By: Barrientos S.B. No. 1181
73R6545 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers and duties of, and systems and programs
1-3 administered by, the Employees Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 803.202, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 803.202. SERVICE IN CERTAIN RETIREMENT SYSTEMS. (a)
1-8 The board of trustees of the Employees Retirement System of Texas
1-9 by rule may:
1-10 (1) consider the classes of service in the Employees
1-11 Retirement System of Texas as if they were, for purposes of this
1-12 chapter, classes in separate statewide retirement systems; or
1-13 (2) permit a person who is retiring exclusively from
1-14 retirement systems administered by the board to use the shortest
1-15 length-of-service requirement provided for retirement in any class
1-16 in which the person has service credit.
1-17 (b) A member of a retirement system administered by the
1-18 board of trustees of the Employees Retirement System of Texas may
1-19 reestablish service credit previously canceled in another
1-20 retirement system administered by the board if the member holds a
1-21 position included in the system of which the person is a member and
1-22 has held the position for at least 12 months. The method of
1-23 reestablishment and the amount to be deposited are as provided by
1-24 the applicable law providing for reestablishment of service credit
2-1 generally in the particular retirement system.
2-2 SECTION 2. Subtitle A, Title 8, Government Code, is amended
2-3 by adding Chapter 805 to read as follows:
2-4 CHAPTER 805. CREDIT TRANSFER BETWEEN EMPLOYEES RETIREMENT
2-5 SYSTEM OF TEXAS AND TEACHER RETIREMENT SYSTEM OF TEXAS
2-6 Sec. 805.001. DEFINITIONS. In this chapter:
2-7 (1) "Employees retirement system" means the Employees
2-8 Retirement System of Texas.
2-9 (2) "Member" means a person having membership in the
2-10 employees retirement system or the teacher retirement system under
2-11 statutes and rules governing membership in the respective systems.
2-12 (3) "Service credit" has the meaning assigned, as
2-13 applicable, by Section 811.001 or Section 821.001.
2-14 (4) "System" means the employees retirement system or
2-15 the teacher retirement system.
2-16 (5) "Teacher retirement system" means the Teacher
2-17 Retirement System of Texas.
2-18 Sec. 805.002. ELIGIBILITY TO TRANSFER SERVICE CREDIT.
2-19 (a) Except as provided by Subsection (f), a member of both the
2-20 employees retirement system and the teacher retirement system who
2-21 applies for service or disability retirement from either system may
2-22 transfer to that system service credit established in the other
2-23 system if the member has at least three years of service credit in
2-24 the system from which the member is retiring.
2-25 (b) Except as provided by Subsection (f), a member of both
2-26 the employees retirement system and the teacher retirement system
2-27 who has less than three years of service credit in the system in
3-1 which the person most recently received service credit may, at the
3-2 time the person applies for service or disability retirement from
3-3 the other system, transfer service credit to that system from the
3-4 system in which the person most recently received service credit.
3-5 (c) Except as provided by Subsections (e), (f), and (g), a
3-6 member of the employees retirement system or the teacher retirement
3-7 system who formerly was a member of the other system may reinstate
3-8 or purchase service credit in the other system for the purpose of
3-9 making a transfer under Subsection (a) if the member has at least
3-10 three years of service credit in the system in which the person
3-11 currently is a member.
3-12 (d) Except as provided by Subsections (e), (f), and (g), the
3-13 designated beneficiary of a member of the employees retirement
3-14 system or the teacher retirement system who dies while holding a
3-15 position included in the membership of the system may make a
3-16 transfer under Subsection (a) and a reinstatement or purchase under
3-17 Subsection (c) if the deceased member had at least three years of
3-18 service credit in the system in which the member was performing
3-19 service at the time of death. The designated beneficiary may make
3-20 a transfer under Subsection (b) if the deceased member had less
3-21 than three years of service credit in the system in which the
3-22 member was performing service at the time of death. If a member is
3-23 not survived by a designated beneficiary, the personal
3-24 representative of the member's estate has the same right under this
3-25 subsection as a designated beneficiary.
3-26 (e) Service credit that is canceled by a termination of
3-27 membership that occurs after August 31, 1993, may be reinstated and
4-1 other service purchased only by a member of the system in which the
4-2 service is creditable who meets the general requirements for
4-3 reinstatement or purchase of service credit in that system.
4-4 (f) Service credit is not eligible to be transferred under
4-5 this section if credit for the same service is credited in the
4-6 system to which it would be transferred.
4-7 (g) A person who is receiving retirement benefits based on
4-8 the person's service credited in one system and who applies for
4-9 service or disability retirement from the other system is not
4-10 eligible to transfer service credit under this chapter. The
4-11 designated beneficiary, or the personal representative of the
4-12 estate, of a person who at the time of death was receiving benefits
4-13 based on the person's service credited in one system and held a
4-14 position included in the other system is not eligible to transfer
4-15 service credit under this chapter.
4-16 Sec. 805.003. PAYMENTS TO REINSTATE OR PURCHASE SERVICE
4-17 CREDIT. The cost of reinstating or purchasing service credit under
4-18 Section 805.002 is determined according to the statutes that govern
4-19 the reinstatement or purchase of the type of service credit in the
4-20 system in which it is to be reinstated or purchased. All payments
4-21 for service credit reinstated or purchased under Section 805.002
4-22 must be made before retirement or the first payment of a death
4-23 benefit annuity, as applicable.
4-24 Sec. 805.004. TRANSFER OF SERVICE CREDIT. (a) A person who
4-25 elects to transfer service credit under Section 805.002 shall
4-26 notify, in the manner required by the system to which the credit
4-27 will be transferred, the system of the election. The system shall
5-1 notify the other system of the election.
5-2 (b) The systems by rule or agreement shall determine the
5-3 manner in which the service credit is transferred.
5-4 (c) A transfer of service credit under this chapter cancels
5-5 service credit and, if applicable, membership in the system from
5-6 which it is transferred.
5-7 Sec. 805.005. APPLICABILITY OF PROPORTIONATE RETIREMENT
5-8 PROGRAM. An election to transfer service credit under Section
5-9 805.002 is an alternative to participation in the program provided
5-10 by Chapter 803, except that a person having service credit in the
5-11 employees retirement system, the teacher retirement system, and
5-12 another public retirement system participating in that program may
5-13 transfer service credit under this chapter, if eligible, and use
5-14 the combined service credit for purposes of the program provided by
5-15 Chapter 803.
5-16 Sec. 805.006. CREDITING OF TRANSFERRED SERVICE CREDIT.
5-17 Service credit transferred under this chapter is credited in the
5-18 system to which it is transferred according to rules of the teacher
5-19 retirement system determining the amount of service creditable,
5-20 except that not more than one month of service credit may be
5-21 granted for service during that month.
5-22 Sec. 805.007. EFFECT OF TRANSFER OF SERVICE CREDIT. (a) A
5-23 person who transfers service credit under this chapter forfeits all
5-24 rights to benefits payable by the system from which it is
5-25 transferred and is not an annuitant of that system for any purpose,
5-26 including the payment of postretirement increases to annuitants of
5-27 that system.
6-1 (b) Service credit transferred under this chapter is
6-2 considered as if it had been granted for service performed under
6-3 the system to which it has been transferred and is used in
6-4 satisfying minimum service requirements for retirement and in
6-5 determining the amount of benefits that are based on the amount of
6-6 a person's service credit:
6-7 (1) except that a person's average salary for the
6-8 purpose of computing an annuity may be determined only from service
6-9 credit that was originally established in one system and that
6-10 results in the higher average salary; and
6-11 (2) except as provided by Section 805.006.
6-12 Sec. 805.008. RESPONSIBILITY FOR BENEFIT PAYMENTS. (a) The
6-13 system from which a person's service credit is transferred under
6-14 this chapter shall transfer to the other system, at the time the
6-15 annuity based on the service credit becomes payable, an amount
6-16 equal to the portion of the actuarial value of the annuity that
6-17 represents the percentage of the total amount of the person's
6-18 service credited in both systems that was credited in the system
6-19 from which the credit is being transferred.
6-20 (b) The systems jointly by rule shall adopt actuarial tables
6-21 and investment assumptions to be used in computing actuarial values
6-22 under this section.
6-23 (c) For the purpose of computing an amount to be transferred
6-24 under this section, service credit in either system must be
6-25 considered as if it were credited under rules of the teacher
6-26 retirement system determining the amount of service creditable.
6-27 (d) An amount transferred under this section is payable from
7-1 amounts credited to the person's individual account and amounts
7-2 credited to the account in which the system places state
7-3 contributions. An amount received under this section shall be
7-4 deposited in the account from which the system receiving the amount
7-5 pays annuities.
7-6 (e) The system to which a transfer is made under this
7-7 section is responsible for paying the annuity for which the
7-8 transfer was made, including the entire amount of any increase in
7-9 the annuity granted after the transfer.
7-10 Sec. 805.009. RULES. In addition to the rules specifically
7-11 required by this chapter, a system may adopt other rules for the
7-12 administration of this chapter.
