By Johnson H.B. No. 2711
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration of, benefits payable by, eligibility
1-3 for benefits payable by, and credit under programs administered by,
1-4 the Teacher Retirement System of Texas; prohibiting certain
1-5 interests in contracts; and providing for the sunset review of the
1-6 system.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. Section 821.001, Government Code, is amended by
1-9 adding Subdivisions (18) and (19) to read as follows:
1-10 (18) "Alternate payee" has the meaning assigned that
1-11 term by Section 804.001.
1-12 (19) "Beneficiary" means the person or entity who,
1-13 under a valid written designation or by law, is entitled to receive
1-14 benefits payable by the retirement system on the death of a member
1-15 or annuitant.
1-16 SECTION 2. Section 823.401, Government Code, is amended by
1-17 amending Subsections (c) and (f) and adding Subsection (h) to read
1-18 as follows:
1-19 (c) A member eligible to establish credit under this section
1-20 is one who has at least five <10> years of service credit in the
1-21 retirement system for actual service in public schools.
1-22 (f) The amount of service credit a member may establish
1-23 under this section may not exceed the lesser of the number of years
2-1 of membership service credit the member has in the retirement
2-2 system for actual service in public schools or 10 years.
2-3 (h) A member purchasing out-of-state service credit does not
2-4 qualify for insurance coverage until the member has 10 or more
2-5 years of membership service credit for actual service in public
2-6 schools.
2-7 SECTION 3. Section 823.402(e), Government Code, is amended
2-8 to read as follows:
2-9 (e) A member may establish credit under this section by
2-10 depositing with the retirement system for each year of
2-11 developmental leave claimed an amount equal to the sum of:
2-12 (1) the rate of member contributions required during
2-13 the <member's most recent> year of <service that preceded the
2-14 developmental> leave, times the member's annual rate of
2-15 compensation during the member's most recent year of creditable
2-16 service that preceded the year of leave <that year>; plus
2-17 (2) the amount that the state would have contributed
2-18 had the member performed membership service during the year of
2-19 leave at the member's annual rate of compensation during the most
2-20 recent year of service that preceded the leave; plus
2-21 (3) any membership fees in effect during the year of
2-22 leave.
2-23 SECTION 4. Section 823.501(b), Government Code, is amended
2-24 to read as follows:
2-25 (b) A person eligible to reinstate service credit under this
3-1 section is one who resumes membership service in the retirement
3-2 system <and subsequently performs membership service for the
3-3 shorter of the following periods:>
3-4 <(1) two consecutive years; or>
3-5 <(2) a continuous period equal in duration to the
3-6 period from the date of termination to the date of resumption of
3-7 membership>.
3-8 SECTION 5. Sections 824.101(c) and (e), Government Code, are
3-9 amended to read as follows:
3-10 (c) Only one person may be designated as beneficiary of an
3-11 optional retirement annuity under Section 824.204(c)(1) or (c)(2),
3-12 and a designation of beneficiary under either of those options may
3-13 not be made, changed, or revoked after the later of the date on
3-14 which the retirement system makes the first annuity payment to the
3-15 retiree or the date the first payment becomes due. For purposes of
3-16 this section, the term "makes payment" includes the depositing in
3-17 the mail of a payment warrant or the crediting of an account with
3-18 payment through electronic funds transfer <of the member's
3-19 retirement>.
3-20 (e) The retirement system by rule may provide for the
3-21 designation of alternate beneficiaries and may adopt other rules to
3-22 administer this section.
3-23 SECTION 6. Subchapter C, Chapter 824, Government Code, is
3-24 amended by adding Section 824.2021 to read as follows:
3-25 Sec. 824.2021. TEMPORARY ELIGIBILITY FOR SERVICE RETIREMENT.
4-1 (a) This section applies only to retirements that occur on or
4-2 after May 31, 1994, but before September 1, 1994.
4-3 (b) Notwithstanding Section 824.202, a member is eligible to
4-4 retire and receive a service retirement annuity if:
4-5 (1) the member has at least 20 years of service
4-6 credit; and
4-7 (2) the member is at least 53 years of age.
4-8 (c) The standard service retirement annuity of an eligible
4-9 member under this section is computed under Section 824.203 using
4-10 the amount of the member's service credit plus two years, except
4-11 that:
4-12 (1) the addition to the member's service credit may
4-13 not be used in determining the member's average annual
4-14 compensation; or
4-15 (2) if the addition to the member's service credit
4-16 results in an amount that is more than 50 years, the member's total
4-17 service credit is equal to 50 years.
4-18 (d) An annuity reduced because of age under Section
4-19 824.202(b), (c), or (d) of an eligible member under this section is
4-20 computed using the amount of the member's service credit plus two
4-21 years and the member's age plus two years.
