S.B. No. 1231
AN ACT
1-1 relating to the powers and duties of and systems and programs under
1-2 the Employees Retirement System of Texas and certain other
1-3 retirement systems.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 805.002, Government Code, is amended by
1-6 amending Subsections (a), (b), and (d) and adding Subsections (g)
1-7 and (h) to read as follows:
1-8 (a) Except as provided by Subsection (h), a <A> member of
1-9 both the employees retirement system and the teacher retirement
1-10 system who applies for service or disability retirement from either
1-11 system may transfer to that system service credit established in
1-12 the other system if the member has at least three years of service
1-13 credit in the system from which the member is retiring. If a
1-14 person whose membership was transferred from the teacher retirement
1-15 system to the employees retirement system pursuant to Section
1-16 43(a), Chapter 812, Acts of the 73rd Legislature, 1993, ceases to
1-17 hold any position included in the membership of the employees
1-18 retirement system before the earlier of the date the person retires
1-19 or dies, the person's service credit accrued in the teacher
1-20 retirement system before the date the membership was transferred
1-21 remains credited in that system, unless the person has withdrawn
1-22 contributions made for the service.
1-23 (b) Except as provided by Subsection (h), a <A> member of
1-24 both the employees retirement system and the teacher retirement
2-1 system who has less than three years of service credit in the
2-2 system in which the person most recently received service credit
2-3 and at least three years of service credit in the other system may,
2-4 at the time the person applies for service or disability retirement
2-5 <from the other system>, transfer service credit to the other
2-6 <that> system from the system in which the person most recently
2-7 received service credit.
2-8 (d) Except as provided by Subsections (e) and (f), the
2-9 designated beneficiary of a member of the employees retirement
2-10 system or the teacher retirement system who dies while holding a
2-11 position included in the membership of the system may make a
2-12 transfer under Subsection (a) and a reinstatement or purchase under
2-13 Subsection (c) if the deceased member had at least three years of
2-14 service credit in the system in which the member was performing
2-15 service at the time of death. The designated beneficiary may make
2-16 a transfer under Subsection (b) if the deceased member had less
2-17 than three years of service credit in the system in which the
2-18 member was performing service at the time of death. If a member is
2-19 not survived by a designated beneficiary, an alternate beneficiary,
2-20 or a beneficiary provided by law or has failed to designate a
2-21 beneficiary after becoming a member or resuming membership, the
2-22 personal representative of the member's estate has the same right
2-23 under this subsection as a designated beneficiary. A transfer of
2-24 service by the beneficiary or personal representative of a deceased
2-25 member's estate is not permitted unless the transfer will result in
2-26 the payment of a death benefit annuity.
2-27 (g) To be eligible to make a transfer pursuant to Subsection
3-1 (d), a person must be the same beneficiary under both retirement
3-2 systems.
3-3 (h) A member applying for occupational disability retirement
3-4 from the employees retirement system may transfer service credit
3-5 from the teacher retirement system only if the member was
3-6 contributing to the employees retirement system at the time the
3-7 disabling condition occurred.
3-8 SECTION 2. Section 805.003, Government Code, is amended to
3-9 read as follows:
3-10 Sec. 805.003. Payments to Reinstate or Purchase Service
3-11 Credit. The cost of reinstating or purchasing service credit under
3-12 Section 805.002 is determined according to the statutes that govern
3-13 the reinstatement or purchase of the type of service credit in the
3-14 system in which it is to be reinstated or purchased. All payments
3-15 for service credit reinstated or purchased under Section 805.002
3-16 must be made before retirement or the first payment of a death
3-17 benefit annuity, as applicable, or before a later date if allowed
3-18 for members of the retirement system in which the credit is to be
3-19 reinstated or purchased.
3-20 SECTION 3. Subsections (a) and (b), Section 805.007,
3-21 Government Code, are amended to read as follows:
3-22 (a) A person who transfers service credit under this chapter
3-23 forfeits all rights to benefits payable by the system from which it
3-24 is transferred and is not an annuitant of that system for any
3-25 purpose, including the payment of postretirement increases to
3-26 annuitants of that system. This subsection does not preclude a
3-27 person from receiving benefits as a beneficiary of an account not
4-1 related to the transferred service credit.
4-2 (b) Service credit transferred under this chapter is
4-3 considered as if it had been granted for service performed under
4-4 the system to which it has been transferred and is used in
4-5 satisfying minimum service requirements for retirement and in
4-6 determining the amount of benefits that are based on the amount of
4-7 a person's service credit:
4-8 (1) except that a person's average salary for the
4-9 purpose of computing an annuity may be determined only from service
4-10 credit that was originally established in one system and that
4-11 results in the higher average salary; <and>
4-12 (2) except as provided by Section 805.006; and
4-13 (3) except service credit transferred by a member
4-14 applying for occupational disability retirement.
4-15 SECTION 4. Section 805.008, Government Code, is amended to
4-16 read as follows:
4-17 Sec. 805.008. RESPONSIBILITY FOR BENEFIT PAYMENTS.
4-18 (a) Except as provided by Subsection (c), the <The> system from
4-19 which a person's service credit is transferred under this chapter
4-20 shall transfer to the other system, at the time the annuity based
4-21 on the service credit becomes payable, an amount equal to the
4-22 portion of the actuarial value of the annuity that represents the
4-23 percentage of the total amount of the person's service credited in
4-24 both systems that was credited in the system from which the credit
4-25 is being transferred.
4-26 (b) Except as provided by Subsection (c), the <The> systems
4-27 jointly by rule shall adopt actuarial tables and investment
5-1 assumptions to be used in computing actuarial values under this
5-2 section.
5-3 (c) As an alternative to Subsections (a) and (b), the
5-4 systems by rule may require the system from which service credit is
5-5 transferred to pay monthly an amount equal to the portion of the
5-6 actual value of the monthly payment of the annuity that represents
5-7 the percentage of the total amount of service credit that is
5-8 transferred.
5-9 (d) For the purpose of computing an amount to be transferred
5-10 under this section, service credit in either system must be
5-11 considered as if it were credited under rules of the teacher
5-12 retirement system determining the amount of service creditable.
5-13 (e) <(d)> An amount transferred under this section is
5-14 payable from amounts credited to the person's individual account
5-15 and amounts credited to the account in which the system places
5-16 state contributions. Except as provided by Subsection (g), an <An>
5-17 amount received under this section shall be deposited in the
5-18 account from which the system receiving the amount pays annuities.
5-19 (f) <(e)> The system to which a transfer is made under this
5-20 section is responsible for paying the annuity for which the
5-21 transfer was made, including the entire amount of any increase in
5-22 the annuity granted after the transfer.
5-23 (g) At the time of the death of a person whose membership
5-24 was transferred from the teacher retirement system to the employees
5-25 retirement system pursuant to Section 43(a), Chapter 812, Acts of
5-26 the 73rd Legislature, 1993, the teacher retirement system shall
5-27 transfer to the employees retirement system the person's service
6-1 credit in the teacher retirement system and, if employment with the
6-2 transferring agency was continuous from the date of transfer to the
6-3 date of death:
6-4 (1) an amount determined under Subsections (a) and (b)
6-5 or under Subsection (c), if an annuity is paid under Chapter 814;
6-6 or
6-7 (2) the amount of money in the member savings account
6-8 plus an amount equal to five percent of the person's account
6-9 balance for each full year of service credited in the teacher
6-10 retirement system, if a death benefit other than an annuity is paid
6-11 under Chapter 814.
