S.B. No. 1181
AN ACT
1-1 relating to the powers and duties of and systems and programs under
1-2 the Employees Retirement System of Texas.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 803.202, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 803.202. SERVICE IN CERTAIN RETIREMENT SYSTEMS.
1-7 (a) The board of trustees of the Employees Retirement System of
1-8 Texas by rule may:
1-9 (1) consider the classes of service in the Employees
1-10 Retirement System of Texas as if they were, for purposes of this
1-11 chapter, classes in separate statewide retirement systems; or
1-12 (2) permit a person who is retiring exclusively from
1-13 retirement systems administered by the board to use the shortest
1-14 length-of-service requirement provided for retirement in any class
1-15 in which the person has service credit.
1-16 (b) A member of a retirement system administered by the
1-17 board of trustees of the Employees Retirement System of Texas may
1-18 reestablish service credit previously canceled in another
1-19 retirement system administered by the board if the member holds a
1-20 position included in the system of which the person is a member and
1-21 has held the position for at least 12 months. The method of
1-22 reestablishment and the amount to be deposited are as provided by
1-23 the applicable law providing for reestablishment of service credit
1-24 generally in the particular retirement system.
2-1 SECTION 2. Subtitle A, Title 8, Government Code, is amended
2-2 by adding Chapter 805 to read as follows:
2-3 CHAPTER 805. CREDIT TRANSFER BETWEEN EMPLOYEES RETIREMENT
2-4 SYSTEM OF TEXAS AND TEACHER RETIREMENT SYSTEM OF TEXAS
2-5 Sec. 805.001. DEFINITIONS. In this chapter:
2-6 (1) "Employees retirement system" means the Employees
2-7 Retirement System of Texas.
2-8 (2) "Member" means a person having membership in the
2-9 employees retirement system or the teacher retirement system under
2-10 statutes and rules governing membership in the respective systems.
2-11 (3) "Service credit" has the meaning assigned, as
2-12 applicable, by Section 811.001 or Section 821.001.
2-13 (4) "System" means the employees retirement system or
2-14 the teacher retirement system.
2-15 (5) "Teacher retirement system" means the Teacher
2-16 Retirement System of Texas.
2-17 Sec. 805.002. ELIGIBILITY TO TRANSFER SERVICE CREDIT.
2-18 (a) A member of both the employees retirement system and the
2-19 teacher retirement system who applies for service or disability
2-20 retirement from either system may transfer to that system service
2-21 credit established in the other system if the member has at least
2-22 three years of service credit in the system from which the member
2-23 is retiring.
2-24 (b) A member of both the employees retirement system and the
2-25 teacher retirement system who has less than three years of service
2-26 credit in the system in which the person most recently received
2-27 service credit may, at the time the person applies for service or
3-1 disability retirement from the other system, transfer service
3-2 credit to that system from the system in which the person most
3-3 recently received service credit.
3-4 (c) Except as provided by Subsections (e) and (f), a member
3-5 of the employees retirement system or the teacher retirement system
3-6 who formerly was a member of the other system may reinstate or
3-7 purchase service credit in the other system for the purpose of
3-8 making a transfer under Subsection (a) if the member has at least
3-9 three years of service credit in the system in which the person
3-10 currently is a member.
3-11 (d) Except as provided by Subsections (e) and (f), the
3-12 designated beneficiary of a member of the employees retirement
3-13 system or the teacher retirement system who dies while holding a
3-14 position included in the membership of the system may make a
3-15 transfer under Subsection (a) and a reinstatement or purchase under
3-16 Subsection (c) if the deceased member had at least three years of
3-17 service credit in the system in which the member was performing
3-18 service at the time of death. The designated beneficiary may make
3-19 a transfer under Subsection (b) if the deceased member had less
3-20 than three years of service credit in the system in which the
3-21 member was performing service at the time of death. If a member is
3-22 not survived by a designated beneficiary, the personal
3-23 representative of the member's estate has the same right under this
3-24 subsection as a designated beneficiary.
3-25 (e) Service credit that is canceled by a termination of
3-26 membership that occurs after August 31, 1993, may be reinstated and
3-27 other service purchased only by a member of the system in which the
4-1 service is creditable who meets the general requirements for
4-2 reinstatement or purchase of service credit in that system.
4-3 (f) A person who is receiving retirement benefits based on
4-4 the person's service credited in one system and who applies for
4-5 service or disability retirement from the other system is not
4-6 eligible to transfer service credit under this chapter. The
4-7 designated beneficiary, or the personal representative of the
4-8 estate, of a person who at the time of death was receiving benefits
4-9 based on the person's service credited in one system and who held a
4-10 position included in the other system is not eligible to transfer
4-11 service credit under this chapter.
4-12 Sec. 805.003. PAYMENTS TO REINSTATE OR PURCHASE SERVICE
4-13 CREDIT. The cost of reinstating or purchasing service credit under
4-14 Section 805.002 is determined according to the statutes that govern
4-15 the reinstatement or purchase of the type of service credit in the
4-16 system in which it is to be reinstated or purchased. All payments
4-17 for service credit reinstated or purchased under Section 805.002
4-18 must be made before retirement or the first payment of a death
4-19 benefit annuity, as applicable.
4-20 Sec. 805.004. TRANSFER OF SERVICE CREDIT. (a) A person who
4-21 elects to transfer service credit under Section 805.002 shall
4-22 notify, in the manner required by the system to which the credit
4-23 will be transferred, the system of the election. The system shall
4-24 notify the other system of the election.
4-25 (b) The systems by rule or agreement shall determine the
4-26 manner in which the service credit is transferred.
4-27 (c) A transfer of service credit under this chapter cancels
5-1 service credit and, if applicable, membership in the system from
5-2 which it is transferred.
5-3 Sec. 805.005. APPLICABILITY OF PROPORTIONATE RETIREMENT
5-4 PROGRAM. An election to transfer service credit under Section
5-5 805.002 is an alternative to participation in the program provided
5-6 by Chapter 803, except that a person having service credit in the
5-7 employees retirement system, the teacher retirement system, and
5-8 another public retirement system participating in that program may
5-9 transfer service credit under this chapter, if eligible, and use
5-10 the combined service credit for purposes of the program provided by
5-11 Chapter 803.
5-12 Sec. 805.006. CREDITING OF TRANSFERRED SERVICE CREDIT;
5-13 REFUND. (a) Except as provided by Subsections (b) and (c),
5-14 service credit transferred under this chapter is credited in the
5-15 system to which it is transferred according to rules of the teacher
5-16 retirement system determining the amount of service creditable.
5-17 (b) Not more than one month of service credit may be granted
5-18 for service during that month.
5-19 (c) A person who transfers service credit under this chapter
5-20 may not receive service credit for all military service performed
5-21 in an amount that exceeds the maximum amount creditable in the
5-22 system to which credit is transferred. A person is eligible for a
5-23 refund from the system from which credit is transferred under this
5-24 section of contributions made for military service credit, other
5-25 than any amount that represents a fee, that exceeds the maximum
5-26 amount creditable.
5-27 Sec. 805.007. EFFECT OF TRANSFER OF SERVICE CREDIT. (a) A
6-1 person who transfers service credit under this chapter forfeits all
6-2 rights to benefits payable by the system from which it is
6-3 transferred and is not an annuitant of that system for any purpose,
6-4 including the payment of postretirement increases to annuitants of
6-5 that system.
6-6 (b) Service credit transferred under this chapter is
6-7 considered as if it had been granted for service performed under
6-8 the system to which it has been transferred and is used in
6-9 satisfying minimum service requirements for retirement and in
6-10 determining the amount of benefits that are based on the amount of
6-11 a person's service credit:
6-12 (1) except that a person's average salary for the
6-13 purpose of computing an annuity may be determined only from service
6-14 credit that was originally established in one system and that
6-15 results in the higher average salary; and
6-16 (2) except as provided by Section 805.006.
6-17 Sec. 805.008. RESPONSIBILITY FOR BENEFIT PAYMENTS. (a) The
6-18 system from which a person's service credit is transferred under
6-19 this chapter shall transfer to the other system, at the time the
6-20 annuity based on the service credit becomes payable, an amount
6-21 equal to the portion of the actuarial value of the annuity that
6-22 represents the percentage of the total amount of the person's
6-23 service credited in both systems that was credited in the system
6-24 from which the credit is being transferred.
6-25 (b) The systems jointly by rule shall adopt actuarial tables
6-26 and investment assumptions to be used in computing actuarial values
6-27 under this section.
7-1 (c) For the purpose of computing an amount to be transferred
7-2 under this section, service credit in either system must be
7-3 considered as if it were credited under rules of the teacher
7-4 retirement system determining the amount of service creditable.
7-5 (d) An amount transferred under this section is payable from
7-6 amounts credited to the person's individual account and amounts
7-7 credited to the account in which the system places state
7-8 contributions. An amount received under this section shall be
7-9 deposited in the account from which the system receiving the amount
7-10 pays annuities.
7-11 (e) The system to which a transfer is made under this
7-12 section is responsible for paying the annuity for which the
7-13 transfer was made, including the entire amount of any increase in
7-14 the annuity granted after the transfer.
7-15 Sec. 805.009. RULES. In addition to the rules specifically
7-16 required by this chapter, a system may adopt other rules for the
7-17 administration of this chapter.
7-18 SECTION 3. Subchapter B, Chapter 813, Government Code, is
7-19 amended by adding Section 813.104 to read as follows:
7-20 Sec. 813.104. Alternative Payments to Establish or
7-21 Reestablish Service Credit. (a) A member who is otherwise
7-22 eligible may establish or reestablish service creditable in the
7-23 retirement system by making payments as provided by this section in
7-24 lieu of lump-sum payments otherwise authorized or required by this
7-25 subtitle.
7-26 (b) A payment authorized by this section consists of the
7-27 contribution required to establish or reestablish at least one year
8-1 of service credit, including any required interest and membership
8-2 fees, except that a person's last in a series of payments under
8-3 this section may be for a period of remaining service that is less
8-4 than one year.
