73R8571 GCH-F
          By Johnson                                            H.B. No. 2711
          Substitute the following for H.B. No. 2711:
          By Marchant                                       C.S.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.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 821.001, Government Code, is amended by
    1-7  adding Subdivisions (18) and (19) to read as follows:
    1-8              (18)  "Alternate payee" has the meaning assigned that
    1-9  term by Section 804.001.
   1-10              (19)  "Beneficiary" means the person or entity who,
   1-11  under a valid written designation or by law, is entitled to receive
   1-12  benefits payable by the retirement system on the death of a member
   1-13  or annuitant.
   1-14        SECTION 2.  Section 823.401, Government Code, is amended by
   1-15  amending Subsections (c) and (f) and adding Subsection (h) to read
   1-16  as follows:
   1-17        (c)  A member eligible to establish credit under this section
   1-18  is one who has at least five <10> years of service credit in the
   1-19  retirement system for actual service in public schools.
   1-20        (f)  The amount of service credit a member may establish
   1-21  under this section may not exceed the lesser of the number of years
   1-22  of membership service credit the member has in the retirement
   1-23  system for actual service in public schools or 10 years.
    2-1        (h)  A member purchasing out-of-state service credit does not
    2-2  qualify for insurance coverage until the member has 10 or more
    2-3  years of membership service credit for actual service in public
    2-4  schools.
    2-5        SECTION 3.  Section 823.402(e), Government Code, is amended
    2-6  to read as follows:
    2-7        (e)  A member may establish credit under this section by
    2-8  depositing with the retirement system for each year of
    2-9  developmental leave claimed an amount equal to the sum of:
   2-10              (1)  the rate of member contributions required during
   2-11  the <member's most recent> year of <service that preceded the
   2-12  developmental> leave, times the member's annual rate of
   2-13  compensation during the member's most recent year of creditable
   2-14  service that preceded the year of leave <that year>; plus
   2-15              (2)  the amount that the state would have contributed
   2-16  had the member performed membership service during the year of
   2-17  leave at the member's annual rate of compensation during the most
   2-18  recent year of service that preceded the leave; plus
   2-19              (3)  any membership fees in effect during the year of
   2-20  leave.
   2-21        SECTION 4.  Section 823.501(b), Government Code, is amended
   2-22  to read as follows:
   2-23        (b)  A person eligible to reinstate service credit under this
   2-24  section is one who resumes membership service in the retirement
   2-25  system <and subsequently performs membership service for the
    3-1  shorter of the following periods:>
    3-2              <(1)  two consecutive years; or>
    3-3              <(2)  a continuous period equal in duration to the
    3-4  period from the date of termination to the date of resumption of
    3-5  membership>.
    3-6        SECTION 5.  Sections 824.101(c) and (e), Government Code, are
    3-7  amended to read as follows:
    3-8        (c)  Only one person may be designated as beneficiary of an
    3-9  optional retirement annuity under Section 824.204(c)(1) or (c)(2),
   3-10  and a designation of beneficiary under either of those options may
   3-11  not be made, changed, or revoked after the later of the date on
   3-12  which the retirement system makes the first annuity payment to the
   3-13  retiree or the date the first payment becomes due.  For purposes of
   3-14  this section, the term "makes payment" includes the depositing in
   3-15  the mail of a payment warrant or the crediting of an account with
   3-16  payment through electronic funds transfer <of the member's
   3-17  retirement>.
   3-18        (e)  The retirement system by rule may provide for the
   3-19  designation of alternate beneficiaries and may adopt other rules to
   3-20  administer this section.
   3-21        SECTION 6.  Section 824.204(a), Government Code, is amended
   3-22  to read as follows:
   3-23        (a)  Instead of the standard service retirement annuity
   3-24  payable under Section 824.203 or an annuity reduced because of age
   3-25  under Section 824.202, a retiring member may elect to receive an
    4-1  optional service retirement annuity, reduced for early retirement
    4-2  if applicable, under this section.  An election to receive an
    4-3  optional service retirement annuity must be filed with the board of
    4-4  trustees not later than the effective date of retirement.