6-12 SECTION 5. Subsection (c), Section 805.002, Government Code,
6-13 is amended to read as follows:
6-14 (c) Except as provided by Subsections (e) and (f), a member
6-15 of the employees retirement system or the teacher retirement system
6-16 who formerly was a member of the other system may reinstate or
6-17 purchase service credit in the other system for the purpose of
6-18 making a transfer under Subsection (a) if the member has at least
6-19 three years of service credit in the system in which the person
6-20 currently is a member. Except as provided by Subsections (e) and
6-21 (f), a member of the employees retirement system or the teacher
6-22 retirement system who formerly was a member of the other system,
6-23 who before September 1, 1993, transferred at least three years of
6-24 service credit to the system in which the person currently is a
6-25 member, and who has at least three years of service credit other
6-26 than the transferred credit in the system in which the person
6-27 currently is a member may reinstate or purchase service credit in
7-1 the other system for the purpose of making a transfer of all
7-2 service credit to that other system.
7-3 SECTION 6. Section 813.104, Government Code, is amended by
7-4 amending Subsection (d), relettering Subsection (e) as Subsection
7-5 (g), and adding new Subsections (e) and (f) to read as follows:
7-6 (d) Except as provided by Subsection (e), payments
7-7 <Payments> may not be made under this section:
7-8 (1) to establish or reestablish service credit of a
7-9 person who has retired or died; or
7-10 (2) to establish current service under Section
7-11 813.201.
7-12 (e) The designated beneficiary of a deceased member or, if
7-13 none exists, the personal representative of the decedent's estate
7-14 may establish or reestablish service for which the member was
7-15 eligible at the time of death if the establishment of the service
7-16 would result in the payment of a death benefit annuity or an
7-17 increase in the amount of a death benefit annuity.
7-18 (f) The payment for the establishment or reestablishment of
7-19 service under Subsection (e) must be made in a lump sum and
7-20 completed before the first payment of a death benefit annuity, but
7-21 not later than the 60th day after the date the retirement system
7-22 receives notice of the death.
7-23 (g) <(e)> The retirement system may adopt rules to
7-24 administer this section.
7-25 SECTION 7. Subchapter D, Chapter 813, Government Code, is
7-26 amended by adding Section 813.305 to read as follows:
7-27 Sec. 813.305. MILITARY SERVICE CREDIT GOVERNED BY UNIFORMED
8-1 SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT. The retirement
8-2 system may adopt rules to comply with the Uniformed Services
8-3 Employment and Reemployment Rights Act (38 U.S.C. Section 4301 et
8-4 seq.) and other federal laws affecting the crediting of military
8-5 service.
8-6 SECTION 8. Section 813.506, Government Code, is amended to
8-7 read as follows:
8-8 Sec. 813.506. Custodial Officer Service. (a) The Texas
8-9 Department of Criminal Justice <Corrections> by rule shall adopt
8-10 standards for determining eligibility for service credit as a
8-11 custodial officer, based on the need to encourage early retirement
8-12 of persons whose duties are hazardous and require them to have
8-13 routine contact with inmates of or defendants confined in the state
8-14 jail division of the Texas Department of Criminal Justice
8-15 <Corrections> on a regular basis.
8-16 (b) To be creditable as custodial officer service, service
8-17 performed must meet the requirements of the rules adopted under
8-18 Subsection (a) and may be performed by persons in one of the
8-19 following job categories:
8-20 (1) all persons classified as Correctional Officer I
8-21 through warden, including training officers and special operations
8-22 reaction team officers;
8-23 (2) all other employees assigned to work on a unit and
8-24 whose jobs require routine contact with inmates or defendants
8-25 confined in the state jail division, including but not limited to
8-26 farm managers, livestock supervisors, maintenance foremen, shop
8-27 foremen, medical assistants, food service supervisors, stewards,
9-1 education consultants, commodity specialists, and correctional
9-2 counselors;
9-3 (3) employees assigned to administrative offices whose
9-4 jobs require routine contact with inmates or defendants confined in
9-5 the state jail division at least 50 percent of the time, including
9-6 but not limited to investigators, compliance monitors, accountants
9-7 routinely required to audit unit operations, sociologists,
9-8 interviewers, classification officers, and supervising counselors;
9-9 and
9-10 (4) administrative positions whose jobs require
9-11 response to emergency situations involving inmates or defendants
9-12 confined in the state jail division, including but except as
9-13 specified not limited to the director, deputy directors, assistant
9-14 directors, and not more than 25 administrative duty officers.
9-15 (c) The <institutional division of the> Texas Department of
9-16 Criminal Justice shall determine a person's eligibility to receive
9-17 credit as a custodial officer. A determination of the department
9-18 <division> may not be appealed by an employee but is subject to
9-19 change by the retirement system.
9-20 (d) <(e)> As part of the audit of <the institutional
9-21 division of> the Texas Department of Criminal Justice by the state
9-22 auditor in accordance with Chapter 321, the state auditor <State
9-23 Auditor> may verify the accuracy of reports submitted to the
9-24 retirement system under this section. The state auditor shall
9-25 review biennially the standards adopted by the department under
9-26 Subsection (a).
9-27 SECTION 9. Section 813.509, Government Code, is amended to
10-1 read as follows:
10-2 Sec. 813.509. Credit for Accumulated Sick Leave. (a) A
10-3 member who holds a position included in the employee class of
10-4 membership during the month that includes the effective date of the
10-5 member's retirement and who retires based on service or a
10-6 disability is entitled to service credit in the retirement system
10-7 for the member's sick leave that has accumulated and is unused on
10-8 the last day of employment. Sick leave is creditable in the
10-9 retirement system at the rate of one month of service credit for
10-10 each 20 days, or 160 hours, of accumulated sick leave. An
10-11 increment of less than 20 days is not creditable.
10-12 (b) A member who holds a position included in the employee
10-13 class may use sick leave creditable under this section to satisfy
10-14 service requirements for retirement under Section 814.104 or
10-15 814.107 if the sick leave attributed to the eligibility
10-16 requirements remains otherwise unused on the last day of
10-17 employment.
10-18 (c) Except as provided by Subsection (d), the <The>
10-19 disbursing officer of each department or agency shall, before the
10-20 11th day after the effective date of retirement of one or more
10-21 employees of the department or agency <of each month>, certify to
10-22 the retirement system:
10-23 (1) the name of each person whose retirement from the
10-24 department or agency, and from state service, became effective
10-25 during the preceding month; and
10-26 (2) the amount of the person's accumulated sick leave
10-27 on the last day of employment.
11-1 (d) The disbursing officer of a department or agency that
11-2 employs a member who applies for retirement under Subsection (b)
11-3 shall, not more than 90 or less than 30 days before the effective
11-4 date of the member's retirement, certify to the retirement system
11-5 the amount of the member's accumulated and unused sick leave. The
11-6 officer shall immediately notify the retirement system if the
11-7 member uses sick leave after the date of certification.
11-8 (e) <(c)> On receipt of a certification under Subsection (c)
11-9 or (d) <(b)>, the retirement system shall grant any credit to which
11-10 a retiring member or retiree who is a subject of the certification
11-11 is entitled. An increase in the computation of an annuity because
11-12 of credit provided by this section after a certification under
11-13 Subsection (c) begins with the first payment that becomes due after
11-14 certification.
11-15 (f) The retirement system shall cancel the retirement of a
11-16 person who used sick leave creditable under this section to qualify
11-17 for service retirement if the sick leave is otherwise used by the
11-18 person before the effective date of retirement.
11-19 (g) In this section, "sick leave" does not include credit
11-20 granted under an agency sick-leave pool or under the Family and
11-21 Medical Leave Act of 1993 (Pub. L. 103-3).
11-22 SECTION 10. Subchapter F, Chapter 813, Government Code, is
11-23 amended by adding Section 813.510 to read as follows:
11-24 Sec. 813.510. CREDIT FOR CERTAIN AGRICULTURAL SERVICE.
11-25 (a) An eligible member may, before January 1, 1996, elect to
11-26 establish service credit in the retirement system for service
11-27 performed for the Department of Agriculture as an employee of the
12-1 Federal State Inspection Service of Texas.
