S.B. No. 9
AN ACT
1-1 relating to the functions and systems and programs administered by
1-2 the Teacher Retirement System of Texas.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subdivisions (7) and (15), Section 821.001,
1-5 Government Code, are amended to read as follows:
1-6 (7) "Employer" means <the state or> any <of its
1-7 designated> agents or agencies in the state responsible for public
1-8 education, including the governing board of any school district
1-9 created under the laws of this state, any county school board, the
1-10 board of trustees, <the State Board of Education, the Central
1-11 Education Agency,> the board of regents of any college or
1-12 university, or any other legally constituted board or agency of any
1-13 public school, but excluding the State Board of Education and the
1-14 Central Education Agency.
1-15 (15) "School year" means:
1-16 (A) a 12-month period beginning approximately
1-17 September 1 and ending approximately August 31 of the next calendar
1-18 year; or
1-19 (B) for a member whose contract or oral or
1-20 written work agreement begins after June 30 and continues after
1-21 August 31 of the same calendar year, a period not to include more
1-22 than 12 months beginning on the date the contract or agreement
1-23 begins.
1-24 SECTION 2. Subchapter A, Chapter 821, Government Code, is
2-1 amended by adding Section 821.007 to read as follows:
2-2 Sec. 821.007. CONTROL OF HOME OFFICE FACILITIES. The
2-3 buildings comprising the home office of the retirement system are
2-4 under the control and custodianship of the retirement system, but
2-5 the retirement system shall:
2-6 (1) comply with space use regulations provided by
2-7 Section 6.021, State Purchasing and General Services Act (Article
2-8 601b, Vernon's Texas Civil Statutes); the General Appropriations
2-9 Act; or other state law; and
2-10 (2) lease to other persons at fair market value all
2-11 significant unused space in the buildings.
2-12 SECTION 3. Subchapter A, Chapter 821, Government Code, is
2-13 amended by adding Section 821.008 to read as follows:
2-14 Sec. 821.008. PURPOSE OF RETIREMENT SYSTEM. The purpose of
2-15 the retirement system is to invest and protect funds of the
2-16 retirement system and to deliver the benefits provided by statute,
2-17 not to advocate or influence legislative action or inaction or to
2-18 advocate higher benefits.
2-19 SECTION 4. Section 822.003, Government Code, is amended to
2-20 read as follows:
2-21 Sec. 822.003. Termination of Membership. (a) A person
2-22 terminates membership in the retirement system by:
2-23 (1) death;
2-24 (2) retirement;
2-25 (3) withdrawal of all of the person's contributions
2-26 while the person is absent from service; or
2-27 (4) not qualifying for service credit <absence from
3-1 service> for <more than> five consecutive years <within a six-year
3-2 period>.
3-3 (b) Termination of membership under Subsection (a)(4) is
3-4 effective on the first September 1 that occurs after the
3-5 non-qualifying years. If a person, regardless of age, has five or
3-6 more years of service credit, failure to qualify for additional
3-7 service credit <absence from service> does not terminate membership
3-8 in the retirement system unless all of the person's contributions
3-9 are withdrawn.
3-10 (c) A person does not terminate membership under Subsection
3-11 (a)(4) <is not absent from service> if the person:
3-12 (1) is performing military service creditable in the
3-13 retirement system; <or>
3-14 (2) is on leave of absence from employment in a public
3-15 school; or
3-16 (3) is earning service credit in another retirement
3-17 system covered by Chapter 803 or 805.
3-18 SECTION 5. Section 822.201, Government Code, is amended by
3-19 adding Subsection (d) to read as follows:
3-20 (d) For a person who first becomes a member of the
3-21 retirement system after August 31, 1996, the person's annual
3-22 compensation for purposes of the retirement system may not exceed
3-23 the limit imposed by Section 401(a)(17) of the Internal Revenue
3-24 Code of 1986 (26 U.S.C. Section 401(a)(17)), as adjusted by the
3-25 commissioner of internal revenue for cost-of-living increases in
3-26 accordance with that provision. This limit does not apply to a
3-27 person who first became a member of the retirement system before
4-1 September 1, 1996.
4-2 SECTION 6. Section 823.002, Government Code, is amended to
4-3 read as follows:
4-4 Sec. 823.002. Service Creditable in a Year. The board of
4-5 trustees by rule shall determine how much service in any year is
4-6 equivalent to one year of service credit, but in no case may all of
4-7 a person's service in one school year be creditable as more than
4-8 one year of service. Service that has been credited by the
4-9 retirement system on annual statements for a period of five or more
4-10 years may not be deleted or corrected because of an error in
4-11 crediting unless the error concerns three or more years of service
4-12 credit or was caused by fraud.
4-13 SECTION 7. Subchapter A, Chapter 823, Government Code, is
4-14 amended by adding Sections 823.004 and 823.005 to read as follows:
4-15 Sec. 823.004. COMPUTATION OF AND PAYMENT FOR CREDIT. All
4-16 credit for military service, out-of-state service, developmental
4-17 leave, service previously waived, and service transferred to the
4-18 retirement system under Chapter 805 shall be computed on a
4-19 September 1 through August 31 school year. Payments for service
4-20 described by this section must be completed not later than the
4-21 later of the member's retirement date or the last day of the month
4-22 in which the member submits a retirement application.
4-23 Sec. 823.005. ACCEPTANCE OF ROLLOVERS AND TRANSFERS FROM
4-24 OTHER PLANS. Subject to rules adopted by the board of trustees,
4-25 the retirement system shall accept an eligible rollover
4-26 distribution or a direct transfer of funds from another qualified
4-27 plan in payment of all or a portion of any deposit a member is
5-1 permitted to make with the system for credit for service. The
5-2 rules adopted by the board shall condition the acceptance of a
5-3 rollover or transfer from another plan on the receipt from the
5-4 other plan of information necessary to enable the retirement system
5-5 to determine the eligibility of any transferred funds for tax-free
5-6 rollover treatment or other treatment under federal income tax law.
5-7 SECTION 8. Subsection (b), Section 823.302, Government Code,
5-8 is amended to read as follows:
5-9 (b) A member eligible to establish military service credit
5-10 is one who has at least five years of service credit in the
5-11 retirement system for actual service in public schools, except that
5-12 a member meeting this condition does not qualify for insurance
5-13 coverage under the Texas Public School Employees Group Insurance
5-14 Act (Article 3.50-4, Insurance Code) until the member has 10 or
5-15 more years of membership service credit.
5-16 SECTION 9. Section 823.304, Government Code, is amended by
5-17 adding Subsection (f) to read as follows:
5-18 (f) The board of trustees may adopt rules that modify the
5-19 terms of this section for the purpose of compliance with the
5-20 Uniformed Services Employment and Reemployment Rights Act of 1994
5-21 (38 U.S.C. Section 4301 et seq.).
5-22 SECTION 10. Section 823.401, Government Code, is amended by
5-23 amending Subsection (d) and by adding Subsection (i) to read as
5-24 follows:
5-25 (d) A member may establish credit under this section by
5-26 depositing with the retirement system for each year of service
5-27 claimed a contribution computed at the rate of:
6-1 (1) 12 percent of the rate of the member's annual
6-2 compensation during the first year of service for which the member
6-3 received membership credit in <as a member of> the retirement
6-4 system that is both after the service for which credit is sought
6-5 and after September 1, 1956; or
6-6 (2) 12 percent of the rate of the member's annual
6-7 compensation during the most recent year of service for which the
6-8 member received membership credit <as a member> that is after the
6-9 service for which credit is sought, if the member has performed no
6-10 service in Texas since September 1, 1956.
6-11 (i) In determining the amount of a contribution under
6-12 Subsection (d) required of a member who did not work full time or
6-13 worked fewer days or months than full-time employees in similar
6-14 positions, the retirement system shall compute an annual rate of
6-15 compensation from the member's reported compensation.
6-16 SECTION 11. Section 824.002, Government Code, is amended by
6-17 amending Subsections (a) and (b) and by adding Subsections (e) and
6-18 (f) to read as follows:
6-19 (a) The effective date of a member's service retirement is
6-20 the last day of the later of the following months:
6-21 (1) any month in a three-month period in which the
6-22 third month is the month in which the member applies for retirement
6-23 as provided by Section 824.201;
6-24 (2) the month in which the member satisfies age and
6-25 service requirements for service retirement as provided by Section
6-26 824.202; or
6-27 (3) the month in which the member's employment in a
7-1 position included in the coverage of the retirement system ends.
7-2 (b) The effective date of a member's disability retirement
7-3 is the last day of the later of the following months:
7-4 (1) any month in a three-month period in which the
7-5 third month is the month in which the member applies for retirement
7-6 as provided by Section 824.301; or
7-7 (2) the month in which the member's employment in a
7-8 position included in the coverage of the retirement system ends.
7-9 (e) Not later than the later of a member's retirement date
7-10 or the last day of the month in which the member's application for
7-11 retirement is submitted, a member applying for service retirement
7-12 may reinstate withdrawn contributions; make deposits for service
7-13 previously waived, military service, and equivalent membership
7-14 service; and receive service credit as provided by this subtitle.
7-15 (f) An effective retirement date may not be changed after it
7-16 is established except by revocation of retirement under Section
7-17 824.005 and retirement at a later date.
7-18 SECTION 12. Section 824.003, Government Code, is amended to
7-19 read as follows:
7-20 Sec. 824.003. When Benefits are Payable. Except as
7-21 otherwise provided by this chapter, an annuity provided by this
7-22 chapter is <not> payable for the month in which the person who
7-23 receives the annuity dies. Monthly annuity payments are generally
7-24 due to be paid on the first working day of each month following the
7-25 month for which the payment accrues.