4-22 (e) An optional service retirement annuity under Section
4-23 824.204 of an eligible member under this section must be
4-24 actuarially reduced, using the member's age plus two years, from
4-25 the annuity otherwise payable under this chapter.
5-1 (f) An employer shall reimburse the retirement system for
5-2 the unfunded liability, as determined by the actuary of the
5-3 retirement system and certified by the State Pension Review Board,
5-4 incurred by the retirement system that is attributable to the
5-5 employees of the employer who retire under this section. The
5-6 retirement system shall establish the time and method of
5-7 reimbursement under this subsection. An employer may require an
5-8 employee of the employer who retires under this section to
5-9 reimburse the employer for part or all of the unfunded liability
5-10 incurred by the retirement system that is attributable to the
5-11 employee and that is paid by the employer. It is provided,
5-12 however, that the employee may elect in writing not to take
5-13 advantage of the benefit provided by this section.
5-14 (g) This section expires September 1, 1995.
5-15 SECTION 7. Section 824.204(a), Government Code, is amended
5-16 to read as follows:
5-17 (a) Instead of the standard service retirement annuity
5-18 payable under Section 824.203 or an annuity reduced because of age
5-19 under Section 824.202, a retiring member may elect to receive an
5-20 optional service retirement annuity, reduced for early retirement
5-21 if applicable, under this section. An election to receive an
5-22 optional service retirement annuity must be filed with the board of
5-23 trustees not later than the effective date of retirement.
5-24 SECTION 8. Subchapter C, Chapter 824, Government Code, is
5-25 amended by adding Section 824.206 to read as follows:
6-1 Sec. 824.206. CHANGE OF SERVICE RETIREMENT ANNUITY PAYMENT
6-2 PLAN. (a) A retiree may change the retiree's choice of service
6-3 retirement annuity payment plans after the retiree's effective date
6-4 of retirement by filing written notice with the board of trustees
6-5 before the later of the date on which the retirement system makes
6-6 the first annuity payment or the date the first payment becomes
6-7 due. After the first payment has been made by the retirement
6-8 system or has become due, a retiree may not change the annuity
6-9 payment plan selected.
6-10 (b) For purposes of this section, the term "makes payment"
6-11 includes the depositing in the mail of a payment warrant or the
6-12 crediting of an account with payment through electronic funds
6-13 transfer.
6-14 (c) The retirement system may adopt rules to administer this
6-15 section.
6-16 SECTION 9. Section 824.304(d), Government Code, is
6-17 redesignated as Section 824.304(c) to read as follows:
6-18 (c) <(d)> Before the 31st day after the date on which the
6-19 medical board certifies a member's disability, the member may
6-20 reinstate withdrawn contributions and make deposits for service
6-21 previously waived, military service, and equivalent membership
6-22 service and receive service credit as provided by this subtitle.
6-23 SECTION 10. Section 824.308(a), Government Code, is amended
6-24 to read as follows:
6-25 (a) Instead of an annuity payable under Section 824.304(b),
7-1 a member retiring under that section may elect to receive an
7-2 optional disability retirement annuity under this section. An
7-3 election to receive an optional disability retirement annuity must
7-4 be filed with the board of trustees not later than the effective
7-5 date of retirement.
7-6 SECTION 11. Subchapter D, Chapter 824, Government Code, is
7-7 amended by adding Section 824.309 to read as follows:
7-8 Sec. 824.309. CHANGE OF DISABILITY RETIREMENT PAYMENT PLAN.
7-9 (a) A retiree may change the retiree's choice of disability
7-10 retirement payment plans after the retiree's effective date of
7-11 retirement by filing written notice with the board of trustees
7-12 before the later of the date on which the retirement system makes
7-13 the first annuity payment or the date the first payment becomes
7-14 due. After the first payment has been made by the retirement
7-15 system or has become due, a retiree may not change the annuity
7-16 payment plan selected.
7-17 (b) For purposes of this section, the term "makes payment"
7-18 includes the depositing in the mail of a payment warrant or the
7-19 crediting of an account with payment through electronic funds
7-20 transfer.
7-21 (c) The retirement system may adopt rules to administer this
7-22 section.
7-23 SECTION 12. Sections 824.404(b), (c), and (d), Government
7-24 Code, are amended to read as follows:
7-25 (b) If the designated beneficiary is the spouse or a
8-1 dependent parent of the decedent, the beneficiary may elect to
8-2 receive for life a monthly benefit of $150 <$100>, beginning
8-3 immediately or on the date the beneficiary becomes 65 years old,
8-4 whichever is later.
