Purpose:
To allow employees to receive the retirement benefits they would
otherwise be entitled to under the Optional Retirement Program
Date Approved:
August
14, 1997 (Editorially amended September
2000)
Background:
The
Small Business Job Protection Act enacted in August 1996 created the
Qualified Governmental Excess Benefit Arrangement (QGEBA) under
Section 415(m) of the Internal Revenue Code. This provision allows employees to receive
the retirement benefits they would otherwise be entitled to under the Optional
Retirement Program (ORP), notwithstanding the limitations under
Section 415 of the Code.
In
effect, this arrangement removes the $30,000 tax deferred limitation under
Section 415 of the Code for employees enrolled in the ORP.
The
75th Texas Legislature adopted the Section 415(m) provisions in S.B. 1460 which
was signed by Governor Bush on June 17, 1997, and codified as Texas
Government Code Section 830.004(c). Implementation of the Excess Benefit Arrangement, known as U. T.GRA or
University of Texas Governmental Retirement Arrangement, will allow the
U. T. System to implement the changes to the Code to reflect this benefit.
General Provision - In accordance with the provisions of Senate Bill 1460, enacted by the 75th Texas Legislature, the Board hereby establishes a Qualified Governmental Excess Benefit Arrangement (QGEBA) as provided under Section 415(m) of the Internal Revenue Code of 1986, as amended, (the Code), for Optional Retirement Program (ORP) participants. The Board hereby delegates implementation of the QGEBA and authority to execute any necessary and required documents to the Chancellor or his or her delegate.
Last reviewed September 2000