7-26 SECTION 13. Subsection (a), Section 824.005, Government
7-27 Code, is amended to read as follows:
8-1 (a) A person who has retired under the retirement system may
8-2 revoke that retirement by filing with the system a written
8-3 revocation in a form prescribed by the system. For a revocation to
8-4 be effective, the retirement system must receive the written
8-5 revocation before the later of the due date for the first payment
8-6 of the annuity or the date on which the retirement system makes the
8-7 first payment. After the later of those dates, a retiree may not
8-8 revoke the retirement. For purposes of this subtitle, the
8-9 retirement system makes a payment by depositing a check in the mail
8-10 or sending payment by electronic fund transfer <46th day after the
8-11 original date of retirement, and the person must return to the
8-12 system an amount equal to the amount of benefits received under the
8-13 original retirement. The period for revocation of a disability
8-14 retirement under this subsection begins on the date the medical
8-15 board certifies the disability if the date is later than the date
8-16 of retirement>.
8-17 SECTION 14. Subchapter A, Chapter 824, Government Code, is
8-18 amended by adding Section 824.006 to read as follows:
8-19 Sec. 824.006. PAYMENT OF ANNUITY ON DEATH OF MEMBER OR
8-20 RETIREE. (a) A monthly annuity payable to a retiree or
8-21 beneficiary is payable to that person through the month in which
8-22 the person dies. A continuation of an optional annuity or the
8-23 payment of a death or survivor benefit annuity begins with payment
8-24 for the month following the month in which the death occurs.
8-25 (b) The effective date of death of a member who dies before
8-26 retirement is, for the purpose of a death or survivor benefit
8-27 annuity, the last day of the month preceding the month in which the
9-1 member dies. The first payment of the annuity becomes due at the
9-2 end of the month in which the member's death occurs.
9-3 SECTION 15. Subsection (c), Section 824.101, Government
9-4 Code, is amended to read as follows:
9-5 (c) Only one person may be designated as beneficiary of an
9-6 optional retirement annuity under Section 824.204(c)(1), <or>
9-7 (c)(2), or (c)(5), and a designation of beneficiary under either of
9-8 those options may not be made, changed, or revoked after the later
9-9 of the date on which the retirement system makes the first annuity
9-10 payment to the retiree or the date the first payment becomes due.
9-11 For purposes of this section, the term "makes payment" includes the
9-12 depositing in the mail of a payment warrant or the crediting of an
9-13 account with payment through electronic funds transfer.
9-14 SECTION 16. Subchapter B, Chapter 824, Government Code, is
9-15 amended by adding Section 824.1011 to read as follows:
9-16 Sec. 824.1011. DESIGNATION OF BENEFICIARY AFTER RETIREMENT.
9-17 (a) A retiree who is receiving a standard service retirement
9-18 annuity under Section 824.203 and who marries after the date of the
9-19 person's retirement may replace the annuity by selecting an
9-20 optional retirement annuity under Section 824.204(c)(1), (c)(2), or
9-21 (c)(5) and designating the person's spouse as beneficiary before
9-22 the first anniversary of the marriage in the same manner as an
9-23 annuity selection and designation of beneficiary may be made before
9-24 retirement.
9-25 (b) The selection of an optional annuity and designation of
9-26 a beneficiary under this section do not take effect until the first
9-27 payment of the annuity that becomes due two years after the date
10-1 the selection and designation are filed with the retirement system.
10-2 (c) The retirement system shall recompute the annuity of a
10-3 retiree who selects an optional annuity and designates a
10-4 beneficiary under this section to reflect that change and shall
10-5 adjust the annuity as appropriate for early retirement and
10-6 postretirement increases provided after the date of the retiree's
10-7 retirement. The retirement system shall by rule provide for the
10-8 adjustment of the monthly payments of the annuity under the option
10-9 selected to an amount which is the actuarial equivalent of the
10-10 annuity being paid immediately before the change in benefit option
10-11 and beneficiary selection.
10-12 (d) If a retiree who selects an optional annuity and
10-13 designates a beneficiary under this section dies before the change
10-14 takes effect or if the designated beneficiary dies before the
10-15 change takes effect, the selection of an optional annuity and
10-16 designation of beneficiary have no effect.
10-17 SECTION 17. Subsection (a), Section 824.103, Government
10-18 Code, is amended to read as follows:
10-19 (a) Benefits payable on the death of a member or annuitant,
10-20 except an optional retirement annuity under Section 824.204(c)(1),
10-21 <or> (c)(2), or (c)(5), are payable, and rights to elect survivor
10-22 benefits, if applicable, are available, to one of the classes of
10-23 persons described in Subsection (b), if:
10-24 (1) the member or annuitant fails to designate a
10-25 beneficiary before death;
10-26 (2) a designated beneficiary does not survive the
10-27 member or annuitant; or
11-1 (3) a designated beneficiary, under Section 824.004,
11-2 waives claims to benefits payable on the death of the member or
11-3 annuitant.
11-4 SECTION 18. Subsection (a), Section 824.104, Government
11-5 Code, is amended to read as follows:
11-6 (a) If, before the first anniversary of the death of a
11-7 member or annuitant, the retirement system does not receive a claim
11-8 for payment of benefits from a designated beneficiary or a person
11-9 entitled to benefits under Section 824.103, the retirement system
11-10 may pay benefits, except an optional retirement annuity under
11-11 Section 824.204(c)(1), <or> (c)(2), or (c)(5), under the order of
11-12 precedence in Section 824.103(b), as if the person failing to claim
11-13 benefits had predeceased the decedent.
11-14 SECTION 19. Subsection (b), Section 824.201, Government
11-15 Code, is amended to read as follows:
11-16 (b) At any time before the retirement system makes the first
11-17 annuity payment or the first annuity payment becomes due <effective
11-18 date of retirement>, a member may, by filing written notice with
11-19 the board of trustees, revoke the member's application for
11-20 retirement or make, revoke, or change a selection of an optional
11-21 service retirement annuity available as provided by Section
11-22 824.204.
11-23 SECTION 20. Subsections (a), (d), and (f), Section 824.202,
11-24 Government Code, are amended to read as follows:
11-25 (a) A member is eligible to retire and receive a standard
11-26 service retirement annuity if the member:
11-27 (1) is at least 65 years old and has at least five
12-1 years of service credit in the retirement system; <or>
12-2 (2) is at least 60 years old and has at least 20 years
12-3 of service credit in the retirement system; or
12-4 (3) is at least 50 years old and has at least 30 years
12-5 of service credit in the retirement system.
12-6 (d) If a member has at least 30 years of service credit in
12-7 the retirement system, the member is eligible to retire regardless
12-8 of age and receive a service retirement annuity consisting of a
12-9 percentage of the standard service retirement annuity available
12-10 under Subsection (a)(3) <(a)(2)>, derived from the table in
12-11 Subsection (c). The board of trustees shall extend the table in
12-12 Subsection (c) to ages earlier than 50 <55> years by decreasing the
12-13 percentages by two percent for each year of age under 50 <55>
12-14 years.
12-15 (f) Except as provided by Chapter 803 or 805 <the
12-16 proportionate retirement program in Subtitle A>, a member is not
12-17 eligible to receive service retirement benefits from the retirement
12-18 system unless the member has at least five years of service credit
12-19 in the retirement system for actual service in public schools.
12-20 SECTION 21. Section 824.203, Government Code, is amended by
12-21 amending Subsection (a) and by adding Subsection (e) to read as
12-22 follows:
12-23 (a) Except as provided by Subsections (c), <and> (d), and
12-24 (e), the standard service retirement annuity is an amount computed
12-25 on the basis of the member's average annual compensation for the
12-26 three years of service, whether or not consecutive, in which the
12-27 member received the highest annual compensation, times two percent
13-1 for each year of service credit in the retirement system.
13-2 (e) The annual standard service retirement annuity for a
13-3 person who immediately before retirement holds a position as a
13-4 classroom teacher or full-time librarian, or the annual death
13-5 benefit annuity based on the service of a member who at the time of
13-6 death held a position as a classroom teacher or full-time
13-7 librarian, may not be less than an amount computed on the basis of
13-8 the minimum annual salary provided by the Education Code for a
13-9 classroom teacher or full-time librarian, multiplied by two percent
13-10 for each year of service credit in the retirement system.
13-11 SECTION 22. Subchapter C, Chapter 824, Government Code, is
13-12 amended by adding Section 824.2031 to read as follows:
13-13 Sec. 824.2031. BENEFIT IMPROVEMENTS. (a) Each regular
13-14 legislative session, the legislature shall determine whether the
13-15 performance of the retirement system trust fund makes the fund
13-16 capable of supporting improvements in the plan of benefits.
13-17 (b) A determination under this section shall be founded on
13-18 the information in the most recent report of an investment
13-19 performance audit conducted under Section 825.512 and the
13-20 application of that information to:
13-21 (1) the present amortization period for liabilities of
13-22 the retirement system;
13-23 (2) the rate of return on retirement system
13-24 investments over and above the rate of inflation of the investment
13-25 portfolio as a whole, of the portion of the investment portfolio
13-26 entrusted to private investment entities, and of the portion of the
13-27 investment portfolio entrusted to investment officers who are
14-1 employees of the retirement system;
14-2 (3) economic projections of market conditions and
14-3 future investment rates of return as reflected in the comptroller's
14-4 most recent economic forecast and revenue estimate;
14-5 (4) the costs, including changes in the amortization
14-6 period for liabilities of the retirement system, of providing
14-7 cost-of-living or other increases in benefits to current
14-8 annuitants; and
14-9 (5) an evaluation of the diversity of retirement
14-10 system investments and whether the portfolio provides low-risk,
14-11 long-term growth.