    4-5        SECTION 7.  Subchapter C, Chapter 824, Government Code, is
    4-6  amended by adding Section 824.206 to read as follows:
    4-7        Sec. 824.206.  CHANGE OF SERVICE RETIREMENT ANNUITY PAYMENT
    4-8  PLAN.  (a)  A retiree may change the retiree's choice of service
    4-9  retirement annuity payment plans after the retiree's effective date
   4-10  of retirement by filing written notice with the board of trustees
   4-11  before the later of the date on which the retirement system makes
   4-12  the first annuity payment or the date the first payment becomes
   4-13  due.  After the first payment has been made by the retirement
   4-14  system or has become due, a retiree may not change the annuity
   4-15  payment plan selected.
   4-16        (b)  For purposes of this section, the term "makes payment"
   4-17  includes the depositing in the mail of a payment warrant or the
   4-18  crediting of an account with payment through electronic funds
   4-19  transfer.
   4-20        (c)  The retirement system may adopt rules to administer this
   4-21  section.
   4-22        SECTION 8.  Section 824.304(d), Government Code, is
   4-23  redesignated as Section 824.304(c) to read as follows:
   4-24        (c) <(d)>  Before the 31st day after the date on which the
   4-25  medical board certifies a member's disability, the member may
    5-1  reinstate withdrawn contributions and make deposits for service
    5-2  previously waived, military service, and equivalent membership
    5-3  service and receive service credit as provided by this subtitle.
    5-4        SECTION 9.  Section 824.308(a), Government Code, is amended
    5-5  to read as follows:
    5-6        (a)  Instead of an annuity payable under Section 824.304(b),
    5-7  a member retiring under that section may elect to receive an
    5-8  optional disability retirement annuity under this section.  An
    5-9  election to receive an optional disability retirement annuity must
   5-10  be filed with the board of trustees not later than the effective
   5-11  date of retirement.
   5-12        SECTION 10.  Subchapter D, Chapter 824, Government Code, is
   5-13  amended by adding Section 824.309 to read as follows:
   5-14        Sec. 824.309.  CHANGE OF DISABILITY RETIREMENT PAYMENT PLAN.
   5-15  (a)  A retiree may change the retiree's choice of disability
   5-16  retirement payment plans after the retiree's effective date of
   5-17  retirement by filing written notice with the board of trustees
   5-18  before the later of the date on which the retirement system makes
   5-19  the first annuity payment or the date the first payment becomes
   5-20  due.  After the first payment has been made by the retirement
   5-21  system or has become due, a retiree may not change the annuity
   5-22  payment plan selected.
   5-23        (b)  For purposes of this section, the term "makes payment"
   5-24  includes the depositing in the mail of a payment warrant or the
   5-25  crediting of an account with payment through electronic funds
    6-1  transfer.
    6-2        (c)  The retirement system may adopt rules to administer this
    6-3  section.
    6-4        SECTION 11.  Sections 824.404(b), (c), and (d), Government
    6-5  Code, are amended to read as follows:
    6-6        (b)  If the designated beneficiary is the spouse or a
    6-7  dependent parent of the decedent, the beneficiary may elect to
    6-8  receive for life a monthly benefit of $150 <$100>, beginning
    6-9  immediately or on the date the beneficiary becomes 65 years old,
   6-10  whichever is later.
   6-11        (c)  If the designated beneficiary is the spouse of the
   6-12  decedent and has one or more children less than 18 years old or has
   6-13  custody of one or more children of the decedent who are less than
   6-14  18 years old, the designated beneficiary may elect to receive:
   6-15              (1)  a monthly benefit of $250 <$200> payable until the
   6-16  youngest child becomes 18 years old; and
   6-17              (2)  when the youngest child has attained the age of
   6-18  18, a monthly benefit for life of $150 <$100>, beginning on the
   6-19  date the beneficiary becomes 65 years old.
   6-20        (d)  If the designated beneficiary or beneficiaries are the
   6-21  decedent's dependent children who are less than 18 years old, their
   6-22  guardian may elect to receive for them:
   6-23              (1)  a monthly benefit of $250 <$200>, payable as long
   6-24  as two or more children are less than 18 years old; and
   6-25              (2)  a monthly benefit of $150 <$100>, payable as long
    7-1  as only one child is less than 18 years old.
