74R9678 GCH-D
By Hochberg H.B. No. 1216
Substitute the following for H.B. No. 1216:
By Rangel C.S.H.B. No. 1216
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to designation of a beneficiary of benefits payable by the
1-3 Teacher Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 824.101(c), Government Code, is amended
1-6 to read as follows:
1-7 (c) Only one person may be designated as beneficiary of an
1-8 optional retirement annuity under Section 824.204(c)(1) or (c)(2),
1-9 and a designation of beneficiary under either of those options may
1-10 not be made, changed, or revoked, except as provided by Section
1-11 824.1011, after the later of the date on which the retirement
1-12 system makes the first annuity payment to the retiree or the date
1-13 the first payment becomes due. For purposes of this section, the
1-14 term "makes payment" includes the depositing in the mail of a
1-15 payment warrant or the crediting of an account with payment through
1-16 electronic funds transfer.
1-17 SECTION 2. Subchapter B, Chapter 824, Government Code, is
1-18 amended by adding Section 824.1011 to read as follows:
1-19 Sec. 824.1011. DESIGNATION OF BENEFICIARY AFTER RETIREMENT.
1-20 (a) In this section:
1-21 (1) "New beneficiary" means the most recent
1-22 beneficiary designated by an annuitant under this section.
1-23 (2) "Old beneficiary" means the beneficiary preceding
1-24 a new beneficiary. The term may include a person designated as
2-1 beneficiary at the time of retirement.
2-2 (b) An annuitant may change a designation of beneficiary of
2-3 an optional retirement annuity under Section 824.204(c)(1) or
2-4 (c)(2) at any time after retirement in the same manner as the
2-5 original designation was made.
2-6 (c) A change of beneficiary made under this section does not
2-7 take effect until the first payment of the annuity that becomes due
2-8 two years after the date the beneficiary designation is filed with
2-9 the retirement system.
2-10 (d) The retirement system shall recompute the annuity of an
2-11 annuitant who makes a change of beneficiary under this section to
2-12 reflect that change and shall adjust the annuity as appropriate for
2-13 early retirement and postretirement increases provided after the
2-14 date of the annuitant's retirement. The retirement system by rule
2-15 shall provide for the recovery of the actuarial value, if any, of
2-16 the difference between payments under the original and recomputed
2-17 annuities by adjusting the recomputed annuity to equal the
2-18 actuarial present value of the original retirement annuity as of
2-19 the date the annuitant filed the change of beneficiary.
2-20 (e) If an annuitant who makes a change of beneficiary under
2-21 this section dies before the change of beneficiary takes effect,
2-22 the annuity is payable to the old beneficiary until the effective
2-23 date of the change. If the beneficiary designated at the time of
2-24 retirement dies before the change of beneficiary would take effect,
2-25 the change of beneficiary has no effect.
2-26 (f) A change of beneficiary under this section is
2-27 independent of and subordinate to a qualified domestic relations
3-1 order issued and approved as provided by Subchapter A, Chapter 804.
3-2 SECTION 3. This Act takes effect September 1, 1995.
3-3 SECTION 4. The importance of this legislation and the
3-4 crowded condition of the calendars in both houses create an
3-5 emergency and an imperative public necessity that the
3-6 constitutional rule requiring bills to be read on three several
3-7 days in each house be suspended, and this rule is hereby suspended.