74R12518 GCH-D
By Armbrister S.B. No. 1231
Substitute the following for S.B. No. 1231:
By Telford C.S.S.B. No. 1231
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers and duties of and systems and programs under
1-3 the Employees Retirement System of Texas.
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1-21 remains credited in that system, unless the person has withdrawn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. Sections 805.007(a) and (b), Government Code, are
3-21 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. Section 805.002(c), Government Code, is amended
6-13 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 by
8-7 amending Subsections (a) and (c) and redesignating and amending
8-8 Subsection (e) as Subsection (d) to read as follows:
8-9 (a) The Texas Department of Criminal Justice <Corrections>
8-10 by rule shall adopt standards for determining eligibility for
8-11 service credit as a custodial officer, based on the need to
8-12 encourage early retirement of persons whose duties are hazardous
8-13 and require them to have routine contact with inmates of or
8-14 defendants confined in the state jail division of the Texas
8-15 Department of Criminal Justice <Corrections> on a regular basis.
8-16 (c) The <institutional division of the> Texas Department of
8-17 Criminal Justice shall determine a person's eligibility to receive
8-18 credit as a custodial officer. A determination of the department
8-19 <division> may not be appealed by an employee but is subject to
8-20 change by the retirement system.
8-21 (d) <(e)> As part of the audit of <the institutional
8-22 division of> the Texas Department of Criminal Justice by the state
8-23 auditor in accordance with Chapter 321, the state auditor <State
8-24 Auditor> may verify the accuracy of reports submitted to the
8-25 retirement system under this section. The state auditor shall
8-26 review biennially the standards adopted by the department under
8-27 Subsection (a).
9-1 SECTION 9. Section 813.509, Government Code, is amended to
9-2 read as follows:
9-3 Sec. 813.509. Credit for Accumulated Sick Leave. (a) A
9-4 member who holds a position included in the employee class of
9-5 membership during the month that includes the effective date of the
9-6 member's retirement and who retires based on service or a
9-7 disability is entitled to service credit in the retirement system
9-8 for the member's sick leave that has accumulated and is unused on
9-9 the last day of employment. Sick leave is creditable in the
9-10 retirement system at the rate of one month of service credit for
9-11 each 20 days, or 160 hours, of accumulated sick leave. An
9-12 increment of less than 20 days is not creditable.
9-13 (b) A member who holds a position included in the employee
9-14 class may use sick leave creditable under this section to satisfy
9-15 service requirements for retirement under Section 814.104 or
9-16 814.107 if the sick leave attributed to the eligibility
9-17 requirements remains otherwise unused on the last day of
9-18 employment.
9-19 (c) Except as provided by Subsection (d), the <The>
9-20 disbursing officer of each department or agency shall, before the
9-21 11th day after the effective date of retirement of one or more
9-22 employees of the department or agency <of each month>, certify to
9-23 the retirement system:
9-24 (1) the name of each person whose retirement from the
9-25 department or agency, and from state service, became effective
9-26 during the preceding month; and
9-27 (2) the amount of the person's accumulated sick leave
10-1 on the last day of employment.
10-2 (d) The disbursing officer of a department or agency that
10-3 employs a member who applies for retirement under Subsection (b)
10-4 shall, not more than 90 or less than 30 days before the effective
10-5 date of the member's retirement, certify to the retirement system
10-6 the amount of the member's accumulated and unused sick leave. The
10-7 officer shall immediately notify the retirement system if the
10-8 member uses sick leave after the date of certification.
10-9 (e) <(c)> On receipt of a certification under Subsection (c)
10-10 or (d) <(b)>, the retirement system shall grant any credit to which
10-11 a retiring member or retiree who is a subject of the certification
10-12 is entitled. An increase in the computation of an annuity because
10-13 of credit provided by this section after a certification under
10-14 Subsection (c) begins with the first payment that becomes due after
10-15 certification.
10-16 (f) The retirement system shall cancel the retirement of a
10-17 person who used sick leave creditable under this section to qualify
10-18 for service retirement if the sick leave is otherwise used by the
10-19 person before the effective date of retirement.
10-20 (g) In this section, "sick leave" does not include credit
10-21 granted under an agency sick-leave pool or under the Family and
10-22 Medical Leave Act of 1993 (Pub. L. 103-3).
10-23 SECTION 10. Subchapter F, Chapter 813, Government Code, is
10-24 amended by adding Section 813.510 to read as follows:
10-25 Sec. 813.510. CREDIT FOR CERTAIN AGRICULTURAL SERVICE. (a)
10-26 An eligible member may, before January 1, 1996, elect to establish
10-27 service credit in the retirement system for service performed for
11-1 the Department of Agriculture as an employee of the Federal State
11-2 Inspection Service of Texas.
11-3 (b) A member eligible to establish credit under this section
11-4 is one who became an employee of or resumed employment with the
11-5 Department of Agriculture in May 1992 on the creation of the Texas
11-6 Cooperative Inspection Program.
11-7 (c) A member may establish credit under this section by
11-8 depositing with the retirement system:
11-9 (1) a contribution based on the member's monthly
11-10 compensation during the period of service for the Department of
11-11 Agriculture as an employee of the Federal State Inspection Service
11-12 of Texas and computed for the number of months for which credit is
11-13 sought at the combined contribution rates required during the
11-14 period for the state and employee members of the system for new
11-15 service;
11-16 (2) interest computed on the basis of the state fiscal
11-17 year at an annual rate of 10 percent from the date the service was
11-18 performed to the date of deposit; and
11-19 (3) any membership fees required of members of the
11-20 system during the period of the service.
