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.