By Linebarger H.B. No. 391 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to public retirement benefits payable to certain persons 1-3 who have obtained qualified domestic relations orders. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter A, Chapter 804, Government Code, is 1-6 amended by adding Section 804.005 to read as follows: 1-7 Sec. 804.005. PAYMENT IN CERTAIN CIRCUMSTANCES IN LIEU OF 1-8 BENEFITS AWARDED BY QUALIFIED DOMESTIC RELATIONS ORDER. (a) This 1-9 section applies only to the Employees Retirement System of Texas 1-10 and the Teacher Retirement System of Texas. 1-11 (b) A public retirement system to which this section applies 1-12 shall pay an alternate payee of a member of the retirement system 1-13 who is described by Subsection (c), if the payee so elects and in 1-14 lieu of the interest awarded by a qualified domestic relations 1-15 order, an amount that is the alternate payee's portion of the 1-16 present actuarial value of the accrued retirement benefit of the 1-17 member of the retirement system, determined as if the member 1-18 retired on the date of the alternate payee's election. The amount 1-19 becomes payable at the time the actuarial value is determined, and 1-20 the amount is payable in the form of an annuity payable in equal 1-21 monthly installments for the life of the alternate payee. 1-22 (c) A member whose benefits are subject to partial payment 1-23 under this section is one who has not retired from the retirement 1-24 system, has attained the age of 62 and the service requirements for 2-1 service retirement at full or actuarially reduced benefits, and 2-2 retains credit and contributions in the retirement system 2-3 attributable to that service. 2-4 (d) If an alternate payee elects to be paid under this 2-5 section, the retirement system shall reduce the benefit payable by 2-6 the system to the member or the member's beneficiary by the 2-7 alternate payee's portion of the present actuarial value determined 2-8 under Subsection (b). 2-9 (e) In determining under Subsection (b) the present 2-10 actuarial value of an accrued retirement benefit, the system shall 2-11 consider the member's benefit as a standard service retirement 2-12 annuity, reduced as appropriate for early retirement, without 2-13 regard to any optional annuity chosen or beneficiary designated by 2-14 the member. 2-15 (f) The beginning of monthly payments under this section 2-16 terminates any interest that the alternate payee who receives the 2-17 payment might otherwise have in benefits that accrue to the account 2-18 of the member after the date the initial payment to the alternate 2-19 payee is made. 2-20 (g) A public retirement system may adopt rules for 2-21 administration of this section. 2-22 SECTION 2. This Act takes effect September 1, 1993. 2-23 SECTION 3. The importance of this legislation and the 2-24 crowded condition of the calendars in both houses create an 2-25 emergency and an imperative public necessity that the 2-26 constitutional rule requiring bills to be read on three several 2-27 days in each house be suspended, and this rule is hereby suspended.