8-5 (c) The retirement system shall grant the applicable amount
8-6 of service credit after each payment is made under this section.
8-7 (d) Payments may not be made under this section:
8-8 (1) to establish or reestablish service credit of a
8-9 person who has retired or died; or
8-10 (2) to establish current service under Section
8-11 813.201.
8-12 (e) The retirement system may adopt rules to administer this
8-13 section.
8-14 SECTION 4. Subchapter B, Chapter 813, Government Code, is
8-15 amended by adding Section 813.105 to read as follows:
8-16 Sec. 813.105. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
8-17 SERVICE CREDIT. (a) A contributing member who is otherwise
8-18 eligible may establish or reestablish service creditable in the
8-19 retirement system by making payments as provided by this section in
8-20 lieu of lump-sum payments otherwise authorized or required by this
8-21 subtitle.
8-22 (b) A payment authorized by this section consists of a
8-23 monthly payroll deduction in an amount not less than one-twelfth of
8-24 the contribution required to establish or reestablish at least one
8-25 year of service credit, including any required interest and
8-26 membership fee, except as provided by Subsection (c).
8-27 (c) Payments to establish or reestablish service credit of
9-1 less than one year or to establish or reestablish service credit by
9-2 a member who plans to retire in less than a year may be made by
9-3 payroll deduction for a period determined by the retirement system.
9-4 (d) Payroll deductions for payments under this section shall
9-5 be made and submitted to the retirement system at the times and in
9-6 the manner provided for member contributions under Section 815.402.
9-7 (e) The retirement system shall credit a member's payments
9-8 made under this section to a suspense account in the trust fund
9-9 until the sum of the payments equals the amount required for one
9-10 year of service credit or the amount required for credit under
9-11 Subsection (c), at which time the retirement system shall deposit
9-12 the payments in the appropriate accounts in the trust fund and
9-13 grant the applicable amount of service credit.
9-14 (f) A member who, while making payments under this section,
9-15 ceases to hold a position or withdraws the authority for payroll
9-16 deductions may contract with the retirement system for an
9-17 alternative method of continuing the payments. The retirement
9-18 system may refund payments credited to the suspense account and not
9-19 transferred to trust fund accounts if a remaining payment becomes
9-20 delinquent by more than 60 days.
9-21 (g) Payments may not be made under this section to establish
9-22 or reestablish service credit of a person who has retired or died,
9-23 except that a beneficiary may make payment in a lump sum for the
9-24 remainder of service credit for which payments were begun before
9-25 the member's death.
9-26 (h) The retirement system may adopt rules to administer this
9-27 section.
10-1 SECTION 5. Subchapter B, Chapter 813, Government Code, is
10-2 amended by adding Section 813.106 to read as follows:
10-3 Sec. 813.106. SERVICE NOT PREVIOUSLY ESTABLISHED. The state
10-4 shall make contributions for service not previously established
10-5 that is established under Section 813.104 or 813.105 in the amount
10-6 provided by Section 813.202(e) for membership service or the amount
10-7 provided by Section 813.302(d) for military service, as applicable.
10-8 The state contributions will be made at the time the service credit
10-9 is granted.
10-10 SECTION 6. Subsection (b), Section 813.304, Government Code,
10-11 is amended to read as follows:
10-12 (b) The retirement system shall use military service credit
10-13 in computing service retirement or nonoccupational disability
10-14 retirement benefits of a member of the employee class only if the
10-15 member has, without military service credit, at least five <10>
10-16 years of service credit in that class.
10-17 SECTION 7. Section 813.504, Government Code, is amended to
10-18 read as follows:
10-19 Sec. 813.504. Eligibility for Service Credit Previously
10-20 Canceled. A member may reestablish service credit previously
10-21 canceled in the retirement system if the member, after cancellation
10-22 of the credit, holds a position for six <24> months that is
10-23 included in the employee class.
10-24 SECTION 8. Subsection (a), Section 813.509, Government Code,
10-25 is amended to read as follows:
10-26 (a) A member who retires based on service or a disability is
10-27 entitled to service credit in the retirement system for the
11-1 member's sick leave that has accumulated and is unused on the last
11-2 day of employment. Sick leave is creditable in the retirement
11-3 system at the rate of one month of service credit for each 20 <40>
11-4 days, or 160 <320> hours, of accumulated sick leave. An increment
11-5 of less than 20 <40> days is not creditable.
11-6 SECTION 9. Subchapter F, Chapter 813, Government Code, is
11-7 amended by adding Section 813.510 to read as follows:
11-8 Sec. 813.510. CREDIT FOR COUNTY CHILD WELFARE BOARD SERVICE.
11-9 (a) An eligible member may, before September 1, 1994, claim
11-10 service credit not otherwise creditable in the retirement system
11-11 for service performed before September 1, 1980, for a county child
11-12 welfare board.
11-13 (b) A member eligible to claim credit under this section is
11-14 one who:
11-15 (1) was a contributing member on August 31, 1993,
11-16 having performed at least 24 months of continuous state service as
11-17 of that date; and
11-18 (2) was subject during the period of welfare board
11-19 service to personnel rules of and direct supervision by the Texas
11-20 Department of Human Services or its predecessor.
11-21 (c) A member may claim credit under this section by
11-22 depositing with the retirement system in a lump sum:
11-23 (1) a contribution based on the member's monthly
11-24 salary during the period of service for a county child welfare
11-25 board and computed for the number of months for which credit is
11-26 sought at the combined rates currently required of the state and
11-27 employee members of the system for new service;
12-1 (2) interest computed on the basis of the state fiscal
12-2 year at an annual rate of 10 percent from the date the service was
12-3 performed to the date of deposit; and
12-4 (3) any membership fees required of members of the
12-5 system during the period beginning on the date the service began
12-6 and ending on the date of deposit.
12-7 (d) The retirement system shall deposit the salary
12-8 contribution in the member's individual account in the employees
12-9 saving account, interest in the state accumulation account, and
12-10 membership fees in the expense account.
12-11 (e) The retirement system shall determine the amount to be
12-12 deposited in each case and may not grant service credit under this
12-13 section until the required amount has been paid in full.
12-14 (f) Service credit may not be established under this section
12-15 if the service is currently credited in another public retirement
12-16 system.
12-17 (g) This section expires October 1, 1994.
12-18 SECTION 10. Subchapter G, Chapter 814, Government Code, is
12-19 amended by adding Section 814.603 to read as follows:
12-20 Sec. 814.603. SUPPLEMENTAL ONE-TIME PAYMENT. (a) The
12-21 retirement system shall make a supplemental payment to persons
12-22 whose annuities are described by Section 814.107, 814.207, 814.305,
12-23 or 814.601(a) and that are based on service retirements, disability
12-24 retirements, or deaths. This supplemental payment is in addition
12-25 to the regular monthly annuity payment. Each person who receives
12-26 an annuity described by this subsection is entitled to receive one
12-27 payment equal to 10 percent of one month's annuity payment for each
13-1 fiscal year before the fiscal year beginning September 1, 1993, in
13-2 which the annuity has been paid. A supplemental payment may not
13-3 exceed 350 percent of a monthly annuity. Only a person whose
13-4 annuity began in the fiscal year ending August 31, 1993, or earlier
13-5 is eligible for the supplemental payment. Supplemental payments
13-6 under this subsection must comply with Section 811.006.
13-7 (b) The retirement system shall pay the supplemental payment
13-8 provided by Subsection (a) from the retirement annuity reserve
13-9 account and may transfer to that account from the state
13-10 accumulation account any portion of the amount that exceeds the
13-11 amount in the retirement annuity reserve account available to
13-12 finance this supplemental payment and that is actuarially
13-13 determined to be necessary to finance the supplemental payment.
13-14 (c) The board of trustees may adopt rules to implement the
13-15 payment, including rules that govern the timing of the supplemental
13-16 payment described by Subsection (a).
13-17 (d) The board of trustees may by rule authorize similar
13-18 supplemental payments in the fiscal year ending August 31, 1995, if
13-19 the payments are in compliance with Section 811.006.
13-20 SECTION 11. Section 815.002, Government Code, is amended by
13-21 adding Subsection (d) to read as follows:
13-22 (d) Appointments to the board shall be made without regard
13-23 to the race, color, disability, sex, religion, age, or national
13-24 origin of the appointees.
13-25 SECTION 12. Subchapter A, Chapter 815, Government Code, is
13-26 amended by adding Section 815.0031 to read as follows:
13-27 Sec. 815.0031. INELIGIBILITY FOR BOARD AND OF CERTAIN
14-1 EMPLOYEES. (a) A person is not eligible for appointment or
14-2 election to the board if the person or the person's spouse:
14-3 (1) is employed by or participates in the management
14-4 of a business entity or other organization receiving funds from the
14-5 retirement system; or
14-6 (2) owns or controls, directly or indirectly, more
14-7 than a 10 percent interest in a business entity or other
14-8 organization receiving funds from the retirement system.
14-9 (b) A paid officer, employee, or consultant of a Texas trade
14-10 association in the field of insurance or investment may not be a
14-11 trustee or an employee of the retirement system who is exempt from
14-12 the state's position classification plan or is compensated at or
14-13 above the amount prescribed by the General Appropriations Act for
14-14 step 1, salary group 17, of the position classification salary
14-15 schedule.
14-16 (c) A person who is the spouse of a paid officer, manager,
14-17 or consultant of a Texas trade association in the field of
14-18 insurance or investment may not be a trustee and may not be an
14-19 employee of the retirement system who is exempt from the state's
14-20 position classification plan or is compensated at or above the
14-21 amount prescribed by the General Appropriations Act for step 1,
14-22 salary group 17, of the position classification salary schedule.
14-23 (d) For the purposes of this section, a Texas trade
14-24 association is a nonprofit, cooperative, and voluntarily joined
14-25 association of business or professional competitors in this state
14-26 designed to assist its members and its industry or profession in
14-27 dealing with mutual business or professional problems and in
15-1 promoting their common interest.