8-5 (c) If the designated beneficiary is the spouse of the
8-6 decedent and has one or more children less than 18 years old or has
8-7 custody of one or more children of the decedent who are less than
8-8 18 years old, the designated beneficiary may elect to receive:
8-9 (1) a monthly benefit of $250 <$200> payable until the
8-10 youngest child becomes 18 years old; and
8-11 (2) when the youngest child has attained the age of
8-12 18, a monthly benefit for life of $150 <$100>, beginning on the
8-13 date the beneficiary becomes 65 years old.
8-14 (d) If the designated beneficiary or beneficiaries are the
8-15 decedent's dependent children who are less than 18 years old, their
8-16 guardian may elect to receive for them:
8-17 (1) a monthly benefit of $250 <$200>, payable as long
8-18 as two or more children are less than 18 years old; and
8-19 (2) a monthly benefit of $150 <$100>, payable as long
8-20 as only one child is less than 18 years old.
8-21 SECTION 13. Section 824.602, Government Code, is amended to
8-22 read as follows:
8-23 Sec. 824.602. Exceptions. (a) The retirement system may
8-24 not, under Section 824.601, withhold a monthly benefit payment if
8-25 the retiree is employed in a Texas public educational institution:
9-1 (1) as a substitute only with pay not more than the
9-2 daily rate of substitute pay established by the employer, if the
9-3 employment has not exceeded a total of 120 days in the school year
9-4 or, for a disability retiree, 90 days in the school year;
9-5 (2) in a position, other than as a substitute, on no
9-6 more than a one-half time basis for the month; <or>
9-7 (3) in one or more positions on as much as a full-time
9-8 basis, if:
9-9 (A) the work occurs in a school year that begins
9-10 after the retiree's effective date of retirement;
9-11 (B) the work occurs in no more than six months
9-12 of the school year; and
9-13 (C) the retiree executes on a form and within
9-14 any deadline prescribed by the retirement system a written election
9-15 to have this exception apply for the school year in determining
9-16 whether benefits are to be suspended for employment after
9-17 retirement; or
9-18 (4) in a position, other than as a substitute, on no
9-19 more than a one-half time basis for no more than 90 days in the
9-20 school year, if the retiree is a disability retiree.
9-21 (b) Working <as a substitute> any portion of a day counts as
9-22 working a full day for the purposes of Subsection (a)(1) or (a)(4).
9-23 (c) Working any portion of a month counts as working a full
9-24 month for the purposes of Subsection (a)(3).
9-25 (d) A retiree who has elected to avoid loss of monthly
10-1 benefits in a school year pursuant to Subsection (a)(3) is not
10-2 eligible during that school year for any other exceptions to loss
10-3 of benefits provided in this section. If a retiree elects the
10-4 exemption provided in Subsection (a)(3) for a school year, the
10-5 retirement system must include any previous employment during the
10-6 school year, including any employment that relied upon the
10-7 exemptions in Subsection (a)(1) or (a)(2), in determining whether
10-8 and when the retiree has exceeded six months of employment in the
10-9 school year.
10-10 (e) A retiree working as a substitute in a month is not
10-11 eligible for an exception to a loss of benefits for that month
10-12 pursuant to Subsection (a)(2) or (a)(4) for that or any other
10-13 employment in a public educational institution.
10-14 (f) The retirement system shall include any employment
10-15 during the school year, including any employment that relied on the
10-16 exemption provided by Subsection (a)(1) or (a)(4), in determining
10-17 whether and when a disability retiree has exceeded 90 days of
10-18 employment in the school year.
10-19 (g) The exceptions provided by Subsections (a)(2) and (a)(3)
10-20 do not apply to disability retirees. The retirement system
10-21 nevertheless may not withhold a monthly benefit payment under
10-22 Section 824.601 if:
10-23 (1) a disability retiree is employed in a Texas public
10-24 educational institution in a position, other than as a substitute,
10-25 for a period not to exceed three consecutive months of the school
11-1 year;
11-2 (2) the work occurs in a period, designated by the
11-3 disability retiree, of no more than three consecutive months of a
11-4 school year;
11-5 (3) the disability retiree executes on a form and at a
11-6 time prescribed by the retirement system a written election to have
11-7 this exception apply on a one-time trial basis in determining
11-8 whether benefits are to be suspended for the months of employment
11-9 after retirement and in determining whether a disability retiree is
11-10 no longer mentally or physically incapacitated for the performance
11-11 of duty; and
11-12 (4) the disability retiree has not previously elected
11-13 to avoid loss of monthly benefits in a school year under this
11-14 subsection.
11-15 (h) <(g)> A disability retiree is not entitled to service
11-16 credit for service during a trial period under Subsection (g) <(f)>
11-17 if the retiree is restored to active service.
