By Craddick H.B. No. 679 Substitute the following for H.B. No. 679: By Rangel C.S.H.B. No. 679 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the effect of certain types of divorce decrees on 1-3 retirement benefits payable by the Employees Retirement System of 1-4 Texas. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter A, Chapter 814, Government Code, is 1-7 amended by adding Section 814.006 to read as follows: 1-8 Sec. 814.006. REVOCATION OF BENEFICIARY BY DIVORCE DECREE. 1-9 (a) In this section, "divorce decree" means a judgment, 1-10 decree, order, or qualified domestic relations order, including a 1-11 document approving a property settlement agreement, that is issued 1-12 by a court under a domestic relations law of this or another state 1-13 in conjunction with the dissolution of a marriage and that relates 1-14 to the marital property rights of a retiree and that person's 1-15 former spouse. 1-16 (b) Upon receipt of a certified copy of a divorce decree 1-17 that purports to revoke or order the revocation of a designation by 1-18 a retiree of a beneficiary under this subchapter, accompanied by a 1-19 written directive from a retiree requesting such change, the 1-20 retirement system shall change its records in accordance with the 1-21 directive and decree. 1-22 (c) If a divorce decree revokes or orders the revocation of 1-23 a designation of a beneficiary made by a retiree who retired under 1-24 an optional retirement annuity described by Section 814.108(c)(1) 2-1 or (c)(2) or other optional retirement annuity selection approved 2-2 by the board of trustees by rule, the retiree may select a standard 2-3 retirement annuity or another beneficiary for the optional 2-4 retirement annuity selected at the time retirement. If the 2-5 retirement system receives from a retiree who retired under an 2-6 optional retirement annuity, a written directive and certified 2-7 decree, as described in this Subsection, which revokes a 2-8 beneficiary designation but does not designate a substitute 2-9 beneficiary, the retiree shall be deemed to have selected a 2-10 standard retirement annuity and the retirement system shall 2-11 recompute the annuity of the retiree as a standard annuity. 2-12 Thereafter, if such retiree designates another beneficiary by 2-13 written directive filed with the retirement system, the retirement 2-14 system shall recompute and reinstate the optional annuity giving 2-15 effect to the new beneficiary designation on a prospective basis 2-16 only. A retiree may make a change of beneficiary under this 2-17 Subsection only to a spouse and only once during the retiree's 2-18 lifetime. 2-19 (d) The retirement system shall recompute the annuity of a 2-20 retiree who makes a selection under Subsection (c) to reflect that 2-21 selection and shall adjust the annuity as appropriate for early 2-22 retirement and postretirement increases provided after the date of 2-23 the retiree's retirement. The retirement system by rule shall 2-24 provide for the recovery of the actuarial value, if any, of the 2-25 difference between payments under the original and recomputed 2-26 annuities by determining the recomputed annuity such that the 2-27 actuarial present value of the recomputed annuity is equal to the 3-1 actuarial present value of the original retirement annuity as of 3-2 the date the retirement system receives the directive to change the 3-3 beneficiary. 3-4 (e) Payment of a recomputed annuity becomes effective the 3-5 month following receipt by the retirement system of the actuarial 3-6 recomputation. 3-7 (f) The retirement system shall determine, upon receipt of a 3-8 certified copy of a divorce decree purporting to revoke a 3-9 beneficiary designation under this section, whether such decree 3-10 clearly revokes or permits the revocation of a beneficiary 3-11 designation. The retirement system may decline to implement a 3-12 beneficiary change if it determines that the decree fails to 3-13 specify clearly that a beneficiary change is within the scope of 3-14 the decree. The court which issued the decree or which would 3-15 otherwise have jurisdiction over the matter has jurisdiction to 3-16 amend the decree to clarify the scope of the decree, even though 3-17 all other matters incident to the action or proceeding have been 3-18 fully and finally adjudicated. 3-19 (g) A determination by the retirement system under this 3-20 section may be appealed only to a district court of Travis County, 3-21 Texas. The retirement system, the board of trustees, and officers 3-22 and employees of the retirement system shall not be liable to any 3-23 person for making or failing to make a beneficiary designation 3-24 change pursuant to a decree submitted under this section. 3-25 (h) The board of trustees of the retirement system may 3-26 promulgate rules it deems necessary to implement the provisions of 3-27 this section. 4-1 SECTION 2. If the Employees Retirement System of Texas 4-2 receives a certified copy of a divorce decree that was entered 4-3 before the effective date of this Act and that purports to revoke 4-4 or order the revocation of a designation of a beneficiary by a 4-5 retiree of the retirement system, upon receipt of a written 4-6 directive from the retiree, the retirement system shall change its 4-7 records and, as appropriate, begin payments of any recomputed 4-8 annuity, as provided in Section 1 of this Act, as if the decree 4-9 were entered after the effective date of this Act. 4-10 SECTION 3. The importance of this legislation and the 4-11 crowded condition of the calendars in both houses create an 4-12 emergency and an imperative public necessity that the 4-13 constitutional rule requiring bills to be read on three several 4-14 days in each house be suspended, and this rule is hereby suspended, 4-15 and that this Act take effect and be in force from and after its 4-16 passage, and it is so enacted.