7-13 SECTION 3. Subchapter B, Chapter 813, Government Code, is
7-14 amended by adding Section 813.104 to read as follows:
7-15 Sec. 813.104. Alternative Payments to Establish or
7-16 Reestablish Service Credit. (a) A member who is otherwise
7-17 eligible may establish or reestablish service creditable in the
7-18 retirement system by making payments as provided by this section in
7-19 lieu of lump-sum payments otherwise authorized or required by this
7-20 subtitle.
7-21 (b) A payment authorized by this section consists of the
7-22 contribution required to establish or reestablish at least one year
7-23 of service credit, including any required interest and membership
7-24 fees, except that a person's last in a series of payments under
7-25 this section may be for a period of remaining service that is less
7-26 than one year.
7-27 (c) The retirement system shall grant the applicable amount
8-1 of service credit after each payment is made under this section.
8-2 (d) Payments may not be made under this section:
8-3 (1) to establish or reestablish service credit of a
8-4 person who has retired or died; or
8-5 (2) to establish current service under Section
8-6 813.201.
8-7 (e) The retirement system may adopt rules to administer this
8-8 section.
8-9 SECTION 4. Subchapter B, Chapter 813, Government Code, is
8-10 amended by adding Section 813.105 to read as follows:
8-11 Sec. 813.105. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
8-12 SERVICE CREDIT. (a) A contributing member who is otherwise
8-13 eligible may establish or reestablish service creditable in the
8-14 retirement system by making payments as provided by this section in
8-15 lieu of lump-sum payments otherwise authorized or required by this
8-16 subtitle.
8-17 (b) A payment authorized by this section consists of a
8-18 monthly payroll deduction in an amount equal to one-twelfth of the
8-19 contribution required to establish or reestablish one year of
8-20 service credit, including any required interest and membership fee,
8-21 except as provided by Subsection (c).
8-22 (c) Payments to establish or reestablish service credit of
8-23 less than one year or to establish or reestablish service credit by
8-24 a member who plans to retire in less than a year may be made by
8-25 payroll deduction for a period determined by the retirement system.
8-26 (d) Payroll deductions for payments under this section shall
8-27 be made and submitted to the retirement system at the times and in
9-1 the manner provided for member contributions under Section 815.402.
9-2 (e) The retirement system shall credit a member's payments
9-3 made under this section to a suspense account until the sum of the
9-4 payments equals the amount required for one year of service credit
9-5 or the amount required for credit under Subsection (c), at which
9-6 time the retirement system shall deposit the payments in the
9-7 appropriate accounts in the trust fund and grant the applicable
9-8 amount of service credit.
9-9 (f) A member who, while making payments under this section,
9-10 ceases to hold a position or withdraws the authority for payroll
9-11 deductions may contract with the retirement system for an
9-12 alternative method of continuing the payments. The retirement
9-13 system may refund payments credited to the suspense account and not
9-14 transferred to trust fund accounts if a remaining payment becomes
9-15 delinquent by more than 60 days.
9-16 (g) Payments may not be made under this section to establish
9-17 or reestablish service credit of a person who has retired or died,
9-18 except that a beneficiary may make payment in a lump sum for the
9-19 remainder of a year of service credit for which payments were begun
9-20 before the member's death.
9-21 (h) The retirement system may adopt rules to administer this
9-22 section.
9-23 SECTION 5. Section 813.304(b), Government Code, is amended
9-24 to read as follows:
9-25 (b) The retirement system shall use military service credit
9-26 in computing service retirement or nonoccupational disability
9-27 retirement benefits of a member of the employee class only if the
10-1 member has, without military service credit, at least five <10>
10-2 years of service credit in that class.
10-3 SECTION 6. Section 813.504, Government Code, is amended to
10-4 read as follows:
10-5 Sec. 813.504. Eligibility for Service Credit Previously
10-6 Canceled. A member may reestablish service credit previously
10-7 canceled in the retirement system if the member, after cancellation
10-8 of the credit, holds a position for 12 <24> months that is included
10-9 in the employee class.
10-10 SECTION 7. Subchapter G, Chapter 814, Government Code, is
10-11 amended by adding Section 814.603 to read as follows:
10-12 Sec. 814.603. SUPPLEMENTAL ONE-TIME PAYMENT. (a) The
10-13 retirement system shall make a supplemental payment to persons
10-14 whose annuities are described by Section 814.107, 814.207, 814.305,
10-15 or 814.601(a) and that are based on service retirements, disability
10-16 retirements, or deaths. This supplemental payment is in addition
10-17 to the regular monthly annuity payment. Each person who receives
10-18 an annuity described by this subsection is entitled to receive one
10-19 payment equal to 10 percent of one month's annuity payment for each
10-20 fiscal year before the fiscal year beginning September 1, 1992, in
10-21 which the annuity has been paid. A supplemental payment may not
10-22 exceed 350 percent of a monthly annuity. Only a person whose
10-23 annuity began in the fiscal year ending August 31, 1992, or
10-24 earlier, is eligible for the supplemental payment. Supplemental
10-25 payments under this subsection must comply with Section 811.006.
10-26 (b) The retirement system shall pay the supplemental payment
10-27 provided by Subsection (a) from the retirement annuity reserve
11-1 account and may transfer to that account from the state
11-2 accumulation account any portion of the amount that exceeds the
11-3 amount in the retirement annuity reserve account available to
11-4 finance this supplemental payment and that is actuarially
11-5 determined to be necessary to finance the supplemental payment.
11-6 (c) The board of trustees may adopt rules to implement the
11-7 payment, including rules that govern the timing of the supplemental
11-8 payment described by Subsection (a).
11-9 (d) The board of trustees may by rule authorize similar
11-10 supplemental payments in the fiscal year ending August 31, 1995, if
11-11 the payments are in compliance with Section 811.006.
11-12 SECTION 8. Section 815.002, Government Code, is amended by
11-13 adding Subsection (d) to read as follows:
11-14 (d) Appointments to the board shall be made without regard
11-15 to the race, color, disability, sex, religion, age, or national
11-16 origin of the appointees.
11-17 SECTION 9. Subchapter A, Chapter 815, Government Code, is
11-18 amended by adding Section 815.0031 to read as follows:
11-19 Sec. 815.0031. INELIGIBILITY FOR BOARD AND OF CERTAIN
11-20 EMPLOYEES. (a) A person is not eligible for appointment or
11-21 election to the board if the person or the person's spouse:
11-22 (1) is employed by or participates in the management
11-23 of a business entity or other organization receiving funds from the
11-24 retirement system; or
11-25 (2) owns or controls, directly or indirectly, more
11-26 than a 10 percent interest in a business entity or other
11-27 organization receiving funds from the retirement system.
12-1 (b) A paid officer, employee, or consultant of a Texas trade
12-2 association in the field of insurance or investment may not be a
12-3 trustee or an employee of the retirement system who is exempt from
12-4 the state's position classification plan or is compensated at or
12-5 above the amount prescribed by the General Appropriations Act for
12-6 step 1, salary group 17, of the position classification salary
12-7 schedule.
12-8 (c) A person who is the spouse of a paid officer, manager,
12-9 or consultant of a Texas trade association in the field of
12-10 insurance or investment may not be a trustee and may not be an
12-11 employee of the retirement system who is exempt from the state's
12-12 position classification plan or is compensated at or above the
12-13 amount prescribed by the General Appropriations Act for step 1,
12-14 salary group 17, of the position classification salary schedule.
12-15 (d) For the purposes of this section, a Texas trade
12-16 association is a nonprofit, cooperative, and voluntarily joined
12-17 association of business or professional competitors in this state
12-18 designed to assist its members and its industry or profession in
12-19 dealing with mutual business or professional problems and in
12-20 promoting their common interest.
12-21 (e) A person may not serve as a trustee or act as the
12-22 general counsel to the board if the person is required to register
12-23 as a lobbyist under Chapter 305 because of the person's activities
12-24 for compensation on behalf of a business or an association related
12-25 to the operation of the board.
12-26 SECTION 10. Subchapter A, Chapter 815, Government Code, is
12-27 amended by adding Section 815.008 to read as follows:
13-1 Sec. 815.008. GROUNDS FOR REMOVAL OF TRUSTEE. (a) It is a
13-2 ground for removal from the board if a trustee:
13-3 (1) violates a prohibition established by
13-4 Section 815.0031;
13-5 (2) cannot discharge the person's duties for a
13-6 substantial part of the term for which the person is appointed or
13-7 elected because of illness or disability; or
13-8 (3) is absent from more than half of the regularly
13-9 scheduled board meetings that the person is eligible to attend
13-10 during a calendar year unless the absence is excused by majority
13-11 vote of the board.
13-12 (b) The validity of an action of the board is not affected
13-13 by the fact that it is taken when a ground for removal of a trustee
13-14 exists.
13-15 (c) If the executive director has knowledge that a potential
13-16 ground for removal exists, the executive director shall notify the
13-17 chairman of the board of the ground. The chairman shall then
13-18 notify the appropriate appointing officer, if any, that a potential
13-19 ground for removal exists.