    7-2        SECTION 12.  Section 824.602, Government Code, is amended to
    7-3  read as follows:
    7-4        Sec. 824.602.  Exceptions.  (a)  The retirement system may
    7-5  not, under Section 824.601, withhold a monthly benefit payment if
    7-6  the retiree is employed in a Texas public educational institution:
    7-7              (1)  as a substitute only with pay not more than the
    7-8  daily rate of substitute pay established by the employer, if the
    7-9  employment has not exceeded a total of 120 days in the school year
   7-10  or, for a disability retiree, 90 days in the school year;
   7-11              (2)  in a position, other than as a substitute, on no
   7-12  more than a one-half time basis for the month; <or>
   7-13              (3)  in one or more positions on as much as a full-time
   7-14  basis, if:
   7-15                    (A)  the work occurs in a school year that begins
   7-16  after the retiree's effective date of retirement;
   7-17                    (B)  the work occurs in no more than six months
   7-18  of the school year; and
   7-19                    (C)  the retiree executes on a form and within
   7-20  any deadline prescribed by the retirement system a written election
   7-21  to have this exception apply for the school year in determining
   7-22  whether benefits are to be suspended for employment after
   7-23  retirement; or
   7-24              (4)  in a position, other than as a substitute, on no
   7-25  more than a one-half time basis for no more than 90 days in the
    8-1  school year, if the retiree is a disability retiree.
    8-2        (b)  Working <as a substitute> any portion of a day counts as
    8-3  working a full day for the purposes of Subsection (a)(1) or (a)(4).
    8-4        (c)  Working any portion of a month counts as working a full
    8-5  month for the purposes of Subsection (a)(3).
    8-6        (d)  A retiree who has elected to avoid loss of monthly
    8-7  benefits in a school year pursuant to Subsection (a)(3) is not
    8-8  eligible during that school year for any other exceptions to loss
    8-9  of benefits provided in this section.  If a retiree elects the
   8-10  exemption provided in Subsection (a)(3) for a school year, the
   8-11  retirement system must include any previous employment during the
   8-12  school year, including any employment that relied upon the
   8-13  exemptions in Subsection (a)(1) or (a)(2), in determining whether
   8-14  and when the retiree has exceeded six months of employment in the
   8-15  school year.
   8-16        (e)  A retiree working as a substitute in a month is not
   8-17  eligible for an exception to a loss of benefits for that month
   8-18  pursuant to Subsection (a)(2) or (a)(4) for that or any other
   8-19  employment in a public educational institution.
   8-20        (f)  The retirement system shall include any employment
   8-21  during the school year, including any employment that relied on the
   8-22  exemption provided by Subsection (a)(1) or (a)(4), in determining
   8-23  whether and when a disability retiree has exceeded 90 days of
   8-24  employment in the school year.
   8-25        (g)  The exceptions provided by Subsections (a)(2) and (a)(3)
    9-1  do not apply to disability retirees.  The retirement system
    9-2  nevertheless may not withhold a monthly benefit payment under
    9-3  Section 824.601 if:
    9-4              (1)  a disability retiree is employed in a Texas public
    9-5  educational institution in a position, other than as a substitute,
    9-6  for a period not to exceed three consecutive months of the school
    9-7  year;
    9-8              (2)  the work occurs in a period, designated by the
    9-9  disability retiree, of no more than three consecutive months of a
   9-10  school year;
   9-11              (3)  the disability retiree executes on a form and at a
   9-12  time prescribed by the retirement system a written election to have
   9-13  this exception apply on a one-time trial basis in determining
   9-14  whether benefits are to be suspended for the months of employment
   9-15  after retirement and in determining whether a disability retiree is
   9-16  no longer mentally or physically incapacitated for the performance
   9-17  of duty; and
   9-18              (4)  the disability retiree has not previously elected
   9-19  to avoid loss of monthly benefits in a school year under this
   9-20  subsection.
   9-21        (h) <(g)>  A disability retiree is not entitled to service
   9-22  credit for service during a trial period under Subsection (g) <(f)>
   9-23  if the retiree is restored to active service.
   9-24        (i) <(h)>  Section 824.005(b), concerning revocation of
   9-25  retirement on certain reemployment, applies to employment described
   10-1  in Subsection (a) or (g) <(f)>.