12-2 (b) A member eligible to establish credit under this section
12-3 is one who became an employee of or resumed employment with the
12-4 Department of Agriculture in May, 1992, on the creation of the
12-5 Texas Cooperative Inspection Program.
12-6 (c) A member may establish credit under this section by
12-7 depositing with the retirement system:
12-8 (1) a contribution based on the member's monthly
12-9 compensation during the period of service for the Department of
12-10 Agriculture as an employee of the Federal State Inspection Service
12-11 of Texas and computed for the number of months for which credit is
12-12 sought at the combined contribution rates required during the
12-13 period for the state and employee members of the system for new
12-14 service;
12-15 (2) interest computed on the basis of the state fiscal
12-16 year at an annual rate of 10 percent from the date the service was
12-17 performed to the date of deposit; and
12-18 (3) any membership fees required of members of the
12-19 system during the period of the service.
12-20 (d) An election under this section must be filed with the
12-21 retirement system on a form provided by the system. Credit may be
12-22 established under this section by a lump-sum payment or by payments
12-23 authorized by Section 813.104 or 813.105.
12-24 (e) The retirement system shall deposit the compensation
12-25 contribution in the member's individual account in the employees
12-26 saving account, interest in the state accumulation account, and
12-27 membership fees in the expense account.
13-1 (f) The retirement system shall determine the amount to be
13-2 deposited in each case and may not grant service credit to a member
13-3 under this section until the member provides proof of eligibility
13-4 for the credit that is satisfactory to the retirement system.
13-5 SECTION 11. Section 814.003, Government Code, is amended by
13-6 adding Subsection (e) to read as follows:
13-7 (e) If a person elects to receive a standard disability
13-8 retirement annuity and dies during the first calendar month that
13-9 begins after the effective date of the person's retirement, the
13-10 person is considered to have been a contributing member at the time
13-11 of death.
13-12 SECTION 12. Section 814.004, Government Code, is amended to
13-13 read as follows:
13-14 Sec. 814.004. When Benefits are Payable. A monthly annuity
13-15 payable to a retiree or beneficiary is payable to that person
13-16 through the month in which the person dies. A continuation of an
13-17 optional annuity or the payment of a death or survivor benefit
13-18 annuity begins with payment for the month following the month in
13-19 which the death occurs. <An annuity provided by this chapter
13-20 accrues for the period beginning on the first day of the month that
13-21 begins after the month in which a person dies or retires, as
13-22 applicable, and ending, except as otherwise provided by this
13-23 chapter, on the day the person who receives the annuity dies.>
13-24 SECTION 13. Subchapter A, Chapter 814, Government Code, is
13-25 amended by adding Sections 814.006 and 814.007 to read as follows:
13-26 Sec. 814.006. SIMULTANEOUS DEATH OF MEMBER AND BENEFICIARY.
13-27 When a member or annuitant and the beneficiary of the member or
14-1 annuitant have died within a period of less than 120 hours, the
14-2 member or annuitant is considered to have survived the beneficiary
14-3 for the purpose of determining the rights to amounts payable under
14-4 this subtitle on the death of the member or annuitant.
14-5 Sec. 814.007. BENEFICIARY CAUSING DEATH OF MEMBER OR
14-6 ANNUITANT. (a) A benefit payable on the death of a member or
14-7 annuitant may not be paid to a person convicted of causing that
14-8 death but instead is payable as if the convicted person had
14-9 predeceased the decedent.
14-10 (b) A person who becomes eligible under this section to
14-11 select death or survivor benefits may select benefits as if the
14-12 person were the designated beneficiary.
14-13 (c) The retirement system shall reduce any annuity computed
14-14 in part on the age of the convicted person to a lump sum equal to
14-15 the present value of the remainder of the annuity. The reduced
14-16 amount is payable to a person entitled as provided by this section
14-17 to receive the benefit.
14-18 (d) The retirement system is not required to change the
14-19 recipient of benefits under this section unless it receives actual
14-20 notice of the conviction of a beneficiary. However, the retirement
14-21 system may delay payment of a benefit payable on the death of a
14-22 member or annuitant pending the results of a criminal investigation
14-23 and of legal proceedings relating to the cause of death.
14-24 (e) For the purposes of this section, a person has been
14-25 convicted of causing the death of a member or annuitant if the
14-26 person:
14-27 (1) pleads guilty or nolo contendere to, or is found
15-1 guilty by a court of, causing the death of the member or annuitant,
15-2 regardless of whether sentence is imposed or probated; and
15-3 (2) has no appeal of the conviction pending and the
15-4 time provided for appeal has expired.
15-5 SECTION 14. Subchapter A, Chapter 814, Government Code, is
15-6 amended by adding Section 814.008 to read as follows:
15-7 Sec. 814.008. REVOCATION OF BENEFICIARY BY DIVORCE DECREE.
15-8 (a) In this section, "divorce decree" means a judgment, decree,
15-9 order, or qualified domestic relations order, including a document
15-10 approving a property settlement agreement, that is issued by a
15-11 court under a domestic relations law of this or another state in
15-12 conjunction with the dissolution of a marriage and that relates to
15-13 the marital property rights of a retiree and that person's former
15-14 spouse.
15-15 (b) On receipt of a certified copy of a divorce decree that
15-16 purports to revoke or order the revocation of a designation by a
15-17 retiree of a beneficiary under this subchapter, accompanied by a
15-18 written directive from a retiree requesting the change, the
15-19 retirement system shall change its records in accordance with the
15-20 directive and decree.
15-21 (c) If a divorce decree revokes or orders the revocation of
15-22 a designation of a beneficiary made by a retiree who retired under
15-23 an optional retirement annuity described by Section 814.108(c)(1)
15-24 or (c)(2) or another optional retirement annuity selection approved
15-25 by the board of trustees by rule, the retiree may select a standard
15-26 retirement annuity or another beneficiary for the optional
15-27 retirement annuity selected at the time of retirement. If the
16-1 retirement system receives from a retiree who retired under an
16-2 optional retirement annuity a written directive and certified
16-3 decree, as described in this section, that revokes a beneficiary
16-4 designation but does not designate a substitute beneficiary, the
16-5 retiree shall be considered to have selected a standard retirement
16-6 annuity, and the retirement system shall recompute the annuity of
16-7 the retiree as a standard annuity. Thereafter, if the retiree
16-8 designates another beneficiary by written directive filed with the
16-9 retirement system, the retirement system shall recompute and
16-10 reinstate the optional annuity giving effect to the new beneficiary
16-11 designation on a prospective basis only. A retiree may make a
16-12 change of beneficiary under this subsection only to a spouse and
16-13 only once during the retiree's lifetime.
16-14 (d) The retirement system shall recompute the annuity of a
16-15 retiree who makes a selection under Subsection (c) to reflect that
16-16 selection and shall adjust the annuity as appropriate for early
16-17 retirement and postretirement increases provided after the date of
16-18 the retiree's retirement. The retirement system by rule shall
16-19 provide for the recovery of the actuarial value, if any, of the
16-20 difference between payments under the original and recomputed
16-21 annuities by determining the recomputed annuity so that the
16-22 actuarial present value of the recomputed annuity is equal to the
16-23 actuarial present value of the original retirement annuity as of
16-24 the date the retirement system receives the directive to change the
16-25 beneficiary.
16-26 (e) Payment of a recomputed annuity becomes effective the
16-27 month following receipt by the retirement system of the actuarial
17-1 recomputation.
17-2 (f) The retirement system shall determine, on receipt of a
17-3 certified copy of a divorce decree purporting to revoke a
17-4 beneficiary designation under this section, whether the decree
17-5 clearly revokes or permits the revocation of a beneficiary
17-6 designation. The retirement system may decline to implement a
17-7 beneficiary change if it determines that the decree fails to
17-8 specify clearly that a beneficiary change is within the scope of
17-9 the decree. The court that issued the decree or that would
17-10 otherwise have jurisdiction over the matter has jurisdiction to
17-11 amend the decree to clarify the scope of the decree, even if all
17-12 other matters incident to the action or proceeding have been fully
17-13 and finally adjudicated.
