By Rangel H.B. No. 2312 74R7243 GCH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the effect of certain types of divorce decrees on 1-3 retirement benefits payable by the Teacher Retirement System of 1-4 Texas. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter B, Chapter 824, Government Code, is 1-7 amended by adding Section 824.107 to read as follows: 1-8 Sec. 824.107. REVOCATION OF BENEFICIARY BY DIVORCE DECREE. 1-9 (a) In this section, "divorce decree" means a judgment, decree, 1-10 order, or qualified domestic relations order, including a document 1-11 approving a property settlement agreement, that is issued by a 1-12 court under a domestic relations law of this or another state in 1-13 conjunction with the dissolution of a marriage and that relates to 1-14 the marital property rights of a retiree and that person's former 1-15 spouse. 1-16 (b) If the retirement system receives a certified copy of a 1-17 divorce decree that purports to revoke or order the revocation of a 1-18 designation by a retiree of a beneficiary under this subchapter, 1-19 accompanied by a written directive from a retiree requesting the 1-20 change, the retirement system shall change its records in 1-21 accordance with the directive and decree. 1-22 (c) If a divorce decree revokes or orders the revocation of 1-23 a designation of a beneficiary made by a retiree who retired under 1-24 an optional retirement annuity described by Section 824.204(c)(1) 2-1 or (c)(2), the retiree may select a standard retirement annuity or 2-2 another beneficiary for the optional retirement annuity selected 2-3 at the time of retirement. If the retirement system receives from 2-4 a retiree who retired under an optional retirement annuity a 2-5 written directive and certified decree described by this section 2-6 that revokes a beneficiary designation but does not designate a 2-7 substitute beneficiary, the retiree is considered to have selected 2-8 a standard retirement annuity, and the retirement system shall 2-9 recompute the annuity of the retiree as a standard annuity. If the 2-10 retiree later designates another beneficiary by written directive 2-11 filed with the retirement system, the retirement system shall 2-12 recompute and reinstate the optional annuity giving effect to the 2-13 new beneficiary designation prospectively only. A retiree may make 2-14 a change of beneficiary under this subsection only to a spouse and 2-15 only once during the retiree's lifetime. 2-16 (d) The retirement system shall recompute the annuity of a 2-17 retiree who makes a selection under Subsection (c) to reflect that 2-18 selection and shall adjust the annuity as appropriate for early 2-19 retirement and postretirement increases provided after the date of 2-20 the retiree's retirement. The retirement system by rule shall 2-21 provide for the recovery of the actuarial value, if any, of the 2-22 difference between payments under the original and recomputed 2-23 annuities by adjusting the recomputed annuity to equal the 2-24 actuarial present value of the original retirement annuity as of 2-25 the date the retirement system received the directive to change the 2-26 beneficiary. 2-27 (e) Payment of a recomputed annuity begins with payment for 3-1 the month after the month in which the retirement system receives 3-2 the actuarial recomputation. 3-3 (f) The retirement system shall determine whether a divorce 3-4 decree purporting to revoke a beneficiary designation under this 3-5 section clearly revokes or permits the revocation of a beneficiary 3-6 designation. The retirement system may decline to implement a 3-7 beneficiary change if it determines that the decree fails to 3-8 specify clearly that a beneficiary change is within the scope of 3-9 the decree. The court that issued the decree or that would 3-10 otherwise have jurisdiction over the matter has jurisdiction to 3-11 amend the decree to clarify the scope of the decree, even if all 3-12 other matters relating to the action or proceeding have been fully 3-13 and finally adjudicated. 3-14 (g) A determination by the retirement system under this 3-15 section may be appealed only to a district court of Travis County. 3-16 The retirement system, the board of trustees, and officers and 3-17 employees of the retirement system are not liable to any person for 3-18 making or failing to make a beneficiary designation change pursuant 3-19 to a decree submitted under this section. 3-20 (h) The board of trustees may adopt rules it considers 3-21 necessary to implement this section. 3-22 SECTION 2. If the Teacher Retirement System of Texas 3-23 receives a certified copy of a divorce decree that was entered 3-24 before the effective date of this Act and that purports to revoke 3-25 or order the revocation of a designation of a beneficiary by a 3-26 retiree of the retirement system, on receipt of a written directive 3-27 from the retiree, the retirement system shall change its records 4-1 and, as appropriate, begin payments of any recomputed annuity, as 4-2 provided by Section 824.107, Government Code, as added by this Act, 4-3 as if the decree were entered after the effective date of this Act. 4-4 SECTION 3. The importance of this legislation and the 4-5 crowded condition of the calendars in both houses create an 4-6 emergency and an imperative public necessity that the 4-7 constitutional rule requiring bills to be read on three several 4-8 days in each house be suspended, and this rule is hereby suspended, 4-9 and that this Act take effect and be in force from and after its 4-10 passage, and it is so enacted.