   10-2        (j) <(i)>  The board of trustees shall adopt rules governing
   10-3  the employment of a substitute and defining "one-half time basis."
   10-4        (k) <(j)>  The actuary designated by the board of trustees
   10-5  shall, in investigating the experience of the members of the
   10-6  system, note any significant increase in early age retirements and
   10-7  determine the extent to which any increase has been caused by the
   10-8  exception to loss of benefits for employment after retirement
   10-9  provided by Subsection (a)(3).  If the actuary certifies in writing
  10-10  to the retirement system that sound actuarial funding of the
  10-11  retirement system's benefits is endangered by continuation of this
  10-12  exception, the board of trustees may determine that no further
  10-13  elections of the exception will be accepted from retirees, other
  10-14  than from those who have previously relied on the exception in
  10-15  retiring under this subtitle.  A retiree may be considered to have
  10-16  relied on this exception only if retirement occurred on or after
  10-17  May 31, 1985, but before the date the board of trustees
  10-18  acknowledges receipt of such certification and if the retiree has
  10-19  first elected to receive benefits under the exception not later
  10-20  than two years after the retiree's effective date of retirement.
  10-21        SECTION 13.  Section 825.202, Government Code, is amended to
  10-22  read as follows:
  10-23        Sec. 825.202.  EXECUTIVE DIRECTOR <SECRETARY>.  (a)  The
  10-24  board of trustees, by a majority vote of all members, shall appoint
  10-25  an executive director <secretary>.
   11-1        (b)  The executive director <secretary> may not be a member
   11-2  of the board of trustees.
   11-3        (c)  To be eligible to serve as the executive director
   11-4  <secretary>, a person must have been a citizen of this state for
   11-5  the three years immediately preceding the appointment.
   11-6        (d)  The executive director <secretary> shall recommend to
   11-7  the board actuarial and other services necessary to administer the
   11-8  retirement system.
   11-9        (e)  Annually, the executive director <secretary> shall
  11-10  prepare an itemized expense budget for the following fiscal year
  11-11  and shall submit the budget to the board for review and adoption.
  11-12        SECTION 14.  Section 825.207(b), Government Code, is amended
  11-13  to read as follows:
  11-14        (b)  The state treasurer shall pay money from the accounts of
  11-15  the retirement system on warrants drawn by the comptroller of
  11-16  public accounts and authorized by vouchers signed by the executive
  11-17  director <secretary> or other persons designated by the board of
  11-18  trustees.
  11-19        SECTION 15.  Sections 825.209(b) and (c), Government Code,
  11-20  are amended to read as follows:
  11-21        (b)  The executive director <secretary> shall give a surety
  11-22  bond in the amount of $25,000.
  11-23        (c)  The board of trustees may require any trustee or
  11-24  employee of the board, other than the executive director
  11-25  <secretary>, to give a surety bond in an amount determined by the
   12-1  board.
   12-2        SECTION 16.  Section 825.303(b), Government Code, is amended
   12-3  to read as follows:
   12-4        (b)  To be eligible to lend securities under this section, a
   12-5  bank or brokerage firm must:
   12-6              (1)  be experienced in the operation of a fully secured
   12-7  securities loan program;
   12-8              (2)  maintain adequate capital in the prudent judgment
   12-9  of the retirement system to assure the safety of the securities;
  12-10              (3)  execute an indemnification agreement satisfactory
  12-11  in form and content to the retirement system fully indemnifying the
  12-12  retirement system against loss resulting from borrower default or
  12-13  the failure of the bank or brokerage firm to properly execute the
  12-14  responsibilities of the bank or brokerage firm under the applicable
  12-15  securities lending agreement <its operation of a securities loan
  12-16  program for the system's securities>; and
  12-17              (4)  require any securities broker or dealer to whom it
  12-18  lends securities belonging to the retirement system to deliver to
  12-19  and maintain with the custodian collateral in the form of cash or
  12-20  <United States> government securities eligible for book entry in
  12-21  either the Federal Reserve System or the Participants Trust
  12-22  Company, in an amount equal to not less than 100 percent of the
  12-23  market value, from time to time, of the loaned securities.
