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TITLE 34PUBLIC FINANCE
PART 5TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
CHAPTER 107MISCELLANEOUS RULES
RULE §107.8Electronic Transfer of Funds

(a) In this section:

  (1) The term "ACH" (Automated Clearing House) means the legal framework of rules and operational procedures adopted by financial institutions for the electronic transfer of funds.

  (2) The term "ACH Credit" means an ACH transaction initiated by a subdivision for the electronic transfer of funds from the account of a subdivision to the account of the retirement system.

  (3) The term "ACH Debit" means an ACH transaction initiated by the retirement system for the electronic transfer of funds from the account of a subdivision to the account of the retirement system.

  (4) The term "electronic transfer of funds" means the transfer of funds, other than by check, draft or similar paper instrument, that is initiated electronically to order, instruct, or authorize a financial institution to debit or to credit an account.

  (5) The term "pre-authorized direct debit" means the method available to a subdivision for electronically paying required contributions by granting a continuing authorization to the retirement system to initiate an ACH Debit each month for the electronic transfer of funds from the designated bank account of the subdivision to the account of the retirement system in an amount equal to the contributions required to be paid based on the monthly report as filed.

  (6) The term "wire transfer" generally means a single transaction, initiated by a subdivision, in which funds are electronically transferred to the account of the retirement system using the Federal Reserve Banking System rather than the ACH.

(b) Monthly amounts required to be contributed to the retirement system in accordance with Chapter 845 of the Texas Government Code may be made by pre-authorized direct debits (ACH Debits), ACH Credits, wire transfers, or checks.

(c) A subdivision may elect to use the pre-authorized direct debit method of payment by filing a signed authorization agreement with the retirement system in which the subdivision has designated a single bank account from which all transfers will be made.

(d) The authorization agreement entered into for this purpose constitutes continuing authority for the retirement system to initiate a direct debit of the subdivision's designated bank account each month and shall be effective with respect to each monthly report of the subdivision, whether filed by mail or by electronic transmission in accordance with §107.9 of this title (relating to Electronic Filing of Documents).

(e) An authorization agreement shall remain in effect until the retirement system receives either a written revocation of the agreement, or a subsequent written agreement, which automatically revokes the existing authorization. A new authorization agreement must be filed if there is any change in the designated bank account. The retirement system, in its sole discretion, may terminate the authorization agreement by mailing written notice to the subdivision. Thereafter, the subdivision must remit all contributions by check, ACH Credit, or wire transfer.

(f) Following receipt of a monthly report filed under an unrevoked authorization agreement, the retirement system will initiate an ACH Debit in the amount required to be contributed for that month based on the report; however the actual transfer of funds from the subdivision's designated account will not occur prior to the due date of the report.

(g) The receipt of a monthly report filed under an unrevoked authorization agreement shall be considered to be receipt by the retirement system of the amount required to be contributed for the month based on that report provided that there are sufficient funds available for transfer from the subdivision's designated account on the later of the due date of the report or the date the report is received. An ACH Debit that is reversed by a subdivision or that fails because sufficient funds are not available for transfer constitutes non-payment of the required contributions with respect to that monthly report and, thereafter, such required contributions will not be considered to have been received until the day the funds are actually transferred to the account of the retirement system. A subdivision failing to timely file the required information or remit the required contributions by the due date of the report is subject to a penalty for late reporting in accordance with §107.6 of this title (relating to Penalty for Late Reporting; Waiver of Penalty).

(h) Except as provided in subsection (g) of this section, amounts sent to the system by electronic transfer of funds are received on the date the funds are credited to the system's account.


Source Note: The provisions of this §107.8 adopted to be effective January 12, 2000, 25 TexReg 213; amended to be effective April 9, 2000, 25 TexReg 3058; amended to be effective October 10, 2011, 36 TexReg 6770

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