By: Armbrister S.B. No. 1231
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the powers and duties of and systems and programs under
1-2 the Employees Retirement System of Texas.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 805.002, Government Code, is amended by
1-5 amending Subsections (a), (b), and (d) and by adding Subsections
1-6 (g) and (h) to read as follows:
1-7 (a) Except as provided by Subsection (h), a <A> member of
1-8 both the employees retirement system and the teacher retirement
1-9 system who applies for service or disability retirement from either
1-10 system may transfer to that system service credit established in
1-11 the other system if the member has at least three years of service
1-12 credit in the system from which the member is retiring. If a
1-13 person whose membership was transferred from the teacher retirement
1-14 system to the employees retirement system pursuant to Section
1-15 43(a), Chapter 812, Acts of the 73rd Legislature, 1993, ceases to
1-16 hold any position included in the membership of the employees
1-17 retirement system before the earlier of the date the person retires
1-18 or dies, the person's service credit accrued in the teacher
1-19 retirement system before the date the membership was transferred
1-20 remains credited in that system, unless the person has withdrawn
1-21 contributions made for the service.
1-22 (b) Except as provided by Subsection (h), a <A> member of
1-23 both the employees retirement system and the teacher retirement
1-24 system who has less than three years of service credit in the
2-1 system in which the person most recently received service credit
2-2 and at least three years of service credit in the other system may,
2-3 at the time the person applies for service or disability retirement
2-4 <from the other system>, transfer service credit to the other
2-5 <that> system from the system in which the person most recently
2-6 received service credit.
2-7 (d) Except as provided by Subsections (e) and (f), the
2-8 designated beneficiary of a member of the employees retirement
2-9 system or the teacher retirement system who dies while holding a
2-10 position included in the membership of the system may make a
2-11 transfer under Subsection (a) and a reinstatement or purchase under
2-12 Subsection (c) if the deceased member had at least three years of
2-13 service credit in the system in which the member was performing
2-14 service at the time of death. The designated beneficiary may make
2-15 a transfer under Subsection (b) if the deceased member had less
2-16 than three years of service credit in the system in which the
2-17 member was performing service at the time of death. If a member is
2-18 not survived by a designated beneficiary, an alternate beneficiary,
2-19 or a beneficiary provided by law or has failed to designate a
2-20 beneficiary after becoming a member or resuming membership, the
2-21 personal representative of the member's estate has the same right
2-22 under this subsection as a designated beneficiary. A transfer of
2-23 service by the beneficiary or personal representative of a deceased
2-24 member's estate is not permitted unless the transfer will result in
2-25 the payment of a death benefit annuity.
2-26 (g) To be eligible to make a transfer pursuant to Subsection
2-27 (d), a person must be the same beneficiary under both retirement
3-1 systems.
3-2 (h) A member applying for occupational disability retirement
3-3 from the employees retirement system may transfer service credit
3-4 from the teacher retirement system only if the member was
3-5 contributing to the employees retirement system at the time the
3-6 disabling condition occurred.
3-7 SECTION 2. Section 805.003, Government Code, is amended to
3-8 read as follows:
3-9 Sec. 805.003. Payments to Reinstate or Purchase Service
3-10 Credit. The cost of reinstating or purchasing service credit under
3-11 Section 805.002 is determined according to the statutes that govern
3-12 the reinstatement or purchase of the type of service credit in the
3-13 system in which it is to be reinstated or purchased. All payments
3-14 for service credit reinstated or purchased under Section 805.002
3-15 must be made before retirement or the first payment of a death
3-16 benefit annuity, as applicable, or before a later date if allowed
3-17 for members of the retirement system in which the credit is to be
3-18 reinstated or purchased.
3-19 SECTION 3. Subsections (a) and (b), Section 805.007,
3-20 Government Code, are amended to read as follows:
3-21 (a) A person who transfers service credit under this chapter
3-22 forfeits all rights to benefits payable by the system from which it
3-23 is transferred and is not an annuitant of that system for any
3-24 purpose, including the payment of postretirement increases to
3-25 annuitants of that system. This subsection does not preclude a
3-26 person from receiving benefits as a beneficiary of an account not
3-27 related to the transferred service credit.
4-1 (b) Service credit transferred under this chapter is
4-2 considered as if it had been granted for service performed under
4-3 the system to which it has been transferred and is used in
4-4 satisfying minimum service requirements for retirement and in
4-5 determining the amount of benefits that are based on the amount of
4-6 a person's service credit:
4-7 (1) except that a person's average salary for the
4-8 purpose of computing an annuity may be determined only from service
4-9 credit that was originally established in one system and that
4-10 results in the higher average salary; <and>
4-11 (2) except as provided by Section 805.006; and
4-12 (3) except service credit transferred by a member
4-13 applying for occupational disability retirement.
4-14 SECTION 4. Section 805.008, Government Code, is amended to
4-15 read as follows:
4-16 Sec. 805.008. RESPONSIBILITY FOR BENEFIT PAYMENTS.
4-17 (a) Except as provided by Subsection (c), the <The> system from
4-18 which a person's service credit is transferred under this chapter
4-19 shall transfer to the other system, at the time the annuity based
4-20 on the service credit becomes payable, an amount equal to the
4-21 portion of the actuarial value of the annuity that represents the
4-22 percentage of the total amount of the person's service credited in
4-23 both systems that was credited in the system from which the credit
4-24 is being transferred.
4-25 (b) Except as provided by Subsection (c), the <The> systems
4-26 jointly by rule shall adopt actuarial tables and investment
4-27 assumptions to be used in computing actuarial values under this
5-1 section.
5-2 (c) As an alternative to Subsections (a) and (b), the
5-3 systems by rule may require the system from which service credit is
5-4 transferred to pay monthly an amount equal to the portion of the
5-5 actual value of the monthly payment of the annuity that represents
5-6 the percentage of the total amount of service credit that is
5-7 transferred.
5-8 (d) For the purpose of computing an amount to be transferred
5-9 under this section, service credit in either system must be
5-10 considered as if it were credited under rules of the teacher
5-11 retirement system determining the amount of service creditable.
5-12 (e) <(d)> An amount transferred under this section is
5-13 payable from amounts credited to the person's individual account
5-14 and amounts credited to the account in which the system places
5-15 state contributions. Except as provided by Subsection (g), an <An>
5-16 amount received under this section shall be deposited in the
5-17 account from which the system receiving the amount pays annuities.
5-18 (f) <(e)> The system to which a transfer is made under this
5-19 section is responsible for paying the annuity for which the
5-20 transfer was made, including the entire amount of any increase in
5-21 the annuity granted after the transfer.