  12-24        SECTION 17.  Section 825.311, Government Code, is amended to
  12-25  read as follows:
   13-1        Sec. 825.311.  INTEREST ACCOUNT.  In the interest account the
   13-2  retirement system shall:
   13-3              (1)  deposit all income, interest, and dividends from
   13-4  deposits and investments of assets of the retirement system; <and>
   13-5              (2)  accumulate net capital gains and losses resulting
   13-6  from the sale, call, maturity, <or> conversion, or recognition of
   13-7  changes in carrying values of investments of the retirement system;
   13-8  and <of securities>
   13-9              (3)  accumulate net income or losses from other
  13-10  investments.
  13-11        SECTION 18.  Section 825.312(a), Government Code, is amended
  13-12  to read as follows:
  13-13        (a)  The retirement system shall deposit in the expense
  13-14  account:
  13-15              (1)  all membership fees required by this subtitle;
  13-16  <and>
  13-17              (2)  money required to be deposited in the account by
  13-18  Section 825.313(b)(3) or 825.313(c); and
  13-19              (3)  money received from the Texas Public School
  13-20  Retired Employees Group Insurance Program for service performed for
  13-21  the program by the retirement system.
  13-22        SECTION 19.  Sections 825.403(b) and (c), Government Code,
  13-23  are amended to read as follows:
  13-24        (b)  Each employer or the employer's designated disbursing
  13-25  officer, at a time and in a form prescribed by the retirement
   14-1  system, shall send to the executive director <secretary> all
   14-2  deductions and a certification of earnings of each member employed
   14-3  by the employer.
   14-4        (c)  The executive director <secretary> shall deposit with
   14-5  the state treasurer all deductions received by the executive
   14-6  director <secretary>.
   14-7        SECTION 20.  Section 825.405(d), Government Code, is amended
   14-8  to read as follows:
   14-9        (d)  The employer must remit the amount required under this
  14-10  section to the executive director <secretary> at the same time that
  14-11  the employer remits the member's contribution.
  14-12        SECTION 21.  Section 825.410(g), Government Code, is amended
  14-13  to read as follows:
  14-14        (g)  A member seeking to establish service credit by using
  14-15  the installment payment method shall pay an additional fee of nine
  14-16  percent per annum calculated on a declining balance method on the
  14-17  lump sum due at the time the installment payment process begins.
  14-18  For purposes of this subsection, the installment payment process
  14-19  begins on the first business day of the month in which the first
  14-20  installment payment becomes due.  None of the additional fees shall
  14-21  be returned to the member or a beneficiary.
  14-22        SECTION 22.  Section 825.503(d), Government Code, is amended
  14-23  to read as follows:
  14-24        (d)  The executive director <secretary> or an authorized
  14-25  representative may certify the authenticity of a photograph,
   15-1  microphotograph, or film of a record reproduced under this section
   15-2  and shall charge a fee for the certified photograph,
   15-3  microphotograph, or film as provided by law.
   15-4        SECTION 23.  Section 825.507, Government Code, as added by
   15-5  Chapter 16, Acts of the 72nd Legislature, Regular Session, 1991, is
   15-6  amended to read as follows:
   15-7        Sec. 825.507.  Confidentiality of Information About Members,
   15-8  Retirees, Annuitants, <or> Beneficiaries, OR ALTERNATE PAYEES.
   15-9  (a)  Information contained in records that are in the custody of
  15-10  the retirement system concerning an individual member, retiree,
  15-11  annuitant, <or> beneficiary, or alternate payee is confidential
  15-12  under Section 3(a)(1), Chapter 424, Acts of the 63rd Legislature,
  15-13  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
  15-14  Statutes), and may not be disclosed in a form identifiable with a
  15-15  specific individual unless:
  15-16              (1)  the information is disclosed to:
  15-17                    (A)  the individual or the individual's attorney,
  15-18  guardian, executor, administrator, conservator, or other person who
  15-19  the executive director <secretary> determines is acting in the
  15-20  interest of the individual or the individual's estate;
  15-21                    (B)  a spouse or former spouse of the individual
  15-22  if the executive director <secretary> determines that the
  15-23  information is relevant to the spouse's or former spouse's interest
  15-24  in member accounts, benefits, or other amounts payable by the
  15-25  retirement system;
   16-1                    (C)  a governmental official or employee if the
   16-2  executive director <secretary> determines that disclosure of the
   16-3  information requested is reasonably necessary to the performance of
   16-4  the duties of the official or employee; or
   16-5                    (D)  a person authorized by the individual in
   16-6  writing to receive the information; or
   16-7              (2)  the information is disclosed pursuant to a
   16-8  subpoena and the executive director <secretary> determines that the
   16-9  individual will have a reasonable opportunity to contest the
  16-10  subpoena.