13-20 SECTION 11. Subchapter B, Chapter 815, Government Code, is
13-21 amended by adding Section 815.111 to read as follows:
13-22 Sec. 815.111. MISCELLANEOUS BOARD DUTIES. (a) The board
13-23 shall provide to its trustees and employees, as often as necessary,
13-24 information regarding their qualification for office or employment
13-25 under this chapter and their responsibilities under applicable laws
13-26 relating to standards of conduct for state officers or employees.
13-27 (b) The board shall develop and implement policies that
14-1 clearly define the respective responsibilities of the board and the
14-2 staff of the retirement system.
14-3 (c) The board shall prepare information of interest to the
14-4 retirement system's members describing the functions of the system
14-5 and the system's procedures by which complaints are filed with and
14-6 resolved by the system. The system shall make the information
14-7 available to the system's members and appropriate state agencies.
14-8 (d) The board by rule shall establish methods by which
14-9 members are notified of the name, mailing address, and telephone
14-10 number of the retirement system for the purpose of directing
14-11 complaints to the system.
14-12 (e) The board shall develop and implement policies that
14-13 provide the public with a reasonable opportunity to appear before
14-14 the board and to speak on any issue under the jurisdiction of the
14-15 board.
14-16 (f) The board shall prepare and maintain a written plan that
14-17 describes how a person who does not speak English can be provided
14-18 reasonable access to the board's programs. The board shall also
14-19 comply with federal and state laws for program and facility
14-20 accessibility.
14-21 SECTION 12. Subchapter C, Chapter 815, Government Code, is
14-22 amended by adding Section 815.212 to read as follows:
14-23 Sec. 815.212. EMPLOYMENT PRACTICES. (a) The executive
14-24 director or the executive director's designee shall develop an
14-25 intra-agency career ladder program. The program shall require
14-26 intra-agency posting of all nonentry level positions concurrently
14-27 with any public posting.
15-1 (b) The executive director or the executive director's
15-2 designee shall develop a system of annual performance evaluations.
15-3 All merit pay for retirement system employees must be based on the
15-4 system established under this subsection.
15-5 (c) The executive director or the executive director's
15-6 designee shall prepare and maintain a written policy statement to
15-7 assure implementation of a program of equal employment opportunity
15-8 under which all personnel transactions are made without regard to
15-9 race, color, disability, sex, religion, age, or national origin.
15-10 The policy statement must include:
15-11 (1) personnel policies, including policies relating to
15-12 recruitment, evaluation, selection, appointment, training, and
15-13 promotion of personnel;
15-14 (2) a comprehensive analysis of the retirement
15-15 system's work force that meets federal and state guidelines;
15-16 (3) procedures by which a determination can be made of
15-17 significant underuse in the retirement system's work force of all
15-18 persons for whom federal or state guidelines encourage a more
15-19 equitable balance; and
15-20 (4) reasonable methods to appropriately address those
15-21 areas of significant underuse.
15-22 (d) A policy statement prepared under Subsection (c) must
15-23 cover an annual period, be updated at least annually, and be filed
15-24 with the governor's office.
15-25 (e) The governor's office shall deliver a biennial report to
15-26 the legislature based on the information received under Subsection
15-27 (d). The report may be made separately or as a part of other
16-1 biennial reports made to the legislature.
16-2 SECTION 13. Sections 815.301(a) and (b), Government Code,
16-3 are amended to read as follows:
16-4 (a) The board of trustees shall:
16-5 (1) invest the assets of the retirement system<, other
16-6 than assets of the law enforcement and custodial officer
16-7 supplemental retirement fund,> as a single fund without distinction
16-8 as to their source; and
16-9 (2) hold securities purchased with the assets
16-10 described by Subsection (a)(1) collectively for the proportionate
16-11 benefit of:
16-12 (A) all accounts in the trust fund that are
16-13 listed in Section 815.310(b); and
16-14 (B) the law enforcement and custodial officer
16-15 supplemental retirement fund.
16-16 (b) The <Except for assets of the law enforcement and
16-17 custodial officer supplemental retirement fund, the> board of
16-18 trustees may, under the standard of care provided by Section
16-19 815.307, invest and reinvest any of the retirement system's assets
16-20 and may commingle assets of the trust fund and the law enforcement
16-21 and custodial officer supplemental retirement fund with the assets
16-22 of the Judicial Retirement System of Texas Plan Two for investment
16-23 purposes, as long as proportionate ownership records are maintained
16-24 and credited. Investments may include home office facilities,
16-25 including land, equipment, and office building, used in
16-26 administering the retirement system.
16-27 SECTION 14. Section 815.310(b), Government Code, is amended
17-1 to read as follows:
17-2 (b) All assets of the trust fund shall be credited,
17-3 according to the purpose for which they are held, to one of the
17-4 following accounts:
17-5 (1) employees saving account;
17-6 (2) state accumulation account;
17-7 (3) retirement annuity reserve account;
17-8 (4) interest account; or
17-9 (5) expense account<; or>
17-10 <(6) benefit increase reserve account>.
17-11 SECTION 15. Section 815.313(a), Government Code, is amended
17-12 to read as follows:
17-13 (a) The retirement system shall transfer to the retirement
17-14 annuity reserve account money as required by Section 815.318,
17-15 815.319, <815.320,> or 815.321.
17-16 SECTION 16. Section 815.317(a), Government Code, is amended
17-17 to read as follows:
17-18 (a) The retirement system shall deposit in the law
17-19 enforcement and custodial officer supplemental retirement fund
17-20 state contributions and other <payments made as provided by Section
17-21 815.405, any> appropriations made by the legislature to the fund<,
17-22 money collected under Section 2(1), Chapter 88, General Laws, Acts
17-23 of the 41st Legislature, 2nd Called Session, 1929 (Article 6675a 2,
17-24 Vernon's Texas Civil Statutes),> and proceeds from investment of
17-25 the fund.
17-26 SECTION 17. Section 815.318, Government Code, is amended to
17-27 read as follows:
18-1 Sec. 815.318. Transfer of Assets From Interest Account.
18-2 (a) The board of trustees shall transfer from the interest account
18-3 to the employees saving account amounts of interest computed under
18-4 Section 815.311 at the following times:
18-5 (1) as required during the fiscal year for a member's
18-6 account in the retirement system that is closed before the last day
18-7 of the fiscal year; and
18-8 (2) as of the last day of the fiscal year for a
18-9 member's account that is not closed before the last day of the
18-10 fiscal year.
18-11 (b) As required during the year, the board of trustees shall
18-12 transfer from the interest account to the expense account amounts
18-13 it determines necessary for the payment of the retirement system's
18-14 expenses that exceed the amount of money available for those
18-15 expenses.
18-16 (c) As of the last day of each fiscal year, the board of
18-17 trustees shall transfer from the interest account to the retirement
18-18 annuity reserve account an amount equal to:
18-19 (1) five percent of the mean amount in the retirement
18-20 annuity reserve account for that fiscal year; or
18-21 (2) an amount computed at a greater rate if the
18-22 actuary recommends the greater rate to finance adequately the
18-23 annuities payable from the retirement annuity reserve account.
18-24 (d) <As of the last day of each fiscal year, the board of
18-25 trustees shall transfer from the interest account to the benefit
18-26 increase account an amount computed at the rate set by the board
18-27 under Section 815.106.>
19-1 <(e)> After making the transfers required by this section,
19-2 the board of trustees, as of the last day of each fiscal year,
19-3 shall transfer the amount remaining in the interest account to the
19-4 state accumulation account.
19-5 SECTION 18. Section 815.401(c), Government Code, is amended
19-6 to read as follows:
19-7 (c) If the legislature appropriates, on behalf of each
19-8 contributing member for any fiscal year, a membership fee to be
19-9 deposited in the expense account in an amount equal to or greater
19-10 than the membership fee required by Subsection (a), the members are
19-11 not required to pay the membership fee for that year. The
19-12 retirement system may apply the membership fee to the
19-13 administration of any program administered by the board of
19-14 trustees.
19-15 SECTION 19. Section 815.403, Government Code, is amended by
19-16 amending Subsections (a) and (b) and by adding Subsection (g) to
19-17 read as follows:
19-18 (a) During each fiscal year, the state shall contribute to
19-19 the retirement system:
19-20 (1) an amount equal to 7.4 percent of the total
19-21 compensation of all members of the retirement system for that year;
19-22 (2) money to pay lump-sum death benefits for retirees
19-23 under Section 814.501;
19-24 (3) an amount for the law enforcement and custodial
19-25 officer supplemental retirement fund equal to 2.1 percent of the
19-26 aggregate state compensation of all custodial and law enforcement
19-27 officers for that year;
20-1 (4) money necessary for the administration <and
20-2 payment> of <benefits from> the law enforcement and custodial
20-3 officer supplemental retirement fund; and
20-4 (5) <(4)> money for service credit not previously
20-5 established, as provided by Section 813.202(e) or 813.302(d).