5-22 (g) At the time of the death of a person whose membership
5-23 was transferred from the teacher retirement system to the employees
5-24 retirement system pursuant to Section 43(a), Chapter 812, Acts of
5-25 the 73rd Legislature, 1993, the teacher retirement system shall
5-26 transfer to the employees retirement system the person's service
5-27 credit in the teacher retirement system and, if employment with the
6-1 transferring agency was continuous from the date of transfer to the
6-2 date of death:
6-3 (1) an amount determined under Subsections (a) and (b)
6-4 or under Subsection (c), if an annuity is paid under Chapter 814;
6-5 or
6-6 (2) the amount of money in the member savings account
6-7 plus an amount equal to five percent of the person's account
6-8 balance for each full year of service credited in the teacher
6-9 retirement system, if a death benefit other than an annuity is paid
6-10 under Chapter 814.
6-11 SECTION 5. Subsection (c), Section 805.002, Government Code,
6-12 is amended to read as follows:
6-13 (c) Except as provided by Subsections (e) and (f), a member
6-14 of the employees retirement system or the teacher retirement system
6-15 who formerly was a member of the other system may reinstate or
6-16 purchase service credit in the other system for the purpose of
6-17 making a transfer under Subsection (a) if the member has at least
6-18 three years of service credit in the system in which the person
6-19 currently is a member. Except as provided by Subsections (e) and
6-20 (f), a member of the employees retirement system or the teacher
6-21 retirement system who formerly was a member of the other system,
6-22 who before September 1, 1993, transferred at least three years of
6-23 service credit to the system in which the person currently is a
6-24 member, and who has at least three years of service credit other
6-25 than the transferred credit in the system in which the person
6-26 currently is a member may reinstate or purchase service credit in
6-27 the other system for the purpose of making a transfer of all
7-1 service credit to that other system.
7-2 SECTION 6. Subdivision (8), Section 811.001, Government
7-3 Code, is amended to read as follows:
7-4 (8) "Custodial officer" means a member of the
7-5 retirement system who is employed by the institutional division or
7-6 the state jail division of the Texas Department of Criminal Justice
7-7 and is certified by the department and accepted by the retirement
7-8 system as eligible to receive service credit as a custodial officer
7-9 <as having a normal job assignment that requires frequent or
7-10 infrequent regularly planned contact with, and in close proximity
7-11 to, inmates of the institutional division or inmates or defendants
7-12 confined in the state jail division without the protection of bars,
7-13 doors, security screens, or similar devices and includes
7-14 assignments normally involving supervision or the potential for
7-15 supervision of inmates in inmate housing areas, educational or
7-16 recreational facilities, industrial shops, kitchens, laundries,
7-17 medical areas, agricultural shops or fields, or in other areas on
7-18 or away from property of the institutional division or the state
7-19 jail division>.
7-20 SECTION 7. Section 813.104, Government Code, is amended by
7-21 amending Subsection (d), by relettering Subsection (e) as
7-22 Subsection (g), and by adding new Subsections (e) and (f) to read
7-23 as follows:
7-24 (d) Except as provided by Subsection (e), payments
7-25 <Payments> may not be made under this section:
7-26 (1) to establish or reestablish service credit of a
7-27 person who has retired or died; or
8-1 (2) to establish current service under Section
8-2 813.201.
8-3 (e) The designated beneficiary of a deceased member or, if
8-4 none exists, the personal representative of the decedent's estate
8-5 may establish or reestablish service for which the member was
8-6 eligible at the time of death if the establishment of the service
8-7 would result in the payment of a death benefit annuity or an
8-8 increase in the amount of a death benefit annuity.
8-9 (f) The payment for the establishment or reestablishment of
8-10 service under Subsection (e) must be made in a lump sum and
8-11 completed before the first payment of a death benefit annuity, but
8-12 not later than the 60th day after the date the retirement system
8-13 receives notice of the death.
8-14 (g) <(e)> The retirement system may adopt rules to
8-15 administer this section.
8-16 SECTION 8. Subchapter D, Chapter 813, Government Code, is
8-17 amended by adding Section 813.305 to read as follows:
8-18 Sec. 813.305. MILITARY SERVICE CREDIT GOVERNED BY UNIFORMED
8-19 SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT. The retirement
8-20 system may adopt rules to comply with the Uniformed Services
8-21 Employment and Reemployment Rights Act (38 U.S.C. Section 4301 et
8-22 seq.) and other federal laws affecting the crediting of military
8-23 service.
8-24 SECTION 9. Section 813.506, Government Code, is amended to
8-25 read as follows:
8-26 Sec. 813.506. Custodial Officer Service. (a) The Texas
8-27 Department of Criminal Justice <Corrections> by rule shall adopt
9-1 standards for determining eligibility for service credit as a
9-2 custodial officer, based on the need to encourage early retirement
9-3 of persons whose duties are hazardous and require them to have
9-4 routine contact with inmates of or defendants confined in the state
9-5 jail division of the Texas Department of Criminal Justice
9-6 <Corrections> on a regular basis.
9-7 (b) To be creditable as custodial officer service, service
9-8 performed must meet the requirements of the rules adopted under
9-9 Subsection (a) and must <may> be performed by persons <in one of
9-10 the following job categories:>
9-11 <(1) all persons> classified as Correctional Officer I
9-12 through warden, including training officers and special operations
9-13 reaction team officers<;>
9-14 <(2) all other employees assigned to work on a unit
9-15 and whose jobs require routine contact with inmates, including but
9-16 not limited to farm managers, livestock supervisors, maintenance
9-17 foremen, shop foremen, medical assistants, food service
9-18 supervisors, stewards, education consultants, commodity
9-19 specialists, and correctional counselors;>
9-20 <(3) employees assigned to administrative offices
9-21 whose jobs require routine contact with inmates, including but not
9-22 limited to investigators, compliance monitors, accountants
9-23 routinely required to audit unit operations, sociologists,
9-24 interviewers, classification officers, and supervising counselors;
9-25 and>
9-26 <(4) administrative positions whose jobs require
9-27 response to emergency situations involving inmates, including but
10-1 except as specified not limited to the director, deputy directors,
10-2 assistant directors, and not more than 25 administrative duty
10-3 officers>. An employee of the department on September 1, 1995, who
10-4 before that date was certified as eligible to receive service
10-5 credit as a custodial officer continues to accrue service credit as
10-6 a custodial officer for service performed on or after that date for
10-7 the department in a position for which employees were eligible for
10-8 certification under this section before September 1, 1995.
10-9 (c) The institutional division of the Texas Department of
10-10 Criminal Justice shall determine a person's eligibility to receive
10-11 credit as a custodial officer. A determination of the division may
10-12 not be appealed by an employee but is subject to change by the
10-13 retirement system.
10-14 (d) <(e)> As part of the audit of the institutional division
10-15 of the Texas Department of Criminal Justice by the state auditor in
10-16 accordance with Chapter 321, the state auditor <State Auditor> may
10-17 verify the accuracy of reports submitted to the retirement system
10-18 under this section. The state auditor shall review biennially the
10-19 standards adopted by the department under Subsection (a).
