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.