20-6 (b) Before November 2 of each even-numbered year, the
20-7 retirement system shall certify to the Legislative Budget Board and
20-8 to the budget division of the governor's office for review:
20-9 (1) an estimate of the amount necessary to pay the
20-10 state's contributions under Subsections (a)(1), (a)(2), (a)(3), and
20-11 (a)(5) <(a)(4)> for the following biennium;
20-12 <(2) the estimated amount, based on actuarial
20-13 valuations, of appropriated funds required in addition to other
20-14 available money to finance all benefits provided from the law
20-15 enforcement and custodial officer supplemental retirement fund for
20-16 the following biennium;>
20-17 <(3) the estimated amount, based on actuarial
20-18 valuations, of appropriated funds required for the following
20-19 biennium to fully finance, within a period of not more than 36
20-20 years after September 1, 1979, liabilities of the law enforcement
20-21 and custodial officer supplemental retirement fund accrued because
20-22 of service performed before September 1, 1979;> and
20-23 (2) <(4)> as a separate item, an estimate of the
20-24 amount required to administer the law enforcement and custodial
20-25 officer supplemental retirement fund for the following biennium.
20-26 (g) The contributions from the state to the law enforcement
20-27 and custodial officer supplemental retirement fund may be made only
21-1 from the general revenue fund.
21-2 SECTION 20. Section 815.505, Government Code, is amended to
21-3 read as follows:
21-4 Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT AND
21-5 CUSTODIAL OFFICERS. Not later than the 12th day of the month
21-6 following the month in which a person begins or ceases employment
21-7 as a law enforcement officer or custodial officer <As of the last
21-8 day of each fiscal year>, the <Department of> Public Safety
21-9 Commission, the Texas Alcoholic Beverage Commission, the Parks and
21-10 Wildlife Commission <Department>, or <the State Purchasing and
21-11 General Services Commission, and> the Texas Board <Department> of
21-12 Criminal Justice, as applicable, <Corrections> shall certify to the
21-13 retirement system, in the manner prescribed by the system, the name
21-14 of the employee and such other information as the system determines
21-15 is necessary for the crediting of service and financing of benefits
21-16 under this subtitle <the names of employees and the amount of
21-17 service each employee performed as a law enforcement officer or
21-18 custodial officer during that fiscal year>.
21-19 SECTION 21. Subchapter F, Chapter 815, Government Code, is
21-20 amended by adding Section 815.5071 to read as follows:
21-21 Sec. 815.5071. TRUSTEE-TO-TRUSTEE TRANSFER. Notwithstanding
21-22 Section 811.005 and to the extent required as a condition of plan
21-23 qualification under Section 401(a) of the Internal Revenue Code of
21-24 1986 (26 U.S.C. Section 401), the retirement system shall, in
21-25 accordance with Section 401(a)(31) of the Internal Revenue Code of
21-26 1986 (26 U.S.C. Section 401(a)(31)) and related regulations, permit
21-27 the distributee of an eligible rollover distribution to elect to
22-1 have the distribution paid directly to an eligible retirement plan
22-2 specified by the distributee in the form of a direct
22-3 trustee-to-trustee transfer. The board of trustees may adopt rules
22-4 to carry out this section. Terms used in this section have the
22-5 meanings assigned by the Internal Revenue Code of 1986 (Title 26,
22-6 United States Code).
22-7 SECTION 22. Subchapter F, Chapter 815, Government Code, is
22-8 amended by adding Section 815.508 to read as follows:
22-9 Sec. 815.508. COMPLAINT FILES. (a) The retirement system
22-10 shall keep an information file about each complaint filed with the
22-11 system that the system has authority to resolve.
22-12 (b) If a written complaint is filed with the retirement
22-13 system that the system has authority to resolve, the system, at
22-14 least quarterly and until final disposition of the complaint, shall
22-15 notify the parties to the complaint of the status of the complaint
22-16 unless the notice would jeopardize an undercover investigation.
22-17 SECTION 23. Subchapter F, Chapter 815, Government Code, is
22-18 amended by adding Section 815.509 to read as follows:
22-19 Sec. 815.509. ADVISORY COMMITTEES. (a) The board of
22-20 trustees may establish advisory committees as it considers
22-21 necessary to assist it in performing its duties. Members of
22-22 advisory committees established under this section serve at the
22-23 pleasure of the board.
22-24 (b) Notwithstanding any other law to the contrary, the board
22-25 of trustees by rule shall determine the amount and manner of any
22-26 compensation or expense reimbursement to be paid members of an
22-27 advisory committee established under this section for performing
23-1 the work of the advisory committee. All compensation and expense
23-2 reimbursements for an advisory committee established under this
23-3 section are payable from the expense account.
23-4 SECTION 24. Before October 1, 1995, the Public Safety
23-5 Commission, the Texas Alcoholic Beverage Commission, the Parks and
23-6 Wildlife Commission, and the Texas Board of Criminal Justice shall
23-7 certify to the Employees Retirement System of Texas, in the manner
23-8 prescribed by the retirement system, the name of each person
23-9 employed on September 1, 1995, by the particular agency as a law
23-10 enforcement officer, as defined by Section 811.001, Government
23-11 Code, or a custodial officer, as defined by that section, and such
23-12 other information as the system determines is necessary for the
23-13 crediting of service and financing of benefits under Subtitle B,
23-14 Title 8, Government Code.
23-15 SECTION 25. (a) All persons who were employed by the Texas
23-16 Rehabilitation Commission on August 31, 1993, who were contributing
23-17 members of the Teacher Retirement System of Texas on that date, and
23-18 who remain employees of the Texas Rehabilitation Commission on
23-19 September 1, 1993, become members of the Employees Retirement
23-20 System of Texas on the latter date.
23-21 (b) At the time of the retirement or death of a person
23-22 described by Subsection (a) of this section, the Teacher Retirement
23-23 System of Texas and the Employees Retirement System of Texas shall
23-24 make a computation and transfer of money in the manner provided by
23-25 Section 805.008, Government Code, as added by this Act, and the
23-26 person's service credit in the Teacher Retirement System of Texas
23-27 will be transferred to the Employees Retirement System of Texas.
24-1 The Employees Retirement System of Texas has the same
24-2 responsibility for payments after retirement or death as is
24-3 provided by Section 805.008, Government Code, as added by this Act.
24-4 (c) Notwithstanding Chapter 805, Government Code, as added
24-5 by this Act, a person who becomes a member of the Employees
24-6 Retirement System of Texas under this section is not eligible to
24-7 transfer service credit from the Employees Retirement System of
24-8 Texas to the Teacher Retirement System of Texas.
24-9 SECTION 26. (a) A member or retiree of the Employees
24-10 Retirement System of Texas who has, or had at the time of
24-11 retirement, at least 20 years of service credit in the retirement
24-12 system and has served as the executive head of a legislative
24-13 service agency is eligible to make an election under this section.
24-14 (b) A member or retiree of the Employees Retirement System
24-15 of Texas who was an elected officer of the Senate of the State of
24-16 Texas on February 1, 1993, as determined by the senate journal, and
24-17 who has at least 10 years of service credit in the retirement
24-18 system is eligible to make an election under this section.
24-19 (c) A member of the Employees Retirement System of Texas who
24-20 was an appointed officer of the House of Representatives of the
24-21 State of Texas on February 1, 1993, as determined by the house
24-22 journal, and who has at least 25 years of service credit in the
24-23 retirement system is eligible to make an election under this
24-24 section.
24-25 (d) An election under this section must be filed with the
24-26 Employees Retirement System of Texas before January 1, 1994, and
24-27 becomes irrevocable on that date. After the filing of an election
25-1 under this section, the retirement system shall consider all the
25-2 service credit established by the person who makes the election,
25-3 including service credit established after the date the election is
25-4 filed, as if it were performed as a member of the elected class of
25-5 membership. If a person who makes an election under Subsection (a)
25-6 or (c) of this section and who is not a retiree does not retire
25-7 before February 1, 1994, the election is void.
25-8 SECTION 27. Chapter 805, Government Code, as added by this
25-9 Act, applies only to retirements and deaths that occur on or after
25-10 August 31, 1993.
25-11 SECTION 28. Subchapter B, Chapter 833, Government Code, is
25-12 amended by adding Section 833.105 to read as follows:
25-13 Sec. 833.105. Alternative Payments to Establish or
25-14 Reestablish Service Credit. (a) A member who is otherwise
25-15 eligible may establish or reestablish service creditable in the
25-16 retirement system by making payments as provided by this section in
25-17 lieu of lump-sum payments otherwise authorized or required by this
25-18 subtitle.
25-19 (b) A payment authorized by this section consists of the
25-20 contribution required to establish or reestablish at least one year
25-21 of service credit, including any required interest and membership
25-22 fees, except that a person's last in a series of payments under
25-23 this section may be for a period of remaining service that is less
25-24 than one year.
25-25 (c) The retirement system shall grant the applicable amount
25-26 of service credit after each payment is made under this section.
25-27 (d) Payments may not be made under this section:
26-1 (1) to establish or reestablish service credit of a
26-2 person who has retired or died; or
26-3 (2) to establish current service under Section
26-4 833.101.
26-5 (e) The retirement system may adopt rules to administer this
26-6 section.