11-18 (i) <(h)> Section 824.005(b), concerning revocation of
11-19 retirement on certain reemployment, applies to employment described
11-20 in Subsection (a) or (g) <(f)>.
11-21 (j) <(i)> The board of trustees shall adopt rules governing
11-22 the employment of a substitute and defining "one-half time basis."
11-23 (k) <(j)> The actuary designated by the board of trustees
11-24 shall, in investigating the experience of the members of the
11-25 system, note any significant increase in early age retirements and
12-1 determine the extent to which any increase has been caused by the
12-2 exception to loss of benefits for employment after retirement
12-3 provided by Subsection (a)(3). If the actuary certifies in writing
12-4 to the retirement system that sound actuarial funding of the
12-5 retirement system's benefits is endangered by continuation of this
12-6 exception, the board of trustees may determine that no further
12-7 elections of the exception will be accepted from retirees, other
12-8 than from those who have previously relied on the exception in
12-9 retiring under this subtitle. A retiree may be considered to have
12-10 relied on this exception only if retirement occurred on or after
12-11 May 31, 1985, but before the date the board of trustees
12-12 acknowledges receipt of such certification and if the retiree has
12-13 first elected to receive benefits under the exception not later
12-14 than two years after the retiree's effective date of retirement.
12-15 SECTION 14. Section 825.006, Government Code, is amended to
12-16 read as follows:
12-17 Sec. 825.006. SUNSET PROVISION. The board of trustees of
12-18 the Teacher Retirement System of Texas is subject to review under
12-19 Chapter 325 (Texas Sunset Act), but is not abolished under that
12-20 chapter. The board shall be reviewed during the period in which
12-21 state agencies abolished in 1995 <1993 and every 12th year after
12-22 1993> are reviewed. This section expires September 1, 1995.
12-23 SECTION 15. Section 825.202, Government Code, is amended to
12-24 read as follows:
12-25 Sec. 825.202. EXECUTIVE DIRECTOR <SECRETARY>. (a) The
13-1 board of trustees, by a majority vote of all members, shall appoint
13-2 an executive director <secretary>.
13-3 (b) The executive director <secretary> may not be a member
13-4 of the board of trustees.
13-5 (c) To be eligible to serve as the executive director
13-6 <secretary>, a person must have been a citizen of this state for
13-7 the three years immediately preceding the appointment.
13-8 (d) The executive director <secretary> shall recommend to
13-9 the board actuarial and other services necessary to administer the
13-10 retirement system.
13-11 (e) Annually, the executive director <secretary> shall
13-12 prepare an itemized expense budget for the following fiscal year
13-13 and shall submit the budget to the board for review and adoption.
13-14 SECTION 16. Section 825.207(b), Government Code, is amended
13-15 to read as follows:
13-16 (b) The state treasurer shall pay money from the accounts of
13-17 the retirement system on warrants drawn by the comptroller of
13-18 public accounts and authorized by vouchers signed by the executive
13-19 director <secretary> or other persons designated by the board of
13-20 trustees.
13-21 SECTION 17. Sections 825.209(b) and (c), Government Code,
13-22 are amended to read as follows:
13-23 (b) The executive director <secretary> shall give a surety
13-24 bond in the amount of $25,000.
13-25 (c) The board of trustees may require any trustee or
14-1 employee of the board, other than the executive director
14-2 <secretary>, to give a surety bond in an amount determined by the
14-3 board.
14-4 SECTION 18. Subchapter C, Chapter 825, Government Code, is
14-5 amended by adding Sections 825.211 and 825.212 to read as follows:
14-6 Sec. 825.211. CERTAIN INTERESTS IN LOANS, INVESTMENTS, OR
14-7 CONTRACTS PROHIBITED. (a) Except as provided by Subsection (c), a
14-8 person described by Subsection (b) may not participate in or be the
14-9 beneficiary of, directly or indirectly, a loan, commitment to lend,
14-10 a guarantee or endorsement to lend, or investment by the retirement
14-11 system or a contract to advise the system or manage property or
14-12 investments for the system.
14-13 (b) The prohibition provided by Subsection (a) applies to a
14-14 trustee or employee of the retirement system, a consultant or
14-15 advisor to the retirement system, and a person related within the
14-16 second degree by consanguinity or affinity to a trustee, employee,
14-17 consultant, or advisor.
14-18 (c) The prohibition provided by Subsection (a) does not
14-19 apply to actions taken by a trustee or employee of the retirement
14-20 system within the scope of that person's official duties for the
14-21 system or actions taken by a consultant or advisor within the scope
14-22 of the services for which the person is being compensated by the
14-23 retirement system, if the actions do not involve a relationship
14-24 required to be disclosed under Section 825.212. The prohibition
14-25 provided by Subsection (a) does not apply to an indirect benefit
15-1 received resulting from retirement system membership.