15-2 (e) A person may not serve as a trustee or act as the
15-3 general counsel to the board if the person is required to register
15-4 as a lobbyist under Chapter 305 because of the person's activities
15-5 for compensation on behalf of a business or an association related
15-6 to the operation of the board.
15-7 SECTION 13. Subchapter A, Chapter 815, Government Code, is
15-8 amended by adding Section 815.008 to read as follows:
15-9 Sec. 815.008. GROUNDS FOR REMOVAL OF TRUSTEE. (a) It is a
15-10 ground for removal from the board if a trustee:
15-11 (1) violates a prohibition established by Section
15-12 815.0031;
15-13 (2) cannot discharge the person's duties for a
15-14 substantial part of the term for which the person is appointed or
15-15 elected because of illness or disability; or
15-16 (3) is absent from more than half of the regularly
15-17 scheduled board meetings that the person is eligible to attend
15-18 during a calendar year unless the absence is excused by majority
15-19 vote of the board.
15-20 (b) The validity of an action of the board is not affected
15-21 by the fact that it is taken when a ground for removal of a trustee
15-22 exists.
15-23 (c) If the executive director has knowledge that a potential
15-24 ground for removal exists, the executive director shall notify the
15-25 chairman of the board of the ground. The chairman shall then
15-26 notify the appropriate appointing officer, if any, that a potential
15-27 ground for removal exists.
16-1 SECTION 14. Subchapter B, Chapter 815, Government Code, is
16-2 amended by adding Section 815.111 to read as follows:
16-3 Sec. 815.111. MISCELLANEOUS BOARD DUTIES. (a) The board
16-4 shall provide to its trustees and employees, as often as necessary,
16-5 information regarding their qualification for office or employment
16-6 under this chapter and their responsibilities under applicable laws
16-7 relating to standards of conduct for state officers or employees.
16-8 (b) The board shall develop and implement policies that
16-9 clearly define the respective responsibilities of the board and the
16-10 staff of the retirement system.
16-11 (c) The board shall prepare information of interest to the
16-12 retirement system's members describing the functions of the system
16-13 and the system's procedures by which complaints are filed with and
16-14 resolved by the system. The system shall make the information
16-15 available to the system's members and appropriate state agencies.
16-16 (d) The board by rule shall establish methods by which
16-17 members are notified of the name, mailing address, and telephone
16-18 number of the retirement system for the purpose of directing
16-19 complaints to the system.
16-20 (e) The board shall develop and implement policies that
16-21 provide the public with a reasonable opportunity to appear before
16-22 the board and to speak on any issue under the jurisdiction of the
16-23 board.
16-24 (f) The board shall prepare and maintain a written plan that
16-25 describes how a person who does not speak English can be provided
16-26 reasonable access to the board's programs. The board shall also
16-27 comply with federal and state laws for program and facility
17-1 accessibility.
17-2 SECTION 15. Subchapter C, Chapter 815, Government Code, is
17-3 amended by adding Section 815.212 to read as follows:
17-4 Sec. 815.212. EMPLOYMENT PRACTICES. (a) The executive
17-5 director or the executive director's designee shall develop an
17-6 intra-agency career ladder program. The program shall require
17-7 intra-agency posting of all non-entry-level positions concurrently
17-8 with any public posting.
17-9 (b) The executive director or the executive director's
17-10 designee shall develop a system of annual performance evaluations.
17-11 All merit pay for retirement system employees must be based on the
17-12 system established under this subsection.
17-13 (c) The executive director or the executive director's
17-14 designee shall prepare and maintain a written policy statement to
17-15 assure implementation of a program of equal employment opportunity
17-16 under which all personnel transactions are made without regard to
17-17 race, color, disability, sex, religion, age, or national origin.
17-18 The policy statement must include:
17-19 (1) personnel policies, including policies relating to
17-20 recruitment, evaluation, selection, appointment, training, and
17-21 promotion of personnel;
17-22 (2) a comprehensive analysis of the retirement
17-23 system's work force that meets federal and state guidelines;
17-24 (3) procedures by which a determination can be made of
17-25 significant underuse in the retirement system's work force of all
17-26 persons for whom federal or state guidelines encourage a more
17-27 equitable balance; and
18-1 (4) reasonable methods to appropriately address those
18-2 areas of significant underuse.
18-3 (d) A policy statement prepared under Subsection (c) must
18-4 cover an annual period, be updated at least annually, and be filed
18-5 with the governor's office.
18-6 (e) The governor's office shall deliver a biennial report to
18-7 the legislature based on the information received under Subsection
18-8 (d). The report may be made separately or as a part of other
18-9 biennial reports made to the legislature.
18-10 SECTION 16. Subsections (a) and (b), Section 815.301,
18-11 Government Code, are amended to read as follows:
18-12 (a) The board of trustees shall:
18-13 (1) invest the assets of the retirement system<, other
18-14 than assets of the law enforcement and custodial officer
18-15 supplemental retirement fund,> as a single fund without distinction
18-16 as to their source; and
18-17 (2) hold securities purchased with the assets
18-18 described by Subsection (a)(1) collectively for the proportionate
18-19 benefit of:
18-20 (A) all accounts in the trust fund that are
18-21 listed in Section 815.310(b); and
18-22 (B) the law enforcement and custodial officer
18-23 supplemental retirement fund.
18-24 (b) The <Except for assets of the law enforcement and
18-25 custodial officer supplemental retirement fund, the> board of
18-26 trustees may, under the standard of care provided by Section
18-27 815.307, invest and reinvest any of the retirement system's assets
19-1 and may commingle assets of the trust fund and the law enforcement
19-2 and custodial officer supplemental retirement fund with the assets
19-3 of the Judicial Retirement System of Texas Plan Two for investment
19-4 purposes, as long as proportionate ownership records are maintained
19-5 and credited. Investments may include home office facilities,
19-6 including land, equipment, and office building, used in
19-7 administering the retirement system.
19-8 SECTION 17. Subsection (b), Section 815.310, Government
19-9 Code, is amended to read as follows:
19-10 (b) All assets of the trust fund shall be credited,
19-11 according to the purpose for which they are held, to one of the
19-12 following accounts:
19-13 (1) employees saving account;
19-14 (2) state accumulation account;
19-15 (3) retirement annuity reserve account;
19-16 (4) interest account; or
19-17 (5) expense account<; or>
19-18 <(6) benefit increase reserve account>.
19-19 SECTION 18. Subsection (a), Section 815.313, Government
19-20 Code, is amended to read as follows:
19-21 (a) The retirement system shall transfer to the retirement
19-22 annuity reserve account money as required by Section 815.318,
19-23 815.319, <815.320,> or 815.321.
19-24 SECTION 19. Subsection (a), Section 815.317, Government
19-25 Code, is amended to read as follows:
19-26 (a) The retirement system shall deposit in the law
19-27 enforcement and custodial officer supplemental retirement fund
20-1 state contributions and other <payments made as provided by Section
20-2 815.405, any> appropriations made by the legislature to the fund<,
20-3 money collected under Section 2(l), Chapter 88, General Laws, Acts
20-4 of the 41st Legislature, 2nd Called Session, 1929 (Article 6675a 2,
20-5 Vernon's Texas Civil Statutes),> and proceeds from investment of
20-6 the fund.
20-7 SECTION 20. Section 815.318, Government Code, is amended to
20-8 read as follows:
20-9 Sec. 815.318. Transfer of Assets From Interest Account.
20-10 (a) The board of trustees shall transfer from the interest account
20-11 to the employees saving account amounts of interest computed under
20-12 Section 815.311 at the following times:
20-13 (1) as required during the fiscal year for a member's
20-14 account in the retirement system that is closed before the last day
20-15 of the fiscal year; and
20-16 (2) as of the last day of the fiscal year for a
20-17 member's account that is not closed before the last day of the
20-18 fiscal year.
20-19 (b) As required during the year, the board of trustees shall
20-20 transfer from the interest account to the expense account amounts
20-21 it determines necessary for the payment of the retirement system's
20-22 expenses that exceed the amount of money available for those
20-23 expenses.
20-24 (c) As of the last day of each fiscal year, the board of
20-25 trustees shall transfer from the interest account to the retirement
20-26 annuity reserve account an amount equal to:
20-27 (1) five percent of the mean amount in the retirement
21-1 annuity reserve account for that fiscal year; or
21-2 (2) an amount computed at a greater rate if the
21-3 actuary recommends the greater rate to finance adequately the
21-4 annuities payable from the retirement annuity reserve account.
21-5 (d) <As of the last day of each fiscal year, the board of
21-6 trustees shall transfer from the interest account to the benefit
21-7 increase account an amount computed at the rate set by the board
21-8 under Section 815.106.>
21-9 <(e)> After making the transfers required by this section,
21-10 the board of trustees, as of the last day of each fiscal year,
21-11 shall transfer the amount remaining in the interest account to the
21-12 state accumulation account.
21-13 SECTION 21. Subsection (c), Section 815.401, Government
21-14 Code, is amended to read as follows:
21-15 (c) If the legislature appropriates, on behalf of each
21-16 contributing member for any fiscal year, a membership fee to be
21-17 deposited in the expense account in an amount equal to or greater
21-18 than the membership fee required by Subsection (a), the members are
21-19 not required to pay the membership fee for that year. The
21-20 retirement system may apply the membership fee to the
21-21 administration of any program administered by the board of
21-22 trustees.
21-23 SECTION 22. Section 815.403, Government Code, is amended by
21-24 amending Subsections (a) and (b) and by adding Subsection (g) to
21-25 read as follows:
21-26 (a) During each fiscal year, the state shall contribute to
21-27 the retirement system:
22-1 (1) an amount equal to 7.4 percent of the total
22-2 compensation of all members of the retirement system for that year;
22-3 (2) money to pay lump-sum death benefits for retirees
22-4 under Section 814.501;
22-5 (3) an amount for the law enforcement and custodial
22-6 officer supplemental retirement fund equal to 2.13 percent of the
22-7 aggregate state compensation of all custodial and law enforcement
22-8 officers for that year;
22-9 (4) money necessary for the administration <and
22-10 payment> of <benefits from> the law enforcement and custodial
22-11 officer supplemental retirement fund; and
22-12 (5) <(4)> money for service credit not previously
22-13 established, as provided by Section 813.202(e) or 813.302(d).
