BILL ANALYSIS
C.S.H.B. 603
By: Gray
May 1, 1995
Committee Report (Substituted)
BACKGROUND
There are a number of people who divorced and had pension plans
divided prior to the enactment of ERISA. Attorneys generally
believe that it is permissible to go back and ask the Court to
clarify and modify the original order for the division of the
retirement plan to be a QDRO, Qualified Domestic Relations Order.
However, only the Government Code expressly authorizes the trial
court to amend orders related to state pensions. In addition, the
usual delays in getting QDRO's approved by companies compounds
problems. Finally, the court needs authority to resolve issues
when plans are merged after an order is entered.
PURPOSE
This bill authorizes the court to clarify or modify a final divorce
order that provides for the division of a pension or retirement
benefits.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.
SECTION BY SECTION ANALYSIS
Section 1. Amends Subchapter D, Chapter 3, Family Code, by adding
Section 3.715, authorizing the court, by request of
either party to a divorce or annulment action, to issue a
qualified domestic relations order clarifying or modifying a final divorce order providing for the division of a pension
or other retirement benefits.
Section 2. Effective date: September 1, 1995.
Section 3. Emergency clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
C.S.H.B. 603 replaces the language "final divorce decree" with
"final divorce order".
SUMMARY OF COMMITTEE ACTION
H.B. 603 was considered in a public hearing on 5 April 1995. The
bill was left pending.
On 11 April 1995, the bill was considered in a formal meeting. The
committee considered a complete substitute which was adopted
without objection. H.B. 603 was reported favorably as substituted
with the recommendation that it do pass and be printed by a record
vote of 9 ayes, 0 nays, 0 pnv, 0 absent.