Texas § GV.825.502 - PAYMENT OF CONTRIBUTIONS TO A MEMBER ABSENT FROM SERVICE

§ GV.825.502. PAYMENT OF CONTRIBUTIONS TO A MEMBER ABSENT FROM SERVICE

PAYMENT OF CONTRIBUTIONS TO A MEMBER ABSENT FROM SERVICE. (a) If a demand for the accumulated contributions of a member with fewer than five years of service has not been made in accordance with Section 822.005 before the seventh anniversary of the member's last day of service, the retirement system shall return to the member or to the member's heirs all accumulated contributions of the member. (b) If the member or the member's heirs cannot be found after complying with the policy adopted under Subsection (c), the member's accumulated contributions are forfeited to the retirement system. The retirement system shall credit the amount forfeited to the retired reserve account. (c) The board of trustees shall adopt a policy requiring the retirement system to make all reasonable efforts to locate and notify a member or, if appropriate, the member's heirs of their entitlement to a return of accumulated contributions under this section. The policy must ensure that the: (1) notice: (A) provides information on how a member or the member's heirs, as appropriate, may withdraw the accumulated contributions, including information on how to effectuate a withdrawal through an election to receive a direct rollover of the contributions to an eligible retirement plan; and (B) is initially sent to the member by certified mail, return receipt requested, at the last known address of the member according to the system's records; and (2) procedure used to locate a member or the member's heirs: (A) requires, at a minimum, that the system conduct Internet searches to determine a current and accurate mailing address of the member or the member's heir and send a notice that complies with Subdivision (1) to the member or the member's heir, as applicable, by certified mail, return receipt requested; and (B) employs a matrix based on defined factors for determining on a graduated scale the degree and type of additional effort required, and those efforts must include: (i) contacting the member's designated beneficiary; (ii) obtaining information from consumer reporting agencies; and (iii) using commercial locating services. Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1, 1981. Amended by Acts 1989, 71st Leg., ch. 835, Sec. 9, eff. Sept. 1, 1989. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 35.502 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 16, Sec. 11.05(i), eff. Aug. 26, 1991. Amended by: Acts 2021, 87th Leg., R.S., Ch. 141 (H.B. 1585 ), Sec. 10, eff. May 26, 2021.