17-14 (g) A determination by the retirement system under this
17-15 section may be appealed only to a district court of Travis County.
17-16 The retirement system, the board of trustees, and officers and
17-17 employees of the retirement system are not liable to any person for
17-18 making or failing to make a beneficiary designation change pursuant
17-19 to a decree submitted under this section.
17-20 (h) The board of trustees of the retirement system may adopt
17-21 rules it considers necessary to implement this section.
17-22 (i) This section expires January 1, 1996.
17-23 SECTION 15. Subsections (b) and (f), Section 814.107,
17-24 Government Code, are amended to read as follows:
17-25 (b) The standard service retirement annuity payable for at
17-26 least 20 years of service credit as a law enforcement or custodial
17-27 officer is an amount computed on the basis of the member's average
18-1 monthly compensation for that service for the 36 highest months of
18-2 compensation, times the sum of the percentage factor used in the
18-3 computation of a standard service retirement annuity under Section
18-4 814.105 plus .5 percent. <a percentage derived from the following
18-5 table:>
18-6 <Years of Law Enforcement or Percentage of Average>
18-7 <Custodial Officer Service Credit Monthly Compensation>
18-8 <at least 20 but less than 21 50 percent>
18-9 <at least 21 but less than 22 52 percent>
18-10 <at least 22 but less than 23 54 percent>
18-11 <at least 23 but less than 24 56 percent>
18-12 <at least 24 but less than 25 58 percent>
18-13 <at least 25 but less than 26 60 percent>
18-14 <at least 26 but less than 27 62 percent>
18-15 <at least 27 but less than 28 64 percent>
18-16 <at least 28 but less than 29 66 percent>
18-17 <at least 29 but less than 30 68 percent>
18-18 <at least 30 but less than 31 70 percent>
18-19 <at least 31 but less than 32 71 percent>
18-20 <at least 32 but less than 33 72 percent>
18-21 <at least 33 but less than 34 73 percent>
18-22 <at least 34 but less than 35 74 percent>
18-23 <at least 35 but less than 36 75 percent>
18-24 <at least 36 but less than 37 76 percent>
18-25 <at least 37 but less than 38 77 percent>
18-26 <at least 38 but less than 39 78 percent>
18-27 <at least 39 but less than 40 79 percent>
19-1 <40 or more 80 percent>
19-2 (f) The standard combined service retirement annuity payable
19-3 for at least 20 years of service credit as a law enforcement or
19-4 custodial officer may not exceed 100 <80> percent of the higher of
19-5 the average compensation computed under Section 814.105 or the
19-6 average compensation computed under Subsection (b).
19-7 SECTION 16. Section 814.108, Government Code, is amended by
19-8 adding Subsection (g) to read as follows:
19-9 (g) Except as provided by Section 814.1081, a person who
19-10 selected an optional service retirement annuity approved by the
19-11 board of trustees or an optional service retirement annuity
19-12 described by Subsection (c)(1) or (c)(2) may not change or revoke a
19-13 beneficiary designation after the person's effective date of
19-14 retirement.
19-15 SECTION 17. Section 814.1081, Government Code, is amended by
19-16 adding Subsection (c) to read as follows:
19-17 (c) A person who retired and selected an optional service
19-18 retirement annuity approved by the board of trustees or an optional
19-19 service retirement annuity described by Section 814.108(c)(1) or
19-20 (c)(2) may change the optional annuity selection to the selection
19-21 of a standard service retirement annuity by filing with the
19-22 retirement system a request to change the annuity selection, if the
19-23 person designated as beneficiary has executed since the designation
19-24 a transfer and release, approved by a court of competent
19-25 jurisdiction, of the beneficiary's interest in the annuity and is
19-26 not currently the retiree's spouse or child. If a retiree files a
19-27 request as provided by this subsection, the retirement system shall
20-1 recompute the annuity as a standard service retirement annuity.
20-2 The right to receive payment of an annuity as adjusted as provided
20-3 by this subsection begins with the first payment that becomes due
20-4 after the date a request is filed as provided by this subsection.
20-5 This subsection expires January 1, 1996.
20-6 SECTION 18. Subsections (b), (d), and (e), Section 814.207,
20-7 Government Code, are amended to read as follows:
20-8 (b) Except as provided by Subsection (c), an occupational
20-9 disability retirement annuity under this section is an amount, but
20-10 not more than 100 <80> percent, computed on the basis of the
20-11 officer's monthly compensation at the time of the disabling injury
20-12 or disease, times a percentage derived by application of <the table
20-13 provided by> Section 814.107(b).
20-14 (d) The portions <portion> of the annuity under this section
20-15 payable from the law enforcement and custodial officer supplemental
20-16 retirement fund are <is> the amount remaining after deduction of
20-17 any amount payable under Section 814.206, except the portion of an
20-18 amount that exceeds the minimum payments provided by Section
20-19 814.206(b) and that is made for service other than as a law
20-20 enforcement or custodial officer and any amount by which an annuity
20-21 is increased under Subsection (e).
20-22 (e) If a retiring member or retiree under this section
20-23 presents evidence satisfactory to the retirement system that the
20-24 person's condition makes the person incapable of gainful occupation
20-25 and is considered a total disability under federal social security
20-26 law, the retirement system shall increase the person's occupational
20-27 disability retirement annuity to 100 percent of the officer's
21-1 monthly compensation at the time of the disabling injury or disease
21-2 <Section 815.405 is held to be invalid by a court of competent
21-3 jurisdiction and the decision becomes final, an annuity may not be
21-4 paid under this section>.
21-5 SECTION 19. Section 814.301, Government Code, is amended by
21-6 adding Subsection (e) to read as follows:
21-7 (e) A beneficiary designation that names a former spouse as
21-8 beneficiary is invalid for purposes of this section unless the
21-9 designation is made after the date of the divorce.
21-10 SECTION 20. Subsection (a), Section 814.302, Government
21-11 Code, is amended to read as follows:
21-12 (a) If a member eligible to select a death benefit plan
21-13 under Section 814.301 dies without having made a selection, or if a
21-14 selection cannot be made effective, the member's designated
21-15 beneficiary <surviving spouse> may select a plan in the same manner
21-16 as if the member had made the selection. If there is no designated
21-17 beneficiary <surviving spouse>, the personal representative of the
21-18 decedent's estate may make the selection for the benefit of the
21-19 decedent's heirs or devisees. In lieu of selecting a death benefit
21-20 plan, the designated beneficiary <surviving spouse> or, if there is
21-21 none, the personal representative of the decedent's estate, may
21-22 elect to receive a refund of contributions and any applicable
21-23 payment under Section 814.401.
21-24 SECTION 21. Subsections (b) and (d), Section 814.401,
21-25 Government Code, are amended to read as follows:
21-26 (b) The benefit provided by this section is payable to the
21-27 beneficiary designated by the member under Section 814.403(b) <a
22-1 person designated by the member in a signed document filed with the
22-2 retirement system>. If a member does not designate a beneficiary
22-3 or if the beneficiary designation cannot be made effective <does
22-4 not survive the member>, the benefit is payable to the member's
22-5 estate.
22-6 (d) A death benefit may not be paid under this section if,
22-7 at the time of death, a death benefit annuity <under Section
22-8 814.301> became effective.
22-9 SECTION 22. Section 814.403, Government Code, is amended to
22-10 read as follows:
22-11 Sec. 814.403. Return of Contributions. (a) Except as
22-12 provided by Subsection (d) <(c)>, if a member dies before
22-13 retirement, the amount in the member's individual account in the
22-14 employees saving account at the time of death is payable as a
22-15 lump-sum death benefit.