10-20 SECTION 10. Section 813.509, Government Code, is amended to
10-21 read as follows:
10-22 Sec. 813.509. Credit for Accumulated Sick Leave. (a) A
10-23 member who holds a position included in the employee class of
10-24 membership during the month that includes the effective date of the
10-25 member's retirement and who retires based on service or a
10-26 disability is entitled to service credit in the retirement system
10-27 for the member's sick leave that has accumulated and is unused on
11-1 the last day of employment. Sick leave is creditable in the
11-2 retirement system at the rate of one month of service credit for
11-3 each 20 days, or 160 hours, of accumulated sick leave. An
11-4 increment of less than 20 days is not creditable.
11-5 (b) A member who holds a position included in the employee
11-6 class may use sick leave creditable under this section to satisfy
11-7 service requirements for retirement under Section 814.104 or
11-8 814.107 if the sick leave attributed to the eligibility
11-9 requirements remains otherwise unused on the last day of
11-10 employment.
11-11 (c) Except as provided by Subsection (d), the <The>
11-12 disbursing officer of each department or agency shall, before the
11-13 11th day after the effective date of retirement of one or more
11-14 employees of the department or agency <of each month>, certify to
11-15 the retirement system:
11-16 (1) the name of each person whose retirement from the
11-17 department or agency, and from state service, became effective
11-18 during the preceding month; and
11-19 (2) the amount of the person's accumulated sick leave
11-20 on the last day of employment.
11-21 (d) The disbursing officer of a department or agency that
11-22 employs a member who applies for retirement under Subsection (b)
11-23 shall, not more than 90 or less than 30 days before the effective
11-24 date of the member's retirement, certify to the retirement system
11-25 the amount of the member's accumulated and unused sick leave. The
11-26 officer shall immediately notify the retirement system if the
11-27 member uses sick leave after the date of certification.
12-1 (e) <(c)> On receipt of a certification under Subsection (c)
12-2 or (d) <(b)>, the retirement system shall grant any credit to which
12-3 a retiring member or retiree who is a subject of the certification
12-4 is entitled. An increase in the computation of an annuity because
12-5 of credit provided by this section after a certification under
12-6 Subsection (c) begins with the first payment that becomes due after
12-7 certification.
12-8 (f) The retirement system shall cancel the retirement of a
12-9 person who used sick leave creditable under this section to qualify
12-10 for service retirement if the sick leave is otherwise used by the
12-11 person before the effective date of retirement.
12-12 (g) In this section, "sick leave" does not include credit
12-13 granted under an agency sick-leave pool or under the Family and
12-14 Medical Leave Act of 1993 (26 U.S.C. Section 2601 et seq.).
12-15 SECTION 11. Subchapter F, Chapter 813, Government Code, is
12-16 amended by adding Section 813.510 to read as follows:
12-17 Sec. 813.510. CREDIT FOR CERTAIN AGRICULTURAL SERVICE.
12-18 (a) An eligible member may, before January 1, 1996, elect to
12-19 establish service credit in the retirement system for service
12-20 performed for the Department of Agriculture as an employee of the
12-21 Federal State Inspection Service of Texas.
12-22 (b) A member eligible to establish credit under this section
12-23 is one who became an employee of or resumed employment with the
12-24 Department of Agriculture in May, 1992, on the creation of the
12-25 Texas Cooperative Inspection Program.
12-26 (c) A member may establish credit under this section by
12-27 depositing with the retirement system:
13-1 (1) a contribution based on the member's monthly
13-2 compensation during the period of service for the Department of
13-3 Agriculture as an employee of the Federal State Inspection Service
13-4 of Texas and computed for the number of months for which credit is
13-5 sought at the combined contribution rates required during the
13-6 period for the state and employee members of the system for new
13-7 service;
13-8 (2) interest computed on the basis of the state fiscal
13-9 year at an annual rate of 10 percent from the date the service was
13-10 performed to the date of deposit; and
13-11 (3) any membership fees required of members of the
13-12 system during the period of the service.
13-13 (d) An election under this section must be filed with the
13-14 retirement system on a form provided by the system. Credit may be
13-15 established under this section by a lump-sum payment or by payments
13-16 authorized by Section 813.104 or 813.105.
13-17 (e) The retirement system shall deposit the compensation
13-18 contribution in the member's individual account in the employees
13-19 saving account, interest in the state accumulation account, and
13-20 membership fees in the expense account.
13-21 (f) The retirement system shall determine the amount to be
13-22 deposited in each case and may not grant service credit to a member
13-23 under this section until the member provides proof of eligibility
13-24 for the credit that is satisfactory to the retirement system.
13-25 SECTION 12. Section 814.003, Government Code, is amended by
13-26 adding Subsection (e) to read as follows:
13-27 (e) If a person elects to receive a standard disability
14-1 retirement annuity and dies during the first calendar month that
14-2 begins after the effective date of the person's retirement, the
14-3 person is considered to have been a contributing member at the time
14-4 of death.
14-5 SECTION 13. Section 814.004, Government Code, is amended to
14-6 read as follows:
14-7 Sec. 814.004. When Benefits are Payable. A monthly annuity
14-8 payable to a retiree or beneficiary is payable to that person
14-9 through the month in which the person dies. A continuation of an
14-10 optional annuity or the payment of a death or survivor benefit
14-11 annuity begins with payment for the month following the month in
14-12 which the death occurs. <An annuity provided by this chapter
14-13 accrues for the period beginning on the first day of the month that
14-14 begins after the month in which a person dies or retires, as
14-15 applicable, and ending, except as otherwise provided by this
14-16 chapter, on the day the person who receives the annuity dies.>
14-17 SECTION 14. Subchapter A, Chapter 814, Government Code, is
14-18 amended by adding Sections 814.006 and 814.007 to read as follows:
14-19 Sec. 814.006. SIMULTANEOUS DEATH OF MEMBER AND BENEFICIARY.
14-20 When a member or annuitant and the beneficiary of the member or
14-21 annuitant have died within a period of less than 120 hours, the
14-22 member or annuitant is considered to have survived the beneficiary
14-23 for the purpose of determining the rights to amounts payable under
14-24 this subtitle on the death of the member or annuitant.
14-25 Sec. 814.007. BENEFICIARY CAUSING DEATH OF MEMBER OR
14-26 ANNUITANT. (a) A benefit payable on the death of a member or
14-27 annuitant may not be paid to a person convicted of causing that
15-1 death but instead is payable as if the convicted person had
15-2 predeceased the decedent.
15-3 (b) A person who becomes eligible under this section to
15-4 select death or survivor benefits may select benefits as if the
15-5 person were the designated beneficiary.
15-6 (c) The retirement system shall reduce any annuity computed
15-7 in part on the age of the convicted person to a lump sum equal to
15-8 the present value of the remainder of the annuity. The reduced
15-9 amount is payable to a person entitled as provided by this section
15-10 to receive the benefit.