22-14 (b) Before November 2 of each even-numbered year, the
22-15 retirement system shall certify to the Legislative Budget Board and
22-16 to the budget division of the governor's office for review:
22-17 (1) an estimate of the amount necessary to pay the
22-18 state's contribution under Subsections (a)(1), (a)(2), (a)(3), and
22-19 (a)(5) <(a)(4)> for the following biennium;
22-20 <(2) the estimated amount, based on actuarial
22-21 valuations, of appropriated funds required in addition to other
22-22 available money to finance all benefits provided from the law
22-23 enforcement and custodial officer supplemental retirement fund for
22-24 the following biennium;>
22-25 <(3) the estimated amount, based on actuarial
22-26 valuations, of appropriated funds required for the following
22-27 biennium to fully finance, within a period of not more than 36
23-1 years after September 1, 1979, liabilities of the law enforcement
23-2 and custodial officer supplemental retirement fund accrued because
23-3 of service performed before September 1, 1979;> and
23-4 (2) <(4)> as a separate item, an estimate of the
23-5 amount required to administer the law enforcement and custodial
23-6 officer supplemental retirement fund for the following biennium.
23-7 (g) The contributions from the state to the law enforcement
23-8 and custodial officer supplemental retirement fund may be made only
23-9 from the general revenue fund.
23-10 SECTION 23. Section 815.505, Government Code, is amended to
23-11 read as follows:
23-12 Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT AND
23-13 CUSTODIAL OFFICERS. Not later than the 12th day of the month
23-14 following the month in which a person begins or ceases employment
23-15 as a law enforcement officer or custodial officer <As of the last
23-16 day of each fiscal year>, the <Department of> Public Safety
23-17 Commission, the Texas Alcoholic Beverage Commission, the Parks and
23-18 Wildlife Commission <Department>, or <the State Purchasing and
23-19 General Services Commission, and> the Texas Board <Department> of
23-20 Criminal Justice, as applicable, <Corrections> shall certify to the
23-21 retirement system, in the manner prescribed by the system, the name
23-22 of the employee and such other information as the system determines
23-23 is necessary for the crediting of service and financing of benefits
23-24 under this subtitle <the names of employees and the amount of
23-25 service each employee performed as a law enforcement officer or
23-26 custodial officer during that fiscal year>.
23-27 SECTION 24. Subchapter F, Chapter 815, Government Code, is
24-1 amended by adding Section 815.5071 to read as follows:
24-2 Sec. 815.5071. TRUSTEE-TO-TRUSTEE TRANSFER. Notwithstanding
24-3 Section 811.005 and to the extent required as a condition of plan
24-4 qualification under Section 401(a) of the Internal Revenue Code of
24-5 1986 (26 U.S.C. Section 401), the retirement system shall, in
24-6 accordance with Section 401(a)(31) of the Internal Revenue Code of
24-7 1986 (26 U.S.C. Section 401(a)(31)) and related regulations, permit
24-8 the distributee of an eligible rollover distribution to elect to
24-9 have the distribution paid directly to an eligible retirement plan
24-10 specified by the distributee in the form of a direct
24-11 trustee-to-trustee transfer. The board of trustees may adopt rules
24-12 to carry out this section. Terms used in this section have the
24-13 meanings assigned by the Internal Revenue Code of 1986 (Title 26,
24-14 United States Code).
24-15 SECTION 25. Subchapter F, Chapter 815, Government Code, is
24-16 amended by adding Section 815.508 to read as follows:
24-17 Sec. 815.508. COMPLAINT FILES. (a) The retirement system
24-18 shall keep an information file about each complaint filed with the
24-19 system that the system has authority to resolve.
24-20 (b) If a written complaint is filed with the retirement
24-21 system that the system has authority to resolve, the system, at
24-22 least quarterly and until final disposition of the complaint, shall
24-23 notify the parties to the complaint of the status of the complaint
24-24 unless the notice would jeopardize an undercover investigation.
24-25 SECTION 26. Subchapter F, Chapter 815, Government Code, is
24-26 amended by adding Sections 815.509 and 815.510 to read as follows:
24-27 Sec. 815.509. ADVISORY COMMITTEES. (a) The board of
25-1 trustees may establish advisory committees as it considers
25-2 necessary to assist it in performing its duties. Members of
25-3 advisory committees established under this section serve at the
25-4 pleasure of the board.
25-5 (b) Notwithstanding any other law to the contrary, the board
25-6 of trustees by rule shall determine the amount and manner of any
25-7 compensation or expense reimbursement to be paid members of an
25-8 advisory committee performing service for the retirement system for
25-9 performing the work of the advisory committee. All compensation
25-10 and expense reimbursements for an advisory committee established
25-11 under this section are payable from the expense account.
25-12 Sec. 815.510. ANNUAL REPORT. (a) The Employees Retirement
25-13 System of Texas shall submit a report not later than the 25th day
25-14 of the month following the end of each fiscal year to the governor,
25-15 the lieutenant governor, the speaker of the house of
25-16 representatives, the executive director of the State Pension Review
25-17 Board, the appropriate oversight committees of the house and
25-18 senate, and the Legislative Budget Board. The report shall include
25-19 the following:
25-20 (1) the current end-of-fiscal-year market value of the
25-21 trust fund;
25-22 (2) the current book value of the trust fund;
25-23 (3) the asset allocations of the trust fund expressed
25-24 in percentages of stocks, fixed income, cash, or other financial
25-25 investments; and
25-26 (4) the investment performance of the trust fund
25-27 utilizing accepted industry measurement standards.
26-1 (b) The report required by this section is the only periodic
26-2 report of investments required to be made by the retirement system
26-3 other than a report required by Section 815.108 or the General
26-4 Appropriations Act.
26-5 SECTION 27. Before October 1, 1995, the Public Safety
26-6 Commission, the Texas Alcoholic Beverage Commission, the Parks and
26-7 Wildlife Commission, and the Texas Board of Criminal Justice shall
26-8 certify to the Employees Retirement System of Texas, in the manner
26-9 prescribed by the retirement system, the name of each person
26-10 employed on September 1, 1995, by the particular agency as a law
26-11 enforcement officer, as defined by Section 811.001, Government
26-12 Code, or a custodial officer, as defined by that section, and such
26-13 other information as the system determines is necessary for the
26-14 crediting of service and financing of benefits under Subtitle B,
26-15 Title 8, Government Code.
26-16 SECTION 28. (a) All persons who were employed by the Texas
26-17 Rehabilitation Commission on August 31, 1993, who were contributing
26-18 members of the Teacher Retirement System of Texas on that date, and
26-19 who remain employees of the Texas Rehabilitation Commission on
26-20 September 1, 1993, become members of the Employees Retirement
26-21 System of Texas on the latter date.
26-22 (b) At the time of the retirement or death of a person
26-23 described by Subsection (a) of this section, the Teacher Retirement
26-24 System of Texas and the Employees Retirement System of Texas shall
26-25 make a computation and transfer of money in the manner provided by
26-26 Section 805.008, Government Code, as added by this Act, and the
26-27 person's service credit in the Teacher Retirement System of Texas
27-1 will be transferred to the Employees Retirement System of Texas.
27-2 The Employees Retirement System of Texas has the same
27-3 responsibility for payments after retirement or death as is
27-4 provided by Section 805.008, Government Code, as added by this Act.
27-5 (c) Notwithstanding Chapter 805, Government Code, as added
27-6 by this Act, a person who becomes a member of the Employees
27-7 Retirement System of Texas under this section is not eligible to
27-8 transfer service credit from the Employees Retirement System of
27-9 Texas to the Teacher Retirement System of Texas.
27-10 SECTION 29. (a) A retiree of the Employees Retirement
27-11 System of Texas who at the time of retirement had at least 25 years
27-12 of service credit in the retirement system and has served as the
27-13 executive head of a legislative service agency is eligible to make
27-14 an election under this section.
27-15 (b) A member of the Employees Retirement System of Texas who
27-16 was an elected officer of the 73rd Senate of the State of Texas, as
27-17 determined by the senate journal, and who has at least 28 years of
27-18 service credit in the retirement system and has attained the age of
27-19 50 is eligible to make an election under this section.
27-20 (c) An election under this section must be made in writing
27-21 and filed with the Employees Retirement System of Texas and is
27-22 irrevocable after filing. An election under Subsection (a) of this
27-23 section must be filed before January 1, 1994. After the filing of
27-24 an election under this section, the retirement system shall
27-25 consider all the service credit established by the person who makes
27-26 the election, including service credit established after the date
27-27 the election is filed, as if it were performed as a member of the
28-1 elected class of membership.
28-2 SECTION 30. Chapter 805, Government Code, as added by this
28-3 Act, applies only to retirements and deaths that occur on or after
28-4 August 31, 1993.
28-5 SECTION 31. Subchapter B, Chapter 833, Government Code, is
28-6 amended by adding Section 833.105 to read as follows:
28-7 Sec. 833.105. Alternative Payments to Establish or
28-8 Reestablish Service Credit. (a) A member who is otherwise
28-9 eligible may establish or reestablish service creditable in the
28-10 retirement system by making payments as provided by this section in
28-11 lieu of lump-sum payments otherwise authorized or required by this
28-12 subtitle.
28-13 (b) A payment authorized by this section consists of the
28-14 contribution required to establish or reestablish at least one year
28-15 of service credit, including any required interest and membership
28-16 fees, except that a person's last in a series of payments under
28-17 this section may be for a period of remaining service that is less
28-18 than one year.
28-19 (c) The retirement system shall grant the applicable amount
28-20 of service credit after each payment is made under this section.
28-21 (d) Payments may not be made under this section:
28-22 (1) to establish or reestablish service credit of a
28-23 person who has retired or died; or
28-24 (2) to establish current service under Section
28-25 833.101.
