Texas Register, Volume 37, Number 40, Pages 7815-8094, October 5, 2012 Page: 7,980

                                
Kenneth L. Petersen
General Counsel
Texas Water Development Board
Earliest possible date of adoption: November 4, 2012
For further information, please call: (512) 463-8061
TITLE 34. PUBLIC FINANCE
PART 3. TEACHER RETIREMENT
SYSTEM OF TEXAS
CHAPTER 41. HEALTH CARE AND
INSURANCE PROGRAMS
SUBCHAPTER A. RETIREE HEALTH CARE
BENEFITS (TRS-CARE)
34 TAC 41.2, 41.5, 41.7
The Board of Trustees (board) of the Teacher Retirement System
of Texas (TRS) proposes amendments to the following rules for
TRS-Care, the health benefits program for TRS retirees adminis-
tered by TRS, as trustee: 41.2 relating to additional enrollment
opportunities; 41.5 relating to the payment of contributions; and
41.7 relating to the effective date of coverage under TRS-Care.
TRS proposes amendments to 41.2, 41.5 and 41.7 to dis-
tinguish between the plans offered under the TRS-Care 2 and
TRS-Care 3 levels of coverage and the levels of coverage them-
selves. With the introduction of the new TRS-Care Medicare Ad-
vantage (medical) plans and the new TRS-Care Medicare Part
D (drug) plans on January 1, 2013, for the first time, there will be
several medical plans and several drug plans available within
both the TRS-Care 2 and TRS-Care 3 levels of coverage. Un-
der law, not all individuals enrolled in TRS-Care at the TRS-Care
2 and TRS-Care 3 levels of coverage will be eligible to enroll
in the new TRS-Care medical plans and drug plans. Conse-
quently, amendments are proposed to clarify the above distinc-
tions in the following: 41.2(a)(5), (6) and (7), which address
the opportunities to enroll in TRS-Care that are in addition to
the initial enrollment opportunities described in 41.1, 41.5(e)
and 41.5(h)(3)(B), which address the payment of contributions
in TRS-Care.
TRS proposes the deletion of obsolete language in 41.2(b) and
41.7(g). In addressing special enrollment events, both of these
subsections make a distinction between special enrollment
events that occurred on or before August 31, 2011 and those
that occurred or will occur on or after September 1, 2011. With
the passage of time, this distinction is no longer needed and the
language creating this distinction can now be deleted.
Non-substantive amendments are also proposed to 41.2, 41.5
and 41.7 to enhance the clarity of these TRS-Care rules, includ-
ing those found in 41.2(d), 41.5(h)(3)(C), and 41.7(m) and (n).
Ken Welch, TRS Deputy Director, estimates that, for each year
of the first five years that proposed amendments to 41.2, 41.5
and 41.7 will be in effect, there will be no foreseeable implications
to state or local governments as a result of administering the
proposed amendments.
For each year of the first five years that the proposals will be in ef-
fect, Brian Guthrie, TRS Executive Director, and Mr. Welch have
determined that the public benefit will be to provide TRS retirees

with clearer, more accurate rules concerning the TRS-Care pro-
gram. Mr. Welch has also determined that there will be no
direct economic costs to persons required to comply with the
proposed rules. There will be no effect on a local economy be-
cause of the proposals, and therefore no local employment im-
pact statement is required under 2001.022 of the Government
Code. Moreover, there will be no adverse economic effect on
small businesses or micro-businesses as a result of enforcing
the proposed amendments, and therefore no statement about
the effect of the proposals on small businesses is required un-
der 2006.002 of the Government Code.
Comments may be submitted in writing to Brian Guthrie, Execu-
tive Director, 1000 Red River Street, Austin, Texas 78701-2698.
Written comments must be received by the Executive Director at
the designated address no later than 30 days after publication of
this notice in the Texas Register.
Statutory Authority: The amendments to 41.2, 41.5 and 41.7
are proposed under Insurance Code, 1575.052, which autho-
rizes TRS as trustee for TRS-Care to adopt rules it considers
necessary to implement and administer the TRS-Care program,
and Government Code, 825.101, which makes the board re-
sponsible for TRS' general administration, and 825.102, which
authorizes the board to adopt rules for the administration of TRS
funds and transaction of business of the board.
Cross-reference to Statute: The proposed amendments to
41.2, 41.5 and 41.7 affect Insurance Code, Chapter 1575.
41.2. Additional Enrollment Opportunities.
(a) Age 65 Additional Enrollment Opportunity. "Eligible par-
ticipants," as defined in paragraph (1) of this subsection, have an addi-
tional enrollment opportunity in TRS-Care as described in this subsec-
tion when they become 65 years old (the "Age 65 Additional Enroll-
ment Opportunity").
(1) For purposes of this subsection, the term "eligible par-
ticipants" means:
(A) all TRS service retirees who are enrolled in TRS-
Care;
(B) dependents, as defined in Insurance Code,
1575.003, who are enrolled in TRS-Care and who are eligible to
enroll in TRS-Care in their own right as a TRS service or disability
retiree; and
(C) surviving spouses, as defined in Insurance Code,
1575.003 who are enrolled in TRS-Care.
(2) Those eligible participants who are enrolled in TRS-
Care on August 31, 2004, and who become 65 years old after that date
have the Age 65 Additional Enrollment Opportunity on the date that
they become 65 years old.
(3) Those eligible participants who enroll in TRS-Care af-
ter August 31, 2004, and who become 65 years old after the date of
their enrollment have the Age 65 Additional Enrollment Opportunity
on the date that they become 65 years old.
(4) The Age 65 Additional Enrollment Opportunity for
those eligible participants who enroll in TRS-Care after August 31,
2004, and who are 65 years old or older when they enroll in TRS-Care
runs concurrently with the initial enrollment period as set out in
41.1 of this title (relating to Initial Enrollment Periods for the Health
Benefits Program Under the Texas Public School Retired Employees
Group Benefits Act (TRS-Care)).

37 TexReg 7980  October 5, 2012  Texas Register