  16-11        (b)  This section does not prevent the disclosure of the
  16-12  status or identity of an individual as a member, former member,
  16-13  retiree, deceased member or retiree, <or> beneficiary, or alternate
  16-14  payee of the retirement system.
  16-15        (c)  The executive director <secretary> may designate other
  16-16  employees of the retirement system to make the necessary
  16-17  determinations under Subsection (a).
  16-18        (d)  A determination and disclosure under Subsection (a) may
  16-19  be made without notice to the individual member, retiree,
  16-20  annuitant, <or> beneficiary, or alternate payee.
  16-21        SECTION 24.  Section 825.507, Government Code, as added by
  16-22  Chapter 13, Acts of the 72nd Legislature, 1st Called Session, 1991,
  16-23  is redesignated as Section 825.508 to read as follows:
  16-24        Sec. 825.508 <825.507>.  Powers of Attorney.  (a)  A person
  16-25  entitled to payment of an annuity or other benefits administered by
   17-1  the retirement system may direct the retirement system to treat as
   17-2  the authorized representative of the person concerning the
   17-3  disposition of the benefits an attorney-in-fact under a power of
   17-4  attorney that complies with Subsection (b).
   17-5        (b)  The system must honor a power of attorney executed in
   17-6  accordance with Chapter 1, Section 36A, Texas Probate Code.
   17-7        (c)  If the power of attorney is revoked, the retirement
   17-8  system is not liable for payments made to or actions taken at the
   17-9  request of the attorney-in-fact before the date the system receives
  17-10  written notice that the power of attorney has been revoked.
  17-11        SECTION 25.  Subchapter F, Chapter 825, Government Code, is
  17-12  amended by adding Section 825.509 to read as follows:
  17-13        Sec. 825.509.  TRUSTEE-TO-TRUSTEE TRANSFERS.  (a)  This
  17-14  section applies to distributions made on or after January 1, 1993.
  17-15  Notwithstanding any law governing the retirement system that would
  17-16  otherwise limit a distributee's election under this section, a
  17-17  distributee may elect, at the time and in the manner prescribed by
  17-18  the executive director or the executive director's designee, to
  17-19  have any portion of an eligible rollover distribution from the
  17-20  retirement system paid directly to an eligible retirement plan
  17-21  specified by the distributee in a direct rollover.
  17-22        (b)  An eligible rollover distribution under this section is
  17-23  any distribution of all or a portion of the balance to the credit
  17-24  of the distributee, other than:
  17-25              (1)  a distribution that is one of a series of
   18-1  substantially equal periodic payments made not less frequently than
   18-2  annually for:
   18-3                    (A)  the life or life expectancy of the
   18-4  distributee;
   18-5                    (B)  the joint lives or joint life expectancies
   18-6  of the distributee and the distributee's designated beneficiary; or
   18-7                    (C)  a specified period of 10 years or more;
   18-8              (2)  a distribution to the extent the distribution is
   18-9  required under Section 401(a)(9), Internal Revenue Code of 1986; or
  18-10              (3)  the portion of a distribution that is not
  18-11  includable in gross income for federal income tax purposes.
  18-12        (c)  An eligible retirement plan under this section is an
  18-13  individual retirement account described by Section 408(a), Internal
  18-14  Revenue Code of 1986, an individual retirement annuity described by
  18-15  Section 408(b), Internal Revenue Code of 1986, an annuity plan
  18-16  described by Section 403(a), Internal Revenue Code of 1986, or a
  18-17  qualified trust described by Section 401(a), Internal Revenue Code
  18-18  of 1986, that accepts the distributee's eligible rollover
  18-19  distribution.  However, in the case of an eligible rollover
  18-20  distribution to a surviving spouse, an eligible retirement plan
  18-21  under this section is an individual retirement account or
  18-22  individual retirement annuity.