28-26 (e) The retirement system may adopt rules to administer this
28-27 section.
29-1 SECTION 32. Subchapter B, Chapter 833, Government Code, is
29-2 amended by adding Section 833.106 to read as follows:
29-3 Sec. 833.106. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
29-4 SERVICE CREDIT. (a) A contributing member who is otherwise
29-5 eligible may establish or reestablish service creditable in the
29-6 retirement system by making payments as provided by this section in
29-7 lieu of lump-sum payments otherwise authorized or required by this
29-8 subtitle.
29-9 (b) A payment authorized by this section consists of a
29-10 monthly payroll deduction in an amount not less than one-twelfth of
29-11 the contribution required to establish or reestablish at least one
29-12 year of service credit, including any required interest and
29-13 membership fee, except as provided by Subsection (c).
29-14 (c) Payments to establish or reestablish service credit of
29-15 less than one year or to establish or reestablish service credit by
29-16 a member who plans to retire in less than a year may be made by
29-17 payroll deduction for a period determined by the retirement system.
29-18 (d) Payroll deductions for payments under this section shall
29-19 be made and submitted to the retirement system at the times and in
29-20 the manner provided for member contributions under Section 835.101.
29-21 (e) The retirement system shall credit a member's payments
29-22 made under this section to a suspense account until the sum of the
29-23 payments equals the amount required for one year of service credit
29-24 or the amount required for credit under Subsection (c), at which
29-25 time the retirement system shall deposit the payments in the
29-26 general revenue fund and grant the applicable amount of service
29-27 credit.
30-1 (f) A member who, while making payments under this section,
30-2 ceases to be a judicial officer or withdraws the authority for
30-3 payroll deductions may contract with the retirement system for an
30-4 alternative method of continuing the payments. The retirement
30-5 system may refund payments credited to the suspense account and not
30-6 transferred to the general revenue fund if a remaining payment
30-7 becomes delinquent by more than 60 days.
30-8 (g) Payments may not be made under this section to establish
30-9 or reestablish service credit of a person who has retired or died,
30-10 except that a beneficiary may make payment in a lump sum for the
30-11 remainder of service credit for which payments were begun before
30-12 the member's death.
30-13 (h) The retirement system may adopt rules to administer this
30-14 section.
30-15 SECTION 33. Subchapter B, Chapter 838, Government Code, is
30-16 amended by adding Section 838.105 to read as follows:
30-17 Sec. 838.105. Alternative Payments to Establish or
30-18 Reestablish Service Credit. (a) A member who is otherwise
30-19 eligible may establish or reestablish service creditable in the
30-20 retirement system by making payments as provided by this section in
30-21 lieu of lump-sum payments otherwise authorized or required by this
30-22 subtitle.
30-23 (b) A payment authorized by this section consists of the
30-24 contribution required to establish or reestablish at least one year
30-25 of service credit, including any required interest and membership
30-26 fees, except that a person's last in a series of payments under
30-27 this section may be for a period of remaining service that is less
31-1 than one year.
31-2 (c) The retirement system shall grant the applicable amount
31-3 of service credit after each payment is made under this section.
31-4 (d) Payments may not be made under this section:
31-5 (1) to establish or reestablish service credit of a
31-6 person who has retired or died; or
31-7 (2) to establish current service under Section
31-8 838.101.
31-9 (e) The retirement system may adopt rules to administer this
31-10 section.
31-11 SECTION 34. Subchapter B, Chapter 838, Government Code, is
31-12 amended by adding Section 838.106 to read as follows:
31-13 Sec. 838.106. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
31-14 SERVICE CREDIT. (a) A contributing member who is otherwise
31-15 eligible may establish or reestablish service creditable in the
31-16 retirement system by making payments as provided by this section in
31-17 lieu of lump-sum payments otherwise authorized or required by this
31-18 subtitle.
31-19 (b) A payment authorized by this section consists of a
31-20 monthly payroll deduction in an amount not less than one-twelfth of
31-21 the contribution required to establish or reestablish at least one
31-22 year of service credit, including any required interest and
31-23 membership fee, except as provided by Subsection (c).
31-24 (c) Payments to establish or reestablish service credit of
31-25 less than one year or to establish or reestablish service credit by
31-26 a member who plans to retire in less than a year may be made by
31-27 payroll deduction for a period determined by the retirement system.
32-1 (d) Payroll deductions for payments under this section shall
32-2 be made and submitted to the retirement system at the times and in
32-3 the manner provided for member contributions under Section 840.102.
32-4 (e) The retirement system shall credit a member's payments
32-5 made under this section to a suspense account in the trust fund
32-6 until the sum of the payments equals the amount required for one
32-7 year of service credit or the amount required for credit under
32-8 Subsection (c), at which time the retirement system shall deposit
32-9 the payments in the appropriate accounts in the trust fund and
32-10 grant the applicable amount of service credit.
32-11 (f) A member who, while making payments under this section,
32-12 ceases to be a judicial officer or withdraws the authority for
32-13 payroll deductions may contract with the retirement system for an
32-14 alternative method of continuing the payments. The retirement
32-15 system may refund payments credited to the suspense account and not
32-16 transferred to trust fund accounts if a remaining payment becomes
32-17 delinquent by more than 60 days.
32-18 (g) Payments may not be made under this section to establish
32-19 or reestablish service credit of a person who has retired or died,
32-20 except that a beneficiary may make payment in a lump sum for the
32-21 remainder of service credit for which payments were begun before
32-22 the member's death.
32-23 (h) The retirement system may adopt rules to administer this
32-24 section.
32-25 SECTION 35. Subchapter B, Chapter 838, Government Code, is
32-26 amended by adding Section 838.107 to read as follows:
32-27 Sec. 838.107. SERVICE NOT PREVIOUSLY ESTABLISHED. The state
33-1 shall make contributions for service not previously established
33-2 that is established under Section 838.105 or 838.106 in the amount
33-3 provided by Section 838.103(f) for military service. The state
33-4 contributions will be made at the time the service credit is
33-5 granted.
33-6 SECTION 36. Subsection (a), Section 839.101, Government
33-7 Code, is amended to read as follows:
33-8 (a) A member is eligible to retire and receive a service
33-9 retirement annuity if the member:
33-10 (1) is at least 65 years old, currently holds a
33-11 judicial office, and has at least 10 years of service credited in
33-12 the retirement system, the most recently performed of which was for
33-13 a continuous period of at least one year;
33-14 (2) is at least 65 years old and has at least 12 years
33-15 of service, continuous or otherwise, credited in the retirement
33-16 system, regardless of whether the member currently holds a judicial
33-17 office; or
33-18 (3) has at least 20 <25> years of service credited in
33-19 the retirement system, the most recently performed of which was for
33-20 a continuous period of at least 10 years, regardless of whether the
33-21 member currently holds a judicial office.
33-22 SECTION 37. Section 839.102, Government Code, is amended to
33-23 read as follows:
33-24 Sec. 839.102. SERVICE RETIREMENT ANNUITY. (a) Except as
33-25 provided by Subsections (b) and (c), the standard service
33-26 retirement annuity is an amount equal to 50 percent of the state
33-27 salary being paid at the time the member retires to a judge of a
34-1 court of the same classification as the last court to which the
34-2 retiring member was elected or appointed <computed on the basis of
34-3 the member's average monthly compensation for the 36 highest months
34-4 of compensation during the last 60 months of service, multiplied by
34-5 one-twelfth of three percent for each month of service that is
34-6 credited in the retirement system>.
34-7 (b) The retirement system shall increase by 10 percent of
34-8 the amount of the applicable state salary under Subsection (a) or
34-9 (c) the annuity of a member who on the effective date of retirement
34-10 has not been out of judicial office for more than one year
34-11 <standard service retirement annuity may not be more than 60
34-12 percent of the average monthly compensation computed under
34-13 Subsection (a)>.
34-14 (c) The standard service retirement annuity of a person
34-15 qualifying for retirement under Section 839.101(b) is an amount
34-16 computed as a percentage of the state salary being paid at the time
34-17 the member retires to a judge of a court of the same classification
34-18 as the last court to which the retiring member was elected or
34-19 appointed, according to the following schedule:
34-20 age at retirement percentage of state salary
34-21 at least 60 but less than 61 40 percent
34-22 at least 61 but less than 62 41.7 percent
34-23 at least 62 but less than 63 43.6 percent
34-24 at least 63 but less than 64 45.6 percent
34-25 at least 64 but less than 65 47.7 percent
34-26 <as provided by Subsection (a), reduced by one-third of one percent
34-27 for each whole or partial calendar month that occurs during the
35-1 period from the date of retirement to the date of the retiree's
35-2 65th birthday, including the months that contain the dates of
35-3 retirement and birthday>.
35-4 SECTION 38. Subsection (b), Section 840.103, Government
35-5 Code, is amended to read as follows:
35-6 (b) Before November 2 of each even-numbered year, the
35-7 retirement system shall certify to the Legislative Budget Board and
35-8 to the budget division of the governor's office for review:
35-9 (1) an actuarial valuation of the retirement system to
35-10 determine the percentage of annual payroll required from the state
35-11 to finance fully the retirement system as provided by Section
35-12 840.106 <without any unfunded liability>;
35-13 (2) an estimate of the amount necessary to pay the
35-14 state's contribution under Subdivision (1) for the following
35-15 biennium; and
35-16 (3) as a separate item, an estimate of the amount, in
35-17 addition to anticipated receipts from membership fees, required to
35-18 administer the retirement system for the following biennium.
35-19 SECTION 39. Subchapter B, Chapter 840, Government Code, is
35-20 amended by adding Section 840.106 to read as follows:
35-21 Sec. 840.106. ACTION INCREASING AMORTIZATION PERIOD. (a) A
35-22 rate of member or state contributions to or a rate of interest
35-23 required for the establishment of credit in the retirement system
35-24 may not be reduced or eliminated, a type of service may not be made
35-25 creditable in the retirement system, a limit on the maximum
35-26 permissible amount of a type of creditable service may not be
35-27 removed or raised, a new monetary benefit payable by the retirement
36-1 system may not be established, and the determination of the amount
36-2 of a monetary benefit from the system may not be increased, if, as
36-3 a result of the particular action, the time, as determined by an
36-4 actuarial valuation, required to amortize the unfunded actuarial
36-5 liabilities of the retirement system would be increased to a period
36-6 that exceeds 30 years by one or more years.