26-7 SECTION 29. Subchapter B, Chapter 833, Government Code, is
26-8 amended by adding Section 833.106 to read as follows:
26-9 Sec. 833.106. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
26-10 SERVICE CREDIT. (a) A contributing member who is otherwise
26-11 eligible may establish or reestablish service creditable in the
26-12 retirement system by making payments as provided by this section in
26-13 lieu of lump-sum payments otherwise authorized or required by this
26-14 subtitle.
26-15 (b) A payment authorized by this section consists of a
26-16 monthly payroll deduction in an amount equal to one-twelfth of the
26-17 contribution required to establish or reestablish one year of
26-18 service credit, including any required interest and membership fee,
26-19 except as provided by Subsection (c).
26-20 (c) Payments to establish or reestablish service credit of
26-21 less than one year or to establish or reestablish service credit by
26-22 a member who plans to retire in less than a year may be made by
26-23 payroll deduction for a period determined by the retirement system.
26-24 (d) Payroll deductions for payments under this section shall
26-25 be made and submitted to the retirement system at the times and in
26-26 the manner provided for member contributions under Section 835.101.
26-27 (e) The retirement system shall credit a member's payments
27-1 made under this section to a suspense account until the sum of the
27-2 payments equals the amount required for one year of service credit
27-3 or the amount required for credit under Subsection (c), at which
27-4 time the retirement system shall deposit the payments in the
27-5 general revenue fund and grant the applicable amount of service
27-6 credit.
27-7 (f) A member who, while making payments under this section,
27-8 ceases to be a judicial officer or withdraws the authority for
27-9 payroll deductions may contract with the retirement system for an
27-10 alternative method of continuing the payments. The retirement
27-11 system may refund payments credited to the suspense account and not
27-12 transferred to trust fund accounts if a remaining payment becomes
27-13 delinquent by more than 60 days.
27-14 (g) Payments may not be made under this section to establish
27-15 or reestablish service credit of a person who has retired or died,
27-16 except that a beneficiary may make payment in a lump sum for the
27-17 remainder of a year of service credit for which payments were begun
27-18 before the member's death.
27-19 (h) The retirement system may adopt rules to administer this
27-20 section.
27-21 SECTION 30. Subchapter B, Chapter 838, Government Code, is
27-22 amended by adding Section 838.105 to read as follows:
27-23 Sec. 838.105. Alternative Payments to Establish or
27-24 Reestablish Service Credit. (a) A member who is otherwise
27-25 eligible may establish or reestablish service creditable in the
27-26 retirement system by making payments as provided by this section in
27-27 lieu of lump-sum payments otherwise authorized or required by this
28-1 subtitle.
28-2 (b) A payment authorized by this section consists of the
28-3 contribution required to establish or reestablish at least one year
28-4 of service credit, including any required interest and membership
28-5 fees, except that a person's last in a series of payments under
28-6 this section may be for a period of remaining service that is less
28-7 than one year.
28-8 (c) The retirement system shall grant the applicable amount
28-9 of service credit after each payment is made under this section.
28-10 (d) Payments may not be made under this section:
28-11 (1) to establish or reestablish service credit of a
28-12 person who has retired or died; or
28-13 (2) to establish current service under Section
28-14 838.101.
28-15 (e) The retirement system may adopt rules to administer this
28-16 section.
28-17 SECTION 31. Subchapter B, Chapter 838, Government Code, is
28-18 amended by adding Section 838.106 to read as follows:
28-19 Sec. 838.106. PAYROLL DEDUCTIONS TO ESTABLISH OR REESTABLISH
28-20 SERVICE CREDIT. (a) A contributing member who is otherwise
28-21 eligible may establish or reestablish service creditable in the
28-22 retirement system by making payments as provided by this section in
28-23 lieu of lump-sum payments otherwise authorized or required by this
28-24 subtitle.
28-25 (b) A payment authorized by this section consists of a
28-26 monthly payroll deduction in an amount equal to one-twelfth of the
28-27 contribution required to establish or reestablish one year of
29-1 service credit, including any required interest and membership fee,
29-2 except as provided by Subsection (c).
29-3 (c) Payments to establish or reestablish service credit of
29-4 less than one year or to establish or reestablish service credit by
29-5 a member who plans to retire in less than a year may be made by
29-6 payroll deduction for a period determined by the retirement system.
29-7 (d) Payroll deductions for payments under this section shall
29-8 be made and submitted to the retirement system at the times and in
29-9 the manner provided for member contributions under Section 840.102.
29-10 (e) The retirement system shall credit a member's payments
29-11 made under this section to a suspense account until the sum of the
29-12 payments equals the amount required for one year of service credit
29-13 or the amount required for credit under Subsection (c), at which
29-14 time the retirement system shall deposit the payments in the
29-15 appropriate accounts in the trust fund and grant the applicable
29-16 amount of service credit.
29-17 (f) A member who, while making payments under this section,
29-18 ceases to be a judicial officer or withdraws the authority for
29-19 payroll deductions may contract with the retirement system for an
29-20 alternative method of continuing the payments. The retirement
29-21 system may refund payments credited to the suspense account and not
29-22 transferred to trust fund accounts if a remaining payment becomes
29-23 delinquent by more than 60 days.
29-24 (g) Payments may not be made under this section to establish
29-25 or reestablish service credit of a person who has retired or died,
29-26 except that a beneficiary may make payment in a lump sum for the
29-27 remainder of a year of service credit for which payments were begun
30-1 before the member's death.
30-2 (h) The retirement system may adopt rules to administer this
30-3 section.
30-4 SECTION 32. Section 839.101, Government Code, is amended to
30-5 read as follows:
30-6 Sec. 839.101. Eligibility for Service Retirement Annuity.
30-7 (a) A member is eligible to retire and receive a service
30-8 retirement annuity if the member:
30-9 (1) <is at least 65 years old, currently holds a
30-10 judicial office, and has at least 10 years of service credited in
30-11 the retirement system, the most recently performed of which was for
30-12 a continuous period of at least one year;>
30-13 <(2)> is at least 65 years old and has at least 10
30-14 <12> years of service<, continuous or otherwise,> credited in the
30-15 retirement system, regardless of whether the member currently holds
30-16 a judicial office; or
30-17 (2) <(3)> has at least 25 years of service credited in
30-18 the retirement system, <the most recently performed of which was
30-19 for a continuous period of at least 10 years,> regardless of
30-20 whether the member currently holds a judicial office.
30-21 (b) A member who meets service requirements provided by
30-22 Subsection (a)(1) <or (a)(2)> is eligible to retire and receive a
30-23 service retirement annuity actuarially reduced as provided by
30-24 Section 839.102(c) from the standard service retirement annuity, if
30-25 the member is at least 60 years old.
30-26 (c) A member's resignation from a judicial office before
30-27 applying for an annuity does not make the member ineligible for the
31-1 annuity <unless the member applies for an annuity under Subsection
31-2 (a)(1)>.
31-3 SECTION 33. Section 839.102(a), Government Code, is amended
31-4 to read as follows:
31-5 (a) Except as provided by Subsections (b) and (c), the
31-6 standard service retirement annuity is an amount computed on the
31-7 basis of the monthly state salary being paid at the time the member
31-8 retires to a judge of a court of the same classification as the
31-9 last court to which the retiring member was elected or appointed
31-10 <member's average monthly compensation for the 36 highest months of
31-11 compensation during the last 60 months of service>, multiplied by
31-12 one-twelfth of three percent for each month of service that is
31-13 credited in the retirement system.
31-14 SECTION 34. Section 840.103(b), Government Code, is amended
31-15 to read as follows:
31-16 (b) Before November 2 of each even-numbered year, the
31-17 retirement system shall certify to the Legislative Budget Board and
31-18 to the budget division of the governor's office for review:
31-19 (1) an actuarial valuation of the retirement system to
31-20 determine the percentage of annual payroll required from the state
31-21 to finance fully the retirement system as provided by Section
31-22 840.106 <without any unfunded liability>;
31-23 (2) an estimate of the amount necessary to pay the
31-24 state's contribution under Subdivision (1) for the following
31-25 biennium; and
31-26 (3) as a separate item, an estimate of the amount, in
31-27 addition to anticipated receipts from membership fees, required to
32-1 administer the retirement system for the following biennium.
32-2 SECTION 35. Subchapter B, Chapter 840, Government Code, is
32-3 amended by adding Section 840.106 to read as follows:
32-4 Sec. 840.106. ACTION INCREASING AMORTIZATION PERIOD. (a) A
32-5 rate of member or state contributions to or a rate of interest
32-6 required for the establishment of credit in the retirement system
32-7 may not be reduced or eliminated, a type of service may not be made
32-8 creditable in the retirement system, a limit on the maximum
32-9 permissible amount of a type of creditable service may not be
32-10 removed or raised, a new monetary benefit payable by the retirement
32-11 system may not be established, and the determination of the amount
32-12 of a monetary benefit from the system may not be increased, if, as
32-13 a result of the particular action, the time, as determined by an
32-14 actuarial valuation, required to amortize the unfunded actuarial
32-15 liabilities of the retirement system would be increased to a period
32-16 that exceeds 30 years by one or more years.