14-12 SECTION 23. Subsections (c) and (e), Section 824.204,
14-13 Government Code, are amended to read as follows:
14-14 (c) An eligible member may select one of the following
14-15 options, which provide that:
14-16 (1) after the retiree's death, the reduced annuity is
14-17 payable to and throughout the life of the person nominated by the
14-18 retiree's written designation filed prior to retirement;
14-19 (2) after the retiree's death, one-half of the reduced
14-20 annuity is payable to and throughout the life of the person
14-21 nominated by the retiree's written designation filed prior to
14-22 retirement;
14-23 (3) if the retiree dies before 60 monthly annuity
14-24 payments have been made, the remainder of the 60 payments are
14-25 payable to the designated beneficiary; <or>
14-26 (4) if the retiree dies before 120 monthly annuity
14-27 payments have been made, the remainder of the 120 payments are
15-1 payable to the designated beneficiary; or
15-2 (5) after the retiree's death, three-fourths of the
15-3 reduced annuity is payable to and throughout the life of the person
15-4 nominated by the retiree's written designation filed prior to
15-5 retirement.
15-6 (e) The increase in the annuity under Subsection (d)<:>
15-7 <(1)> begins with the payment due at the end of
15-8 September, 1995, or the first monthly payment made to the retiree
15-9 following the date of death of the person nominated, whichever is
15-10 later, and is payable to the retiree for the remainder of the
15-11 retiree's life<; and>
15-12 <(2) applies only to a member who retires after August
15-13 31, 1989>.
15-14 SECTION 24. Subsections (a) and (b), Section 824.304,
15-15 Government Code, are amended to read as follows:
15-16 (a) If a member has a total of less than 10 years of service
15-17 credit in the retirement system on the date of disability
15-18 retirement, the retirement system shall pay the person a disability
15-19 retirement annuity of $150 <$50> a month for the shortest of the
15-20 following periods:
15-21 (1) the duration of the disability;
15-22 (2) the number of months of creditable service the
15-23 person has at retirement; or
15-24 (3) the duration of the person's life.
15-25 (b) If a member has a total of at least 10 years of service
15-26 credit in the retirement system on the date of disability
15-27 retirement, the retirement system shall pay the person for the
16-1 duration of the disability a disability retirement annuity in an
16-2 amount equal to the greater of:
16-3 (1) a standard service retirement annuity computed
16-4 under Section 824.203 <824.203(a)>; <or>
16-5 (2) $6.50 a month for each year of service credit on
16-6 the date of retirement; or
16-7 (3) $150 a month.
16-8 SECTION 25. Subsections (a), (b), (c), and (d), Section
16-9 824.308, Government Code, are amended to read as follows:
16-10 (a) Instead of an annuity payable under Section 824.304(b),
16-11 a member retiring under that section may elect to receive an
16-12 optional disability retirement annuity under this section. An
16-13 election to receive an optional disability retirement annuity must
16-14 be filed with the board of trustees not later than the later of the
16-15 effective date of retirement or the date the member applies for
16-16 retirement.
16-17 (b) An optional disability retirement annuity is an annuity
16-18 payable throughout the disability of the disability retiree and is
16-19 actuarially reduced from the annuity otherwise payable under
16-20 Section 824.304(b) <Sections 824.304(b)(1) and (b)(2)> to its
16-21 actuarial equivalent under the option selected under Subsection
16-22 (c).
16-23 (c) An eligible member may select one of the following
16-24 options:
16-25 (1) after the disability retiree's death, the reduced
16-26 annuity is payable throughout the life of a person nominated by the
16-27 retiree's written designation under Section 824.101 filed before
17-1 retirement;
17-2 (2) after the disability retiree's death, one-half of
17-3 the reduced annuity is payable throughout the life of the retiree's
17-4 designated beneficiary;
17-5 (3) if the disability retiree dies before 60 monthly
17-6 annuity payments have been made, the remainder of the 60 payments
17-7 are payable to the designated beneficiary; <or>
17-8 (4) if the disability retiree dies before 120 monthly
17-9 annuity payments have been made, the remainder of the 120 payments
17-10 are payable to the designated beneficiary; or
17-11 (5) after the disability retiree's death,
17-12 three-fourths of the reduced annuity is payable throughout the life
17-13 of the retiree's designated beneficiary.
17-14 (d) If the person nominated by the disability retiree's
17-15 written designation under Section 824.101 filed before or at the
17-16 time of retirement predeceases the disability retiree, the reduced
17-17 annuity of a disability retiree who has elected an optional
17-18 retirement annuity under Subsection (c)(1), (c)(2), or (c)(5) <or
17-19 (2)> is increased to the standard retirement annuity that the
17-20 disability retiree would otherwise be entitled to receive if the
17-21 disability retiree had not selected an annuity option. The
17-22 standard retirement annuity shall be adjusted as appropriate for
17-23 postretirement increases in retirement benefits authorized by law
17-24 after the date of retirement.
17-25 SECTION 26. Subsection (a), Section 824.402, Government
17-26 Code, is amended to read as follows:
17-27 (a) Except as provided by Section 824.401, the designated
18-1 beneficiary of a member who dies during a school year in which the
18-2 member has performed service is eligible to receive at the
18-3 beneficiary's election the greatest of the following amounts:
18-4 (1) an amount equal to twice the member's annual
18-5 compensation for the school year immediately preceding the school
18-6 year in which the member dies, or $80,000 <$60,000>, whichever is
18-7 less;
18-8 (2) an amount equal to twice the member's rate of
18-9 annual compensation for the school year in which the member dies,
18-10 or $80,000 <$60,000>, whichever is less;
18-11 (3) 60 monthly payments of a standard service
18-12 retirement annuity, computed as provided by Section 824.203
18-13 <824.203(a)>;
18-14 (4) an optional retirement annuity for the designated
18-15 beneficiary's life in an amount computed as provided by Section
18-16 824.204(c)(1) as if the member had retired on the last day of the
18-17 month immediately preceding the month in which the member dies; or
18-18 (5) an amount equal to the amount of accumulated
18-19 contributions in the member's individual account in the member
18-20 savings account.
18-21 SECTION 27. Subsections (a) and (c), Section 824.503,
18-22 Government Code, are amended to read as follows:
18-23 (a) If a retiree dies while receiving a standard or reduced
18-24 service retirement annuity as provided by Section 824.202 or an
18-25 optional service retirement annuity as provided by Section
18-26 824.204(c)(1), <or> (c)(2), or (c)(5) and, in the case of a retiree
18-27 receiving an optional service retirement annuity, if the retiree's
19-1 designated beneficiary of the annuity has predeceased the retiree,
19-2 the retirement system shall pay a lump-sum death benefit in an
19-3 amount, if any, by which the amount of the deceased retiree's
19-4 accumulated contributions at the time of retirement exceeds the
19-5 amount of annuity payments made before the retiree's death.
19-6 (c) If a retiree's designated beneficiary dies while
19-7 receiving an optional annuity under Section 824.204(c)(1), <or>
19-8 (c)(2), or (c)(5), the retirement system shall pay a lump-sum death
19-9 benefit in an amount, if any, by which the amount of the retiree's
19-10 accumulated contributions at the time of retirement exceeds the
19-11 amount of annuity payments made to the retiree and the designated
19-12 beneficiary before the beneficiary's death.
19-13 SECTION 28. Subsection (a), Section 824.505, Government
19-14 Code, is amended to read as follows:
19-15 (a) Amounts payable by the retirement system to an annuitant
19-16 that are not received by that annuitant or the annuitant's bank, as
19-17 determined by the retirement system, before the annuitant's death
19-18 may be paid to the person named to receive benefits in the event of
19-19 the annuitant's death, in accordance with rules adopted by the
19-20 board of trustees. The retirement system may send a final monthly
19-21 payment of an annuity to a bank or another address previously
19-22 indicated by the annuitant or beneficiary.
19-23 SECTION 29. Subsection (a), Section 824.602, Government
19-24 Code, is amended to read as follows:
19-25 (a) The retirement system may not, under Section 824.601,
19-26 withhold a monthly benefit payment if the retiree is employed in a
19-27 Texas public educational institution:
20-1 (1) as a substitute only with pay not more than the
20-2 daily rate of substitute pay established by the employer and, if
20-3 the retiree is a disability retiree, <if> the employment has not
20-4 exceeded a total of <120 days in the school year or, for a
20-5 disability retiree,> 90 days in the school year;
20-6 (2) in a position, other than as a substitute, on no
20-7 more than a one-half time basis for the month;
20-8 (3) in one or more positions on as much as a full-time
20-9 basis, if:
20-10 (A) the work occurs in a school year that begins
20-11 after the retiree's effective date of retirement;
20-12 (B) the work occurs in no more than six months
20-13 of the school year; and
20-14 (C) the retiree executes on a form and within
20-15 any deadline prescribed by the retirement system a written election
20-16 to have this exception apply for the school year in determining
20-17 whether benefits are to be suspended for employment after
20-18 retirement; or
20-19 (4) in a position, other than as a substitute, on no
20-20 more than a one-half time basis for no more than 90 days in the
20-21 school year, if the retiree is a disability retiree.
20-22 SECTION 30. Subsection (b), Section 825.002, Government
20-23 Code, is amended to read as follows:
20-24 (b) The governor shall appoint three members of the board to
20-25 hold office for staggered terms, with the term of one trustee
20-26 expiring on August 31 of each odd-numbered year. These <Two of
20-27 those three> members must be persons who have demonstrated
21-1 financial expertise, who have worked in private business or
21-2 industry, and who have broad investment experience, preferably in
21-3 investment of pension funds. None of the members appointed under
21-4 this subsection may be a member or annuitant of the retirement
21-5 system.