15-11 (d) The retirement system is not required to change the
15-12 recipient of benefits under this section unless it receives actual
15-13 notice of the conviction of a beneficiary. However, the retirement
15-14 system may delay payment of a benefit payable on the death of a
15-15 member or annuitant pending the results of a criminal investigation
15-16 and of legal proceedings relating to the cause of death.
15-17 (e) For the purposes of this section, a person has been
15-18 convicted of causing the death of a member or annuitant if the
15-19 person:
15-20 (1) pleads guilty or nolo contendere to, or is found
15-21 guilty by a court of, causing the death of the member or annuitant,
15-22 regardless of whether sentence is imposed or probated; and
15-23 (2) has no appeal of the conviction pending and the
15-24 time provided for appeal has expired.
15-25 SECTION 15. Subsections (b) and (f), Section 814.107,
15-26 Government Code, are amended to read as follows:
15-27 (b) The standard service retirement annuity payable for at
16-1 least 20 years of service credit as a law enforcement or custodial
16-2 officer is an amount computed on the basis of the member's average
16-3 monthly compensation for that service for the 36 highest months of
16-4 compensation, times the sum of the percentage factor used in the
16-5 computation of a standard service retirement annuity under Section
16-6 814.105 plus .5 percent. <a percentage derived from the following
16-7 table:>
16-8 <Years of Law Enforcement or Percentage of Average>
16-9 <Custodial Officer Service Credit Monthly Compensation>
16-10 <at least 20 but less than 21 50 percent>
16-11 <at least 21 but less than 22 52 percent>
16-12 <at least 22 but less than 23 54 percent>
16-13 <at least 23 but less than 24 56 percent>
16-14 <at least 24 but less than 25 58 percent>
16-15 <at least 25 but less than 26 60 percent>
16-16 <at least 26 but less than 27 62 percent>
16-17 <at least 27 but less than 28 64 percent>
16-18 <at least 28 but less than 29 66 percent>
16-19 <at least 29 but less than 30 68 percent>
16-20 <at least 30 but less than 31 70 percent>
16-21 <at least 31 but less than 32 71 percent>
16-22 <at least 32 but less than 33 72 percent>
16-23 <at least 33 but less than 34 73 percent>
16-24 <at least 34 but less than 35 74 percent>
16-25 <at least 35 but less than 36 75 percent>
16-26 <at least 36 but less than 37 76 percent>
16-27 <at least 37 but less than 38 77 percent>
17-1 <at least 38 but less than 39 78 percent>
17-2 <at least 39 but less than 40 79 percent>
17-3 <40 or more 80 percent>
17-4 (f) The standard combined service retirement annuity payable
17-5 for at least 20 years of service credit as a law enforcement or
17-6 custodial officer may not exceed 100 <80> percent of the higher of
17-7 the average compensation computed under Section 814.105 or the
17-8 average compensation computed under Subsection (b).
17-9 SECTION 16. Section 814.108, Government Code, is amended by
17-10 adding Subsection (g) to read as follows:
17-11 (g) Except as provided by Section 814.1081, a person who
17-12 selected an optional service retirement annuity approved by the
17-13 board of trustees or an optional service retirement annuity
17-14 described by Subsection (c)(1) or (c)(2) may not change or revoke a
17-15 beneficiary designation after the person's effective date of
17-16 retirement.
17-17 SECTION 17. Subsections (b), (d), and (e), Section 814.207,
17-18 Government Code, are amended to read as follows:
17-19 (b) Except as provided by Subsection (c), an occupational
17-20 disability retirement annuity under this section is an amount, but
17-21 not more than 100 <80> percent, computed on the basis of the
17-22 officer's monthly compensation at the time of the disabling injury
17-23 or disease, times a percentage derived by application of <the table
17-24 provided by> Section 814.107(b).
17-25 (d) The portions <portion> of the annuity under this section
17-26 payable from the law enforcement and custodial officer supplemental
17-27 retirement fund are <is> the amount remaining after deduction of
18-1 any amount payable under Section 814.206, except the portion of an
18-2 amount that exceeds the minimum payments provided by Section
18-3 814.206(b) and that is made for service other than as a law
18-4 enforcement or custodial officer and any amount by which an annuity
18-5 is increased under Subsection (e).
18-6 (e) If a retiring member or retiree under this section
18-7 presents evidence satisfactory to the retirement system that the
18-8 person's condition makes the person incapable of gainful occupation
18-9 and is considered a total disability under federal social security
18-10 law, the retirement system shall increase the person's occupational
18-11 disability retirement annuity to 100 percent of the officer's
18-12 monthly compensation at the time of the disabling injury or disease
18-13 <Section 815.405 is held to be invalid by a court of competent
18-14 jurisdiction and the decision becomes final, an annuity may not be
18-15 paid under this section>.
18-16 SECTION 18. Section 814.301, Government Code, is amended by
18-17 adding Subsection (e) to read as follows:
18-18 (e) A beneficiary designation that names a former spouse as
18-19 beneficiary is invalid for purposes of this section unless the
18-20 designation is made after the date of the divorce.
18-21 SECTION 19. Subsection (a), Section 814.302, Government
18-22 Code, is amended to read as follows:
18-23 (a) If a member eligible to select a death benefit plan
18-24 under Section 814.301 dies without having made a selection, or if a
18-25 selection cannot be made effective, the member's designated
18-26 beneficiary <surviving spouse> may select a plan in the same manner
18-27 as if the member had made the selection. If there is no designated
19-1 beneficiary <surviving spouse>, the personal representative of the
19-2 decedent's estate may make the selection for the benefit of the
19-3 decedent's heirs or devisees. In lieu of selecting a death benefit
19-4 plan, the designated beneficiary <surviving spouse> or, if there is
19-5 none, the personal representative of the decedent's estate, may
19-6 elect to receive a refund of contributions and any applicable
19-7 payment under Section 814.401.
19-8 SECTION 20. Subsections (b) and (d), Section 814.401,
19-9 Government Code, are amended to read as follows:
19-10 (b) The benefit provided by this section is payable to the
19-11 beneficiary designated by the member under Section 814.403(b) <a
19-12 person designated by the member in a signed document filed with the
19-13 retirement system>. If a member does not designate a beneficiary
19-14 or if the beneficiary designation cannot be made effective <does
19-15 not survive the member>, the benefit is payable to the member's
19-16 estate.
19-17 (d) A death benefit may not be paid under this section if,
19-18 at the time of death, a death benefit annuity <under Section
19-19 814.301> became effective.
19-20 SECTION 21. Section 814.403, Government Code, is amended to
19-21 read as follows:
19-22 Sec. 814.403. Return of Contributions. (a) Except as
19-23 provided by Subsection (d) <(c)>, if a member dies before
19-24 retirement, the amount in the member's individual account in the
19-25 employees saving account at the time of death is payable as a
19-26 lump-sum death benefit.
