SECTION 76.8. Partial Lump-Sum Option

(a) A member who is eligible for an unreduced cash balance annuity may select a standard cash balance annuity or an optional cash balance annuity under §76.6 of this chapter, together with a partial lump-sum distribution.

(b) The amount of the lump-sum distribution under this section may not exceed the sum of 36 months of a standard cash balance annuity computed without regard to this section.

(c) The cash balance annuity selected by the member shall be actuarially reduced to reflect the lump-sum option selected by the member and shall be actuarially equivalent to a standard or optional cash balance annuity, as applicable, without the partial lump-sum distribution. The annuity and lump sum shall be computed to result in no actuarial loss to the system.

(d) The lump-sum distribution shall be made as a single payment payable at the time that the first monthly annuity payment is paid.

(e) The amount of the lump-sum distribution shall be deducted from any amount otherwise payable under §76.11 of this chapter.

(f) The partial lump-sum option under this section may be elected only once by a member and may not be elected by a retiree. A member retiring under the proportionate retirement program under Tex. Gov't Code Chapter 803 is not eligible for the partial lump-sum option.

(g) Before a retiring member receives a partial lump-sum distribution under this section, the system shall provide written notice to the member of the amount by which the member's annuity will be reduced because of the selection, and the member must acknowledge receipt of the notice in writing.

(h) This section does not apply to a disability retirement annuity.

Source Note: The provisions of this §76.8 adopted to be effective September 14, 2022, 47 TexReg 5498