32-17 (b) If the amortization period for the unfunded actuarial
32-18 liabilities of the retirement system exceeds 30 years by one or
32-19 more years at the time an action described by Subsection (a) is
32-20 proposed, the proposal may not be adopted if, as a result of the
32-21 adoption, the amortization period would be increased, as determined
32-22 by an actuarial valuation.
32-23 SECTION 36. Section 840.301(a), Government Code, is amended
32-24 to read as follows:
32-25 (a) The board of trustees may, under the standard of care
32-26 provided by Section 840.303, invest and reinvest the retirement
32-27 system's assets and may commingle assets of the trust fund with the
33-1 assets of the Employees Retirement System of Texas for investment
33-2 purposes, as long as proportionate ownership records are maintained
33-3 and credited.
33-4 SECTION 37. Subchapter E, Chapter 840, Government Code, is
33-5 amended by adding Section 840.405 to read as follows:
33-6 Sec. 840.405. TRUSTEE-TO-TRUSTEE TRANSFER. Notwithstanding
33-7 Section 836.004 and to the extent required as a condition of plan
33-8 qualification under Section 401(a) of the Internal Revenue Code of
33-9 1986 (26 U.S.C. Section 401), the retirement system shall, in
33-10 accordance with Section 401(a)(31) of the Internal Revenue Code of
33-11 1986 (26 U.S.C. Section 401(a)(31)) and related regulations, permit
33-12 the distributee of an eligible rollover distribution to elect to
33-13 have the distribution paid directly to an eligible retirement plan
33-14 specified by the distributee in the form of a direct
33-15 trustee-to-trustee transfer. The board of trustees may adopt rules
33-16 to carry out this section. Terms used in this section have the
33-17 meanings assigned by the Internal Revenue Code of 1986 (Title 26,
33-18 United States Code).
33-19 SECTION 38. Subchapter E, Chapter 840, Government Code, is
33-20 amended by adding Section 840.406 to read as follows:
33-21 Sec. 840.406. PLAN QUALIFICATION. (a) The provisions of
33-22 this subtitle shall be interpreted and administered in a manner
33-23 that permits the retirement system's benefit plan to be considered
33-24 a qualified plan under Section 401, Internal Revenue Code of 1986
33-25 (26 U.S.C. Section 401). The board of trustees may adopt rules
33-26 necessary to accomplish that purpose, and those rules are
33-27 considered a part of the plan.
34-1 (b) The retirement system's benefit plan shall be considered
34-2 the primary retirement plan for members of the retirement system in
34-3 determining qualification status under Section 401(a), Internal
34-4 Revenue Code of 1986 (26 U.S.C. Section 401(a)).
34-5 SECTION 39. Section 3(a)(5)(A), Texas Employees Uniform
34-6 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
34-7 Insurance Code), as amended by Chapters 242 and 391, Acts of the
34-8 72nd Legislature, Regular Session, 1991, is amended to read as
34-9 follows:
34-10 (A) "Employee" <"State-employee"> shall mean any
34-11 appointive or elective state officer or employee in the service of
34-12 the State of Texas, including an employee of an institution of
34-13 higher education:
34-14 (i) who is retired or retires and is an
34-15 annuitant under the jurisdiction of the Employees Retirement System
34-16 of Texas, pursuant to Subtitle B, D, or E, or Chapter 803, Title 8,
34-17 Government Code, who is retired or retires and is an annuitant
34-18 under the jurisdiction of the Teacher Retirement System of Texas,
34-19 pursuant to Subtitle C, Title 8, Government Code, whose last
34-20 employment with the state prior to retirement was as an employee of
34-21 the Teacher Retirement System of Texas, school districts
34-22 established within state eleemosynary institutions, the Texas
34-23 Rehabilitation Commission, the Central Education Agency, the Texas
34-24 Higher Education Coordinating Board, or an institution of higher
34-25 education, or who is retired or retires and is an annuitant under
34-26 the optional retirement program established by Chapter 830,
34-27 Government Code, if the person's last state employment before
35-1 retirement, including employment by a public community/junior
35-2 college, was as an officer or employee of the Texas Higher
35-3 Education Coordinating Board, or an institution of higher
35-4 education, and if the person either:
35-5 (a) would have been eligible to
35-6 retire and receive a service retirement annuity from the Teacher
35-7 Retirement System of Texas had the person not elected to
35-8 participate in the optional retirement program; or
35-9 (b) is disabled;
35-10 (ii) who receives his compensation for
35-11 services rendered to the State of Texas on a warrant issued
35-12 pursuant to a payroll certified by a department or by an elected or
35-13 duly appointed officer of this state;
35-14 (iii) who receives payment for the
35-15 performance of personal services on a warrant issued pursuant to a
35-16 payroll certified by a department and drawn by the State
35-17 Comptroller of Public Accounts upon the State Treasurer against
35-18 appropriations made by the Texas Legislature from any state funds
35-19 or against any trust funds held by the State Treasurer or who is
35-20 paid from funds of an official budget of a state department, rather
35-21 than from funds of the General Appropriations Act;
35-22 (iv) who is appointed, subject to
35-23 confirmation of the senate, as a member of a board or commission
35-24 with administrative responsibility over a statutory agency having
35-25 statewide jurisdiction whose employees are covered by this Act;
35-26 (v) who is a member of the governing body
35-27 of an institution of higher education, as that term is defined by
36-1 Section 61.003, Education Code, including subsequent amendments to
36-2 that section;
36-3 (vi) who is a member of the State Board of
36-4 Education;
36-5 (vii) who receives compensation for
36-6 services rendered to an institution of higher education on a
36-7 warrant or check issued pursuant to a payroll certified by an
36-8 institution of higher education or by an elected or duly appointed
36-9 officer of this state, and who is eligible for participation in the
36-10 Teacher Retirement System of Texas; or
36-11 (viii) <(vi)> who receives compensation
36-12 for services rendered to an institution of higher education as
36-13 provided by this subdivision but is not permitted to be a member of
36-14 the Teacher Retirement System of Texas because the person is solely
36-15 employed by an institution of higher education that as a condition
36-16 of employment requires the person to be enrolled as a student in an
36-17 institution of higher education in graduate-level courses and who
36-18 is employed by the institution at least 20 hours a week.
36-19 SECTION 40. Sections 3(a)(6), (14), and (15), Texas
36-20 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
36-21 Vernon's Texas Insurance Code), are amended to read as follows:
36-22 (6) "Employer" shall mean the State of Texas and<,>
36-23 all its departments<, and any participating school district>.
36-24 (14) "Part-time employee" shall mean, for purposes of
36-25 this Act, an employee designated by his employing agency as working
36-26 less than 20 hours per week. A part-time <state> employee shall
36-27 receive the benefits of one-half the amount of the state's
37-1 contribution received by full-time employees.
37-2 (15) "Full-time employee" shall mean, for purposes of
37-3 this Act, an employee designated by his employing agency as working
37-4 20 or more hours per week. A full-time <state> employee shall
37-5 receive the benefits of a full state contribution for coverage
37-6 under this Act.
37-7 SECTION 41. Section 5(e), Texas Employees Uniform Group
37-8 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
37-9 Code), as amended by Chapters 391 and 850, Acts of the 72nd
37-10 Legislature, Regular Session, 1991, is amended to read as follows:
37-11 (e) The trustee is authorized to select, contract for, and
37-12 make available to eligible employees and annuitants in a specific
37-13 area of the state, services performed by health maintenance
37-14 organizations which are approved by the federal government or the
37-15 State of Texas to offer health care services in that area.
37-16 Eligible employees and annuitants may participate in a selected
37-17 health maintenance organization in lieu of participation in the
37-18 health insurance benefits in the Employees Uniform Group Insurance
37-19 Program<, and the employer contributions provided by Section 14(a)
37-20 or (b) of this Act for health care coverage shall be paid to the
37-21 selected health maintenance organizations on behalf of the
37-22 participants>.
37-23 SECTION 42. Section 13B(a), Texas Employees Uniform Group
37-24 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
37-25 Code), is amended to read as follows:
37-26 (a) The trustee may study the feasibility of establishing a
37-27 cafeteria plan and may design, develop, adopt, implement, and
38-1 administer a cafeteria plan if the trustee determines that the
38-2 establishment of a cafeteria plan is feasible, would be beneficial
38-3 to the state and to the <state> employees who would be eligible to
38-4 participate in the cafeteria plan, and would not adversely affect
38-5 the insurance program established under this Act. The trustee may
38-6 include in the cafeteria plan any benefit that may be included in a
38-7 cafeteria plan under federal law.
38-8 SECTION 43. Section 14, Texas Employees Uniform Group
38-9 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
38-10 Code), as amended by Chapters 391 and 850, Acts of the 72nd
38-11 Legislature, Regular Session, 1991, is amended to read as follows:
38-12 Sec. 14. Payment of Contributions. (a) The trustee shall
38-13 use the amount appropriated for employer contributions in
38-14 accordance with Section 15 of this Act to fund the basic coverage.
