BILL ANALYSIS H.B. 680 By: Craddick 03-07-95 Committee Report (Unamended) BACKGROUND This bill would allow a retiree to change an optional annuity selection to the selection of a standard service retirement annuity if a court approves a transfer and release of the beneficiary's interest in the annuity, and the original beneficiary is no longer the retiree's spouse or child. If a retiree makes the change permitted under the bill, E.R.S. would then recompute the annuity as a standard service retirement annuity under existing law (Section 814.1081(b), Government Code). HB 680 is more limited in scope than HB 679 in that under HB 679, the retiree may keep the OSRA and change the beneficiary, whereas HB 680 only allows the retiree to collapse the OSRA into a standard annuity. PURPOSE The purpose of the bill would allow courts of competent jurisdiction to approve release or transfer of the beneficiary's interest in the annuity. 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 Section 814.1081 (a), Government Code, by deleting language in subsection (a), and restating same language in subsection (a)(1) and by adding Subsection (a)(2) providing for courts of competent jurisdiction to approve the release or transfer of the beneficiary's interest in the annuity where the new beneficiary is not currently the retiree's spouse or child. SECTION 2: Emergency Clause: SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance to the rules and a public hearing was held on Feb. 20, 1995. The bill was referred to a subcommittee consisting of the following members: Rangel, McCall & Berlanga. On February 27, 1995, the subcommittee met in a formal meeting and voted to report the measure without amendments. On March 6, 1995, the full committee voted to report HB 680 to the House without amendments with the recommendation that it od pass by a record vote of 5 ayes, 0 nays, 0 pnv & 4 absent. Rep. Tom Craddick offered testimony for the bill as the bill's author. William Nail representing the Employees Retirement System testified neutrally on the bill.