15-2 Sec. 825.212. RETIREMENT SYSTEM ETHICS POLICY. (a) In
15-3 addition to any other requirements provided by law, the board of
15-4 trustees shall enforce an ethics policy as provided by this section
15-5 for employees of and consultants and advisors to the retirement
15-6 system.
15-7 (b) Each employee of the retirement system who exercises
15-8 significant decisionmaking or fiduciary authority, as determined by
15-9 the board, shall file financial disclosure statements with a person
15-10 designated by the board. The content of a financial disclosure
15-11 statement must comply substantially with the requirements of
15-12 Section 4, Chapter 421, Acts of the 63rd Legislature, Regular
15-13 Session, 1973 (Article 6252-9b, Vernon's Texas Civil Statutes). A
15-14 statement must be filed not later than the 30th day after the date
15-15 a person is employed in a significant decisionmaking or fiduciary
15-16 position and annually after employment not later than April 30.
15-17 The filing deadline may be postponed by the executive director for
15-18 not more than 60 days on written request or for an additional
15-19 period for good cause, as determined by the chairman of the board.
15-20 The retirement system shall maintain a financial disclosure
15-21 statement for at least five years after the date of its filing.
15-22 (c) An employee who has a business or commercial
15-23 relationship that could reasonably be expected to diminish the
15-24 employee's independence of judgment in the performance of the
15-25 employee's responsibilities to the retirement system shall disclose
16-1 that relationship in writing to a person designated by the board.
16-2 (d) An employee who files a disclosure statement under
16-3 Subsection (c) shall refrain from giving advice or making decisions
16-4 about matters affected by the conflict of interest unless the
16-5 board, after consultation with the general counsel of the
16-6 retirement system, expressly waives this prohibition. The
16-7 retirement system shall maintain a written record of each waiver
16-8 and the reasons for it. The board may delegate the authority to
16-9 waive prohibitions under this subsection to one or more designated
16-10 employees on a vote of a majority of the members of the board at an
16-11 open meeting called and held in compliance with Chapter 271, Acts
16-12 of the 60th Legislature, Regular Session, 1967 (Article 6252-17,
16-13 Vernon's Texas Civil Statutes). The board shall have any order
16-14 delegating authority to waive prohibitions under this section
16-15 entered into the minutes of the meeting. The board may adopt
16-16 criteria for designated employees to use to determine the kinds of
16-17 relationships that do not constitute a material conflict of
16-18 interest for purposes of this subsection.
16-19 (e) The board by rule shall adopt standards of conduct
16-20 applicable to consultants and advisors to the retirement system who
16-21 may reasonably be expected to receive more than $10,000
16-22 compensation from the system for a fiscal year or who render
16-23 important investment advice to the retirement system.
16-24 (f) A consultant or advisor who, directly or indirectly, has
16-25 a personal or private commercial or business relationship,
17-1 unrelated to the services that the consultant or advisor performs
17-2 for the retirement system, with any other party to a transaction
17-3 with the system that could reasonably be expected to diminish the
17-4 person's independence of judgment in the performance of the
17-5 person's responsibilities to the system shall disclose that
17-6 relationship in writing to the executive director.
17-7 (g) The board by rule shall require consultants and advisors
17-8 to the retirement system and brokers to file regularly with the
17-9 system a report detailing any expenditure of more than $50 made on
17-10 behalf of a trustee or employee of the system.
17-11 (h) The board shall prescribe forms for financial disclosure
17-12 statements, disclosure statements of conflicts of interest, and
17-13 waivers of the prohibition against involvement in a matter affected
17-14 by a conflict of interest. The statements and waivers are open
17-15 records. The board shall designate an employee to be the custodian
17-16 of the statements and waivers for purposes of public disclosure.
17-17 SECTION 19. Subchapter D, Chapter 825, Government Code, is
17-18 amended by adding Section 825.3021 to read as follows:
17-19 Sec. 825.3021. APPRAISAL AND SALE OF REAL PROPERTY. If the
17-20 retirement system acquires, through foreclosure or conveyance of
17-21 deed in lieu of foreclosure, real property assets or stock in an
17-22 entity the major asset of which is real property, the retirement
17-23 system shall, not later than the 90th day after the date of
17-24 acquisition:
17-25 (1) have the real property appraised by an appraiser
18-1 who is not a trustee or employee of the retirement system and who
18-2 is certified as MAI or SRA;
18-3 (2) acquire a foreclosure endorsement to the
18-4 mortgagee's title insurance policy; and
18-5 (3) if the real property contains improvements, employ
18-6 a property management company that is not owned by a trustee or
18-7 employee of the retirement system and that employs a CPM, CAM, or
18-8 RAM to manage the property.