38-15 The trustee may equitably allocate to each health benefits plan the
38-16 employer contributions that would be required to fund basic health
38-17 coverage for participants in the plans to the extent funds are
38-18 available. In allocating the employer contributions among plans,
38-19 the trustee shall consider the relevant risk characteristics of
38-20 each plan's enrollment, including demographic variations in the use
38-21 and cost of health care and the prevailing cost patterns in the
38-22 area in which the plan operates. The allocation must be reasonable
38-23 and set in a manner which assures employees a fair choice among
38-24 health benefit plans providing a basic plan. The contribution set
38-25 for each employee shall be within the total amount appropriated in
38-26 the General Appropriations Act.
38-27 (b) Any employer contributions remaining after the basic
39-1 coverage has been funded may be allocated by the trustee to fund
39-2 optional coverages in any manner the trustee determines is
39-3 appropriate. <Each participating school district shall contribute,
39-4 for each school district employee covered by the program, an amount
39-5 equal to the employee only cost of the plans of group coverages
39-6 authorized by the trustee for school district employees, provided
39-7 that the school district's contribution may not exceed the amount
39-8 contributed for each state employee in accordance with Subsection
39-9 (a) of this section. If the cost of the plan authorized by the
39-10 trustee for school district employees exceeds the amount of the
39-11 district's contribution, the district shall deduct from the monthly
39-12 compensation of the employee an amount sufficient to pay the amount
39-13 of the premiums not covered by the district's contribution.>
39-14 (c) The trustee may not allocate any employer contributions
39-15 to fund voluntary coverages. Voluntary coverages must be funded
39-16 solely by employee contributions. <If an employee or annuitant
39-17 refuses in writing the coverages, benefits, or services provided by
39-18 this Act by a statement in writing satisfactory to the trustee,
39-19 then in no event shall the State of Texas, the employee's
39-20 department, or the participating school district make any
39-21 contribution to the cost of any other coverages, services, or
39-22 benefits on such employee or annuitant.>
39-23 (d) If the cost of the basic coverage exceeds the amount of
39-24 employer contributions allocated to fund the basic coverage, the
39-25 state shall deduct from or reduce the monthly compensation of the
39-26 employee and shall deduct from the retirement benefits of the
39-27 annuitant an amount sufficient to pay the cost of the basic
40-1 coverage. <If an employee elects to participate in the cafeteria
40-2 plan, he shall execute a salary reduction agreement under which his
40-3 monthly compensation will be reduced in an amount that is equal to
40-4 the difference between the amount contributed for the coverages by
40-5 the State of Texas, the employing department, or the participating
40-6 school district and the cost of the coverages for which the
40-7 employee is eligible to pay under the cafeteria plan. An employee
40-8 who executes a salary reduction agreement for insurance coverages
40-9 included in the cafeteria plan is considered to have elected to
40-10 participate in the cafeteria plan and agreed to a salary reduction
40-11 for the insurance coverages for subsequent plan years unless the
40-12 participant, during an annual enrollment period specified by the
40-13 trustee, explicitly elects not to participate for the next plan
40-14 year in the insurance coverages. After electing not to participate
40-15 in insurance coverages included in the cafeteria plan, an employee
40-16 must, to reestablish participation for subsequent plan years in
40-17 insurance coverages included in the cafeteria plan, execute a new
40-18 salary reduction agreement. A salary reduction agreement for other
40-19 benefits of the cafeteria plan must be executed annually, during
40-20 the annual enrollment period specified by the trustee, for each
40-21 plan year. The employee shall pay any remaining portion of the
40-22 cost of benefits that is not covered by the state's, department's,
40-23 or district's contributions and the salary reductions under the
40-24 cafeteria plan by executing a payroll deduction agreement.>
40-25 (e) The trustee shall apply the amount of any employer
40-26 contribution allocated to fund optional coverages to the excess of
40-27 the cost of the basic and optional coverages for which the employee
41-1 or annuitant has applied over the basic coverage contribution.
41-2 Except as provided by Subsection (h) of this section, if an
41-3 employee or annuitant applies for basic and optional coverages for
41-4 which the cost exceeds the contributions for those coverages under
41-5 this Act, the employee or annuitant shall authorize in writing in a
41-6 form satisfactory to the trustee a deduction from the employee's or
41-7 annuitant's monthly compensation or annuity equal to the difference
41-8 between the cost of basic and optional coverages for which the
41-9 employee or annuitant has applied and the employer contributions
41-10 for basic and optional coverage.
41-11 (f) Except as provided by Subsection (h) of this section, if
41-12 an employee or annuitant applies for voluntary coverages, the
41-13 employee shall authorize in writing in a form satisfactory to the
41-14 trustee a deduction from the employee's monthly compensation or
41-15 annuity equal to the cost of the voluntary coverages.
41-16 (g) If an employee or annuitant refuses the coverages or
41-17 benefits provided under this Act in writing in a form satisfactory
41-18 to the trustee, the state and the employee's department may not
41-19 make any contribution to the cost of any coverages or benefits for
41-20 the employee or annuitant.
41-21 (h) If an employee elects to participate in the cafeteria
41-22 plan, the employee must execute a salary reduction agreement under
41-23 which the employee's monthly compensation will be reduced in an
41-24 amount that is equal to the difference between the employer
41-25 contributions for basic and optional coverages and the cost of the
41-26 cafeteria plan coverages identified by the trustee as comparable to
41-27 the basic and optional coverages for which the employee is
42-1 eligible. The salary reduction agreement must also provide for an
42-2 additional reduction in the employee's compensation equal to the
42-3 cost of voluntary coverages for which the employee has applied. An
42-4 employee who executes a salary reduction agreement for insurance
42-5 coverage included in the cafeteria plan has elected to participate
42-6 in the cafeteria plan and agreed to a salary reduction for the
42-7 insurance coverages for subsequent plan years unless the
42-8 participant, during an annual enrollment period specified by the
42-9 trustee, elects in writing not to participate for the next plan
42-10 year in the insurance coverages. An employee who has elected not
42-11 to participate in the cafeteria plan insurance coverages may
42-12 re-enroll by executing a new salary reduction agreement during a
42-13 subsequent annual enrollment period. A salary reduction agreement
42-14 for cafeteria plan benefits other than insurance coverages must be
42-15 executed annually, during the annual enrollment period. The
42-16 employee shall pay any remaining portion of the cost of benefits
42-17 that is not covered by the contributions for basic and optional
42-18 coverages and the salary reduction under the cafeteria plan by
42-19 executing a payroll deduction agreement.
42-20 SECTION 44. Sections 16(a) and (b), Texas Employees Uniform
42-21 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
42-22 Insurance Code), are amended to read as follows:
42-23 (a) There is hereby created with the treasury of the State
42-24 of Texas an Employees Life, Accident, and Health Insurance and
42-25 Benefits Fund which shall be administered by the trustee. The
42-26 <Except as provided by Subsection (d) of this section, the>
42-27 contributions of employees, annuitants, <participating school
43-1 districts,> and the state provided for under this Act shall be paid
43-2 into the fund. The fund is available:
43-3 (1) without fiscal year limitation for all payments
43-4 for any coverages provided for under this Act; and
43-5 (2) to pay expenses for administering this Act within
43-6 the limitations that may be specified annually by the legislature.
43-7 (b) Portions <Except as provided by Subsection (d) of this
43-8 section, portions> of the contributions made by employees,
43-9 annuitants, <participating school districts,> and the state shall
43-10 be regularly set aside in the fund as follows: a percentage
43-11 determined by the trustee to be reasonably adequate to pay the
43-12 administrative expenses made available by Subsection (a) of this
43-13 section. The trustee, from time to time and in amounts it
43-14 considers appropriate, may transfer unused funds for administrative
43-15 expenses to the contingency reserves to be used by the trustee only
43-16 for charges, claims, costs, and expenses under the program.
43-17 SECTION 45. Section 17(c), Texas Employees Uniform Group
43-18 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
43-19 Code), is amended to read as follows:
43-20 (c) Each state department <and each participating school
43-21 district> shall keep such records, make such certifications, and
43-22 furnish the trustee with such information and reports as may be
43-23 necessary to enable the trustee to carry out its functions under
43-24 this Act.