19-27 (b) Except as provided by Subsection (c), the <The> benefit
20-1 provided by this section is payable to a person designated by the
20-2 member in a signed and witnessed document filed with the retirement
20-3 system before the member's death. A designation, change, or
20-4 revocation of a beneficiary in a will or other document not filed
20-5 with the retirement system is not effective. If a member does not
20-6 designate a beneficiary or if the beneficiary designation cannot be
20-7 made effective <does not survive the member>, the benefit is
20-8 payable to the member's estate.
20-9 (c) A beneficiary designation that names a former spouse as
20-10 beneficiary is invalid for purposes of this section unless the
20-11 designation is made after the date of the divorce.
20-12 (d) A death benefit may not be paid under this section if,
20-13 at the time of death, a death benefit annuity <under Section
20-14 814.301> became effective.
20-15 SECTION 22. Section 814.501, Government Code, is amended by
20-16 amending Subsection (b) and by adding Subsection (c) to read as
20-17 follows:
20-18 (b) The benefit provided by this section is payable to the
20-19 beneficiary designated by the member under Section 814.403(b) <a
20-20 person designated by the retiree in a signed and witnessed document
20-21 filed with the retirement system>. If a retiree does not designate
20-22 a beneficiary or if the beneficiary designation cannot be made
20-23 effective <does not survive the retiree>, the benefit is payable to
20-24 the retiree's estate.
20-25 (c) A beneficiary designation that names a former spouse as
20-26 beneficiary is invalid for purposes of this section unless the
20-27 designation is made after the date of the divorce.
21-1 SECTION 23. Subsections (a) and (d), Section 814.603,
21-2 Government Code, are amended to read as follows:
21-3 (a) The retirement system shall make a supplemental payment
21-4 as provided by Subsection (d) to persons whose annuities are
21-5 described by Section 814.107, 814.207, 814.305, or 814.601(a) and
21-6 that are based on service retirements, disability retirements, or
21-7 deaths. This supplemental payment is in addition to the regular
21-8 monthly annuity payment. Each person who receives an annuity
21-9 described by this subsection is entitled to receive one payment
21-10 equal to 10 percent of one month's annuity payment for each fiscal
21-11 year that preceded or includes the effective date of the
21-12 requirement or authorization under Subsection (d) and <before the
21-13 fiscal year beginning September 1, 1993,> in which the annuity has
21-14 been paid. A supplemental payment may not exceed 350 percent of a
21-15 monthly annuity. <Only a person whose annuity began in the fiscal
21-16 year ending August 31, 1993, or earlier is eligible for the
21-17 supplemental payment.> Supplemental payments under this subsection
21-18 must comply with Section 811.006.
21-19 (d) The retirement system shall make a supplemental payment
21-20 under this section in the fiscal year ending August 31, 1997. The
21-21 board of trustees may by rule authorize similar supplemental
21-22 payments in succeeding <the> fiscal years <year ending August 31,
21-23 1995>, if the payments are in compliance with Section 811.006.
21-24 SECTION 24. Section 815.006, Government Code, is amended to
21-25 read as follows:
21-26 Sec. 815.006. Compensation; Expenses. (a) Notwithstanding
21-27 Subchapter C of Chapter 659, trustees <Trustees> who are
22-1 contributing members of the retirement system serve without
22-2 compensation but are entitled to reimbursement for all actual and
22-3 necessary expenses that they incur in the performance of official
22-4 board duties.
22-5 (b) Notwithstanding Subchapter C of Chapter 659, subject
22-6 <Subject> to the approval of the board of trustees, trustees who
22-7 are not contributing members of the retirement system may receive:
22-8 (1) compensation; and
22-9 (2) reimbursement for all actual and necessary
22-10 expenses that they incur in the performance of official board
22-11 duties.
22-12 SECTION 25. The heading of Section 815.110, Government Code,
22-13 is amended to read as follows:
22-14 Sec. 815.110. AUDITS <MANAGEMENT AUDIT>.
22-15 SECTION 26. Section 815.110, Government Code, is amended by
22-16 adding Subsection (e) to read as follows:
22-17 (e) The board of trustees annually shall select an
22-18 independent auditor to perform a financial audit of the retirement
22-19 system. The selection shall be made under a competitive bidding
22-20 process in which the state auditor is eligible to bid.
22-21 SECTION 27. Subsection (b), Section 815.301, Government
22-22 Code, is amended to read as follows:
22-23 (b) The board of trustees may delegate its authority under
22-24 Subsection (a) to the executive director. The board of trustees or
22-25 the executive director may, under the standard of care provided by
22-26 Section 815.307, invest and reinvest any of the retirement system's
22-27 assets and may commingle assets of the trust fund and the law
23-1 enforcement and custodial officer supplemental retirement fund with
23-2 the assets of the Judicial Retirement System of Texas Plan Two for
23-3 investment purposes, as long as proportionate ownership records are
23-4 maintained and credited. Investments may include home office
23-5 facilities, including land, equipment, and office building, used in
23-6 administering the retirement system.
23-7 SECTION 28. Subchapter F, Chapter 815, Government Code, is
23-8 amended by adding Section 815.511 to read as follows:
23-9 Sec. 815.511. APPEAL OF ADMINISTRATIVE DECISION. A person
23-10 aggrieved by a decision of any retirement system administered by
23-11 the board of trustees denying or limiting membership, service
23-12 credit, or eligibility for or the amount of benefits payable by a
23-13 system may appeal the decision to the board. The appeal is a
23-14 contested case under the administrative procedure law, Chapter
23-15 2001. On judicial appeal the standard of review is by substantial
23-16 evidence.
23-17 SECTION 29. (a) Except as provided by Subsections (b) and
23-18 (c) of this section, annuities that are described by Section
23-19 814.107, 814.207, or 814.305, or Subsection (a), Section 814.601,
23-20 Government Code, and are based on service retirements, disability
23-21 retirements, or deaths that occurred before September 1, 1995, are
23-22 increased by 12.5 percent.
23-23 (b) Annuities are increased under Subsection (a) of this
23-24 section only if the actuary for the Employees Retirement System of
23-25 Texas certifies, based on an August 31, 1995, actuarial valuation,
23-26 that all annuity increases and annuity recomputations required or
23-27 authorized by this Act, together with all other actuarial
24-1 liabilities resulting from legislation that is enacted by the 74th
24-2 Legislature in 1995 before August 31 and that has or will become
24-3 law, will not cause the time required to amortize the unfunded
24-4 actuarial liabilities of the retirement system to be increased to a
24-5 period that exceeds 31 years. For purposes of this subsection, a
24-6 bill will become law if it has not taken effect but either has been
24-7 signed by the governor or the time provided for gubernatorial
24-8 action under Section 14, Article IV, Texas Constitution, has
24-9 expired without the governor having vetoed the bill. The increase
24-10 in annuities under Subsection (a) of this section is payable
24-11 beginning with the first monthly payments of the annuities that
24-12 become due after the month in which the actuarial certification
24-13 required by this subsection is made to the board of trustees of the
24-14 retirement system.
