Balance Retirement Benefits), §76.7 (Change in Annuity Selection), and §76.8 (Partial Lump-Sum Option), and by amending §76.1 (Definitions), §76.3 (Proportionate Service Purchases), §76.4 (Optional Retirement Program), §76.5 (Factor Tables), §76.9 (Annual Interest Rate), §76.10 (Gain Sharing Interest Rate), §76.11 (Return of Excess Contributions), and §76.12 (Uniformed Services Employment and Reemployment Rights Act), without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 634). The amendments were approved by the ERS Board of Trustees at its March 5, 2025 meeting. This chapter will not be republished.

Sections 76.1, 76.3 - 76.5, and 76.9 - 76.12 are amended in order to incorporate changes resulting from the enactment of Tex. Gov't Code Chapter 840A and in order to clarify the intent of the rules and their interaction with other rules and statutes, thus enhancing public understanding. Sections 76.6 - 76.8 are repealed because the language is superfluous as a result of amendments to Tex. Gov't Code Chapter 820.

No comments were received on the proposed rule amendments.

The amendments are adopted under Tex. Gov't Code §815.102, which authorizes the ERS Board of Trustees to adopt rules necessary for the administration of the funds of the retirement system and regarding the transaction of any other business of the board, and Tex. Gov't Code §820.004 and §840A.004, which authorize the board to adopt rules necessary to implement cash balance retirement benefits.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 27, 2025.

TRD-202501045

Cynthia Hamilton

General Counsel and Chief Compliance Officer

Employees Retirement System of Texas

Effective date: April 16, 2025

Proposal publication date: January 31, 2025

For further information, please call: (877) 275-4377

The repeals are adopted under Tex. Gov't Code §815.102, which provides authorization for the ERS Board of Trustees to adopt rules necessary for the administration of the funds of the retirement system and regarding the transaction of any other business of the Board, and Tex. Gov't Code §820.004 and §840A.004, which explicitly authorize the board to adopt rules as necessary to implement cash balance retirement benefits and include implied authority to repeal rules as necessary to implement cash balance retirement benefits.

No other statutes are affected by the proposed repeals.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 27, 2025.

TRD-202501046

Cynthia Hamilton

General Counsel and Chief Compliance Officer

Employees Retirement System of Texas

Effective date: April 16, 2025

Proposal publication date: January 31, 2025

For further information, please call: (877) 275-4377