36-7 (b) If the amortization period for the unfunded actuarial
36-8 liabilities of the retirement system exceeds 30 years by one or
36-9 more years at the time an action described by Subsection (a) is
36-10 proposed, the proposal may not be adopted if, as a result of the
36-11 adoption, the amortization period would be increased, as determined
36-12 by an actuarial valuation.
36-13 SECTION 40. Subsection (a), Section 840.301, Government
36-14 Code, is amended to read as follows:
36-15 (a) The board of trustees may, under the standard of care
36-16 provided by Section 840.303, invest and reinvest the retirement
36-17 system's assets and may commingle assets of the trust fund with the
36-18 assets of the Employees Retirement System of Texas, including its
36-19 trust fund and the law enforcement and custodial officer
36-20 supplemental retirement fund, for investment purposes, as long as
36-21 proportionate ownership records are maintained and credited.
36-22 SECTION 41. Subchapter E, Chapter 840, Government Code, is
36-23 amended by adding Section 840.405 to read as follows:
36-24 Sec. 840.405. TRUSTEE-TO-TRUSTEE TRANSFER. Notwithstanding
36-25 Section 836.004 and to the extent required as a condition of plan
36-26 qualification under Section 401(a) of the Internal Revenue Code of
36-27 1986 (26 U.S.C. Section 401), the retirement system shall, in
37-1 accordance with Section 401(a)(31) of the Internal Revenue Code of
37-2 1986 (26 U.S.C. Section 401(a)(31)) and related regulations, permit
37-3 the distributee of an eligible rollover distribution to elect to
37-4 have the distribution paid directly to an eligible retirement plan
37-5 specified by the distributee in the form of a direct
37-6 trustee-to-trustee transfer. The board of trustees may adopt rules
37-7 to carry out this section. Terms used in this section have the
37-8 meanings assigned by the Internal Revenue Code of 1986 (Title 26,
37-9 United States Code).
37-10 SECTION 42. Subchapter E, Chapter 840, Government Code, is
37-11 amended by adding Section 840.406 to read as follows:
37-12 Sec. 840.406. PLAN QUALIFICATION. (a) The provisions of
37-13 this subtitle shall be interpreted and administered in a manner
37-14 that permits the retirement system's benefit plan to be considered
37-15 a qualified plan under Section 401, Internal Revenue Code of 1986
37-16 (26 U.S.C. Section 401). The board of trustees may adopt rules
37-17 necessary to accomplish that purpose, and those rules are
37-18 considered a part of the plan.
37-19 (b) The retirement system's benefit plan shall be considered
37-20 the primary retirement plan for members of the retirement system in
37-21 determining qualification status under Section 401(a), Internal
37-22 Revenue Code of 1986 (26 U.S.C. Section 401(a)).
37-23 SECTION 43. Subparagraph (A), Paragraph (5), Subsection (a),
37-24 Section 3, Texas Employees Uniform Group Insurance Benefits Act
37-25 (Article 3.50-2, Vernon's Texas Insurance Code), as amended by
37-26 Chapters 242 and 391, Acts of the 72nd Legislature, Regular
37-27 Session, 1991, is amended to read as follows:
38-1 (A) "Employee" <"State-employee"> shall mean any
38-2 appointive or elective state officer or employee in the service of
38-3 the State of Texas, including an employee of an institution of
38-4 higher education:
38-5 (i) who is retired or retires and is an
38-6 annuitant under the jurisdiction of the Employees Retirement System
38-7 of Texas, pursuant to Subtitle B, D, or E, or Chapter 803, Title 8,
38-8 Government Code, who is retired or retires and is an annuitant
38-9 under the jurisdiction of the Teacher Retirement System of Texas,
38-10 pursuant to Subtitle C, Title 8, Government Code, whose last
38-11 employment with the state prior to retirement was as an employee of
38-12 the Teacher Retirement System of Texas, school districts
38-13 established within state eleemosynary institutions, the Texas
38-14 Rehabilitation Commission, the Central Education Agency, the Texas
38-15 Higher Education Coordinating Board, or an institution of higher
38-16 education, or who is retired or retires and is an annuitant under
38-17 the optional retirement program established by Chapter 830,
38-18 Government Code, if the person's last state employment before
38-19 retirement, including employment by a public community/junior
38-20 college, was as an officer or employee of the Texas Higher
38-21 Education Coordinating Board, or an institution of higher
38-22 education, and if the person either:
38-23 (a) would have been eligible to
38-24 retire and receive a service retirement annuity from the Teacher
38-25 Retirement System of Texas had the person not elected to
38-26 participate in the optional retirement program; or
38-27 (b) is disabled;
39-1 (ii) who receives his compensation for
39-2 services rendered to the State of Texas on a warrant issued
39-3 pursuant to a payroll certified by a department or by an elected or
39-4 duly appointed officer of this state;
39-5 (iii) who receives payment for the
39-6 performance of personal services on a warrant issued pursuant to a
39-7 payroll certified by a department and drawn by the State
39-8 Comptroller of Public Accounts upon the State Treasurer against
39-9 appropriations made by the Texas Legislature from any state funds
39-10 or against any trust funds held by the State Treasurer or who is
39-11 paid from funds of an official budget of a state department, rather
39-12 than from funds of the General Appropriations Act;
39-13 (iv) who is appointed, subject to
39-14 confirmation of the senate, as a member of a board or commission
39-15 with administrative responsibility over a statutory agency having
39-16 statewide jurisdiction whose employees are covered by this Act;
39-17 (v) who is a member of the governing body
39-18 of an institution of higher education, as that term is defined by
39-19 Section 61.003, Education Code, including subsequent amendments to
39-20 that section;
39-21 (vi) who is a member of the State Board of
39-22 Education;
39-23 (vii) who receives compensation for
39-24 services rendered to an institution of higher education on a
39-25 warrant or check issued pursuant to a payroll certified by an
39-26 institution of higher education or by an elected or duly appointed
39-27 officer of this state, and who is eligible for participation in the
40-1 Teacher Retirement System of Texas; or
40-2 (viii) <(vi)> who receives compensation
40-3 for services rendered to an institution of higher education as
40-4 provided by this subdivision but is not permitted to be a member of
40-5 the Teacher Retirement System of Texas because the person is solely
40-6 employed by an institution of higher education that as a condition
40-7 of employment requires the person to be enrolled as a student in an
40-8 institution of higher education in graduate-level courses and who
40-9 is employed by the institution at least 20 hours a week.
40-10 SECTION 44. Paragraphs (6), (14), and (15), Subsection (a),
40-11 Section 3, Texas Employees Uniform Group Insurance Benefits Act
40-12 (Article 3.50-2, Vernon's Texas Insurance Code), are amended to
40-13 read as follows:
40-14 (6) "Employer" shall mean the State of Texas and<,>
40-15 all its departments<, and any participating school district>.
40-16 (14) "Part-time employee" shall mean, for purposes of
40-17 this Act, an employee designated by his employing agency as working
40-18 less than 20 hours per week. A part-time <state> employee shall
40-19 receive the benefits of one-half the amount of the state's
40-20 contribution received by full-time employees.
40-21 (15) "Full-time employee" shall mean, for purposes of
40-22 this Act, an employee designated by his employing agency as working
40-23 20 or more hours per week. A full-time <state> employee shall
40-24 receive the benefits of a full state contribution for coverage
40-25 under this Act.
40-26 SECTION 45. Subsection (e), Section 5, Texas Employees
40-27 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
41-1 Texas Insurance Code), as amended by Chapters 391 and 850, Acts of
41-2 the 72nd Legislature, Regular Session, 1991, is amended to read as
41-3 follows:
41-4 (e) The trustee is authorized to select, contract for, and
41-5 make available to eligible employees and annuitants in a specific
41-6 area of the state, services performed by health maintenance
41-7 organizations which are approved by the federal government or the
41-8 State of Texas to offer health care services in that area.
41-9 Eligible employees and annuitants may participate in a selected
41-10 health maintenance organization in lieu of participation in the
41-11 health insurance benefits in the Employees Uniform Group Insurance
41-12 Program<, and the employer contributions provided by Section 14(a)
41-13 or (b) of this Act for health care coverage shall be paid to the
41-14 selected health maintenance organizations on behalf of the
41-15 participants>.
41-16 SECTION 46. Subsection (a), Section 13B, Texas Employees
41-17 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
41-18 Texas Insurance Code), is amended to read as follows:
41-19 (a) The trustee may study the feasibility of establishing a
41-20 cafeteria plan and may design, develop, adopt, implement, and
41-21 administer a cafeteria plan if the trustee determines that the
41-22 establishment of a cafeteria plan is feasible, would be beneficial
41-23 to the state and to the <state> employees who would be eligible to
41-24 participate in the cafeteria plan, and would not adversely affect
41-25 the insurance program established under this Act. The trustee may
41-26 include in the cafeteria plan any benefit that may be included in a
41-27 cafeteria plan under federal law.
42-1 SECTION 47. Section 14, Texas Employees Uniform Group
42-2 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
42-3 Code), as amended by Chapters 391 and 850, Acts of the 72nd
42-4 Legislature, Regular Session, 1991, is amended to read as follows:
42-5 Sec. 14. Payment of Contributions. (a) The trustee shall
42-6 use the amount appropriated for employer contributions in
42-7 accordance with Section 15 of this Act to fund the basic coverage.