18-9 SECTION 20. Subchapter F, Chapter 825, Government Code, is
18-10 amended by adding Section 825.510 to read as follows:
18-11 Sec. 825.510. BUDGET AND INVESTMENT INFORMATION. (a) The
18-12 retirement system annually shall file with the Legislative Budget
18-13 Board a report showing investments of the retirement system as of
18-14 the last day of the preceding fiscal year, investments made or
18-15 disposed of during that year, income or losses in the various kinds
18-16 of investments, and a comparison of investment performance to
18-17 nationally recognized indexes.
18-18 (b) The retirement system shall file with the Legislative
18-19 Budget Board for review and comment a copy of each proposed annual
18-20 budget of the retirement system.
18-21 SECTION 21. Section 825.303(b), Government Code, is amended
18-22 to read as follows:
18-23 (b) To be eligible to lend securities under this section, a
18-24 bank or brokerage firm must:
18-25 (1) be experienced in the operation of a fully secured
19-1 securities loan program;
19-2 (2) maintain adequate capital in the prudent judgment
19-3 of the retirement system to assure the safety of the securities;
19-4 (3) execute an indemnification agreement satisfactory
19-5 in form and content to the retirement system fully indemnifying the
19-6 retirement system against loss resulting from borrower default or
19-7 the failure of the bank or brokerage firm to properly execute the
19-8 responsibilities of the bank or brokerage firm under the applicable
19-9 securities lending agreement <its operation of a securities loan
19-10 program for the system's securities>; and
19-11 (4) require any securities broker or dealer to whom it
19-12 lends securities belonging to the retirement system to deliver to
19-13 and maintain with the custodian collateral in the form of cash or
19-14 <United States> government securities eligible for book entry in
19-15 either the Federal Reserve System or the Participants Trust
19-16 Company, in an amount equal to not less than 100 percent of the
19-17 market value, from time to time, of the loaned securities.
19-18 SECTION 22. Section 825.311, Government Code, is amended to
19-19 read as follows:
19-20 Sec. 825.311. INTEREST ACCOUNT. In the interest account the
19-21 retirement system shall:
19-22 (1) deposit all income, interest, and dividends from
19-23 deposits and investments of assets of the retirement system; <and>
19-24 (2) accumulate net capital gains and losses resulting
19-25 from the sale, call, maturity, <or> conversion, or recognition of
20-1 changes in carrying values of investments of the retirement system;
20-2 and <of securities>
20-3 (3) accumulate net income or losses from other
20-4 investments.
20-5 SECTION 23. Section 825.312(a), Government Code, is amended
20-6 to read as follows:
20-7 (a) The retirement system shall deposit in the expense
20-8 account:
20-9 (1) all membership fees required by this subtitle;
20-10 <and>
20-11 (2) money required to be deposited in the account by
20-12 Section 825.313(b)(3) or 825.313(c); and
20-13 (3) money received from the Texas Public School
20-14 Retired Employees Group Insurance Program for service performed for
20-15 the program by the retirement system.
20-16 SECTION 24. Sections 825.403(b) and (c), Government Code,
20-17 are amended to read as follows:
20-18 (b) Each employer or the employer's designated disbursing
20-19 officer, at a time and in a form prescribed by the retirement
20-20 system, shall send to the executive director <secretary> all
20-21 deductions and a certification of earnings of each member employed
20-22 by the employer.
20-23 (c) The executive director <secretary> shall deposit with
20-24 the state treasurer all deductions received by the executive
20-25 director <secretary>.
21-1 SECTION 25. Section 825.405(d), Government Code, is amended
21-2 to read as follows:
21-3 (d) The employer must remit the amount required under this
21-4 section to the executive director <secretary> at the same time that
21-5 the employer remits the member's contribution.
21-6 SECTION 26. Section 825.410(g), Government Code, is amended
21-7 to read as follows:
21-8 (g) A member seeking to establish service credit by using
21-9 the installment payment method shall pay an additional fee of nine
21-10 percent per annum calculated on a declining balance method on the
21-11 lump sum due at the time the installment payment process begins.
21-12 For purposes of this subsection, the installment payment process
21-13 begins on the first business day of the month in which the first
21-14 installment payment becomes due. None of the additional fees shall
21-15 be returned to the member or a beneficiary.
21-16 SECTION 27. Section 825.503(d), Government Code, is amended
21-17 to read as follows:
21-18 (d) The executive director <secretary> or an authorized
21-19 representative may certify the authenticity of a photograph,
21-20 microphotograph, or film of a record reproduced under this section
21-21 and shall charge a fee for the certified photograph,
21-22 microphotograph, or film as provided by law.