  18-23        (d)  In this section:
  18-24              (1)  "Direct rollover" means a payment by the
  18-25  retirement system to the eligible retirement plan specified by a
   19-1  distributee.
   19-2              (2)  "Distributee" means a person who receives an
   19-3  eligible rollover distribution from the retirement system and
   19-4  includes an employee or former employee and, regarding the interest
   19-5  of an employee or former employee, the person's surviving spouse or
   19-6  alternate payee.
   19-7        SECTION 26.  Section 824.304(c), Government Code, as it was
   19-8  designated immediately before the effective date of this Act, is
   19-9  repealed.
  19-10        SECTION 27.  Monthly payments of a standard service
  19-11  retirement annuity made after September 1, 1993, under Section
  19-12  824.203, Government Code, to persons who retired before September
  19-13  1, 1991, may not be less than $6.50 a month for each year of
  19-14  service credit or, for a member who was at least 65 years old at
  19-15  the time of retirement, not less than the greater of $6.50 a month
  19-16  for each year of service credit, or $150 a month.  The minimum
  19-17  benefits provided by this section are subject to reduction in the
  19-18  same manner as other benefits because of early retirement or
  19-19  selection of an optional retirement annuity.
  19-20        SECTION 28.  The Teacher Retirement System of Texas may
  19-21  restore monthly payments of a survivor benefit under Section
  19-22  824.404, Government Code, or its predecessor statute, to a spouse
  19-23  of a deceased member or retiree that were terminated because of
  19-24  remarriage before the effective date of Section 5, Chapter 570,
  19-25  Acts of the 66th Legislature, 1979, on application for the benefits
   20-1  by the beneficiary.  Retroactive payments of the benefits may not
   20-2  be made.  Payments of the benefits resume beginning with the month
   20-3  after the month in which the beneficiary applies for restoration of
   20-4  benefits under this section.
   20-5        SECTION 29.  (a)  A retiree who is subject to loss of
   20-6  benefits under Section 824.601, Government Code, for months to
   20-7  which the exception provided by Section 824.602(a)(3), Government
   20-8  Code, could have applied if the retiree had executed the required
   20-9  form within the time provided by Section 824.602(a)(3) before its
  20-10  amendment by Chapter 13, Acts of the 72nd Legislature, 1st Called
  20-11  Session, 1991, is eligible to avoid loss of the benefits or to have
  20-12  any lost benefits restored by the Teacher Retirement System of
  20-13  Texas.
  20-14        (b)  To apply under this section to have lost benefits
  20-15  restored or to avoid loss of benefits, a retiree must submit a
  20-16  written request to the retirement system not later than March 1,
  20-17  1994.
  20-18        (c)  Benefits eligible to be paid under this section are
  20-19  those that would have been payable between September 1, 1985, and
  20-20  August 31, 1991, if the retiree had not failed to execute the
  20-21  required form in a timely manner.
  20-22        (d)  A retiree may not apply for payment of benefits under
  20-23  this section for months of employment credited under Section
  20-24  823.502, Government Code.  Months of employment in which a retiree
  20-25  receives a monthly benefit payment under this section may not be
   21-1  considered in applying Section 823.502, Government Code.  Only a
   21-2  retiree who is surviving on the effective date of this Act is
   21-3  eligible to apply for benefits under this section.
   21-4        SECTION 30.  A supplemental service retirement benefit
   21-5  provided for by Chapter 14, Acts of the 60th Legislature, Regular
   21-6  Session, 1969, that is being paid on the effective date of this Act
   21-7  to a retiree who is still living is payable to the beneficiary of
   21-8  the retiree if retirement benefits will be payable to the
   21-9  beneficiary on the death of the retiree.
  21-10        SECTION 31.  The change in law made by Section 11 of this Act
  21-11  applies to benefits paid after the effective date of this Act even
  21-12  if the beneficiary elected to receive the monthly benefits before
  21-13  that date.
  21-14        SECTION 32.  This Act takes effect September 1, 1993.
  21-15        SECTION 33.  The importance of this legislation and the
  21-16  crowded condition of the calendars in both houses create an
  21-17  emergency and an imperative public necessity that the
  21-18  constitutional rule requiring bills to be read on three several
  21-19  days in each house be suspended, and this rule is hereby suspended.