21-6 SECTION 31. Section 825.003, Government Code, is amended to
21-7 read as follows:
21-8 Sec. 825.003. TRUSTEES APPOINTED BY GOVERNOR FROM NOMINEES
21-9 OF BOARD OF EDUCATION. The governor <State Board of Education>
21-10 shall appoint two members of the board of trustees, subject to
21-11 confirmation by two-thirds of the senate, from lists of nominees
21-12 submitted by the State Board of Education. These members must be
21-13 persons who have demonstrated financial expertise, have worked in
21-14 private business or industry, and have broad investment experience,
21-15 preferably in investment of pension funds.
21-16 SECTION 32. Subsections (a), (b), and (f), Section 825.0032,
21-17 Government Code, are amended to read as follows:
21-18 (a) Except as provided by Subsection (b), a person is not
21-19 eligible for appointment to the board if the person or the person's
21-20 spouse:
21-21 (1) is employed by or participates in the management
21-22 of a business entity or other organization receiving funds from the
21-23 retirement system; <or>
21-24 (2) owns or controls, directly or indirectly, more
21-25 than a 10 percent interest in a business entity or other
21-26 organization receiving funds from the retirement system; or
21-27 (3) uses or receives a substantial amount of tangible
22-1 goods, services, or funds from the retirement system, other than
22-2 compensation or reimbursement authorized by law for board
22-3 membership, attendance, or expenses.
22-4 (b) Subsection (a) does not apply to employment by,
22-5 participation in the management of, or ownership or control of an
22-6 interest in a business entity or other organization on behalf of
22-7 the retirement system. Subsection (a)(3) does not apply to a
22-8 person who is nominated for appointment under Section 825.002(c),
22-9 (d), or (e).
22-10 (f) A person may not serve as a trustee or act as the
22-11 general counsel to the board or the retirement system if the person
22-12 is required to register as a lobbyist under Chapter 305 because of
22-13 the person's activities for compensation on behalf of a business or
22-14 an association related to the operation of the board.
22-15 SECTION 33. Subchapter A, Chapter 825, Government Code, is
22-16 amended by adding Section 825.0041 to read as follows:
22-17 Sec. 825.0041. BOARD MEMBER TRAINING. (a) Before a member
22-18 of the board may assume the member's duties and, if applicable,
22-19 before the member may be confirmed by the senate the member must
22-20 complete at least one course of the training program established
22-21 under this section.
22-22 (b) A training program established under this section shall
22-23 provide information to the member regarding:
22-24 (1) the enabling legislation that created the
22-25 retirement system and its policy-making body to which the member is
22-26 appointed to serve;
22-27 (2) the programs operated by the system;
23-1 (3) the role and functions of the system;
23-2 (4) the rules of the system with an emphasis on the
23-3 rules that relate to disciplinary and investigatory authority;
23-4 (5) the current budget for the system;
23-5 (6) the results of the most recent formal audit of the
23-6 system;
23-7 (7) the requirements of the:
23-8 (A) open meetings law, Chapter 551;
23-9 (B) open records law, Chapter 552; and
23-10 (C) administrative procedure law, Chapter 2001;
23-11 (8) the requirements of the conflict of interest laws
23-12 and other laws relating to public officials; and
23-13 (9) any applicable ethics policies adopted by the
23-14 system or the Texas Ethics Commission.
23-15 SECTION 34. Section 825.006, Government Code, is amended to
23-16 read as follows:
23-17 Sec. 825.006. Sunset Provision. The board of trustees of
23-18 the Teacher Retirement System of Texas is subject to review under
23-19 Chapter 325 (Texas Sunset Act), but is not abolished under that
23-20 chapter. The board shall be reviewed during the period in which
23-21 state agencies abolished in 2007 <1995> are reviewed or, if the
23-22 retirement system's operating expenses are not subject to the
23-23 appropriations process on September 1, 1995, the board shall be
23-24 reviewed during the period in which state agencies abolished in
23-25 1997 are reviewed. This section expires September 1, 2007 <1995>.
23-26 SECTION 35. Subsections (a) and (c), Section 825.010,
23-27 Government Code, are amended to read as follows:
24-1 (a) It is a ground for removal from the board if a trustee:
24-2 (1) does not have at the time of appointment the
24-3 qualifications required for the trustee's position;
24-4 (2) does not maintain during service on the board the
24-5 qualifications required for the trustee's position;
24-6 (3) violates a prohibition established by Section
24-7 825.002(b) or 825.0032;
24-8 (4) <(2)> cannot because of illness or disability
24-9 discharge the trustee's <person's> duties for a substantial part of
24-10 the term for which the trustee <person> is appointed <because of
24-11 illness or disability>; or
24-12 (5) <(3)> is absent from more than one-third <half> of
24-13 the regularly scheduled board meetings that the person is eligible
24-14 to attend during a calendar year unless the absence is excused by
24-15 majority vote of the board.
24-16 (c) If the executive director has knowledge that a potential
24-17 ground for removal exists, the executive director shall notify the
24-18 presiding officer <chairman> of the board of the ground. The
24-19 presiding officer <chairman> shall then notify the appropriate
24-20 appointing officer and the attorney general <or body> that a
24-21 potential ground for removal exists. If the potential ground for
24-22 removal involves the presiding officer, the executive director
24-23 shall notify the next highest officer of the board, who shall
24-24 notify the appropriate appointing officer and the attorney general
24-25 that a potential ground for removal exists.
24-26 SECTION 36. Section 825.108, Government Code, is amended by
24-27 adding Subsections (e) and (f) to read as follows:
25-1 (e) The board shall prepare annually a complete and detailed
25-2 written report accounting for all funds received and disbursed by
25-3 the retirement system during the preceding fiscal year. The annual
25-4 report must meet the reporting requirements applicable to financial
25-5 reporting provided in the General Appropriations Act.
25-6 (f) The board shall prepare biennially a complete and
25-7 detailed written report describing and explaining any use of
25-8 appropriated amounts, retirement system assets, or other resources
25-9 for governmental relations, member counseling, or official
25-10 publications. The report must be filed with the committees of the
25-11 senate and the house of representatives having jurisdiction over
25-12 appropriations, with the committees of the senate and the house of
25-13 representatives having principal jurisdiction over legislation
25-14 governing the retirement system, and with the Legislative Budget
25-15 Board at the time the retirement system submits its budget request
25-16 for the next state fiscal biennium.
25-17 SECTION 37. Subsections (a), (b), and (f), Section 825.113,
25-18 Government Code, are amended to read as follows:
25-19 (a) The executive director or the executive director's
25-20 designee <board> shall provide to its trustees and employees, as
25-21 often as necessary, information regarding their qualification for
25-22 office or employment under this chapter and their responsibilities
25-23 under applicable laws relating to standards of conduct for state
25-24 officers or employees.
25-25 (b) The board shall develop and implement policies that
25-26 clearly separate the policy-making <define the respective>
25-27 responsibilities of the board and the management responsibilities
26-1 of the executive director and the staff of the retirement system.
26-2 (f) The retirement system shall comply with federal and
26-3 state laws related to program and facility accessibility. The
26-4 executive director <board> shall prepare and maintain a written
26-5 plan that describes how a person who does not speak English can be
26-6 provided reasonable access to the board's programs. The board
26-7 shall also comply with federal and state laws for program and
26-8 facility accessibility.
26-9 SECTION 38. Subchapter B, Chapter 825, Government Code, is
26-10 amended by adding Section 825.115 to read as follows:
26-11 Sec. 825.115. APPLICABILITY OF CERTAIN LAWS. The board is
26-12 subject to the open meetings law, Chapter 551, and the
26-13 administrative procedure law, Chapter 2001.
26-14 SECTION 39. Section 825.201, Government Code, is amended to
26-15 read as follows:
26-16 Sec. 825.201. PRESIDING OFFICER <Chairman>. The governor
26-17 shall designate a member of the board as the presiding officer of
26-18 the board to serve in that capacity at the pleasure of the governor
26-19 <board of trustees shall elect a chairman. The chairman must be a
26-20 member of the board>.
26-21 SECTION 40. Section 825.206, Government Code, is amended by
26-22 adding Subsections (d) and (e) to read as follows:
26-23 (d) Each actuarial experience study must include a review of
26-24 all actuarial assumptions in light of relevant experience,
26-25 important trends, and economic projections. Interrelated actuarial
26-26 assumptions shall be reviewed carefully to ensure that adjustments
26-27 in one assumption are reflected appropriately in related
27-1 assumptions.
27-2 (e) Each actuarial valuation must include a detailed
27-3 analysis comparing experience factors to their actuarial
27-4 assumptions. The analysis shall be developed and reported to
27-5 identify significant variations in actual experience from what was
27-6 assumed. A material variation should be the focus of an actuarial
27-7 experience study.
27-8 SECTION 41. Subsections (a), (b), and (c), Section 825.213,
27-9 Government Code, are amended to read as follows:
27-10 (a) The executive director or the executive director's
27-11 designee shall develop an intra-agency career ladder program that
27-12 addresses opportunities for mobility and advancement for employees
27-13 within the retirement system. The program shall require
27-14 intra-agency posting of all <nonentry level> positions concurrently
27-15 with any public posting.
27-16 (b) The executive director or the executive director's
27-17 designee shall develop a system of annual performance evaluations
27-18 that are based on documented employee performance. All merit pay
27-19 for system employees must be based on the system established under
27-20 this subsection.
27-21 (c) The executive director or the executive director's
27-22 designee shall prepare and maintain a written policy statement to
27-23 assure implementation of a program of equal employment opportunity
27-24 under which all personnel transactions are made without regard to
27-25 race, color, disability, sex, religion, age, or national origin.