42-8 The trustee may equitably allocate to each health benefits plan the
42-9 employer contributions that would be required to fund basic health
42-10 coverage for participants in the plans to the extent funds are
42-11 available. In allocating the employer contributions among plans,
42-12 the trustee shall consider the relevant risk characteristics of
42-13 each plan's enrollment, including demographic variations in the use
42-14 and cost of health care and the prevailing cost patterns in the
42-15 area in which the plan operates. The allocation must be reasonable
42-16 and set in a manner which assures employees a fair choice among
42-17 health benefit plans providing a basic plan. The contribution set
42-18 for each employee shall be within the total amount appropriated in
42-19 the General Appropriations Act.
42-20 (b) Any employer contributions remaining after the basic
42-21 coverage has been funded may be allocated by the trustee to fund
42-22 optional coverages in any manner the trustee determines is
42-23 appropriate. <Each participating school district shall contribute,
42-24 for each school district employee covered by the program, an amount
42-25 equal to the employee only cost of the plans of group coverages
42-26 authorized by the trustee for school district employees, provided
42-27 that the school district's contribution may not exceed the amount
43-1 contributed for each state employee in accordance with Subsection
43-2 (a) of this section. If the cost of the plan authorized by the
43-3 trustee for school district employees exceeds the amount of the
43-4 district's contribution, the district shall deduct from the monthly
43-5 compensation of the employee an amount sufficient to pay the amount
43-6 of the premiums not covered by the district's contribution.>
43-7 (c) The trustee may not allocate any employer contributions
43-8 to fund voluntary coverages. Voluntary coverages must be funded
43-9 solely by employee contributions. <If an employee or annuitant
43-10 refuses in writing the coverages, benefits, or services provided by
43-11 this Act by a statement in writing satisfactory to the trustee,
43-12 then in no event shall the State of Texas, the employee's
43-13 department, or the participating school district make any
43-14 contribution to the cost of any other coverages, services, or
43-15 benefits on such employee or annuitant.>
43-16 (d) If the cost of the basic coverage exceeds the amount of
43-17 employer contributions allocated to fund the basic coverage, the
43-18 state shall deduct from or reduce the monthly compensation of the
43-19 employee and shall deduct from the retirement benefits of the
43-20 annuitant an amount sufficient to pay the cost of the basic
43-21 coverage. <Except as provided by Subsection (e) of this section,
43-22 if any employee or annuitant applies for coverages for which the
43-23 cost exceeds the state's, the employing department's, or the
43-24 participating school district's contribution under this Act, he
43-25 shall authorize in writing and in a form satisfactory to the
43-26 trustee a deduction from his monthly compensation or annuity the
43-27 difference between the cost of coverages under the said group
44-1 programs and the amount contributed therefor by the State of Texas
44-2 or the employing department.>
44-3 (e) The trustee shall apply the amount of any employer
44-4 contribution allocated to fund optional coverages to the excess of
44-5 the cost of the basic and optional coverages for which the employee
44-6 or annuitant has applied over the basic coverage contribution.
44-7 Except as provided by Subsection (h) of this section, if an
44-8 employee or annuitant applies for basic and optional coverages for
44-9 which the cost exceeds the contributions for those coverages under
44-10 this Act, the employee or annuitant shall authorize in writing in a
44-11 form satisfactory to the trustee a deduction from the employee's or
44-12 annuitant's monthly compensation or annuity equal to the difference
44-13 between the cost of basic and optional coverages for which the
44-14 employee or annuitant has applied and the employer contributions
44-15 for basic and optional coverage. <If an employee elects to
44-16 participate in the cafeteria plan, he shall execute a salary
44-17 reduction agreement under which his monthly compensation will be
44-18 reduced in an amount that is equal to the difference between the
44-19 amount contributed for the coverages by the State of Texas, the
44-20 employing department, or the participating school district and the
44-21 cost of the coverages for which the employee is eligible to pay
44-22 under the cafeteria plan. An employee who executes a salary
44-23 reduction agreement for insurance coverages included in the
44-24 cafeteria plan is considered to have elected to participate in the
44-25 cafeteria plan and agreed to a salary reduction for the insurance
44-26 coverages for subsequent plan years unless the participant, during
44-27 an annual enrollment period specified by the trustee, explicitly
45-1 elects not to participate for the next plan year in the insurance
45-2 coverages. After electing not to participate in insurance
45-3 coverages included in the cafeteria plan, an employee must, to
45-4 reestablish participation for subsequent plan years in insurance
45-5 coverages included in the cafeteria plan, execute a new salary
45-6 reduction agreement. A salary reduction agreement for other
45-7 benefits of the cafeteria plan must be executed annually, during
45-8 the annual enrollment period specified by the trustee, for each
45-9 plan year. The employee shall pay any remaining portion of the
45-10 cost of benefits that is not covered by the state's, department's,
45-11 or district's contributions and the salary reductions under the
45-12 cafeteria plan by executing a payroll deduction agreement.>
45-13 (f) Except as provided by Subsection (h) of this section, if
45-14 an employee or annuitant applies for voluntary coverages, the
45-15 employee shall authorize in writing in a form satisfactory to the
45-16 trustee a deduction from the employee's monthly compensation or
45-17 annuity equal to the cost of the voluntary coverages.
45-18 (g) If an employee or annuitant refuses the coverages or
45-19 benefits provided under this Act in writing in a form satisfactory
45-20 to the trustee, the state and the employee's department may not
45-21 make any contribution to the cost of any coverages or benefits for
45-22 the employee or annuitant.
45-23 (h) If an employee elects to participate in the cafeteria
45-24 plan, the employee must execute a salary reduction agreement under
45-25 which the employee's monthly compensation will be reduced in an
45-26 amount that is equal to the difference between the employer
45-27 contributions for basic and optional coverages and the cost of the
46-1 cafeteria plan coverages identified by the trustee as comparable to
46-2 the basic and optional coverages for which the employee is
46-3 eligible. The salary reduction agreement must also provide for an
46-4 additional reduction in the employee's compensation equal to the
46-5 cost of voluntary coverages for which the employee has applied. An
46-6 employee who executes a salary reduction agreement for insurance
46-7 coverage included in the cafeteria plan has elected to participate
46-8 in the cafeteria plan and agreed to a salary reduction for the
46-9 insurance coverages for subsequent plan years unless the
46-10 participant, during an annual enrollment period specified by the
46-11 trustee, elects in writing not to participate for the next plan
46-12 year in the insurance coverages. An employee who has elected not
46-13 to participate in the cafeteria plan insurance coverages may
46-14 re-enroll by executing a new salary reduction agreement during a
46-15 subsequent annual enrollment period. A salary reduction agreement
46-16 for cafeteria plan benefits other than insurance coverages must be
46-17 executed annually, during the annual enrollment period. The
46-18 employee shall pay any remaining portion of the cost of benefits
46-19 that is not covered by the contributions for basic and optional
46-20 coverages and the salary reduction under the cafeteria plan by
46-21 executing a payroll deduction agreement.
46-22 SECTION 48. Subsection (a), Section 15, Texas Employees
46-23 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
46-24 Texas Insurance Code), is amended to read as follows:
46-25 (a) On or before the first day of November next preceding
46-26 each regular session of the legislature, the trustee shall certify
46-27 to the Legislative Budget Board and budget division of the
47-1 governor's office for information and review the amount necessary
47-2 to pay the contributions of the State of Texas to the trustee for
47-3 the coverages provided under this Act during the ensuing biennium.
47-4 A state contribution may not be made for coverages under this Act
47-5 selected by a person who receives a state contribution, other than
47-6 as a spouse, dependent, or beneficiary, for coverages under a group
47-7 benefits program provided by an institution of higher education, as
47-8 that term is defined by Section 61.003, Education Code. This
47-9 amount shall be included in the budget of the state which the
47-10 governor submits to the legislature.
47-11 SECTION 49. Subsections (a) and (b), Section 16, Texas
47-12 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
47-13 Vernon's Texas Insurance Code), are amended to read as follows:
47-14 (a) There is hereby created with the treasury of the State
47-15 of Texas an Employees Life, Accident, and Health Insurance and
47-16 Benefits Fund which shall be administered by the trustee. The
47-17 <Except as provided by Subsection (d) of this section, the>
47-18 contributions of employees, annuitants, <participating school
47-19 districts,> and the state provided for under this Act shall be paid
47-20 into the fund. The fund is available:
47-21 (1) without fiscal year limitation for all payments
47-22 for any coverages provided for under this Act; and
47-23 (2) to pay expenses for administering this Act within
47-24 the limitations that may be specified annually by the legislature.
47-25 (b) Portions <Except as provided by Subsection (d) of this
47-26 section, portions> of the contributions made by employees,
47-27 annuitants, <participating school districts,> and the state shall
48-1 be regularly set aside in the fund as follows: a percentage
48-2 determined by the trustee to be reasonably adequate to pay the
48-3 administrative expenses made available by Subsection (a) of this
48-4 section. The trustee, from time to time and in amounts it
48-5 considers appropriate, may transfer unused funds for administrative
48-6 expenses to the contingency reserves to be used by the trustee only
48-7 for charges, claims, costs, and expenses under the program.
48-8 SECTION 50. Subsection (c), Section 17, Texas Employees
48-9 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
48-10 Texas Insurance Code), is amended to read as follows:
48-11 (c) Each state department <and each participating school
48-12 district> shall keep such records, make such certifications, and
48-13 furnish the trustee with such information and reports as may be
48-14 necessary to enable the trustee to carry out its functions under
48-15 this Act.