22-16 (b) Except as provided by Subsection (c), the <The> benefit
22-17 provided by this section is payable to a person designated by the
22-18 member in a signed and witnessed document filed with the retirement
22-19 system before the member's death. A designation, change, or
22-20 revocation of a beneficiary in a will or other document not filed
22-21 with the retirement system is not effective. If a member does not
22-22 designate a beneficiary or if the beneficiary designation cannot be
22-23 made effective <does not survive the member>, the benefit is
22-24 payable to the member's estate.
22-25 (c) A beneficiary designation that names a former spouse as
22-26 beneficiary is invalid for purposes of this section unless the
22-27 designation is made after the date of the divorce.
23-1 (d) A death benefit may not be paid under this section if,
23-2 at the time of death, a death benefit annuity <under Section
23-3 814.301> became effective.
23-4 SECTION 23. Section 814.501, Government Code, is amended by
23-5 amending Subsection (b) and adding Subsection (c) to read as
23-6 follows:
23-7 (b) The benefit provided by this section is payable to a
23-8 person designated by the retiree in a signed and witnessed document
23-9 filed with the retirement system before the retiree's death. A
23-10 designation, change, or revocation of a beneficiary in a will or
23-11 other document not filed with the retirement system is not
23-12 effective. If a retiree does not designate a beneficiary or if the
23-13 beneficiary designation cannot be made effective <does not survive
23-14 the retiree>, the benefit is payable to the retiree's estate.
23-15 (c) A beneficiary designation that names a former spouse as
23-16 beneficiary is invalid for purposes of this section unless the
23-17 designation is made after the date of the divorce.
23-18 SECTION 24. Subsections (a) and (d), Section 814.603,
23-19 Government Code, are amended to read as follows:
23-20 (a) The retirement system shall make a supplemental payment
23-21 as provided by Subsection (d) to persons whose annuities are
23-22 described by Section 814.107, 814.207, 814.305, or 814.601(a) and
23-23 that are based on service retirements, disability retirements, or
23-24 deaths. This supplemental payment is in addition to the regular
23-25 monthly annuity payment. Each person who receives an annuity
23-26 described by this subsection is entitled to receive one payment
23-27 equal to 10 percent of one month's annuity payment for each fiscal
24-1 year that preceded or includes the effective date of the
24-2 requirement or authorization under Subsection (d) and <before the
24-3 fiscal year beginning September 1, 1993,> in which the annuity has
24-4 been paid. A supplemental payment may not exceed 350 percent of a
24-5 monthly annuity. <Only a person whose annuity began in the fiscal
24-6 year ending August 31, 1993, or earlier is eligible for the
24-7 supplemental payment.> Supplemental payments under this subsection
24-8 must comply with Section 811.006.
24-9 (d) The retirement system shall make a supplemental payment
24-10 under this section in the fiscal year ending August 31, 1997. The
24-11 board of trustees may by rule authorize similar supplemental
24-12 payments in succeeding <the> fiscal years <year ending August 31,
24-13 1995>, if the payments are in compliance with Section 811.006.
24-14 SECTION 25. Section 815.006, Government Code, is amended to
24-15 read as follows:
24-16 Sec. 815.006. Compensation; Expenses. (a) Notwithstanding
24-17 Subchapter C of Chapter 659, trustees <Trustees> who are
24-18 contributing members of the retirement system serve without
24-19 compensation but are entitled to reimbursement for all actual and
24-20 necessary expenses that they incur in the performance of official
24-21 board duties.
24-22 (b) Notwithstanding Subchapter C of Chapter 659, subject
24-23 <Subject> to the approval of the board of trustees, trustees who
24-24 are not contributing members of the retirement system may receive:
24-25 (1) compensation; and
24-26 (2) reimbursement for all actual and necessary
24-27 expenses that they incur in the performance of official board
25-1 duties.
25-2 SECTION 26. The heading of Section 815.110, Government Code,
25-3 is amended to read as follows:
25-4 Sec. 815.110. AUDITS <MANAGEMENT AUDIT>.
25-5 SECTION 27. Section 815.110, Government Code, is amended by
25-6 adding Subsection (e) to read as follows:
25-7 (e) The board of trustees annually shall select an
25-8 independent auditor to perform a financial audit of the retirement
25-9 system. The selection shall be made under a competitive bidding
25-10 process in which the state auditor is eligible to bid.
25-11 SECTION 28. Subsection (b), Section 815.301, Government
25-12 Code, is amended to read as follows:
25-13 (b) The board of trustees may delegate its authority under
25-14 Subsection (a) to the executive director. The board of trustees or
25-15 the executive director may, under the standard of care provided by
25-16 Section 815.307, invest and reinvest any of the retirement system's
25-17 assets and may commingle assets of the trust fund and the law
25-18 enforcement and custodial officer supplemental retirement fund with
25-19 the assets of the Judicial Retirement System of Texas Plan Two for
25-20 investment purposes, as long as proportionate ownership records are
25-21 maintained and credited. Investments may include home office
25-22 facilities, including land, equipment, and office building, used in
25-23 administering the retirement system.
25-24 SECTION 29. Subchapter F, Chapter 815, Government Code, is
25-25 amended by adding Section 815.511 to read as follows:
25-26 Sec. 815.511. APPEAL OF ADMINISTRATIVE DECISION. A person
25-27 aggrieved by a decision of any retirement system administered by
26-1 the board of trustees denying or limiting membership, service
26-2 credit, or eligibility for or the amount of benefits payable by a
26-3 system may appeal the decision to the board. The appeal is a
26-4 contested case under the administrative procedure law, Chapter
26-5 2001. On judicial appeal the standard of review is by substantial
26-6 evidence.
26-7 SECTION 30. (a) Except as provided by Subsections (b) and
26-8 (c) of this section, annuities that are described by Section
26-9 814.107, 814.207, or 814.305, or Subsection (a), 814.601,
26-10 Government Code, and are based on service retirements, disability
26-11 retirements, or deaths that occurred before September 1, 1995, are
26-12 increased by 12.5 percent.
26-13 (b) Annuities are increased under Subsection (a) of this
26-14 section only if the actuary for the Employees Retirement System of
26-15 Texas certifies, based on an August 31, 1995, actuarial valuation,
26-16 that all annuity increases and annuity recomputations required or
26-17 authorized by this Act, together with all other actuarial
26-18 liabilities resulting from legislation that is enacted by the 74th
26-19 Legislature in 1995 before August 31 and that has or will become
26-20 law, will not cause the time required to amortize the unfunded
26-21 actuarial liabilities of the retirement system to be increased to a
26-22 period that exceeds 31 years. For purposes of this subsection, a
26-23 bill will become law if it has not taken effect but either has been
26-24 signed by the governor or the time provided for gubernatorial
26-25 action under Section 14, Article IV, Texas Constitution, has
26-26 expired without the governor having vetoed the bill. The increase
26-27 in annuities under Subsection (a) of this section is payable
27-1 beginning with the first monthly payments of the annuities that
27-2 become due after the month in which the actuarial certification
27-3 required by this subsection is made to the board of trustees of the
27-4 retirement system.
27-5 (c) Retirements that occurred under the provisions of
27-6 Section 814.1051 or 814.1071, Government Code, are not increased by
27-7 this section.
27-8 (d) The board of trustees of the retirement system shall pay
27-9 the increased annuities provided by this section from the
27-10 retirement annuity reserve account of the retirement system and may
27-11 transfer to that account from the state accumulation account of the
27-12 retirement system any portion of the amount that exceeds the amount
27-13 in the retirement reserve account available to finance the
27-14 increases in benefits, and that is actuarially determined to be
27-15 necessary to finance the increases, for the duration of the
27-16 annuities to which the increases apply.