27-26 The policy statement must include:
27-27 (1) personnel policies, including policies relating to
28-1 recruitment, evaluation, selection, appointment, training, and
28-2 promotion of personnel that are in compliance with requirements of
28-3 Chapter 21, Labor Code <the Commission on Human Rights Act (Article
28-4 5221k, Vernon's Texas Civil Statutes)>;
28-5 (2) a comprehensive analysis of the retirement
28-6 system's work force that meets federal and state guidelines;
28-7 (3) procedures by which a determination can be made
28-8 about the extent of <significant> underuse in the retirement
28-9 system's work force of all persons for whom federal or state
28-10 guidelines encourage a more equitable balance; and
28-11 (4) reasonable methods to appropriately address those
28-12 areas of <significant> underuse.
28-13 SECTION 42. Subchapter C, Chapter 825, Government Code, is
28-14 amended by adding Section 825.215 to read as follows:
28-15 Sec. 825.215. ADVOCACY PROHIBITED. An employee of the
28-16 retirement system may not advocate increased benefits or engage in
28-17 activities to advocate or influence legislative action or inaction.
28-18 Advocacy or activity of this nature is grounds for dismissal of an
28-19 employee.
28-20 SECTION 43. Section 825.306, Government Code, is amended to
28-21 read as follows:
28-22 Sec. 825.306. Crediting System Assets. The assets of the
28-23 retirement system shall be credited, according to the purpose for
28-24 which they are held, to one of the following accounts:
28-25 (1) member savings account;
28-26 (2) state contribution account;
28-27 (3) retired reserve account;
29-1 (4) <benefit increase reserve account;>
29-2 <(5)> interest account; or
29-3 (5) <(6)> expense account.
29-4 SECTION 44. Subsection (b), Section 825.309, Government
29-5 Code, is amended to read as follows:
29-6 (b) The retirement system shall use money in the retired
29-7 reserve account to pay all retirement annuities and all death or
29-8 survivor benefits, including postretirement benefit increases and
29-9 other adjustments to annuities <except those paid under Section
29-10 825.310(b)>.
29-11 SECTION 45. Sections 825.312, 825.313, and 825.314,
29-12 Government Code, are amended to read as follows:
29-13 Sec. 825.312. Expense Account. (a) The retirement system
29-14 shall deposit in the expense account:
29-15 (1) money transferred from the interest account under
29-16 Section 825.313(c) and <all membership fees required by this
29-17 subtitle, including the fees under Section 823.3021(f)(2);>
29-18 (2) <money required to be deposited in the account by
29-19 Section 825.313(b)(3) or 825.313(c); and>
29-20 <(3)> money received from the Texas Public School
29-21 <Retired> Employees Group Insurance Program for service performed
29-22 for the program by the retirement system.
29-23 (b) The retirement system shall pay from the account all
29-24 administrative expenses of <administration and maintenance of> the
29-25 retirement system that exceed the amounts appropriated under
29-26 Section 825.404(d) and that are required to perform the fiduciary
29-27 duties of the board.
30-1 Sec. 825.313. Transfers From Interest or State Contribution
30-2 Account. (a) Annually, the retirement system shall transfer from
30-3 the interest account to the state contribution account amounts
30-4 accumulated under Section 825.311(2).
30-5 (b) On August 31 of each year, the retirement system shall
30-6 make the following transfers from the interest account:
30-7 (1) to the member savings account, an amount computed
30-8 using the rate prescribed by Section 825.307(b);
30-9 (2) to the retired reserve account, an amount equal to
30-10 4 3/4 percent of the average balance of the retired reserve
30-11 account for that fiscal year or, if the transfer is authorized by
30-12 resolution of the board, an amount computed at a greater rate if
30-13 the actuary recommends the greater rate to adequately fund the
30-14 retired reserve account; and
30-15 (3) <to the expense account, an amount designated by
30-16 the board of trustees in accordance with Subsection (c);>
30-17 <(4) to the benefit increase reserve account, an
30-18 amount representing interest on the average annual balance of the
30-19 benefit increase reserve account at a rate set by the board of
30-20 trustees in accordance with Section 825.106; and>
30-21 <(5)> to the state contribution account, the amount
30-22 remaining in the interest account after the other transfers
30-23 required or authorized by this section are made.
30-24 (c) The board of trustees, by resolution recorded in its
30-25 minutes, may <shall> transfer from the interest account to the
30-26 expense account an amount necessary to cover the expenses of the
30-27 retirement system for the fiscal year that exceed the amount of
31-1 operating expenses appropriated under Section 825.404(d) and that
31-2 are required to perform the fiduciary duties of the board,
31-3 including the expense of servicing mortgages insured by the Federal
31-4 Housing Administration under the National Housing Act (12 U.S.C.
31-5 Section 1701 et seq.).
31-6 Sec. 825.314. Use And Reporting of State Contributions and
31-7 Other Appropriations and Assets. (a) The retirement system shall
31-8 use all assets contributed by the state, other than operating
31-9 expenses appropriated under Section 825.404(d), to pay benefits
31-10 authorized by this subtitle.
31-11 (b) The staff of the retirement system shall report to the
31-12 board at each board meeting the amounts and uses since the
31-13 preceding board meeting of any money expended by the system from
31-14 amounts transferred under Section 825.313(c) and include an
31-15 explanation of why the amounts were needed to perform the fiduciary
31-16 duties of the board. The retirement system annually shall prepare
31-17 and issue to each contributing member and annuitant and to the
31-18 governor, lieutenant governor, and speaker of the house of
31-19 representatives a summary of the reports presented during the
31-20 preceding year to the board.
31-21 SECTION 46. Subchapter D, Chapter 825, Government Code, is
31-22 amended by adding Section 825.315 to read as follows:
31-23 Sec. 825.315. PROHIBITED USE OF ASSETS. Assets of the
31-24 retirement system may not be used to advocate or influence the
31-25 outcome of an election or the passage or defeat of any legislative
31-26 measure. This prohibition may not be construed to prevent any
31-27 trustee or employee from furnishing information in the hands of the
32-1 trustee or employee that is not considered confidential under law
32-2 to a member or committee of the legislature, to any other state
32-3 officer or employee, or to any private citizen, at the request of
32-4 the person or entity to whom the information is furnished. This
32-5 prohibition does not apply to the incidental use of retirement
32-6 system facilities by groups of members or retirees or by officers
32-7 or employees of state agencies.
32-8 SECTION 47. Section 825.403, Government Code, is amended by
32-9 amending Subsection (b) and by adding Subsection (j) to read as
32-10 follows:
32-11 (b) Each employer or the employer's designated disbursing
32-12 officer, at a time and in a form prescribed by the retirement
32-13 system, shall send to the executive director all deductions and a
32-14 certification of earnings of each member employed by the employer.
32-15 An employer shall use electronic fund transfer to send deductions
32-16 required by this section or shall certify to the retirement system
32-17 either that the employer is unable to establish a qualifying
32-18 account at a financial institution or that payment by electronic
32-19 fund transfer would be impractical or more costly than payment by
32-20 paper check.
32-21 (j) If deductions were previously required of a member but
32-22 not paid, proof of service must be made before service credit is
32-23 granted or payment for the credit is required. Proof of service is
32-24 sufficient if the member's employer documents that the employer has
32-25 records made at or near the time of service that establish the
32-26 amount of time worked and salary earned. A member may submit in
32-27 lieu of employer documentation internal revenue, social security,
33-1 bank, or other written records that were made at or near the time
33-2 of service and that establish the amount of time worked and salary
33-3 earned. An affidavit based on memory without written records made
33-4 at or near the time of service is not sufficient documentation for
33-5 the establishment of service credit. The retirement system may
33-6 audit records used for documentation under this subsection.
33-7 SECTION 48. The heading of Section 825.404, Government Code,
33-8 is amended to read as follows:
33-9 Sec. 825.404. COLLECTION OF STATE CONTRIBUTIONS AND
33-10 APPROPRIATED OPERATING EXPENSES.
33-11 SECTION 49. Section 825.404, Government Code, is amended by
33-12 redesignating and amending Subsection (d) as Subsection (e) and by
33-13 adding new Subsection (d) to read as follows:
33-14 (d) The legislature shall appropriate from the general
33-15 revenue fund a specified amount of money to be used to pay
33-16 operating expenses of the retirement system for each fiscal year.
33-17 (e) <(d)> All money appropriated by the state to the
33-18 retirement system shall be paid to the state contribution account
33-19 in equal monthly installments as provided by Section 403.093(c),
33-20 Government Code, except money appropriated under Subsection (d),
33-21 which remains in the general revenue fund until expenses are
33-22 approved under Chapter 2103.
33-23 SECTION 50. Section 825.503, Government Code, is amended to
33-24 read as follows:
33-25 Sec. 825.503. REPRODUCTION AND PRESERVATION OF RECORDS.
33-26 (a) The retirement system may photograph, microphotograph, or
33-27 film, or use electronic storage for, all records pertaining to a
34-1 member's individual file, accounting records, district report
34-2 records, and investment records. The retirement system may receive
34-3 any record or report on paper or film or in an electronic storage
34-4 format.
34-5 (b) If a record is reproduced under Subsection (a), the
34-6 retirement system may destroy or dispose of the original record if
34-7 the system first:
34-8 (1) places the reproduction or electronic record in a
34-9 file conveniently accessible to retirement system personnel <in
34-10 conveniently accessible files>; and
34-11 (2) provides for the preservation, examination, and
34-12 use of the reproduction or stored electronic record.
34-13 (c) A photograph, microphotograph, <or> film, or electronic
34-14 record of a record received or reproduced under Subsection (a) is
34-15 equivalent to the original record for all purposes, including
34-16 introduction as evidence in all courts and administrative agency
34-17 proceedings. A duly certified or authenticated copy of such a
34-18 photograph, microphotograph, <or> film, or electronic record is
34-19 admissible as evidence equally with the original photograph,
34-20 microphotograph, <or> film, or electronic record.
