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.