Section 29.70 - Distribution(a) The election of the partial lump-sum option, including the selection of the amount of the lump-sum distribution, or an application for retirement without an election of the partial lump-sum option under § 824.2045, Government Code, may not be changed after the later of the date on which the retirement system makes the first annuity payment or the date the first payment becomes due. The partial lump-sum option payment shall be made at the same time as the initial retirement annuity payment is made. For those retirees selecting two or three annual lump-sum payments, the second and third payment shall be made on the appropriate anniversary date of the due date of the initial lump-sum payment. No interest will be paid on any lump-sum amounts paid in the second year, third year, or at any other time.(b) A retiree who selected two or three annual lump-sum payments may receive all remaining money due at any time they elect in writing to do so.(c) A retiree will be permitted to roll-over any amounts as authorized by law.(d) In the event a retiree dies prior to receiving all payments due from the partial lump-sum option plan, the retirement system will pay any partial lump-sum benefits due in a single lump sum payment to the beneficiary eligible to receive the retirement benefits except in the circumstances where subsection (e) of this section applies. If there is no beneficiary designated under subsection (e) of this section and there is no beneficiary eligible to receive the retirement benefits, the retirement system will pay any partial lump-sum benefits due in a single lump sum payment to the beneficiary eligible to receive any death and survivor benefits.(e) A retiree has the option of designating a beneficiary specifically for any unpaid lump-sum payments due under this section upon the death of the retiree. Any such designation must be done on a form prescribed by and filed with the retirement system. The designation would be superior to subsection (d) of this section and would control the payment of a single lump sum payment of any money due upon the death of the retiree under the partial lump-sum option plan. In the event that the designated beneficiary named under this subsection dies prior to distribution, TRS will pay the lump sum benefit under subsection (d) of this section.34 Tex. Admin. Code § 29.70
The provisions of this §29.70 adopted to be effective October 28, 1999, 24 TexReg 9298; amended to be effective March 12, 2003, 28 TexReg 2107; amended to be effective March 8, 2007, 32 TexReg 1087; amended to be effective April 1, 2011, 36 TexReg 1995