21-23 SECTION 28. Section 825.507, Government Code, as added by
21-24 Chapter 16, Acts of the 72nd Legislature, Regular Session, 1991, is
21-25 amended to read as follows:
22-1 Sec. 825.507. Confidentiality of Information About Members,
22-2 Retirees, Annuitants, <or> Beneficiaries, OR ALTERNATE PAYEES.
22-3 (a) Information contained in records that are in the custody of
22-4 the retirement system concerning an individual member, retiree,
22-5 annuitant, <or> beneficiary, or alternate payee is confidential
22-6 under Section 3(a)(1), Chapter 424, Acts of the 63rd Legislature,
22-7 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
22-8 Statutes), and may not be disclosed in a form identifiable with a
22-9 specific individual unless:
22-10 (1) the information is disclosed to:
22-11 (A) the individual or the individual's attorney,
22-12 guardian, executor, administrator, conservator, or other person who
22-13 the executive director <secretary> determines is acting in the
22-14 interest of the individual or the individual's estate;
22-15 (B) a spouse or former spouse of the individual
22-16 if the executive director <secretary> determines that the
22-17 information is relevant to the spouse's or former spouse's interest
22-18 in member accounts, benefits, or other amounts payable by the
22-19 retirement system;
22-20 (C) a governmental official or employee if the
22-21 executive director <secretary> determines that disclosure of the
22-22 information requested is reasonably necessary to the performance of
22-23 the duties of the official or employee; or
22-24 (D) a person authorized by the individual in
22-25 writing to receive the information; or
23-1 (2) the information is disclosed pursuant to a
23-2 subpoena and the executive director <secretary> determines that the
23-3 individual will have a reasonable opportunity to contest the
23-4 subpoena.
23-5 (b) This section does not prevent the disclosure of the
23-6 status or identity of an individual as a member, former member,
23-7 retiree, deceased member or retiree, <or> beneficiary, or alternate
23-8 payee of the retirement system.
23-9 (c) The executive director <secretary> may designate other
23-10 employees of the retirement system to make the necessary
23-11 determinations under Subsection (a).
23-12 (d) A determination and disclosure under Subsection (a) may
23-13 be made without notice to the individual member, retiree,
23-14 annuitant, <or> beneficiary, or alternate payee.
23-15 SECTION 29. Section 825.507, Government Code, as added by
23-16 Chapter 13, Acts of the 72nd Legislature, 1st Called Session, 1991,
23-17 is redesignated as Section 825.508 to read as follows:
23-18 Sec. 825.508 <825.507>. Powers of Attorney. (a) A person
23-19 entitled to payment of an annuity or other benefits administered by
23-20 the retirement system may direct the retirement system to treat as
23-21 the authorized representative of the person concerning the
23-22 disposition of the benefits an attorney-in-fact under a power of
23-23 attorney that complies with Subsection (b).
23-24 (b) The system must honor a power of attorney executed in
23-25 accordance with Chapter 1, Section 36A, Texas Probate Code.
24-1 (c) If the power of attorney is revoked, the retirement
24-2 system is not liable for payments made to or actions taken at the
24-3 request of the attorney-in-fact before the date the system receives
24-4 written notice that the power of attorney has been revoked.
24-5 SECTION 30. Subchapter F, Chapter 825, Government Code, is
24-6 amended by adding Section 825.509 to read as follows:
24-7 Sec. 825.509. TRUSTEE-TO-TRUSTEE TRANSFERS. (a) This
24-8 section applies to distributions made on or after January 1, 1993.
24-9 Notwithstanding any law governing the retirement system that would
24-10 otherwise limit a distributee's election under this section, a
24-11 distributee may elect, at the time and in the manner prescribed by
24-12 the executive director or the executive director's designee, to
24-13 have any portion of an eligible rollover distribution from the
24-14 retirement system paid directly to an eligible retirement plan
24-15 specified by the distributee in a direct rollover.
24-16 (b) An eligible rollover distribution under this section is
24-17 any distribution of all or a portion of the balance to the credit
24-18 of the distributee, other than:
24-19 (1) a distribution that is one of a series of
24-20 substantially equal periodic payments made not less frequently than
24-21 annually for:
24-22 (A) the life or life expectancy of the
24-23 distributee;
24-24 (B) the joint lives or joint life expectancies
24-25 of the distributee and the distributee's designated beneficiary; or
25-1 (C) a specified period of 10 years or more;
25-2 (2) a distribution to the extent the distribution is
25-3 required under Section 401(a)(9), Internal Revenue Code of 1986; or
25-4 (3) the portion of a distribution that is not
25-5 includable in gross income for federal income tax purposes.