48-16 SECTION 51. Subsection (a), Section 18, Texas Employees
48-17 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
48-18 Texas Insurance Code), as amended by Chapters 242 and 391, Acts of
48-19 the 72nd Legislature, Regular Session, 1991, is amended to read as
48-20 follows:
48-21 (a) The group benefits advisory committee is composed of 27
48-22 <25> voting members as provided by this section. The office of the
48-23 attorney general, the office of the state treasurer, the office of
48-24 the comptroller, the Railroad Commission of Texas, the General Land
48-25 Office, and the Department of Agriculture are entitled to be
48-26 represented by one member each on the committee, who may be
48-27 appointed by the governing body of the state agency or elected by
49-1 and from the employees of the agency, as determined by rule by the
49-2 governing body of the agency. One employee shall be elected from
49-3 each of the remaining eight <seven> largest state agencies that are
49-4 governed by appointed officers by and from the employees of those
49-5 agencies. One nonvoting member shall be the executive director of
49-6 the Employees Retirement System of Texas. One member shall be an
49-7 expert in employee benefit issues from the private sector,
49-8 appointed by the governor. One member shall be an expert in
49-9 employee benefits issues from the private sector, appointed by the
49-10 lieutenant governor. One member shall be a retired state employee
49-11 appointed by the trustee. One member shall be a state employee of
49-12 a state agency other than one of the eight <seven> largest state
49-13 agencies, appointed by the trustee. Not more than one employee
49-14 from a particular state agency may serve on the committee. Each of
49-15 the seven largest institutions of higher education, as determined
49-16 by the number of employees on the payroll of an institution, shall
49-17 elect one member of the committee from among persons who have each
49-18 been nominated by a petition signed by at least 300 employees. Two
49-19 <members shall be employees of institutions of higher education
49-20 appointed by the Texas Higher Education Coordinating Board. Five>
49-21 members shall be employees of institutions of higher education,
49-22 other than the seven largest institutions of higher education, who
49-23 are appointed by the Texas Higher Education Coordinating Board
49-24 <elected by and from the institutions of higher education>, but not
49-25 more than one employee shall be from any one institution. <The
49-26 remaining members shall be elected by and from the employees of the
49-27 other state agencies, excluding institutions of higher education,
50-1 and from the employees of participating school districts in a
50-2 manner consonant with the election for membership to the board of
50-3 the Employees Retirement System of Texas, but not more than one
50-4 employee shall be from any one agency or district.> The members
50-5 shall elect a presiding officer from their membership to serve a
50-6 one-year term.
50-7 SECTION 52. Subsections (b) and (c), Section 19, Texas
50-8 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
50-9 Vernon's Texas Insurance Code), are amended to read as follows:
50-10 (b) A surviving spouse of an employee or a retiree who is
50-11 entitled to monthly benefits paid by a retirement system named in
50-12 this Act may, following the death of the employee or retiree, elect
50-13 to retain the spouse's authorized coverages and also retain
50-14 authorized coverages for any dependent of the spouse, at the group
50-15 rate for employees, provided such coverage was previously secured
50-16 by the employee or retiree for the spouse or dependent, and the
50-17 spouse directs the applicable retirement system to deduct required
50-18 contributions from the monthly benefits paid the surviving spouse
50-19 by the retirement system. A surviving dependent of a retiree who
50-20 was receiving monthly benefits paid by a retirement system named in
50-21 this Act may, after the death of the retiree and if the retiree
50-22 leaves no surviving spouse, elect to retain any coverage previously
50-23 secured by the retiree, at the group rate for employees, until the
50-24 dependent becomes ineligible for coverage for a reason other than
50-25 the death of the member of the group. A dependent who makes an
50-26 election under this subsection and who is entitled to monthly
50-27 benefits from a retirement system named in this Act based on the
51-1 service of the deceased retiree must direct the applicable
51-2 retirement system to deduct required contributions for the coverage
51-3 from the monthly benefits paid the surviving dependent by the
51-4 retirement system.
51-5 (c) The surviving spouse of an employee or a retiree who
51-6 designated or selected a time certain annuity option or a surviving
51-7 dependent of a retiree who designated or selected a time certain
51-8 annuity option, upon expiration of the annuity option may retain
51-9 authorized coverages by advance payment of contributions to the
51-10 Employees Retirement System of Texas under rules and regulations
51-11 adopted by the trustee.
51-12 SECTION 53. Chapter 22, Acts of the 57th Legislature, 3rd
51-13 Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
51-14 Statutes), is amended by adding Section 3 to read as follows:
51-15 Sec. 3. (a) A state agency may permit some or all of the
51-16 employees of the agency to participate in an employer-sponsored
51-17 program described by Section 457(f) of the Internal Revenue Code of
51-18 1986, including subsequent amendments of that law.
51-19 (b) Before a state agency begins sponsorship of a program
51-20 under Subsection (a) of this section, the agency shall submit a
51-21 proposal for the program to the Employees Retirement System of
51-22 Texas for its review and comment.
51-23 (c) In this section, "state agency" means a board, office,
51-24 commission, department, institution, court, or other agency in any
51-25 branch of state government.
51-26 SECTION 54. Subsection (c), Section 141, Uniform Act
51-27 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
52-1 Statutes), is amended to read as follows:
52-2 (c) The fee for compulsory inspection of a motor vehicle
52-3 other than a moped, to be made under this Section, shall be Ten
52-4 Dollars and Fifty Cents ($10.50). The fee for compulsory
52-5 inspection of a moped, to be made under this Section, shall be Five
52-6 Dollars and Seventy-five Cents ($5.75). Five Dollars and Fifty
52-7 Cents ($5.50) of each fee shall be paid to the Department and
52-8 shall, except as provided by <Section 815.405, Government Code, or>
52-9 Section 382.0622, Health and Safety Code, be deposited <placed> in
52-10 the Motor Vehicle Inspection Fund for the purpose of paying the
52-11 expense of the administration of this law, after the deduction of
52-12 Two Dollars and Twenty-five Cents ($2.25) of each fee, which shall
52-13 be deposited by the Department in the general revenue fund. The
52-14 Department may require each official inspection station to make an
52-15 advance payment of Five Dollars and Fifty Cents ($5.50) for each
52-16 inspection certificate furnished to it. No<, and the money so
52-17 received shall, except as provided by Section 815.405, Government
52-18 Code, be placed in the Motor Vehicle Inspection Fund, and no>
52-19 further payment to the Department shall be required upon issuance
52-20 of the certificate. If such advance payment has been made, the
52-21 Department shall refund to the inspection station the amount of
52-22 Five Dollars and Fifty Cents ($5.50) for each unissued certificate
52-23 which the inspection station returns to the Department in
52-24 accordance with rules and regulations promulgated by the
52-25 Department. The Texas Natural Resource Conservation Commission
52-26 shall refund to the Department Two Dollars ($2.00) for each unused
52-27 certificate returned to the Department by inspection stations
53-1 licensed by the Department. An inspection station may waive the
53-2 fee otherwise due from the owner of a vehicle inspected under this
53-3 Section if the inspection station has rendered in advance to the
53-4 Department the payment of Five Dollars and Fifty Cents ($5.50) for
53-5 the certificate applied to a vehicle with respect to which the
53-6 owner's fee has been so waived.
53-7 SECTION 55. Subsection (c-4), Section 10, Chapter 88,
53-8 General Laws, Acts of the 41st Legislature, 2nd Called Session,
53-9 1929 (Article 6675a-10, Vernon's Texas Civil Statutes), is amended
53-10 to read as follows:
53-11 (c-4) On Monday of each week each County Tax Collector shall
53-12 submit to the State Department of Highways and Public
53-13 Transportation a carbon copy of the receipt issued for payment of
53-14 each fee received in the preceding week for registration of a log
53-15 loader vehicle under Section 2(l) of this Act and all<. On Monday
53-16 of each week the County Tax Collector shall send to the Employees
53-17 Retirement System of Texas an amount equal to four percent (4%)> of
53-18 the registration fees collected under Section 2(l) of this Act <and
53-19 shall remit the remaining ninety-six percent (96%) to the
53-20 Department. Money sent to the retirement system under this
53-21 subsection shall be deposited in the law enforcement and custodial
53-22 officer supplemental retirement fund>.
53-23 SECTION 56. The following provisions are repealed:
53-24 (1) Subsection (d), Section 813.509, and Sections
53-25 815.005, 815.106, 815.305, 815.316, 815.320, 815.405, 839.104, and
53-26 840.009, Government Code;
53-27 (2) Paragraphs (19), (20), (21), and (22), Subsection
54-1 (a), Section 3, Texas Employees Uniform Group Insurance Benefits
54-2 Act (Article 3.50-2, Vernon's Texas Insurance Code), as added by
54-3 Chapter 391, Acts of the 72nd Legislature, Regular Session, 1991;
54-4 (3) Section 3A, Texas Employees Uniform Group
54-5 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
54-6 Code), as added by Chapter 391, Acts of the 72nd Legislature,
54-7 Regular Session, 1991;
54-8 (4) Section 13C, Texas Employees Uniform Group
54-9 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
54-10 Code);
54-11 (5) Subsection (e), Section 15, Texas Employees
54-12 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
54-13 Texas Insurance Code);
54-14 (6) Subsection (d), Section 16, Texas Employees
54-15 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
54-16 Texas Insurance Code); and
54-17 (7) effective September 1, 1995, Subsection (d),
54-18 Section 813.506, Government Code.
54-19 SECTION 57. The Employees Retirement System of Texas may
54-20 adopt rules to implement the changes in law made by this Act in the
54-21 composition of the group benefits advisory committee under the
54-22 Texas Employees Uniform Group Insurance Benefits Act (Article
54-23 3.50-2, Vernon's Texas Insurance Code).
54-24 SECTION 58. The Legislative Budget Board shall perform a
54-25 study of the law enforcement and custodial officer supplemental
54-26 retirement fund and the program supported by that fund. The study
54-27 shall include an examination of the membership in the program,
55-1 including its potential for growth, and an examination of
55-2 appropriate methods of financing the program. The board shall
55-3 include its findings and recommendations as a result of the study
55-4 in a report to the 74th Legislature.
55-5 SECTION 59. (a) Except as provided by Subsection (b) of
55-6 this section, this Act takes effect September 1, 1993.
55-7 (b) This section and Sections 2 and 30 of this Act take
55-8 effect immediately. Sections 22 and 23 of this Act take effect
55-9 September 1, 1995.
55-10 SECTION 60. The importance of this legislation and the
55-11 crowded condition of the calendars in both houses create an
55-12 emergency and an imperative public necessity that the
55-13 constitutional rule requiring bills to be read on three several
55-14 days in each house be suspended, and this rule is hereby suspended,
55-15 and that this Act take effect and be in force according to its
55-16 terms, and it is so enacted.