Enrolled Bill Summary

            House Bill 2644 provides a postretirement annuity increase (the Consumer Price Index catch-up) for Teacher Retirement System of Texas retirees in varying amounts between 2 percent and 14 percent, depending on the date of retirement. It adds an eligibility provision for service retirement if the sum of the member's age and years of service equals 80. A 1995 provision prohibiting payments for driver's education courses from being considered part of a teacher's compensation for retirement purposes is modified, excluding only payments of $5,000 or more for courses conducted outside regular classroom hours. The act also requires actuarial audits in conjunction with actuarial experience studies or at least once every five years. It authorizes the system to establish a self-insured group health care plan that may include coverage for long-term care and permits public school districts participating in the system plan to offer an alternative health benefit plan. An option for retirees to request that dues for a nonprofit association for retired school employees be automatically deducted from monthly annuity payments is also added.

            House Bill 2644 establishes standards for determining if health coverage in school districts meets the requirement of being substantially similar to that provided under the Texas Employees Uniform Group Insurance Benefits Act, establishes an excess benefit arrangement, and creates a deferred retirement option plan under which a member eligible to retire may choose to continue working and receive lump-sum or installment payments on retirement in addition to a reduced annuity. The act requires that changes in beneficiary designation be made on specified system forms, establishes that receipt by the system of a certified copy of a divorce decree automatically removes the member's former spouse as beneficiary, and increases minimum survivor benefits for certain annuitants.