27-17 SECTION 31. (a) A member of the Employees Retirement System
27-18 of Texas who is an appointed officer of the 74th House of
27-19 Representatives of the State of Texas, as determined by the house
27-20 journal, who has at least 28 years of service credit in the
27-21 retirement system, and who has attained the age of 50 is eligible
27-22 to make an election under this section.
27-23 (b) A member of the Employees Retirement System of Texas who
27-24 has at least 18 years of service creditable in the retirement
27-25 system, who has served as the executive head of a legislative
27-26 service agency, and who has attained the age of 50 is eligible to
27-27 make an election under this section.
28-1 (c) An election under this section must be made in writing
28-2 and filed with the Employees Retirement System of Texas before
28-3 January 1, 1996, and is irrevocable after filing. A person who
28-4 makes an election under Subsection (a) of this section must retire
28-5 on the first effective retirement date that occurs after the date
28-6 of filing. After the filing of an election under this section, the
28-7 retirement system shall consider all the service credit established
28-8 by the person who makes the election, including service credit
28-9 established after the date the election is filed, as if it were
28-10 performed as a member of the elected class of membership.
28-11 SECTION 32. (a) The board of trustees of the Employees
28-12 Retirement System of Texas may increase annuities based on service
28-13 credited in the employee class of membership for retirements or
28-14 deaths that occur after August 31, 1995, and before September 1,
28-15 1996, if the retirement system's actuary certifies that the
28-16 adjustment will not cause the time required to amortize the
28-17 unfunded actuarial liabilities of the retirement system to be
28-18 increased to a period that exceeds 31 years.
28-19 (b) The rate of an adjustment under this section may not
28-20 exceed the rate provided under Section 30 of this Act. The board
28-21 may not adopt an adjustment under this section before September 1,
28-22 1996. An adjustment under this section does not apply to an
28-23 annuity until the first anniversary of the beginning of payments of
28-24 the annuity.
28-25 (c) The board of trustees shall pay annuities adjusted as
28-26 provided by this section in the same manner as annuities increased
28-27 under Section 30 of this Act are paid.
29-1 SECTION 33. Subchapter A, Chapter 830, Government Code, is
29-2 amended by adding Section 830.0011 to read as follows:
29-3 Sec. 830.0011. DEFINITION. Notwithstanding Section 821.001,
29-4 in this chapter "retirement system" means the Teacher Retirement
29-5 System of Texas or the Employees Retirement System of Texas, as the
29-6 context requires.
29-7 SECTION 34. Section 830.106, Government Code, is amended to
29-8 read as follows:
29-9 Sec. 830.106. Eligibility for Resumption of Membership. A
29-10 participant in the optional retirement program is not eligible for
29-11 membership in the retirement system unless the person:
29-12 (1) terminates employment covered by the optional
29-13 retirement program; and
29-14 (2) becomes employed in the public school system or
29-15 with a state agency in a position that is not eligible for
29-16 participation in the optional retirement program.
29-17 SECTION 35. Subchapter B, Chapter 832, Government Code, is
29-18 amended by adding Section 832.102 to read as follows:
29-19 Sec. 832.102. RESUMPTION OF FULL-TIME JUDICIAL SERVICE.
29-20 (a) A retiree who resumes service as a judicial officer other than
29-21 by appointment or assignment described in Section 832.101 may not
29-22 rejoin or receive credit in the retirement system for the resumed
29-23 service.
29-24 (b) The retirement system shall suspend annuity payments to
29-25 a retiree who resumes service described by this section. A
29-26 suspension of payments begins on the date a retiree takes the oath
29-27 of office and ends on a date when:
30-1 (1) the retiree no longer holds the office; and
30-2 (2) the retiree, or the retiree's beneficiary if the
30-3 retiree has died, has applied to the retirement system for
30-4 resumption of payments.
30-5 (c) Time during which annuity payments are suspended as
30-6 provided by this section does not reduce the number of months
30-7 payments are to be made under an optional benefit plan providing
30-8 for a specific amount of benefits for a guaranteed number of months
30-9 after retirement.
30-10 (d) Before a retiree takes the oath of office for a position
30-11 as a judicial officer other than under appointment or assignment
30-12 described by Section 832.101, the retiree shall notify the
30-13 retirement system in writing of the resumption of office and the
30-14 projected dates of service.
30-15 SECTION 36. Subchapter B, Chapter 833, Government Code, is
30-16 amended by adding Section 833.1031 to read as follows:
30-17 Sec. 833.1031. MILITARY SERVICE CREDIT GOVERNED BY UNIFORMED
30-18 SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT. The retirement
30-19 system may adopt rules to comply with the Uniformed Services
30-20 Employment and Reemployment Rights Act (38 U.S.C. Section 4301 et
30-21 seq.) and other federal laws affecting the crediting of military
30-22 service.
30-23 SECTION 37. Subchapter B, Chapter 838, Government Code, is
30-24 amended by adding Section 838.1031 to read as follows:
30-25 Sec. 838.1031. MILITARY SERVICE CREDIT GOVERNED BY UNIFORMED
30-26 SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT. The retirement
30-27 system may adopt rules to comply with the Uniformed Services
31-1 Employment and Reemployment Rights Act (38 U.S.C. Section 4301 et
31-2 seq.) and other federal laws affecting the crediting of military
31-3 service.
31-4 SECTION 38. Subdivisions (2) and (5), Subsection (a),
31-5 Section 3, Texas Employees Uniform Group Insurance Benefits Act
31-6 (Article 3.50-2, Vernon's Texas Insurance Code), are amended to
31-7 read as follows:
31-8 (2) "Annuitant" shall mean an officer or employee who
31-9 retires under:
31-10 (A) the jurisdiction of the Employees Retirement
31-11 System of Texas and either receives an annuity or is eligible to
31-12 receive an annuity, pursuant to Subtitle B, D, or E of Title 8,
31-13 Government Code, or Chapter 803, Government Code, that is based on
31-14 at least 10 years of service credit or eligibility under Section
31-15 814.002 or 814.102, Government Code;
31-16 (B) the jurisdiction of the Teacher Retirement
31-17 System of Texas and either receives an annuity or is eligible to
31-18 receive an annuity, pursuant to Subtitle C, Title 8, Government
31-19 Code, or Chapter 803, Government Code, that is based on at least 10
31-20 years of service credit, whose last state employment prior to
31-21 retirement, including employment by a public community/junior
31-22 college, was as an employee of a department whose employees are
31-23 authorized to participate in the Texas employees uniform group
31-24 insurance program <the Teacher Retirement System of Texas, school
31-25 districts established within state eleemosynary institutions, the
31-26 Texas Rehabilitation Commission, the Central Education Agency, the
31-27 Texas Higher Education Coordinating Board, or an institution of
32-1 higher education>;
32-2 (C) the optional retirement program established
32-3 by Chapter 830, Government Code, and either receives an annuity or
32-4 is eligible to receive an annuity under that program, if the
32-5 person's last state employment before retirement, including
32-6 employment by a public community/junior college, was as an <officer
32-7 or> employee of a department whose employees are authorized to
32-8 participate in the Texas employees uniform group insurance program
32-9 and if the person either:
32-10 (i) would have been eligible to retire and
32-11 receive a service retirement annuity from the Teacher Retirement
32-12 System of Texas or the Employees Retirement System of Texas based
32-13 on at least 10 years of service credit had the person not elected
32-14 to participate in the optional retirement program; or
32-15 (ii) is disabled as determined by the
32-16 Employees Retirement System of Texas <the Texas Higher Education
32-17 Coordinating Board or an institution of higher education>; or
32-18 (D) any other federal or state statutory
32-19 retirement program to which an institution of higher education has
32-20 made employer contributions, if the employee has met service
32-21 requirements, age requirements, and other applicable requirements
32-22 comparable to the requirements for retirement under the Teacher
32-23 Retirement System of Texas, based on at least 10 years of service
32-24 credit<, and if the person either:>
32-25 <(i) would have been eligible to retire
32-26 and receive a service retirement annuity from the Teacher
32-27 Retirement System of Texas based on at least 10 years of service
33-1 credit had the person not elected to participate in the optional
33-2 retirement program; or>
33-3 <(ii) is disabled>.