25-6 (c) An eligible retirement plan under this section is an
25-7 individual retirement account described by Section 408(a), Internal
25-8 Revenue Code of 1986, an individual retirement annuity described by
25-9 Section 408(b), Internal Revenue Code of 1986, an annuity plan
25-10 described by Section 403(a), Internal Revenue Code of 1986, or a
25-11 qualified trust described by Section 401(a), Internal Revenue Code
25-12 of 1986, that accepts the distributee's eligible rollover
25-13 distribution. However, in the case of an eligible rollover
25-14 distribution to a surviving spouse, an eligible retirement plan
25-15 under this section is an individual retirement account or
25-16 individual retirement annuity.
25-17 (d) In this section:
25-18 (1) "Direct rollover" means a payment by the
25-19 retirement system to the eligible retirement plan specified by a
25-20 distributee.
25-21 (2) "Distributee" means a person who receives an
25-22 eligible rollover distribution from the retirement system and
25-23 includes an employee or former employee and, regarding the interest
25-24 of an employee or former employee, the person's surviving spouse or
25-25 alternate payee.
26-1 SECTION 31. Section 824.304(c), Government Code, as it was
26-2 designated immediately before the effective date of this Act, is
26-3 repealed.
26-4 SECTION 32. Monthly payments of a standard service
26-5 retirement annuity made after September 1, 1993, under Section
26-6 824.203, Government Code, to persons who retired before September
26-7 1, 1991, may not be less than $6.50 a month for each year of
26-8 service credit or, for a member who was at least 65 years old at
26-9 the time of retirement, not less than the greater of $6.50 a month
26-10 for each year of service credit, or $150 a month. The minimum
26-11 benefits provided by this section are subject to reduction in the
26-12 same manner as other benefits because of early retirement or
26-13 selection of an optional retirement annuity.
26-14 SECTION 33. The Teacher Retirement System of Texas may
26-15 restore monthly payments of a survivor benefit under Section
26-16 824.404, Government Code, or its predecessor statute, to a spouse
26-17 of a deceased member or retiree that were terminated because of
26-18 remarriage before the effective date of Section 5, Chapter 570,
26-19 Acts of the 66th Legislature, 1979, on application for the benefits
26-20 by the beneficiary. Retroactive payments of the benefits may not
26-21 be made. Payments of the benefits resume beginning with the month
26-22 after the month in which the beneficiary applies for restoration of
26-23 benefits under this section.
26-24 SECTION 34. (a) A retiree who is subject to loss of
26-25 benefits under Section 824.601, Government Code, for months to
27-1 which the exception provided by Section 824.602(a)(3), Government
27-2 Code, could have applied if the retiree had executed the required
27-3 form within the time provided by Section 824.602(a)(3) before its
27-4 amendment by Chapter 13, Acts of the 72nd Legislature, 1st Called
27-5 Session, 1991, is eligible to avoid loss of the benefits or to have
27-6 any lost benefits restored by the Teacher Retirement System of
27-7 Texas.
27-8 (b) To apply under this section to have lost benefits
27-9 restored or to avoid loss of benefits, a retiree must submit a
27-10 written request to the retirement system not later than March 1,
27-11 1994.
27-12 (c) Benefits eligible to be paid under this section are
27-13 those that would have been payable between September 1, 1985, and
27-14 August 31, 1991, if the retiree had not failed to execute the
27-15 required form in a timely manner.
27-16 (d) A retiree may not apply for payment of benefits under
27-17 this section for months of employment credited under Section
27-18 823.502, Government Code. Months of employment in which a retiree
27-19 receives a monthly benefit payment under this section may not be
27-20 considered in applying Section 823.502, Government Code. Only a
27-21 retiree who is surviving on the effective date of this Act is
27-22 eligible to apply for benefits under this section.
27-23 SECTION 35. A supplemental service retirement benefit
27-24 provided for by Chapter 14, Acts of the 60th Legislature, Regular
27-25 Session, 1969, that is being paid on the effective date of this Act
28-1 to a retiree who is still living is payable to the beneficiary of
28-2 the retiree if retirement benefits will be payable to the
28-3 beneficiary on the death of the retiree.
28-4 SECTION 36. The change in law made by Section 12 of this Act
28-5 applies to benefits paid after the effective date of this Act even
28-6 if the beneficiary elected to receive the monthly benefits before
28-7 that date.
28-8 SECTION 37. This Act takes effect September 1, 1993.
28-9 SECTION 38. The importance of this legislation and the
28-10 crowded condition of the calendars in both houses create an
28-11 emergency and an imperative public necessity that the
28-12 constitutional rule requiring bills to be read on three several
28-13 days in each house be suspended, and this rule is hereby suspended.