24-15 (c) Retirements that occurred under the provisions of
24-16 Section 814.1051 or 814.1071, Government Code, are not increased by
24-17 this section.
24-18 (d) The board of trustees of the retirement system shall pay
24-19 the increased annuities provided by this section from the
24-20 retirement annuity reserve account of the retirement system and may
24-21 transfer to that account from the state accumulation account of the
24-22 retirement system any portion of the amount that exceeds the amount
24-23 in the retirement reserve account available to finance the
24-24 increases in benefits, and that is actuarially determined to be
24-25 necessary to finance the increases, for the duration of the
24-26 annuities to which the increases apply.
24-27 SECTION 30. A member of the Employees Retirement System of
25-1 Texas who is described by Subsection (e), Section 812.203,
25-2 Government Code, and who is eligible to select a death benefit plan
25-3 under Section 814.301, Government Code, may select a plan and
25-4 designate a beneficiary, who also will be the beneficiary of any
25-5 optional annuity on the member's retirement, without regard to any
25-6 rule adopted under Section 804.051, Government Code. This section
25-7 expires January 1, 1996.
25-8 SECTION 31. (a) A member of the Employees Retirement System
25-9 of Texas who is an appointed officer of the 74th House of
25-10 Representatives of the State of Texas, as determined by the house
25-11 journal, who has at least 28 years of service credit in the
25-12 retirement system, and who has attained the age of 50 is eligible
25-13 to make an election under this section.
25-14 (b) A member of the Employees Retirement System of Texas who
25-15 has at least 18 years of service creditable in the retirement
25-16 system, who has served as the executive head of a legislative
25-17 service agency, and who has attained the age of 50 is eligible to
25-18 make an election under this section.
25-19 (c) A member of the elected class of the Employees
25-20 Retirement System of Texas who did not hold an elective office on
25-21 May 1, 1995, who has at least seven years of service credit in that
25-22 class, and who has at least seven years of other service creditable
25-23 in the retirement system that is not credited in the employee class
25-24 may make an election under this section.
25-25 (d) An election under this section must be made in writing
25-26 and filed with the Employees Retirement System of Texas before
25-27 January 1, 1996, and is irrevocable after filing. A person who
26-1 makes an election under Subsection (a) of this section must retire
26-2 on the first effective retirement date that occurs after the date
26-3 of filing. After the filing of an election under this section, the
26-4 retirement system shall consider all the service credit established
26-5 by the person who makes the election, including service credit
26-6 established after the date the election is filed, as if it were
26-7 performed as a member of the elected class of membership.
26-8 SECTION 32. Subchapter A, Chapter 830, Government Code, is
26-9 amended by adding Section 830.0011 to read as follows:
26-10 Sec. 830.0011. DEFINITION. Notwithstanding Section 821.001,
26-11 in this chapter "retirement system" means the Teacher Retirement
26-12 System of Texas or the Employees Retirement System of Texas, as the
26-13 context requires.
26-14 SECTION 33. Section 830.106, Government Code, is amended to
26-15 read as follows:
26-16 Sec. 830.106. Eligibility for Resumption of Membership. A
26-17 participant in the optional retirement program is not eligible for
26-18 membership in the retirement system unless the person:
26-19 (1) terminates employment covered by the optional
26-20 retirement program; and
26-21 (2) becomes employed in the public school system or
26-22 with a state agency in a position that is not eligible for
26-23 participation in the optional retirement program.
26-24 SECTION 34. Subchapter B, Chapter 833, Government Code, is
26-25 amended by adding Section 833.1031 to read as follows:
26-26 Sec. 833.1031. MILITARY SERVICE CREDIT GOVERNED BY UNIFORMED
26-27 SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT. The retirement
27-1 system may adopt rules to comply with the Uniformed Services
27-2 Employment and Reemployment Rights Act (38 U.S.C. Section 4301 et
27-3 seq.) and other federal laws affecting the crediting of military
27-4 service.
27-5 SECTION 35. Subchapter B, Chapter 838, Government Code, is
27-6 amended by adding Section 838.1031 to read as follows:
27-7 Sec. 838.1031. MILITARY SERVICE CREDIT GOVERNED BY UNIFORMED
27-8 SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT. The retirement
27-9 system may adopt rules to comply with the Uniformed Services
27-10 Employment and Reemployment Rights Act (38 U.S.C. Section 4301 et
27-11 seq.) and other federal laws affecting the crediting of military
27-12 service.
27-13 SECTION 36. Subdivisions (2) and (5), Subsection (a),
27-14 Section 3, Texas Employees Uniform Group Insurance Benefits Act
27-15 (Article 3.50-2, Vernon's Texas Insurance Code), are amended to
27-16 read as follows:
27-17 (2) "Annuitant" shall mean an officer or employee who
27-18 retires under:
27-19 (A) the jurisdiction of the Employees Retirement
27-20 System of Texas and either receives an annuity or is eligible to
27-21 receive an annuity, pursuant to Subtitle B, D, or E of Title 8,
27-22 Government Code, or Chapter 803, Government Code, that is based on
27-23 at least 10 years of service credit or eligibility under Section
27-24 814.002 or 814.102, Government Code;
27-25 (B) the jurisdiction of the Teacher Retirement
27-26 System of Texas and either receives an annuity or is eligible to
27-27 receive an annuity, pursuant to Subtitle C, Title 8, Government
28-1 Code, or Chapter 803, Government Code, that is based on at least 10
28-2 years of service credit, whose last state employment prior to
28-3 retirement, including employment by a public community/junior
28-4 college, was as an employee of a department whose employees are
28-5 authorized to participate in the Texas employees uniform group
28-6 insurance program <the Teacher Retirement System of Texas, school
28-7 districts established within state eleemosynary institutions, the
28-8 Texas Rehabilitation Commission, the Central Education Agency, the
28-9 Texas Higher Education Coordinating Board, or an institution of
28-10 higher education>;
28-11 (C) the optional retirement program established
28-12 by Chapter 830, Government Code, and either receives an annuity or
28-13 is eligible to receive an annuity under that program, if the
28-14 person's last state employment before retirement, including
28-15 employment by a public community/junior college, was as an <officer
28-16 or> employee of a department whose employees are authorized to
28-17 participate in the Texas employees uniform group insurance program
28-18 and if the person either:
28-19 (i) would have been eligible to retire and
28-20 receive a service retirement annuity from the Teacher Retirement
28-21 System of Texas or the Employees Retirement System of Texas based
28-22 on at least 10 years of service credit had the person not elected
28-23 to participate in the optional retirement program; or
28-24 (ii) is disabled as determined by the
28-25 Employees Retirement System of Texas <the Texas Higher Education
28-26 Coordinating Board or an institution of higher education>; or
28-27 (D) any other federal or state statutory
29-1 retirement program to which an institution of higher education has
29-2 made employer contributions, if the employee has met service
29-3 requirements, age requirements, and other applicable requirements
29-4 comparable to the requirements for retirement under the Teacher
29-5 Retirement System of Texas, based on at least 10 years of service
29-6 credit<, and if the person either:>
29-7 <(i) would have been eligible to retire
29-8 and receive a service retirement annuity from the Teacher
29-9 Retirement System of Texas based on at least 10 years of service
29-10 credit had the person not elected to participate in the optional
29-11 retirement program; or>
29-12 <(ii) is disabled>.