34-21 (d) The executive director or an authorized representative
34-22 may certify the authenticity of a photograph, microphotograph, <or>
34-23 film, or electronic record of a record reproduced under this
34-24 section and shall charge a fee for the certified photograph,
34-25 microphotograph, <or> film, or electronic record as provided by
34-26 law.
34-27 (e) Certified records shall be furnished to any person who
35-1 is authorized by law to receive them.
35-2 (f) In this section:
35-3 (1) "Electronic storage" means the maintenance of
35-4 record data in the form of digital electronic signals on a computer
35-5 hard disk, magnetic tape, optical disk, or similar medium readable
35-6 by machine.
35-7 (2) "Electronic record" means any information that is
35-8 recorded in a form for computer processing.
35-9 SECTION 51. Section 825.504, Government Code, is amended to
35-10 read as follows:
35-11 Sec. 825.504. EMPLOYER CERTIFICATION TO BOARD. (a) An
35-12 employer annually shall certify to the board of trustees the
35-13 beginning date of the contract of each member whose contract year
35-14 begins after June 30 and continues after August 31 of the same
35-15 calendar year.
35-16 (b) For school years after the 1994-1995 school year, an
35-17 employer annually shall certify to the board of trustees the
35-18 beginning date of an oral or written work agreement that begins
35-19 after June 30 and continues after August 31 of the same calendar
35-20 year.
35-21 (c) Each reporting district shall cooperate with the
35-22 retirement system in ascertaining a member's annual earnings during
35-23 any year. The board of trustees by rule may prescribe the form of
35-24 and procedures for filing certifications required by this section.
35-25 SECTION 52. Subsection (a), Section 825.506, Government
35-26 Code, is amended to read as follows:
35-27 (a) It is intended that the provisions of this subtitle be
36-1 construed and administered in a manner that the retirement system's
36-2 benefit plan will be considered a qualified plan under Section
36-3 401(a) of the Internal Revenue Code of 1986 (26 U.S.C. Section
36-4 401). Notwithstanding any other provision of this subtitle,
36-5 benefits provided to a retiree, or based on the service of a member
36-6 or retiree, may not exceed benefits permitted to be provided by a
36-7 qualified plan by Section 415 of the Internal Revenue Code of 1986
36-8 (26 U.S.C. Section 415). The board of trustees may adopt rules
36-9 that modify the plan to the extent necessary for the retirement
36-10 system to be a qualified plan and shall adopt rules to ensure that
36-11 benefits paid to a retiree, or to a beneficiary of a member or
36-12 retiree, do not exceed the limits provided by Section 415 of the
36-13 Internal Revenue Code of 1986 (26 U.S.C. Section 415). Rules
36-14 adopted by the board of trustees are to be considered a part of the
36-15 plan.
36-16 SECTION 53. Subsection (b), Section 825.508, Government
36-17 Code, is amended to read as follows:
36-18 (b) The system must honor a power of attorney executed in
36-19 accordance with Chapter XII <1>, Section 490 <36A>, Texas Probate
36-20 Code.
36-21 SECTION 54. Section 825.511, Government Code, is amended to
36-22 read as follows:
36-23 Sec. 825.511. Complaint Files. (a) The retirement system
36-24 shall keep an information file about each complaint filed with the
36-25 system that the system has authority to resolve. The system shall
36-26 provide to the person filing the complaint and the persons or
36-27 entities complained about the system's policies and procedures
37-1 pertaining to complaint investigation and resolution. The system,
37-2 at least quarterly and until final disposition of the complaint,
37-3 shall notify the person filing the complaint and the persons or
37-4 entities complained about of the status of the complaint unless the
37-5 notice would jeopardize an undercover investigation.
37-6 (b) The retirement system shall keep information about each
37-7 complaint filed with the system. The information shall include:
37-8 (1) the date the complaint is received;
37-9 (2) the name of the complainant;
37-10 (3) the subject matter of the complaint;
37-11 (4) a record of all persons contacted in relation to
37-12 the complaint;
37-13 (5) a summary of the results of the review or
37-14 investigation of the complaint; and
37-15 (6) for complaints for which the system took no
37-16 action, an explanation of the reason the complaint was closed
37-17 without action. <If a written complaint is filed with the
37-18 retirement system that the system has authority to resolve, the
37-19 system, at least quarterly and until final disposition of the
37-20 complaint, shall notify the parties to the complaint of the status
37-21 of the complaint unless the notice would jeopardize an undercover
37-22 investigation.>
37-23 SECTION 55. Subchapter F, Chapter 825, Government Code, is
37-24 amended by adding Sections 825.512, 825.513, 825.514, and 825.515
37-25 to read as follows:
37-26 Sec. 825.512. INVESTMENT PERFORMANCE AUDIT. (a) The
37-27 legislative audit committee biennially shall select an independent
38-1 firm with substantial experience in evaluating institutional
38-2 investment practices and performance to evaluate the retirement
38-3 system's investment practices and performance.
38-4 (b) The legislative audit committee shall determine specific
38-5 areas to be evaluated, but the first evaluation must be a
38-6 comprehensive analysis of the retirement system's investment
38-7 program.
38-8 (c) A report of an evaluation under this section shall be
38-9 filed with the legislative audit committee not later than December
38-10 1 of each even-numbered year.
38-11 (d) The retirement system shall pay the costs of each
38-12 evaluation under this section.
38-13 (e) The retirement system shall submit an annual investment
38-14 performance report not later than the 25th day of the month
38-15 following each fiscal year to the governor, the lieutenant
38-16 governor, the speaker of the house of representatives, the
38-17 executive director of the State Pension Review Board, the
38-18 legislative audit committee, the committees of the senate and the
38-19 house of representatives having jurisdiction over appropriations,
38-20 the committees of the senate and the house of representatives
38-21 having principal jurisdiction over legislation governing the
38-22 retirement system, and the Legislative Budget Board. The report
38-23 shall include a listing of all commissions and fees paid by the
38-24 system during the reporting period for the sale, purchase, or
38-25 management of system assets. The report shall be in a form
38-26 recommended by the evaluating firm.
38-27 Sec. 825.513. INFORMATION FOR PUBLICATION. The retirement
39-1 system shall verify with the State Pension Review Board the
39-2 accuracy of information about the effects of proposed legislation
39-3 on benefits and the trust fund before including the information in
39-4 an official publication of the retirement system.
39-5 Sec. 825.514. HISTORICALLY UNDERUTILIZED BUSINESSES. The
39-6 retirement system is subject to the provisions, including Sections
39-7 1.03 and 3.10, of the State Purchasing and General Services Act
39-8 (Article 601b, Vernon's Texas Civil Statutes), that relate to
39-9 historically underutilized businesses.
39-10 Sec. 825.515. INFORMATION ABOUT MEMBER POSITIONS. (a) The
39-11 retirement system shall acquire and maintain records identifying
39-12 members and the types of positions they have held as members, the
39-13 length of service in each type of position, and whether service in
39-14 each type of position is or was as a full-time employee. The
39-15 retirement system shall cooperate with the commissioner of
39-16 education in maintaining information about the employment status of
39-17 members of the retirement system.
39-18 (b) Each school year, the retirement system shall provide to
39-19 the commissioner of education information, of a type and in a form
39-20 determined by the commissioner, that allows contributing members of
39-21 the retirement system to be identified in information submitted to
39-22 the commissioner by school districts under the Education Code.
39-23 (c) Information contained in records of the retirement
39-24 system maintained under this section is confidential within the
39-25 limits prescribed by Section 825.507.
39-26 SECTION 56. Section 1, Article 3.50-4, Insurance Code, is
39-27 amended to read as follows:
40-1 Sec. 1. Short Title. This article may be cited as the Texas
40-2 Public School <Retired> Employees Group Insurance Act.
40-3 SECTION 57. Subdivisions (3) and (4), Section 2, Article
40-4 3.50-4, Insurance Code, are amended to read as follows:
40-5 (3) "Dependent" means:
40-6 (A) a spouse of a retiree or active member;
40-7 (B) a retiree's, an active member's, or a
40-8 deceased active member's unmarried child who is younger than 25
40-9 years of age including:
40-10 (i) an adopted child;
40-11 (ii) a foster child, a stepchild, or other
40-12 child who is in a regular parent-child relationship; and
40-13 (iii) a recognized natural child; and
40-14 (C) a retiree's or active member's recognized
40-15 natural child, adopted child, foster child, stepchild, or other
40-16 child who is in a regular parent-child relationship and who lives
40-17 with or whose care is provided by the retiree, active member, or
40-18 surviving spouse on a regular basis, regardless of the child's age,
40-19 if the child is mentally retarded or physically incapacitated to
40-20 such an extent as to be dependent on the retiree, active member, or
40-21 surviving spouse for care or support, as determined by the trustee,
40-22 or in the case of a deceased active member, a recognized natural
40-23 child, adopted child, foster child, stepchild, or other child who
40-24 was in a regular parent-child relationship and who lived with or
40-25 whose care was provided by the deceased active member on a regular
40-26 basis, regardless of the child's age, if the child is mentally
40-27 retarded or physically incapacitated to such an extent as to have
41-1 been dependent on the deceased active member or surviving spouse
41-2 for care or support, as determined by the trustee.
41-3 (4) "Fund" means the Texas public school <retired>
41-4 employees group insurance fund.
41-5 SECTION 58. Subsection (a), Section 3, Article 3.50-4,
41-6 Insurance Code, is amended to read as follows:
41-7 (a) The Texas Public School <Retired> Employees Group
41-8 Insurance Program is established to provide for an insurance plan
41-9 or plans under this article.
