(a) If TRS issues a second EAR warning as provided in §31.5 of this title (relating to Notice and Repayment Requirements for Certain Service Retirees) to a service retiree, the service retiree shall pay to TRS an amount equal to the lesser of either:
  (1) the service retiree's gross monthly annuity payments for the months addressed by this warning; or
  (2) the total gross amount of compensation earned by the service retiree during the months addressed by this warning as described by this section.
(b) The amount in subsection (a)(2) of this section shall only include all compensation earned by the service retiree based on the service retiree's employment with a Texas public educational institution during a month subject to the second EAR warning regardless of when such an amount is paid to the service retiree. The amount shall not include:
  (1) compensation paid to the service retiree during the applicable months unless the service retiree also earned the compensation based on the service retiree's employment with a Texas public educational institution during a month subject to the second warning;
  (2) compensation earned by the service retiree in a position that qualifies for the exception under §31.16 of this title (relating to Federally-funded COVID-19 Personnel); and
  (3) compensation paid to the service retiree that would not qualify as creditable compensation if paid to an active member by an employer for the same services.
(c) A service retiree may elect to pay the greater of the two amounts described by subsection (a) of this section. If a retiree elects to pay the greater amount, the retiree must notify TRS of this election in writing.
(d) If an employer adjusts the compensation earned by a service retiree in a month subject to a second EAR warning payment under this section but does not adjust the hours or days worked by the retiree relating to that compensation, the amount due shall be adjusted for that payment, and TRS shall request or return any amounts necessary to correct the payment so long as the adjustment is received no later than 12 months after the end of the school year in which the compensation was earned.

Source Note: The provisions of this §31.6 adopted to be effective November 1, 2021, 46 TexReg 6940; amended to be effective February 1, 2024, 49 TexReg 280