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.