41-10 SECTION 59. Subsection (a), Section 5, Article 3.50-4,
41-11 Insurance Code, is amended to read as follows:
41-12 (a) The trustee may adopt rules, plans, procedures, and
41-13 orders reasonably necessary to implement this article, including:
41-14 (1) establishment of minimum benefit and financing
41-15 standards for group insurance coverage to be provided to all
41-16 retirees, active employees, dependents, surviving spouses, and
41-17 surviving dependent children;
41-18 (2) establishment of basic and optional group coverage
41-19 to be provided to retirees, active employees, dependents, surviving
41-20 spouses, and surviving dependent children;
41-21 (3) establishment of the procedures for contributions
41-22 and deductions;
41-23 (4) establishment of periods for enrollment and
41-24 selection of optional coverage and procedures for enrolling and
41-25 exercising options under the plan;
41-26 (5) determination of methods and procedures for claims
41-27 administration;
42-1 (6) study of the operation of all insurance coverage
42-2 provided under this article;
42-3 (7) administration of the fund;
42-4 (8) adoption of a timetable for the development of
42-5 minimum benefit and financial standards for group insurance
42-6 coverage, establishment of group insurance plans, and the taking of
42-7 bids for and awarding of contracts for insurance plans; and
42-8 (9) contracting with an independent and experienced
42-9 group insurance consultant or actuary, who does not receive
42-10 insurance commissions from any insurance company, for advice and
42-11 counsel in implementing and administering this program.
42-12 SECTION 60. Article 3.50-4, Insurance Code, is amended by
42-13 adding Section 7A to read as follows:
42-14 Sec. 7A. PARTICIPATION BY ACTIVE EMPLOYEES. (a) A public
42-15 school district may elect to participate in the program provided
42-16 under this article. A district that elects to participate must
42-17 accept the schedule of costs adopted by the trustee and may not
42-18 offer an alternative health benefit plan to its active employees
42-19 during the period of its participation in the program.
42-20 (b) The trustee by rule shall provide:
42-21 (1) eligibility requirements for participation by a
42-22 school district, which may include criteria based on size;
42-23 (2) restrictions on the ability of a school district
42-24 to begin or discontinue participation, which may include a minimum
42-25 period of participation and limited periods for elections to begin
42-26 or discontinue participation;
42-27 (3) administrative fees to be paid by participating
43-1 school districts to cover the trustee's administrative costs in
43-2 extending the program to active employees; and
43-3 (4) requirements to minimize the effects of adverse
43-4 selection on the program.
43-5 (c) The trustee shall provide optional group coverages for
43-6 active employees participating in the program. The coverages may
43-7 be combined with or similar to, but separate from, coverages
43-8 provided to retirees. The sum of premiums and administrative fees
43-9 received from participating school districts and active employees
43-10 must cover all expenses of school district employee participation
43-11 in the program.
43-12 (d) Participation by an active employee of a participating
43-13 school district is optional with the employee. A school district
43-14 may not offer a financial incentive to an active employee for
43-15 declining to participate in the program. An active employee is
43-16 entitled to obtain coverage for dependents in the same manner as a
43-17 participating retiree.
43-18 (e) Each participating school district shall contribute for
43-19 each district employee covered by the program an amount equal to
43-20 the cost for the employee only of the plans of group coverages
43-21 authorized by the trustee for active employees, except that the
43-22 school district's contribution may not exceed the amount
43-23 contributed for each state employee by the state under the Texas
43-24 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
43-25 Vernon's Texas Insurance Code).
43-26 (f) Each employee covered by the program shall pay that
43-27 portion of the cost of coverage selected by the employee that
44-1 exceeds the amount of employer contributions.
44-2 (g) The trustee shall deposit in the fund all fees collected
44-3 under Section 44(d), Chapter 812, Acts of the 73rd Legislature,
44-4 1993, except that portion used to conduct the survey required by
44-5 Section 44. The trustee shall continue to collect the fee through
44-6 the 1996-1997 school year, after which time the fee expires.
44-7 (h) The state may make contributions to the fund in addition
44-8 to those required by Section 16(b) of this article for the purpose
44-9 of assisting in the expansion of the program to active employees.
44-10 (i) The trustee shall begin enrollment in the program for
44-11 active employees to be effective beginning with the 1996-1997
44-12 school year.
44-13 SECTION 61. Subsection (e), Section 8, Article 3.50-4,
44-14 Insurance Code, is amended to read as follows:
44-15 (e) The trustee may contract for and make available to all
44-16 retirees, dependents, surviving spouses, and surviving dependent
44-17 children optional group health insurance benefit plans in addition
44-18 to the basic plans. The optional coverage may include a smaller
44-19 deductible, lower coinsurance, or additional categories of benefits
44-20 permitted under Subsection (b) of this section to provide
44-21 additional levels of coverages and benefits. The trustee may
44-22 utilize a portion of the funds received for the Texas Public School
44-23 Employees Group Insurance Program to offset some portion of costs
44-24 paid by the retiree for optional coverage if such utilization does
44-25 not reduce the period the program is projected to remain
44-26 financially solvent by more than one year in a biennium. Any
44-27 additional contributions for these optional plans shall be paid for
45-1 by the retiree, surviving spouse, or surviving dependent children.
45-2 SECTION 62. Section 9, Article 3.50-4, Insurance Code, is
45-3 amended to read as follows:
45-4 Sec. 9. Benefit Certificates. At such times, or upon such
45-5 events, as designated by the trustee, each insurance carrier shall
45-6 issue to each retiree, active employee, surviving spouse, or
45-7 surviving dependent child insured under this article a certificate
45-8 of insurance that:
45-9 (1) states the benefits to which the person <retiree,
45-10 surviving spouse, or surviving dependent child> is entitled;
45-11 (2) states to whom the benefits are payable;
45-12 (3) states to whom the claims must be submitted; and
45-13 (4) summarizes the provisions of the policy
45-14 principally affecting the person <retiree, surviving spouse, or
45-15 surviving dependent child>.
45-16 SECTION 63. Subsection (a), Section 10, Article 3.50-4,
45-17 Insurance Code, is amended to read as follows:
45-18 (a) Not later than the 180th day after the end of each state
45-19 fiscal year, the trustee shall make a written report to the State
45-20 Board of Insurance concerning the insurance coverages provided and
45-21 the benefits and services being received by persons <retirees,
45-22 surviving spouses, dependents, and surviving dependent children>
45-23 insured under this article.
45-24 SECTION 64. Sections 12 and 13, Article 3.50-4, Insurance
45-25 Code, are amended to read as follows:
45-26 Sec. 12. Death Claims: Beneficiaries. The amount of group
45-27 life insurance and group accidental death and dismemberment
46-1 insurance covering a retiree, active employee, surviving spouse,
46-2 dependent, or surviving dependent child at the date of death shall
46-3 be paid, on the establishment of a valid claim, only:
46-4 (1) to the beneficiary or beneficiaries designated by
46-5 the person <retiree, surviving spouse, dependent, or surviving
46-6 dependent child> in a signed and witnessed written document
46-7 received before death in the trustee's office; or
46-8 (2) if no beneficiary is properly designated or in
46-9 existence, to persons in accordance with the trustee's death
46-10 benefit provisions in Subsection (b), Section 824.103, Government
46-11 Code.
46-12 Sec. 13. Automatic Coverage. A retiree or active employee
46-13 who applies during an enrollment period may not be denied any of
46-14 the group insurance basic coverage provided under this article
46-15 unless the person <retiree> has been found under Section 18A of
46-16 this article to have defrauded or attempted to defraud the Texas
46-17 Public School <Retired> Employees Group Insurance Program.
46-18 SECTION 65. The heading of Section 15, Article 3.50-4,
46-19 Insurance Code, is amended to read as follows:
46-20 Sec. 15. <RETIRED> SCHOOL EMPLOYEES GROUP INSURANCE FUND.
46-21 SECTION 66. Subsection (a), Section 15, Article 3.50-4,
46-22 Insurance Code, is amended to read as follows:
46-23 (a) The <retired> school employees group insurance fund is
46-24 created. The State Treasurer is the custodian of the fund, and the
46-25 trustee shall administer the fund. All contributions from active
46-26 employees, retirees, and the state, contributions for optional
46-27 coverages, investment income, appropriations for implementation of
47-1 this program, and other money required or authorized to be paid
47-2 into the fund shall be paid into the fund. From the fund shall be
47-3 paid, without state fiscal year limitation, the appropriate
47-4 premiums to the carrier or carriers providing group coverage under
47-5 the plan or plans under this article, claims for benefits under the
47-6 group coverage, and the amounts expended by the trustee for
47-7 administration of the program. The appropriate portion of the
47-8 contributions to the fund to provide for incurred but unreported
47-9 claim reserves and contingency reserves, as determined by the
47-10 trustee, shall be retained in the fund.
47-11 SECTION 67. Article 3.50-4, Insurance Code, is amended by
47-12 adding Section 15A to read as follows:
47-13 Sec. 15A. FUNDING STUDY. (a) The legislative audit
47-14 committee shall select an independent firm with substantial
47-15 experience in evaluating group insurance plans to conduct a study
47-16 and make recommendations to the legislature and the trustee
47-17 concerning the funding of the plan provided by this article for the
47-18 benefit of and participation by active employees and retirees of
47-19 public school districts. In its study of funding alternatives, the
47-20 evaluating firm may consider and recommend procedures having an
47-21 effect on funding, including procedures to control costs and
47-22 minimize adverse selection.
47-23 (b) A report of the study under this section, including
47-24 recommendations resulting from the study, shall be filed not later
47-25 than December 1, 1996, with the legislative audit committee, the
47-26 lieutenant governor, the speaker of the house of representatives,
47-27 and the trustee.
48-1 (c) The trustee shall pay the costs of the study from the
48-2 fund.
48-3 (d) This section expires January 1, 1997.
