(a) The system may require participating municipalities to prorate contributions for an employee whose compensation is subject to and exceeds the compensation limit set pursuant to 26 U.S.C. §401(a)(17) ("Compensation Limit") by calculating the employee's contributions based on the Compensation Limit prorated equally over the remaining months in the calendar year.
(b) If an employee for which a municipality is making prorated contributions pursuant to subsection (a) of this section separates from service with the municipality prior to the end of the calendar year, the municipality shall make additional contributions to the system based on the actual compensation paid to the employee, up to the amount of the Compensation Limit, prior to separation from service by the employee.

Source Note: The provisions of this §127.5 adopted to be effective August 1, 2023, 48 TexReg 4124