33-4 (5)(A) "Employee" shall mean any appointive or
33-5 elective <state> officer or employee in the service of the State of
33-6 Texas, including an employee of an institution of higher education:
33-7 (i) who is retired or retires and is an
33-8 annuitant under the jurisdiction of the Employees Retirement System
33-9 of Texas, pursuant to Subtitle B, D, or E;
33-10 (ii) <, or Chapter 803, Title 8,
33-11 Government Code,> who is retired or retires and is an annuitant
33-12 under the jurisdiction of the Teacher Retirement System of Texas,
33-13 pursuant to Subtitle C, Title 8, Government Code, or pursuant to
33-14 Chapter 803, Government Code, and whose last employment with the
33-15 state prior to retirement, including employment by a public
33-16 community/junior college, was as an employee of a department whose
33-17 employees are authorized to participate in the Texas employees
33-18 uniform group insurance program <the Teacher Retirement System of
33-19 Texas, school districts established within state eleemosynary
33-20 institutions, the Texas Rehabilitation Commission, the Central
33-21 Education Agency, the Texas Higher Education Coordinating Board, or
33-22 an institution of higher education, or who is retired or retires
33-23 and is an annuitant under the optional retirement program
33-24 established by Chapter 830, Government Code, if the person's last
33-25 state employment before retirement, including employment by a
33-26 public community/junior college, was as an officer or employee of
33-27 the Texas Higher Education Coordinating Board, or an institution of
34-1 higher education, and if the person either:>
34-2 <(a) would have been eligible to
34-3 retire and receive a service retirement annuity from the Teacher
34-4 Retirement System of Texas had the person not elected to
34-5 participate in the optional retirement program; or>
34-6 <(b) is disabled>;
34-7 (iii) who is retired or retires and is an
34-8 annuitant under the optional retirement program established by
34-9 Chapter 830, Government Code, if the person's last state employment
34-10 before retirement, including employment by a public
34-11 community/junior college, was as an employee of a department whose
34-12 employees are authorized to participate in the Texas employees
34-13 uniform group insurance program, and if the person either:
34-14 (a) would have been eligible to
34-15 retire and receive a service retirement annuity from the Teacher
34-16 Retirement System of Texas or the Employees Retirement System of
34-17 Texas had the person not elected to participate in the optional
34-18 retirement program; or
34-19 (b) is disabled as determined by the
34-20 Employees Retirement System of Texas;
34-21 (iv) <(ii)> who receives <his>
34-22 compensation for services rendered to the State of Texas, other
34-23 than an employee of an institution of higher education described by
34-24 this subdivision, on a warrant issued pursuant to a payroll
34-25 certified by a department or by an elected or duly appointed
34-26 officer of this state;
34-27 (v) <(iii)> who receives payment for the
35-1 performance of personal services on a warrant issued pursuant to a
35-2 payroll certified by a department and drawn by the State
35-3 Comptroller of Public Accounts upon the State Treasurer against
35-4 appropriations made by the Texas Legislature from any state funds
35-5 or against any trust funds held by the State Treasurer or who is
35-6 paid from funds of an official budget of a state department, rather
35-7 than from funds of the General Appropriations Act;
35-8 (vi) <(iv)> who is appointed, subject to
35-9 confirmation of the senate, as a member of a board or commission
35-10 with administrative responsibility over a statutory agency having
35-11 statewide jurisdiction whose employees are covered by this Act;
35-12 (vii) <(v)> who is a member of the
35-13 governing body of an institution of higher education, as that term
35-14 is defined by this Act <Section 61.003, Education Code, including
35-15 subsequent amendments to that section>;
35-16 (viii) <(vi)> who is a member of the State
35-17 Board of Education;
35-18 (ix) <(vii)> who receives compensation for
35-19 services rendered to an institution of higher education on a
35-20 warrant or check issued pursuant to a payroll certified by an
35-21 institution of higher education or by an elected or duly appointed
35-22 officer of this state, and who is eligible for participation in the
35-23 Teacher Retirement System of Texas; or
35-24 (x) <(viii)> who receives compensation for
35-25 services rendered to an institution of higher education as provided
35-26 by this subdivision but is not permitted to be a member of the
35-27 Teacher Retirement System of Texas because the person is solely
36-1 employed by an institution of higher education that as a condition
36-2 of employment requires the person to be enrolled as a student in an
36-3 institution of higher education in graduate-level courses and who
36-4 is employed by the institution at least 20 hours a week.
36-5 (B) Persons performing personal services for the
36-6 State of Texas as independent contractors shall never be considered
36-7 employees of the state for purposes of this Act.
36-8 SECTION 39. Section 4B, Texas Employees Uniform Group
36-9 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
36-10 Code), is amended by adding Subsection (a-1) and by amending
36-11 Subsection (c) to read as follows:
36-12 (a-1) If the executive director determines that a
36-13 participant has obtained coverage under any program provided under
36-14 the authority of this Act through the use of any material
36-15 misrepresentation or fraud or has fraudulently induced the
36-16 extension of coverage by making a material misrepresentation or by
36-17 supplying false information on any application for coverage or
36-18 related documentation or in any communication, the executive
36-19 director may rescind the coverage to the date of the inception of
36-20 the coverage or to the date of the fraudulent act or material
36-21 misrepresentation, deny any claim arising out of the fraudulently
36-22 induced coverage, or both. Remedies available to the executive
36-23 director under this subsection are in addition to and independent
36-24 of any expulsion action that may be instituted under Section 13A of
36-25 this Act. A decision of the executive director under this
36-26 subsection may be appealed to the trustee as provided by Subsection
36-27 (c) of this section.
37-1 (c) A decision by the executive director under Subsection
37-2 (a) or (a-1) of this section may be appealed only to the trustee.
37-3 An appeal to the trustee is a contested case under the
37-4 administrative procedure law, Chapter 2001, Government Code.
37-5 Standing to pursue an administrative appeal under this section is
37-6 limited to employees, annuitants, and covered dependents
37-7 participating in the Texas employees uniform group insurance
37-8 program or, after the death of a participant, to the participant's
37-9 estate, personal representative, heirs at law, or designated
37-10 beneficiary <Administrative Procedure and Texas Register Act
37-11 (Article 6252-13a, Vernon's Texas Civil Statutes)>.
37-12 SECTION 40. Subsection (f), Section 5, Texas Employees
37-13 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
37-14 Texas Insurance Code), is amended to read as follows:
37-15 (f) The trustee, in its sole discretion and in accordance
37-16 with the requirements of this section, shall determine those plans
37-17 of coverages for which the trustee does not intend to purchase
37-18 insurance and which it intends to provide directly from the
37-19 Employees Life, Accident, and Health Insurance and Benefits Fund.
37-20 Any plan of coverages for which the trustee does not purchase
37-21 insurance but provides under this Act on a self-funded basis is
37-22 exempt from any other insurance law unless the law expressly
37-23 applies to this plan or this Act. The trustee shall make an
37-24 estimate of the unrestricted balance of the fund. Unless such
37-25 estimated unrestricted balance is equal to at least 10 percent of
37-26 the total benefits expected to be provided directly from the fund
37-27 as a result of claims incurred during the fiscal year, the trustee
38-1 shall include in the contributions required the amount necessary to
38-2 establish an unrestricted balance in the fund of not less than 10
38-3 percent. The unrestricted balance shall be placed in a contingency
38-4 reserve fund to provide for adverse fluctuations in future charges,
38-5 claims, costs, or expenses of the program.