48-4 SECTION 68. Subsections (a), (b), (d), and (f), Section 18A,
48-5 Article 3.50-4, Insurance Code, are amended to read as follows:
48-6 (a) After notice and hearing as provided by this section,
48-7 the trustee may expel from participation in the Texas Public School
48-8 <Retired> Employees Group Insurance Program any retiree, active
48-9 employee, surviving spouse, dependent, or surviving dependent child
48-10 who submits a fraudulent claim under, or has defrauded or attempted
48-11 to defraud, any health benefits plan offered under the program.
48-12 (b) On its motion or on the receipt of a complaint, the
48-13 trustee may call and hold a hearing to determine whether a person
48-14 <retiree, surviving spouse, dependent, or surviving dependent
48-15 child> has submitted a fraudulent claim under, or has defrauded or
48-16 attempted to defraud, any health benefits plan offered under the
48-17 Texas Public School <Retired> Employees Group Insurance Program.
48-18 (d) If the trustee, at the conclusion of the hearing, issues
48-19 a decision that finds that the accused <retiree, surviving spouse,
48-20 dependent, or surviving dependent child> submitted a fraudulent
48-21 claim or has defrauded or attempted to defraud any health benefits
48-22 plan offered under the Texas Public School <Retired> Employees
48-23 Group Insurance Program, the trustee shall expel the person
48-24 <retiree, surviving spouse, dependent, or surviving dependent
48-25 child> from participation in the program.
48-26 (f) A person <retiree, surviving spouse, dependent, or
48-27 surviving dependent child> expelled from the Texas Public School
49-1 <Retired> Employees Group Insurance Program may not be insured by
49-2 any health insurance plan offered by the program for a period, to
49-3 be determined by the trustee, of up to five years from the date the
49-4 expulsion takes effect.
49-5 SECTION 69. Subsection (a), Section 18B, Article 3.50-4,
49-6 Insurance Code, is amended to read as follows:
49-7 (a) Section 825.507, Government Code <35.507, Title 110B,
49-8 Revised Statutes>, concerning the confidentiality of information in
49-9 records that are in the custody of the Teacher Retirement System of
49-10 Texas, applies to information in records that are in the custody of
49-11 the retirement system regarding retirees, active employees,
49-12 annuitants, or beneficiaries under the Texas Public School
49-13 <Retired> Employees Group Insurance Program.
49-14 SECTION 70. Subsections (c), (d), and (i), Section 18C,
49-15 Article 3.50-4, Insurance Code, are amended to read as follows:
49-16 (c) The trustee, the Texas public school <retired> employees
49-17 group insurance program, the <retired> school employees group
49-18 insurance fund, and the board of trustees, officers, advisory
49-19 committee members, and employees of the trustee are not liable for
49-20 damages arising from the acts or omissions of health care providers
49-21 who are participating health care providers in the coordinated care
49-22 network established by the trustee. Those health care providers
49-23 are independent contractors and are responsible for their own acts
49-24 and omissions.
49-25 (d) The trustee, the Texas public school <retired> employees
49-26 group insurance program, the <retired> school employees group
49-27 insurance fund, or a member of a credentialing committee, or the
50-1 board of trustees, officers, advisory committee members, or
50-2 employees of the trustee are not liable for damages arising from
50-3 any act, statement, determination, recommendation made, or act
50-4 reported, without malice, in the course of the evaluation of the
50-5 qualifications of health care providers or of the patient care
50-6 rendered by those providers.
50-7 (i) A credentialing committee, a person participating in a
50-8 credentialing review, a health care provider, the trustee, the
50-9 Texas public school <retired> employees group insurance program, or
50-10 the board of trustees, officers, advisory committee members, or
50-11 employees of the trustee that are named as defendants in any civil
50-12 action filed as a result of participation in the credentialing
50-13 process may use otherwise confidential information obtained for
50-14 legitimate internal business and professional purposes, including
50-15 use in their own defense. Use of information under this subsection
50-16 does not constitute a waiver of the confidential and privileged
50-17 nature of the information.
50-18 SECTION 71. (a) Monthly payments of a death or retirement
50-19 benefit annuity by the Teacher Retirement System of Texas are
50-20 increased beginning with the payment due at the end of September,
50-21 1995.
50-22 (b) Except as provided by Subsection (c) of this section,
50-23 the amount of the monthly increase is computed by multiplying the
50-24 previous monthly benefit by a percentage determined in accordance
50-25 with the following table:
50-26 LATEST RETIREMENT DATE OR, IF APPLICABLE, DATE OF DEATH INCREASE
50-27 Before September 1, 1972 14%
51-1 On or after September 1, 1972, but before September 1, 1973 15%
51-2 On or after September 1, 1973, but before September 1, 1974 17%
51-3 On or after September 1, 1974, but before September 1, 1975 14%
51-4 On or after September 1, 1975, but before September 1, 1976 13%
51-5 On or after September 1, 1976, but before September 1, 1977 16%
51-6 On or after September 1, 1977, but before September 1, 1978 14%
51-7 On or after September 1, 1978, but before September 1, 1979 13%
51-8 On or after September 1, 1979, but before September 1, 1980 12%
51-9 On or after September 1, 1980, but before September 1, 1981 9%
51-10 On or after September 1, 1981, but before September 1, 1982 8%
51-11 On or after September 1, 1982, but before September 1, 1983 7%
51-12 On or after September 1, 1983, but before September 1, 1985 8%
51-13 On or after September 1, 1985, but before September 1, 1986 7%
51-14 On or after September 1, 1986, but before September 1, 1987 8%
51-15 On or after September 1, 1987, but before September 1, 1989 7%
51-16 On or after September 1, 1989, but before September 1, 1990 5%
51-17 On or after September 1, 1990, but before September 1, 1992 3%
51-18 On or after September 1, 1992, but before September 1, 1993 2%
51-19 (c) An annuitant is entitled to the greater of:
51-20 (1) a monthly benefit annuity computed as if:
51-21 (A) Subtitle C, Title 8, Government Code, as it
51-22 existed on January 1, 1995, had been in effect on the date of
51-23 retirement or on the date of death, as applicable; and
51-24 (B) all benefits increases, including that
51-25 provided by Subsection (b) of this section, were included that are
51-26 applicable to the annuity and were provided after the date the
51-27 annuity began; or
52-1 (2) if the annuity is based on a retirement or death
52-2 that occurred before September 1, 1993, the monthly benefit annuity
52-3 option selected at the time of retirement or death:
52-4 (A) recomputed on the basis of one-twelfth of
52-5 the minimum annual salary provided by the Education Code for a
52-6 classroom teacher or full-time librarian, multiplied by two percent
52-7 for each year of service credit in the retirement system;
52-8 (B) actuarially reduced, if applicable, for
52-9 early retirement; and
52-10 (C) excluding the increase provided by
52-11 Subsection (b) of this section.
52-12 (d) For the purpose of computing the annuity increase
52-13 provided by Subsection (c) of this section for a person whose
52-14 annuity is not currently based on the highest three-year average
52-15 compensation, the retirement system may use compensation amounts
52-16 based on current actuarial assumptions. An annuitant who so
52-17 requests in writing will receive the increase computed on the
52-18 greater of compensation based on current actuarial assumptions or
52-19 actual compensation computed under the law in effect on January 1,
52-20 1995.
52-21 SECTION 72. The following sections of the Government Code
52-22 are repealed:
52-23 (1) Section 825.106;
52-24 (2) Section 825.310; and
52-25 (3) Section 825.401.
52-26 SECTION 73. (a) Section 824.304, Government Code, as
52-27 amended by this Act, applies to payments of monthly annuities that
53-1 are made to persons who retired for disability before the effective
53-2 date of this section and that become due on or after that date, as
53-3 well as to annuities that first become payable on or after that
53-4 date.
53-5 (b) On September 1, 1995, the Teacher Retirement System of
53-6 Texas shall transfer all amounts in the benefit increase reserve
53-7 account to the retired reserve account.
53-8 SECTION 74. Notwithstanding Section 824.1011, Government
53-9 Code, as added by this Act, a retiree of the Teacher Retirement
53-10 System of Texas who is receiving a standard service retirement
53-11 annuity and who married after retirement but before the effective
53-12 date of that section is entitled to select an annuity and designate
53-13 a beneficiary as provided by that section before September 1, 1996.
53-14 SECTION 75. The terms of members of the Board of Trustees of
53-15 the Teacher Retirement System of Texas appointed under Section
53-16 825.003, Government Code, as it existed before the effective date
53-17 of this section, expire on the effective date of this section. The
53-18 changes in the qualifications and methods of appointment of other
53-19 members of the board of trustees made by this Act apply only to
53-20 members appointed for terms that begin on or after the effective
53-21 date of this section. In implementing the changes, the governor
53-22 shall appoint a member of the board of trustees from a list of
53-23 nominees submitted by the State Board of Education to a term
53-24 expiring August 31, 2001, another member of the board from a list
53-25 of nominees submitted by the State Board of Education to a term
53-26 expiring August 31, 1997, and another member of the board without
53-27 the necessity of consultation with the State Board of Education to
54-1 a term expiring August 31, 2001.
54-2 SECTION 76. The Teacher Retirement System of Texas shall
54-3 develop an initial space allocation plan as defined in rules of the
54-4 General Services Commission and submit the plan to the commission
54-5 for approval not later than March 1, 1996. The retirement system
54-6 shall implement an approved plan not later than September 1, 1996.
54-7 SECTION 77. This Act takes effect September 1, 1995, except
54-8 Section 75 and this section, which take effect August 31, 1995.
54-9 SECTION 78. The importance of this legislation and the
54-10 crowded condition of the calendars in both houses create an
54-11 emergency and an imperative public necessity that the
54-12 constitutional rule requiring bills to be read on three several
54-13 days in each house be suspended, and this rule is hereby suspended.