By Hochberg H.B. No. 1216 74R5523 GCH-D 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) An annuitant may change a designation of beneficiary of an 1-21 optional retirement annuity under Section 824.204(c)(1) or (c)(2) 1-22 at any time after retirement in the same manner as the original 1-23 designation was made. 1-24 (b) A change of beneficiary made under this section does not 2-1 take effect until the first payment of the annuity that becomes due 2-2 two years after the date the beneficiary designation is filed with 2-3 the retirement system. 2-4 (c) The retirement system may not recompute an annuity 2-5 because of a change of beneficiary made under this section. After 2-6 the change of beneficiary takes effect, the annuity becomes payable 2-7 after the annuitant's death to the new beneficiary until the 2-8 earlier of: 2-9 (1) the date of death of the new beneficiary; or 2-10 (2) the date the beneficiary designated at the time of 2-11 retirement exceeds that beneficiary's life expectancy as 2-12 actuarially determined at the time the annuity was computed. 2-13 (d) If an annuitant who makes a change of beneficiary under 2-14 this section dies before the change of beneficiary takes effect, 2-15 the annuity is payable to the beneficiary designated at the time of 2-16 retirement until the effective date of the change. If the 2-17 beneficiary designated at the time of retirement dies or exceeds 2-18 that beneficiary's life expectancy, as actuarially determined at 2-19 the time the annuity was computed, before the change of beneficiary 2-20 would take effect, the change of beneficiary has no effect. 2-21 SECTION 3. This Act takes effect September 1, 1995. 2-22 SECTION 4. The importance of this legislation and the 2-23 crowded condition of the calendars in both houses create an 2-24 emergency and an imperative public necessity that the 2-25 constitutional rule requiring bills to be read on three several 2-26 days in each house be suspended, and this rule is hereby suspended.