38-6 SECTION 41. Subsection (c), Section 13, Texas Employees
38-7 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
38-8 Texas Insurance Code), is amended to read as follows:
38-9 (c) Unless expelled from the program under Section 13A of
38-10 this Act, each part-time employee and each employee of an
38-11 institution of higher education who is described by Section
38-12 3(a)(5)(A)(viii) of this Act is eligible for participation in the
38-13 group programs provided under this Act upon execution of
38-14 appropriate payroll deduction authorization for the required
38-15 payment of premiums. An institution of higher education shall, at
38-16 the time of employment, notify each employee of the institution who
38-17 is described by Section 3(a)(5)(A)(viii) of this Act of the
38-18 employee's eligibility to participate in the group programs
38-19 provided under this Act.
38-20 SECTION 42. Section 13A, Texas Employees Uniform Group
38-21 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
38-22 Code), is amended to read as follows:
38-23 Sec. 13A. Expulsion From Group Insurance Program.
38-24 (a) After notice and hearing as provided by this section, the
38-25 trustee may expel from participation in the Texas employees uniform
38-26 group insurance program any employee, annuitant, or dependent who
38-27 submits a fraudulent claim or application for coverage under or has
39-1 defrauded or attempted to defraud any health maintenance
39-2 organization or insurance or benefits plan offered under the
39-3 program.
39-4 (b) On receipt of a complaint or on its own motion, the
39-5 trustee may call and hold a hearing to determine whether <or not>
39-6 an employee, annuitant, or dependent has submitted a fraudulent
39-7 claim or application for coverage under or has defrauded or
39-8 attempted to defraud any health maintenance organization or
39-9 insurance or benefits plan offered under the Texas employees
39-10 uniform group insurance program.
39-11 (c) A proceeding under this section is a contested case
39-12 under the administrative procedure law, Chapter 2001, Government
39-13 Code <Administrative Procedure and Texas Register Act (Article
39-14 6252-13a, Vernon's Texas Civil Statutes)>.
39-15 (d) At the conclusion of the hearing, if the trustee issues
39-16 a decision that finds that the accused employee, annuitant, or
39-17 dependent submitted a fraudulent claim or application for coverage
39-18 or has defrauded or attempted to defraud any health maintenance
39-19 organization or insurance or benefits plan offered under the Texas
39-20 employees uniform group insurance program, the trustee shall expel
39-21 the employee, annuitant, or dependent from participation in the
39-22 program.
39-23 (e) An appeal of a decision of the trustee under this
39-24 section is under the substantial evidence rule.
39-25 (f) An employee, annuitant, or dependent expelled from the
39-26 Texas employees uniform group insurance program may not participate
39-27 in a health maintenance organization or be insured under <by> any
40-1 <health> insurance or benefits plan offered by the program for a
40-2 period determined by the trustee of not more than five years from
40-3 the date the expulsion from the program takes effect.
40-4 SECTION 43. Subsection (a), Section 14, Texas Employees
40-5 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
40-6 Texas Insurance Code), is amended to read as follows:
40-7 (a) The trustee shall use the amount appropriated for
40-8 employer contributions in accordance with Section 15 of this Act
40-9 <and Subsection (a-1) of this section> to fund the basic coverage.
40-10 The trustee may equitably allocate to each health benefits plan the
40-11 employer contributions that would be required to fund basic health
40-12 coverage for participants in the plans to the extent funds are
40-13 available. In allocating the employer contributions among plans,
40-14 the trustee shall consider the relevant risk characteristics of
40-15 each plan's enrollment, including demographic variations in the use
40-16 and cost of health care and the prevailing cost patterns in the
40-17 area in which the plan operates. The allocation must be reasonable
40-18 and set in a manner which assures employees a fair choice among
40-19 health benefit plans providing a basic plan. The contribution set
40-20 for each employee shall be within the total amount appropriated in
40-21 the General Appropriations Act.
40-22 SECTION 44. Section 609.507, Government Code, is amended to
40-23 read as follows:
40-24 Sec. 609.507. Financial Institution as Qualified Vendor.
40-25 <(a)> Each bank or savings and loan association that is a
40-26 qualified vendor is not required to comply with Chapter 404 with
40-27 regard to deferrals and investment income, but shall comply with
41-1 plan rules that deal with vendors and investment products <shall:>
41-2 <(1) treat deferred amounts and investment income as
41-3 state funds; and>
41-4 <(2) comply with Chapter 404.>
41-5 <(b) The state treasurer shall monitor each bank or savings
41-6 and loan association that is a qualified vendor for compliance with
41-7 Chapter 404. The state treasurer shall immediately notify the
41-8 board of trustees of a violation of that chapter that the treasurer
41-9 observes.>
41-10 <(c) The board of trustees is entitled to rely on the
41-11 supervision of the state treasurer>.
41-12 SECTION 45. The following provisions are repealed:
41-13 (1) Subsection (h), Section 814.107, Government Code;
41-14 (2) Section 815.108, Government Code;
41-15 (3) Subsection (g), Section 815.403, Government Code;
41-16 and
41-17 (4) Subsection (a-1), Section 14, Texas Employees
41-18 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
41-19 Texas Insurance Code).
41-20 SECTION 46. (a) The Employees Retirement System of Texas
41-21 shall recompute each annuity that is based on the service of a
41-22 person who has retired under Section 814.1071, Government Code, to
41-23 include an amount, proportional to the amount authorized for each
41-24 year of credit under Section 814.107, Government Code, for each
41-25 whole month of credit as a law enforcement or custodial officer
41-26 that was not used in the original computation of the annuity.
41-27 (b) The increases in annuities provided by this section are
42-1 payable, from the law enforcement and custodial officer
42-2 supplemental retirement fund, beginning with the first payments of
42-3 the annuities that become due after the month in which the
42-4 retirement system's actuary certifies to the board of trustees that
42-5 the increases will not cause the time required to amortize the
42-6 unfunded actuarial liabilities of the retirement system to be
42-7 increased to a period that exceeds 31 years.
42-8 SECTION 47. The Judicial Retirement System of Texas Plan One
42-9 shall suspend payments of an annuity to any retiree who before the
42-10 effective date of this Act resumed service for which a suspension
42-11 is required by Section 832.102, Government Code, as added by this
42-12 Act. The suspension shall apply beginning with annuity payments
42-13 that become due in the month after the month in which this section
42-14 takes effect and ending as provided by Section 832.102.
42-15 SECTION 48. If the Employees Retirement System of Texas
42-16 receives a certified copy of a divorce decree that was entered
42-17 before August 28, 1995, and that purports to revoke or order the
42-18 revocation of a designation of a beneficiary by a retiree of the
42-19 retirement system, on receipt of a written directive from the
42-20 retiree, the retirement system shall change its records and, as
42-21 appropriate, begin payments of any recomputed annuity, as provided
42-22 by Section 814.008, Government Code, as added by this Act, or
42-23 Section 814.1081, Government Code, as amended by this Act, as if
42-24 the decree were entered after that date.
42-25 SECTION 49. The change in law made by this Act to Subsection
42-26 (c), Section 13, Texas Employees Uniform Group Insurance Benefits
42-27 Act (Article 3.50-2, Vernon's Texas Insurance Code), applies only
43-1 to persons who become employed for the first time by a particular
43-2 institution of higher education during the 1995-1996 or a
43-3 subsequent academic year.
43-4 SECTION 50. The change in law made by this Act to Subsection
43-5 (b), Section 813.506, Government Code, applies only to persons who
43-6 become employed by the Texas Department of Criminal Justice on or
43-7 after September 1, 1995.
43-8 SECTION 51. This Act takes effect August 28, 1995, except
43-9 Section 8 of this Act, which takes effect September 1, 1995.
43-10 SECTION 52. The importance of this legislation and the
43-11 crowded condition of the calendars in both houses create an
43-12 emergency and an imperative public necessity that the
43-13 constitutional rule requiring bills to be read on three several
43-14 days in each house be suspended, and this rule is hereby suspended.