43-25 SECTION 46. Section 18(a), Texas Employees Uniform Group
43-26 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
43-27 Code), as amended by Chapters 242 and 391, Acts of the 72nd
44-1 Legislature, Regular Session, 1991, is amended to read as follows:
44-2 (a) The group benefits advisory committee is composed of 27
44-3 <25> voting members as provided by this section. The office of the
44-4 attorney general, the office of the state treasurer, the office of
44-5 the comptroller, the Railroad Commission of Texas, the General Land
44-6 Office, and the Department of Agriculture are entitled to be
44-7 represented by one member each on the committee, who may be
44-8 appointed by the governing body of the state agency or elected by
44-9 and from the employees of the agency, as determined by rule by the
44-10 governing body of the agency. One employee shall be elected from
44-11 each of the remaining eight <seven> largest state agencies that are
44-12 governed by appointed officers by and from the employees of those
44-13 agencies. One nonvoting member shall be the executive director of
44-14 the Employees Retirement System of Texas. One member shall be an
44-15 expert in employee benefit issues from the private sector,
44-16 appointed by the governor. One member shall be an expert in
44-17 employee benefits issues from the private sector, appointed by the
44-18 lieutenant governor. One member shall be a retired state employee
44-19 appointed by the trustee. One member shall be a state employee of
44-20 a state agency other than one of the eight <seven> largest state
44-21 agencies, appointed by the trustee. Not more than one employee
44-22 from a particular state agency may serve on the committee. Each of
44-23 the seven largest institutions of higher education, as determined
44-24 by the number of employees on the payroll of an institution, shall
44-25 elect one member of the committee from among persons who have each
44-26 been nominated by a petition signed by at least 300 employees. Two
44-27 <members shall be employees of institutions of higher education
45-1 appointed by the Texas Higher Education Coordinating Board. Five>
45-2 members shall be employees of institutions of higher education,
45-3 other than the seven largest institutions of higher education, who
45-4 are appointed by the Texas Higher Education Coordinating Board
45-5 <elected by and from the institutions of higher education>, but not
45-6 more than one employee shall be from any one institution. <The
45-7 remaining members shall be elected by and from the employees of the
45-8 other state agencies, excluding institutions of higher education,
45-9 and from the employees of participating school districts in a
45-10 manner consonant with the election for membership to the board of
45-11 the Employees Retirement System of Texas, but not more than one
45-12 employee shall be from any one agency or district.> The members
45-13 shall elect a presiding officer from their membership to serve a
45-14 one-year term.
45-15 SECTION 47. Sections 19(b) and (c), Texas Employees Uniform
45-16 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
45-17 Insurance Code), are amended to read as follows:
45-18 (b) A surviving spouse of an employee or a retiree who is
45-19 entitled to monthly benefits paid by a retirement system named in
45-20 this Act may, following the death of the employee or retiree, elect
45-21 to retain the spouse's authorized coverages and also retain
45-22 authorized coverages for any dependent of the spouse, at the group
45-23 rate for employees, provided such coverage was previously secured
45-24 by the employee or retiree for the spouse or dependent, and the
45-25 spouse directs the applicable retirement system to deduct required
45-26 contributions from the monthly benefits paid the surviving spouse
45-27 by the retirement system. A surviving dependent of a retiree who
46-1 was receiving monthly benefits paid by a retirement system named in
46-2 this Act may, after the death of the retiree and if the retiree
46-3 leaves no surviving spouse, elect to retain any coverage previously
46-4 secured by the retiree, at the group rate for employees, until the
46-5 dependent becomes ineligible for coverage for a reason other than
46-6 the death of the member of the group. A dependent who makes an
46-7 election under this subsection and who is entitled to monthly
46-8 benefits from a retirement system named in this Act based on the
46-9 service of the deceased retiree must direct the applicable
46-10 retirement system to deduct required contributions for the coverage
46-11 from the monthly benefits paid the surviving dependent by the
46-12 retirement system.
46-13 (c) The surviving spouse of an employee or a retiree who
46-14 designated or selected a time certain annuity option or a surviving
46-15 dependent of a retiree who designated or selected a time certain
46-16 annuity option, upon expiration of the annuity option may retain
46-17 authorized coverages by advance payment of contributions to the
46-18 Employees Retirement System of Texas under rules and regulations
46-19 adopted by the trustee.
46-20 SECTION 48. Subsection (c), Section 141, Uniform Act
46-21 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
46-22 Statutes), is amended to read as follows:
46-23 (c) The fee for compulsory inspection of a motor vehicle
46-24 other than a moped, to be made under this Section, shall be Ten
46-25 Dollars and Fifty Cents ($10.50). The fee for compulsory
46-26 inspection of a moped, to be made under this Section, shall be Five
46-27 Dollars and Seventy-five Cents ($5.75). Five Dollars and Fifty
47-1 Cents ($5.50) of each fee shall be paid to the Department and
47-2 shall, except as provided by <Section 815.405, Government Code, or>
47-3 Section 382.0622, Health and Safety Code, be deposited <placed> in
47-4 the Motor Vehicle Inspection Fund for the purpose of paying the
47-5 expense of the administration of this law, after the deduction of
47-6 Two Dollars and Twenty-five Cents ($2.25) of each fee, which shall
47-7 be deposited by the Department in the general revenue fund. The
47-8 Department may require each official inspection station to make an
47-9 advance payment of Five Dollars and Fifty Cents ($5.50) for each
47-10 inspection certificate furnished to it. No<, and the money so
47-11 received shall, except as provided by Section 815.405, Government
47-12 Code, be placed in the Motor Vehicle Inspection Fund, and no>
47-13 further payment to the Department shall be required upon issuance
47-14 of the certificate. If such advance payment has been made, the
47-15 Department shall refund to the inspection station the amount of
47-16 Five Dollars and Fifty Cents ($5.50) for each unissued certificate
47-17 which the inspection station returns to the Department in
47-18 accordance with rules and regulations promulgated by the
47-19 Department. The Texas Natural Resource Conservation Commission
47-20 shall refund to the Department Two Dollars ($2.00) for each unused
47-21 certificate returned to the Department by inspection stations
47-22 licensed by the Department. An inspection station may waive the
47-23 fee otherwise due from the owner of a vehicle inspected under this
47-24 Section if the inspection station has rendered in advance to the
47-25 Department the payment of Five Dollars and Fifty Cents ($5.50) for
47-26 the certificate applied to a vehicle with respect to which the
47-27 owner's fee has been so waived.
48-1 SECTION 49. Section 10(c-4), Chapter 88, General Laws, Acts
48-2 of the 41st Legislature, 2nd Called Session, 1929 (Article
48-3 6675a-10, Vernon's Texas Civil Statutes), is amended to read as
48-4 follows:
48-5 (c-4) On Monday of each week each County Tax Collector shall
48-6 submit to the State Department of Highways and Public
48-7 Transportation a carbon copy of the receipt issued for payment of
48-8 each fee received in the preceding week for registration of a log
48-9 loader vehicle under Section 2(l) of this Act and all<. On Monday
48-10 of each week the County Tax Collector shall send to the Employees
48-11 Retirement System of Texas an amount equal to four percent (4%)> of
48-12 the registration fees collected under Section 2(l) of this Act <and
48-13 shall remit the remaining ninety-six percent (96%) to the
48-14 Department. Money sent to the retirement system under this
48-15 subsection shall be deposited in the law enforcement and custodial
48-16 officer supplemental retirement fund>.
48-17 SECTION 50. The following provisions are repealed:
48-18 (1) Sections 815.005, 815.106, 815.305, 815.316,
48-19 815.320, 815.405, 839.104, and 840.009, Government Code;
48-20 (2) Sections 3(a)(19), (20), (21), and (22), Texas
48-21 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
48-22 Vernon's Texas Insurance Code), as added by Chapter 391, Acts of
48-23 the 72nd Legislature, Regular Session, 1991;
48-24 (3) Section 3A, Texas Employees Uniform Group
48-25 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
48-26 Code), as added by Chapter 391, Acts of the 72nd Legislature,
48-27 Regular Session, 1991;
49-1 (4) Section 13C, Texas Employees Uniform Group
49-2 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
49-3 Code);
49-4 (5) Section 15(e), Texas Employees Uniform Group
49-5 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
49-6 Code);
49-7 (6) Section 16(d), Texas Employees Uniform Group
49-8 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
49-9 Code); and
49-10 (7) effective September 1, 1995, Section 813.506(d),
49-11 Government Code.
49-12 SECTION 51. The Employees Retirement System of Texas may
49-13 adopt rules to implement the changes in law made by this Act in the
49-14 composition of the group insurance advisory committee under the
49-15 Texas Employees Uniform Group Insurance Benefits Act (Article
49-16 3.50-2, Vernon's Texas Insurance Code).
49-17 SECTION 52. The Legislative Budget Board shall perform a
49-18 study of the law enforcement and custodial officer supplemental
49-19 retirement fund and the program supported by that fund. The study
49-20 shall include an examination of the membership in the program,
49-21 including its potential for growth, and an examination of
49-22 appropriate methods of financing the program. The board shall
49-23 include its findings and recommendations as a result of the study
49-24 in a report to the 74th Legislature.
49-25 SECTION 53. (a) Except as provided by Subsection (b) of
49-26 this section, this Act takes effect September 1, 1993.
49-27 (b) This section and Sections 2 and 27 of this Act take
50-1 effect immediately. Sections 19 and 20 of this Act take effect
50-2 September 1, 1995.
50-3 SECTION 54. The importance of this legislation and the
50-4 crowded condition of the calendars in both houses create an
50-5 emergency and an imperative public necessity that the
50-6 constitutional rule requiring bills to be read on three several
50-7 days in each house be suspended, and this rule is hereby suspended,
50-8 and that this Act take effect and be in force according to its
50-9 terms, and it is so enacted.