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~ COMMISSIONERS' COURT AGENDA REQUEST
'~~
PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS
REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT.
MADE BY: Jonathan Letz
MEETING DATE: August 8, 2005
OFFICE: Commissioner, Pct. 3
TIME PREFERRED:
SUBJECT: Consider and discuss the way Texas County & District Retirement System
(TCDRS) handled previous late filing penalties.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON}
NAME OF PERSON ADDRESSING THE COURT: Commissioner. Pct. 3
ESTIMATED LENGTH OF PRESENTATION:
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
Time for submitting this request for Court to assure that the matter is posted in
accordance with Title 5, Chapter 551 and 552, Government Code, is as follows:
Meeting scheduled for Mondays:
THIS REQUEST RECEIVED BY:
THIS REQUEST RECEIVED ON:
5:00 P,M. previous Tuesday.

All Agenda Requests will be screened by the County Judge's Office to determine if adequate
information has been prepazed for the Court's formal consideration and action at time of Court
Meetings. Your cooperation will be appreciated and contribute towards you request being
addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners'
Court.
July22, zoos
The Honorable Patrick A Tinley
Ken County Judge
700 Main St
Kenxville, TX 78028
Re: Late Reporting Penalty
Dear Judge Tinley,
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F'f
11
Pose OfScz Box 2034
Austin, TX 78768-2034
(512) 328 8889
800-823-7782
Fax: (512) 328$887
www.tcdrs.org
Cht the 15th of each monde, the county's payroll repon is due to T®RS. When we do not receive the
report by the mentioned deadline, a petlaltyis assessed to the county. The penahyconsisu of interest
plus a $500 administrative fee. The interest begins accruing on the 16th of the month at a nominal
interest rate of 12 percent. Interest accrues each day on the unpaid balance until the payroll report is
received by TCDRS. We received your Apri12005 monthly retirement report on May 17, 2005. This
report was due by May 16, 2005. The total penalty due by August 23, 2005 is $538.38, including $38.38
of accrued interest.
To notify the county, we send a certified letter to the correspondent and the head of the corrutl3ssionets'
coon. If the penalty amount is not received byTCDRS within three months of the notification letter, the
retirement system shall deduct the penaky from the countys account. These funds come strictly from
the comnry's contributions that are reponed on the monthly retirement report.
A copy of the T®RS Act Section 845.407 and the adopted administrative rules §107.6 and §107.7 are
enclosed. If you have any questions or need assistance in this matter, please contact the at 1-800-823-
7782, ext. 266.
Sincerely
;~,,rt,ti
Jennifer . Br' wn
M~aiiager, ployEr Accounting & Financial Services
Board Members Robert A. E<kett Amador E. Rerna Jerry V. Bigham Daniel R. Haggerty Mitch Liles Bob Willi
Chairman Vin-Chairman Martha Gustavson tan Rennady Bridget McDowell
r exas t,ounty anu Uistrret lienrement System
Legislation and Administrative Rules
Related to the Penalq~ jor Late Contribrrtinns
Legislntion
Sec. 845.407 Penalh' for Late Contributions
la) Except as provided by Subsections (cl, (d), and (e), a participating subdivision [hat fails to provide the information required
by Section 845.401 or to pay al! contributions required by this subchapter to be made and remitted to the retirement system
not later than the 15th day of the month in which they become due shall pay a penalty under this section. The penally for a
past-due monthly remission is equal to interest on the past-due amounts for each day past due at a nominal interest rate of 12
percent, plus a $5110 administrative fee. If the penalty is no[ paid within three months after date notice of the penalty has
been sent to the subdivision, the retirement system shall deduct the penalty from the subdivision's account in the subdivision
accumulation fund. The interest portion of the penalty shall be deposited by the retirement system in the distributable
income account of the interest fund. The administrative fee portion of the penalty shall be deposited by the retirement
system in the expense fund.
(b) Payments and required reports are considered to be made when received by the retirement system.
(c) A penalty will not be assessed under this section for a late payment or report made in a document sent to the correct address:
(I) by certified mail, return receipt requested, not later than the IOth day of the month in which the payment or report
becomes due; or
(2) using asame-day or overnight delivery method, approved by the board of trustees, not later than the 14th day of the
month in which the payment or report becomes due.
(d) If the retirement system does not receive a payment or report, a penalty will not be assessed under this section if the
subdivision provide; proof satisfactory to the system that the document containing the paymcnt or report was sent in
accordance with Subsection (c).
(e) The retirement system may extend the due date provided by this section if a subdivision applies for an extension before the
due date and the director determines that good cause exists for the extension and that the need for the extension is not caused
by neglect, indifference, or tack of diligence.
Administrative Rules
§107.6 Penalty for Late Reporting
(a) In this section "report" means the combination of all information and contributions required to be provided to and deposited
with the system for each month of participation, in accordance with Subchapter E, Chapter 845, Government Code.
(b) A due date of a monthly report that is a Saturday, Sunday, or legal holiday is extended to the first day that is not a Saturday,
Sunday, or legal holiday, but the dates provided by Section 845 407(c) for eligibility for an exemption from a penalty
assessment are not extended if they fall on a Saturday, Sunday, or legal holiday. The penalty for apast-due report consists
of an administrative fee in the amount provided by Section 845.407(a), Government Code, plus interest on the past-due
amounts for each day past due computed at an annual rate provided by that subsection.
(c) If a report is pas[ due, the system shall mail an advice to the governing board and correspondent of the subdivision stating
the due date of the report, that the report was not received by the due date, that unless the subdivision submits proof
satisfactory to the system that the report was sent in compliance with Section 845.407(c), Government Code, the subdivision
is subject to a penalty for late reporting in accordance with Section 845.407(a), Government Code, and that the amount of
the penalty will be computed and assessed on receipt of the report.
(d) After the system receives [he past-due report, a notice shall be mailed to the governing board and correspondent of the
subdivision stating that a penalty has been assessed for late reporting in accordance with Section 845.407, Government
Code, and indicating the date the report was received by the system, the number of days the report was past due, the amount
of contributions on which interest was charged, the accumulated interest and the administrative fee. The notice shall inform
the governing board and correspondent that if the penalty is not paid within the period provided by Section 845 407(a),
Govemment Code, the penalty shall be deducted from the subdivision's account in the Subdivision Accumulation Fund and
credited to other funds of the system in accordance with that subsection.
(e) The amount of the penalty stated in the notice described by Subsection (d) of this section becomes fixed and final on the
tenth business day following the date of the notice and may no[ be modified thereafter for any reason.
(f) For purposes of Section 805.407, Govemment Code, approved same-day or overnight delivery services are:
(1) Airborne Express; (4) Federal Express;
(Z) DHL Worldwide Express; (5) Lone Star Overnight; and
(3) Emery Worldwide; f6) United Parcel Service
§107.7 Extension of Due Dale
Unless otherwise provided by statute, the due date for submitting the monthly report, or any portion of the monthly report
consisting of aI! or any part of the required information or all or any portion of the required contributions, may be extended
for any particular month by order of the director, upon written request duly filed with the director by the governing board or
correspondent of the subdivision prior to the due date of the report, showing that there is good cause for such extension and
that the need is not caused by neglect, indifference, or lack of diligence.