29-13 (5)(A) "Employee" shall mean any appointive or
29-14 elective <state> officer or employee in the service of the State of
29-15 Texas, including an employee of an institution of higher education:
29-16 (i) who is retired or retires and is an
29-17 annuitant under the jurisdiction of the Employees Retirement System
29-18 of Texas, pursuant to Subtitle B, D, or E;
29-19 (ii) <, or Chapter 803, Title 8,
29-20 Government Code,> who is retired or retires and is an annuitant
29-21 under the jurisdiction of the Teacher Retirement System of Texas,
29-22 pursuant to Subtitle C, Title 8, Government Code, or pursuant to
29-23 Chapter 803, Government Code, and whose last employment with the
29-24 state prior to retirement, including employment by a public
29-25 community/junior college, was as an employee of a department whose
29-26 employees are authorized to participate in the Texas employees
29-27 uniform group insurance program <the Teacher Retirement System of
30-1 Texas, school districts established within state eleemosynary
30-2 institutions, the Texas Rehabilitation Commission, the Central
30-3 Education Agency, the Texas Higher Education Coordinating Board, or
30-4 an institution of higher education, or who is retired or retires
30-5 and is an annuitant under the optional retirement program
30-6 established by Chapter 830, Government Code, if the person's last
30-7 state employment before retirement, including employment by a
30-8 public community/junior college, was as an officer or employee of
30-9 the Texas Higher Education Coordinating Board, or an institution of
30-10 higher education, and if the person either:>
30-11 <(a) would have been eligible to
30-12 retire and receive a service retirement annuity from the Teacher
30-13 Retirement System of Texas had the person not elected to
30-14 participate in the optional retirement program; or>
30-15 <(b) is disabled>;
30-16 (iii) who is retired or retires and is an
30-17 annuitant under the optional retirement program established by
30-18 Chapter 830, Government Code, if the person's last state employment
30-19 before retirement, including employment by a public
30-20 community/junior college, was as an employee of a department whose
30-21 employees are authorized to participate in the Texas employees
30-22 uniform group insurance program, and if the person either:
30-23 (a) would have been eligible to
30-24 retire and receive a service retirement annuity from the Teacher
30-25 Retirement System of Texas or the Employees Retirement System of
30-26 Texas had the person not elected to participate in the optional
30-27 retirement program; or
31-1 (b) is disabled as determined by the
31-2 Employees Retirement System of Texas;
31-3 (iv) <(ii)> who receives <his>
31-4 compensation for services rendered to the State of Texas, other
31-5 than an employee of an institution of higher education described by
31-6 this subdivision, on a warrant issued pursuant to a payroll
31-7 certified by a department or by an elected or duly appointed
31-8 officer of this state;
31-9 (v) <(iii)> who receives payment for the
31-10 performance of personal services on a warrant issued pursuant to a
31-11 payroll certified by a department and drawn by the State
31-12 Comptroller of Public Accounts upon the State Treasurer against
31-13 appropriations made by the Texas Legislature from any state funds
31-14 or against any trust funds held by the State Treasurer or who is
31-15 paid from funds of an official budget of a state department, rather
31-16 than from funds of the General Appropriations Act;
31-17 (vi) <(iv)> who is appointed, subject to
31-18 confirmation of the senate, as a member of a board or commission
31-19 with administrative responsibility over a statutory agency having
31-20 statewide jurisdiction whose employees are covered by this Act;
31-21 (vii) <(v)> who is a member of the
31-22 governing body of an institution of higher education, as that term
31-23 is defined by this Act <Section 61.003, Education Code, including
31-24 subsequent amendments to that section>;
31-25 (viii) <(vi)> who is a member of the State
31-26 Board of Education;
31-27 (ix) <(vii)> who receives compensation for
32-1 services rendered to an institution of higher education on a
32-2 warrant or check issued pursuant to a payroll certified by an
32-3 institution of higher education or by an elected or duly appointed
32-4 officer of this state, and who is eligible for participation in the
32-5 Teacher Retirement System of Texas; or
32-6 (x) <(viii)> who receives compensation for
32-7 services rendered to an institution of higher education as provided
32-8 by this subdivision but is not permitted to be a member of the
32-9 Teacher Retirement System of Texas because the person is solely
32-10 employed by an institution of higher education that as a condition
32-11 of employment requires the person to be enrolled as a student in an
32-12 institution of higher education in graduate-level courses and who
32-13 is employed by the institution at least 20 hours a week.
32-14 (B) Persons performing personal services for the
32-15 State of Texas as independent contractors shall never be considered
32-16 employees of the state for purposes of this Act.
32-17 SECTION 37. Section 4B, Texas Employees Uniform Group
32-18 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
32-19 Code), is amended by adding Subsection (a-1) and by amending
32-20 Subsection (c) to read as follows:
32-21 (a-1) If the executive director determines that a
32-22 participant has obtained coverage under any program provided under
32-23 the authority of this Act through the use of any material
32-24 misrepresentation or fraud or has fraudulently induced the
32-25 extension of coverage by making a material misrepresentation or by
32-26 supplying false information on any application for coverage or
32-27 related documentation or in any communication, the executive
33-1 director may rescind the coverage to the date of the inception of
33-2 the coverage or to the date of the fraudulent act or material
33-3 misrepresentation, deny any claim arising out of the fraudulently
33-4 induced coverage, or both. Remedies available to the executive
33-5 director under this subsection are in addition to and independent
33-6 of any expulsion action that may be instituted under Section 13A of
33-7 this Act. A decision of the executive director under this
33-8 subsection may be appealed to the trustee as provided by Subsection
33-9 (c) of this section.
33-10 (c) A decision by the executive director under Subsection
33-11 (a) or (a-1) of this section may be appealed only to the trustee.
33-12 An appeal to the trustee is a contested case under the
33-13 administrative procedure law, Chapter 2001, Government Code.
