H.B. No. 391 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 alternate payee so 1-14 elects and in lieu of the interest awarded by a qualified domestic 1-15 relations order on or after January 1, 1985, an amount that is the 1-16 alternate payee's portion of the actuarial equivalent of the 1-17 accrued retirement benefit of the member of the retirement system, 1-18 determined as if the member retired on the date of the alternate 1-19 payee's election. The amount becomes payable at the time the 1-20 actuarial equivalent is determined, and the amount is payable in 1-21 the form of an annuity payable in equal monthly installments for 1-22 the life of the alternate payee. 1-23 (c) A member whose benefits are subject to partial payment 1-24 under this section is one who has not retired from the retirement 2-1 system, has attained the greater of the age of 62 or normal 2-2 retirement age and the service requirements for service retirement, 2-3 and retains credit and contributions in the retirement system 2-4 attributable to that service. 2-5 (d) If an alternate payee elects to be paid under this 2-6 section, the retirement system shall reduce the benefit payable by 2-7 the system to the member or the member's beneficiary by the 2-8 alternate payee's portion of the actuarial equivalent determined 2-9 under Subsection (b). 2-10 (e) In determining under Subsection (b) the actuarial 2-11 equivalent of an accrued retirement benefit, the system shall 2-12 consider the member's benefit as a normal age standard service 2-13 retirement annuity, without regard to any optional annuity chosen 2-14 or beneficiary designated by 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.