By: Martin H.B. No. 660 73R570 GCH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the effect of certain types of divorce decrees on 1-3 retirement benefits payable by the Teacher Retirement System of 1-4 Texas. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Section 824.101(c), Government Code, is amended 1-7 to read as follows: 1-8 (c) Only one person may be designated as beneficiary of an 1-9 optional retirement annuity under Section 824.204(c)(1) or (c)(2), 1-10 and a designation of beneficiary under either of those options may 1-11 not be made, changed, or revoked after the date of the member's 1-12 retirement, except as provided by Section 824.107. 1-13 SECTION 2. Subchapter B, Chapter 824, Government Code, is 1-14 amended by adding Section 824.107 to read as follows: 1-15 Sec. 824.107. REVOCATION OF BENEFICIARY BY DIVORCE DECREE. 1-16 (a) In this section, "divorce decree" means a judgment, decree, or 1-17 order, including a document approving a property settlement 1-18 agreement, that is issued by a court under a domestic relations law 1-19 of this or another state in conjunction with the dissolution of a 1-20 marriage and that relates to the marital property rights of a 1-21 member or retiree and that person's former spouse. 1-22 (b) If the retirement system receives a certified copy of a 1-23 divorce decree that purports to revoke or order the revocation of a 1-24 designation by a member or retiree of a beneficiary under this 2-1 subchapter, the retirement system shall change its records in 2-2 accordance with the decree. 2-3 (c) If a divorce decree revokes or orders the revocation of 2-4 a designation of a beneficiary made by a member, or by a retiree 2-5 who selected an optional retirement annuity other than an annuity 2-6 described by Section 824.204(c)(1) or (c)(2), the member or retiree 2-7 may select another beneficiary in the manner provided by this 2-8 subchapter. 2-9 (d) If a divorce decree revokes or orders the revocation of 2-10 a designation of a beneficiary made by a retiree who selected an 2-11 optional retirement annuity under Section 824.204(c)(1) or (c)(2), 2-12 the retiree may not select another beneficiary, but the retirement 2-13 system shall increase the retiree's reduced annuity to the standard 2-14 service retirement annuity that the retiree would otherwise be 2-15 entitled to receive if the retiree had not selected an optional 2-16 annuity. The retirement system shall adjust the standard annuity 2-17 as appropriate for early retirement as permitted by law and 2-18 postretirement benefit increases provided after the date of the 2-19 retiree's retirement. 2-20 (e) Payment of an annuity increased under Subsection (d) 2-21 begins with the payment for the month after the month in which the 2-22 retirement system receives a copy of the retiree's divorce decree 2-23 and is payable to the retiree for the remainder of the retiree's 2-24 life. 2-25 SECTION 3. If the Teacher Retirement System of Texas 2-26 received before the effective date of this Act a certified copy of 2-27 a divorce decree that purports to revoke or order the revocation of 3-1 a designation of a beneficiary by a member or retiree of the 3-2 retirement system, the retirement system shall change its records 3-3 and, as appropriate, begin payment of any increased annuity with 3-4 the payment for the month after the month in which this Act takes 3-5 effect. 3-6 SECTION 4. The importance of this legislation and the 3-7 crowded condition of the calendars in both houses create an 3-8 emergency and an imperative public necessity that the 3-9 constitutional rule requiring bills to be read on three several 3-10 days in each house be suspended, and this rule is hereby suspended, 3-11 and that this Act take effect and be in force from and after its 3-12 passage, and it is so enacted.