1-1 By: Linebarger (Senate Sponsor - Turner) H.B. No. 391 1-2 (In the Senate - Received from the House April 21, 1993; 1-3 April 21, 1993, read first time and referred to Committee on State 1-4 Affairs; May 22, 1993, reported favorably, as amended, by the 1-5 following vote: Yeas 9, Nays 0; May 22, 1993, sent to printer.) 1-6 COMMITTEE VOTE 1-7 Yea Nay PNV Absent 1-8 Harris of Dallas x 1-9 Rosson x 1-10 Carriker x 1-11 Henderson x 1-12 Leedom x 1-13 Lucio x 1-14 Luna x 1-15 Nelson x 1-16 Patterson x 1-17 Shelley x 1-18 Sibley x 1-19 West x 1-20 Whitmire x 1-21 COMMITTEE AMENDMENT NO. 1 By: Rosson 1-22 Amend H.B. No. 391 as follows: 1-23 (1) In Section 1, p. 2, line 14, insert the phrase "greater 1-24 of the" between the words "the" and "age". 1-25 (2) In Section 1, p. 2, line 15, strike the phrase "at full 1-26 or actuarially reduced benefits". 1-27 (3) In Section 1, p. 2, line 14, insert the phrase "or 1-28 normal retirement age" between the words "62" and "and". 1-29 COMMITTEE AMENDMENT NO. 2 By: Rosson 1-30 Amend H.B. No. 391 as follows: 1-31 (1) In Section 1, p. 2, line 6, strike the words "present" 1-32 and "value" and replace "value" with "equivalent". 1-33 (2) In Section 1, p. 2, line 9, strike the word "value" and 1-34 replace it with "equivalent". 1-35 (3) In Section 1, p. 2, line 21, strike the words "present" 1-36 and "value" and replace "value" with "equivalent". 1-37 (4) In Section 1, p. 2, line 23, strike the word "present". 1-38 (5) In Section 1, p. 2, line 24, strike the word "value" and 1-39 replace it with "equivalent". 1-40 (6) In Section 1, p. 2, line 25, insert the words "normal 1-41 age" between the words "a" and "standard". 1-42 (7) In Section 1, p. 2, line 26, strike the phrase "reduced 1-43 as appropriate for early retirement,". 1-44 COMMITTEE AMENDMENT NO. 3 By: Rosson 1-45 Amend H.B. No. 391 as follows: 1-46 (1) In SECTION 1, p. 2, line 3, insert the word "alternate" 1-47 between the words "the" and "payee". 1-48 COMMITTEE AMENDMENT NO. 4 By: Rosson 1-49 Amend H.B. No. 391 as follows: 1-50 In Section 1, p. 2, line 5, insert the phrase "on or after 1-51 January 1, 1985" after the word "order" and before the comma. 1-52 A BILL TO BE ENTITLED 1-53 AN ACT 1-54 relating to public retirement benefits payable to certain persons 1-55 who have obtained qualified domestic relations orders. 1-56 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-57 SECTION 1. Subchapter A, Chapter 804, Government Code, is 1-58 amended by adding Section 804.005 to read as follows: 1-59 Sec. 804.005. PAYMENT IN CERTAIN CIRCUMSTANCES IN LIEU OF 1-60 BENEFITS AWARDED BY QUALIFIED DOMESTIC RELATIONS ORDER. (a) This 1-61 section applies only to the Employees Retirement System of Texas 1-62 and the Teacher Retirement System of Texas. 1-63 (b) A public retirement system to which this section applies 1-64 shall pay an alternate payee of a member of the retirement system 1-65 who is described by Subsection (c), if the payee so elects and in 1-66 lieu of the interest awarded by a qualified domestic relations 1-67 order, an amount that is the alternate payee's portion of the 1-68 present actuarial value of the accrued retirement benefit of the 2-1 member of the retirement system, determined as if the member 2-2 retired on the date of the alternate payee's election. The amount 2-3 becomes payable at the time the actuarial value is determined, and 2-4 the amount is payable in the form of an annuity payable in equal 2-5 monthly installments for the life of the alternate payee. 2-6 (c) A member whose benefits are subject to partial payment 2-7 under this section is one who has not retired from the retirement 2-8 system, has attained the age of 62 and the service requirements for 2-9 service retirement at full or actuarially reduced benefits, and 2-10 retains credit and contributions in the retirement system 2-11 attributable to that service. 2-12 (d) If an alternate payee elects to be paid under this 2-13 section, the retirement system shall reduce the benefit payable by 2-14 the system to the member or the member's beneficiary by the 2-15 alternate payee's portion of the present actuarial value determined 2-16 under Subsection (b). 2-17 (e) In determining under Subsection (b) the present 2-18 actuarial value of an accrued retirement benefit, the system shall 2-19 consider the member's benefit as a standard service retirement 2-20 annuity, reduced as appropriate for early retirement, without 2-21 regard to any optional annuity chosen or beneficiary designated by 2-22 the member. 2-23 (f) The beginning of monthly payments under this section 2-24 terminates any interest that the alternate payee who receives the 2-25 payment might otherwise have in benefits that accrue to the account 2-26 of the member after the date the initial payment to the alternate 2-27 payee is made. 2-28 (g) A public retirement system may adopt rules for 2-29 administration of this section. 2-30 SECTION 2. This Act takes effect September 1, 1993. 2-31 SECTION 3. The importance of this legislation and the 2-32 crowded condition of the calendars in both houses create an 2-33 emergency and an imperative public necessity that the 2-34 constitutional rule requiring bills to be read on three several 2-35 days in each house be suspended, and this rule is hereby suspended. 2-36 * * * * * 2-37 Austin, 2-38 Texas 2-39 May 22, 1993 2-40 Hon. Bob Bullock 2-41 President of the Senate 2-42 Sir: 2-43 We, your Committee on State Affairs to which was referred H.B. No. 2-44 391, have had the same under consideration, and I am instructed to 2-45 report it back to the Senate with the recommendation that it do 2-46 pass, as amended, and be printed. 2-47 Rosson, 2-48 Vice-Chairman 2-49 * * * * * 2-50 WITNESSES 2-51 FOR AGAINST ON 2-52 ___________________________________________________________________ 2-53 Name: Charmaine J. Rhodes x 2-54 Representing: Teacher Retirement System 2-55 City: Austin 2-56 ------------------------------------------------------------------- 2-57 Name: Mary Thigpen x 2-58 Representing: Self 2-59 City: Wimberley 2-60 -------------------------------------------------------------------