(a) The director, either on the director's own motion, on recommendation of the medical board, or upon sufficient written complaint, may order any person (the "retiree") who is receiving a disability retirement benefit under the Act and who is less than 60 years of age:
  (1) to undergo a medical examination by one or more physicians designated by the director, at such time and place as the director by letter may order; or
  (2) to furnish answers, in writing under oath, to such questions concerning the person's present and previous employment as may be propounded by the director in writing.
(b) If a disability retiree fails or refuses to submit to a medical examination as ordered by the director, the director shall suspend the retiree's annuity payments until the retiree submits to an examination. The director at the time of suspension shall notify the retiree of this action. If the retiree thereafter fails to make arrangements with the director, or the director's designee, for a time for such a medical examination, or fails to submit to such an examination, for a period of one year from the date of initial failure to submit to such a medical examination, the director shall order the annuity discontinued, and shall give notice of such actions to the retiree by written letter of notification.
(c) If the retiree submits to a medical examination, the report of the examining physician shall be submitted to the medical board; if the medical board certifies that the retiree is no longer mentally or physically incapacitated, or is able to engage in a gainful occupation, the director may order the disability annuity discontinued, and the director shall give written notice of such action to the retiree.
(d) In the event the director finds that a disability retiree is engaged in a gainful occupation, the director shall order the disability annuity discontinued, and in that event the director shall give written notice to the retiree of the director's actions.
(e) The director may require a person who is receiving a disability retirement annuity under the Act and who is less than 60 years of age to file an annual report on such form as the director prescribes concerning receipt by the retiree of income, along with copies of such federal tax forms as the director may designate. The director shall give notice of the requirements to the person affected, and shall fix a date within which the information is to be furnished.
(f) In the event that a person subject to such an order fails to furnish the required information within the period specified by the director, the director shall suspend the annuity until such time as the required information is furnished, and shall notify the person of the director's actions.
(g) If the person affected by the director's action in discontinuing a disability retirement annuity desires to contest the same, the person may obtain a hearing of the issue as a "contested case" pursuant to the Administrative Procedure Act (Chapter 2001, Government Code) and these rules, by filing with the director a written "request for hearing of discontinuance of benefit" within 90 days after the date of the director's letter of notification of discontinuance. If the request for a contested case hearing is timely filed, the contested case shall be docketed, heard, and disposed of in accordance with §§101.16 through 101.24 of this title. If no request for a contested case hearing is filed within the 90 day period provided in this paragraph, the action of the director in discontinuing the disability retirement annuity shall be final and unappealable.

Source Note: The provisions of this §101.25 adopted to be effective July 27, 1976, 1 TexReg 1929; amended to be effective January 27, 2000, 25 TexReg 389