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
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2-57 Name: Mary Thigpen x
2-58 Representing: Self
2-59 City: Wimberley
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