33-14 Standing to pursue an administrative appeal under this section is
33-15 limited to employees, annuitants, and covered dependents
33-16 participating in the Texas employees uniform group insurance
33-17 program or, after the death of a participant, to the participant's
33-18 estate, personal representative, heirs at law, or designated
33-19 beneficiary <Administrative Procedure and Texas Register Act
33-20 (Article 6252-13a, Vernon's Texas Civil Statutes)>.
33-21 SECTION 38. Subsection (f), Section 5, Texas Employees
33-22 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
33-23 Texas Insurance Code), is amended to read as follows:
33-24 (f) The trustee, in its sole discretion and in accordance
33-25 with the requirements of this section, shall determine those plans
33-26 of coverages for which the trustee does not intend to purchase
33-27 insurance and which it intends to provide directly from the
34-1 Employees Life, Accident, and Health Insurance and Benefits Fund.
34-2 Any plan of coverages for which the trustee does not purchase
34-3 insurance but provides under this Act on a self-funded basis is
34-4 exempt from any other insurance law unless the law expressly
34-5 applies to this plan or this Act. The trustee shall make an
34-6 estimate of the unrestricted balance of the fund. Unless such
34-7 estimated unrestricted balance is equal to at least 10 percent of
34-8 the total benefits expected to be provided directly from the fund
34-9 as a result of claims incurred during the fiscal year, the trustee
34-10 shall include in the contributions required the amount necessary to
34-11 establish an unrestricted balance in the fund of not less than 10
34-12 percent. The unrestricted balance shall be placed in a contingency
34-13 reserve fund to provide for adverse fluctuations in future charges,
34-14 claims, costs, or expenses of the program.
34-15 SECTION 39. Section 13A, Texas Employees Uniform Group
34-16 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
34-17 Code), is amended to read as follows:
34-18 Sec. 13A. Expulsion From Group Insurance Program.
34-19 (a) After notice and hearing as provided by this section, the
34-20 trustee may expel from participation in the Texas employees uniform
34-21 group insurance program any employee, annuitant, or dependent who
34-22 submits a fraudulent claim or application for coverage under or has
34-23 defrauded or attempted to defraud any health maintenance
34-24 organization or insurance or benefits plan offered under the
34-25 program.
34-26 (b) On receipt of a complaint or on its own motion, the
34-27 trustee may call and hold a hearing to determine whether <or not>
35-1 an employee, annuitant, or dependent has submitted a fraudulent
35-2 claim or application for coverage under or has defrauded or
35-3 attempted to defraud any health maintenance organization or
35-4 insurance or benefits plan offered under the Texas employees
35-5 uniform group insurance program.
35-6 (c) A proceeding under this section is a contested case
35-7 under the administrative procedure law, Chapter 2001, Government
35-8 Code <Administrative Procedure and Texas Register Act (Article
35-9 6252-13a, Vernon's Texas Civil Statutes)>.
35-10 (d) At the conclusion of the hearing, if the trustee issues
35-11 a decision that finds that the accused employee, annuitant, or
35-12 dependent submitted a fraudulent claim or application for coverage
35-13 or has defrauded or attempted to defraud any health maintenance
35-14 organization or insurance or benefits plan offered under the Texas
35-15 employees uniform group insurance program, the trustee shall expel
35-16 the employee, annuitant, or dependent from participation in the
35-17 program.
35-18 (e) An appeal of a decision of the trustee under this
35-19 section is under the substantial evidence rule.
35-20 (f) An employee, annuitant, or dependent expelled from the
35-21 Texas employees uniform group insurance program may not participate
35-22 in a health maintenance organization or be insured under <by> any
35-23 <health> insurance or benefits plan offered by the program for a
35-24 period determined by the trustee of not more than five years from
35-25 the date the expulsion from the program takes effect.
35-26 SECTION 40. Subsection (a), Section 14, Texas Employees
35-27 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
36-1 Texas Insurance Code), is amended to read as follows:
36-2 (a) The trustee shall use the amount appropriated for
36-3 employer contributions in accordance with Section 15 of this Act
36-4 <and Subsection (a-1) of this section> to fund the basic coverage.
36-5 The trustee may equitably allocate to each health benefits plan the
36-6 employer contributions that would be required to fund basic health
36-7 coverage for participants in the plans to the extent funds are
36-8 available. In allocating the employer contributions among plans,
36-9 the trustee shall consider the relevant risk characteristics of
36-10 each plan's enrollment, including demographic variations in the use
36-11 and cost of health care and the prevailing cost patterns in the
36-12 area in which the plan operates. The allocation must be reasonable
36-13 and set in a manner which assures employees a fair choice among
36-14 health benefit plans providing a basic plan. The contribution set
36-15 for each employee shall be within the total amount appropriated in
36-16 the General Appropriations Act.
36-17 SECTION 41. Section 609.507, Government Code, is amended to
36-18 read as follows:
36-19 Sec. 609.507. Financial Institution as Qualified Vendor.
36-20 <(a)> Each bank or savings and loan association that is a
36-21 qualified vendor is not required to comply with Chapter 404 with
36-22 regard to deferrals and investment income, but shall comply with
36-23 plan rules that deal with vendors and investment products <shall:>
36-24 <(1) treat deferred amounts and investment income as
36-25 state funds; and>
36-26 <(2) comply with Chapter 404.>
36-27 <(b) The state treasurer shall monitor each bank or savings
37-1 and loan association that is a qualified vendor for compliance with
37-2 Chapter 404. The state treasurer shall immediately notify the
37-3 board of trustees of a violation of that chapter that the treasurer
37-4 observes.>
37-5 <(c) The board of trustees is entitled to rely on the
37-6 supervision of the state treasurer>.
37-7 SECTION 42. The following provisions are repealed:
37-8 (1) Subsection (h), Section 814.107, Government Code;
37-9 (2) Section 815.108, Government Code;
37-10 (3) Subsection (g), Section 815.403, Government Code;
37-11 and
37-12 (4) Subsection (a-1), Section 14, Texas Employees
37-13 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
37-14 Texas Insurance Code).
37-15 SECTION 43. (a) The Employees Retirement System of Texas
37-16 shall recompute each annuity that is based on the service of a
37-17 person who has retired under Section 814.1071, Government Code, to
37-18 include an amount, proportional to the amount authorized for each
37-19 year of credit under Section 814.107, Government Code, for each
37-20 whole month of credit as a law enforcement or custodial officer
37-21 that was not used in the original computation of the annuity.
37-22 (b) The increases in annuities provided by this Act are
37-23 payable, from the law enforcement and custodial officer
37-24 supplemental retirement fund, beginning with the first payments of
37-25 the annuities that become due on or after September 1, 1995.
37-26 SECTION 44. This Act takes effect September 1, 1995.
37-27 SECTION 45. The importance of this legislation and the
38-1 crowded condition of the calendars in both houses create an
38-2 emergency and an imperative public necessity that the
38-3 constitutional rule requiring bills to be read on three several
38-4 days in each house be suspended, and this rule is hereby suspended.