11-21 (d) An election under this section must be filed with the
11-22 retirement system on a form provided by the system. Credit may be
11-23 established under this section by a lump-sum payment or by payments
11-24 authorized by Section 813.104 or 813.105.
11-25 (e) The retirement system shall deposit the compensation
11-26 contribution in the member's individual account in the employees
11-27 saving account, interest in the state accumulation account, and
12-1 membership fees in the expense account.
12-2 (f) The retirement system shall determine the amount to be
12-3 deposited in each case and may not grant service credit to a member
12-4 under this section until the member provides proof of eligibility
12-5 for the credit that is satisfactory to the retirement system.
12-6 SECTION 11. Section 814.003, Government Code, is amended by
12-7 adding Subsection (e) to read as follows:
12-8 (e) If a person elects to receive a standard disability
12-9 retirement annuity and dies during the first calendar month that
12-10 begins after the effective date of the person's retirement, the
12-11 person is considered to have been a contributing member at the time
12-12 of death.
12-13 SECTION 12. Section 814.004, Government Code, is amended to
12-14 read as follows:
12-15 Sec. 814.004. When Benefits are Payable. A monthly annuity
12-16 payable to a retiree or beneficiary is payable to that person
12-17 through the month in which the person dies. A continuation of an
12-18 optional annuity or the payment of a death or survivor benefit
12-19 annuity begins with payment for the month following the month in
12-20 which the death occurs. <An annuity provided by this chapter
12-21 accrues for the period beginning on the first day of the month that
12-22 begins after the month in which a person dies or retires, as
12-23 applicable, and ending, except as otherwise provided by this
12-24 chapter, on the day the person who receives the annuity dies.>
12-25 SECTION 13. Subchapter A, Chapter 814, Government Code, is
12-26 amended by adding Sections 814.006 and 814.007 to read as follows:
12-27 Sec. 814.006. SIMULTANEOUS DEATH OF MEMBER AND BENEFICIARY.
13-1 When a member or annuitant and the beneficiary of the member or
13-2 annuitant have died within a period of less than 120 hours, the
13-3 member or annuitant is considered to have survived the beneficiary
13-4 for the purpose of determining the rights to amounts payable under
13-5 this subtitle on the death of the member or annuitant.
13-6 Sec. 814.007. BENEFICIARY CAUSING DEATH OF MEMBER OR
13-7 ANNUITANT. (a) A benefit payable on the death of a member or
13-8 annuitant may not be paid to a person convicted of causing that
13-9 death but instead is payable as if the convicted person had
13-10 predeceased the decedent.
13-11 (b) A person who becomes eligible under this section to
13-12 select death or survivor benefits may select benefits as if the
13-13 person were the designated beneficiary.
13-14 (c) The retirement system shall reduce any annuity computed
13-15 in part on the age of the convicted person to a lump sum equal to
13-16 the present value of the remainder of the annuity. The reduced
13-17 amount is payable to a person entitled as provided by this section
13-18 to receive the benefit.
13-19 (d) The retirement system is not required to change the
13-20 recipient of benefits under this section unless it receives actual
13-21 notice of the conviction of a beneficiary. However, the retirement
13-22 system may delay payment of a benefit payable on the death of a
13-23 member or annuitant pending the results of a criminal investigation
13-24 and of legal proceedings relating to the cause of death.
13-25 (e) For the purposes of this section, a person has been
13-26 convicted of causing the death of a member or annuitant if the
13-27 person:
14-1 (1) pleads guilty or nolo contendere to, or is found
14-2 guilty by a court of, causing the death of the member or annuitant,
14-3 regardless of whether sentence is imposed or probated; and
14-4 (2) has no appeal of the conviction pending and the
14-5 time provided for appeal has expired.
14-6 SECTION 14. Sections 814.107(b) and (f), Government Code,
14-7 are amended to read as follows:
14-8 (b) The standard service retirement annuity payable for at
14-9 least 20 years of service credit as a law enforcement or custodial
14-10 officer is an amount computed on the basis of the member's average
14-11 monthly compensation for that service for the 36 highest months of
14-12 compensation, times the sum of the percentage factor used in the
14-13 computation of a standard service retirement annuity under Section
14-14 814.105 plus .5 percent. <a percentage derived from the following
14-15 table:>
14-16 <Years of Law Enforcement or Percentage of Average>
14-17 <Custodial Officer Service Credit Monthly Compensation>
14-18 <at least 20 but less than 21 50 percent>
14-19 <at least 21 but less than 22 52 percent>
14-20 <at least 22 but less than 23 54 percent>
14-21 <at least 23 but less than 24 56 percent>
14-22 <at least 24 but less than 25 58 percent>
14-23 <at least 25 but less than 26 60 percent>
14-24 <at least 26 but less than 27 62 percent>
14-25 <at least 27 but less than 28 64 percent>
14-26 <at least 28 but less than 29 66 percent>
14-27 <at least 29 but less than 30 68 percent>
15-1 <at least 30 but less than 31 70 percent>
15-2 <at least 31 but less than 32 71 percent>
15-3 <at least 32 but less than 33 72 percent>
15-4 <at least 33 but less than 34 73 percent>
15-5 <at least 34 but less than 35 74 percent>
15-6 <at least 35 but less than 36 75 percent>
15-7 <at least 36 but less than 37 76 percent>
15-8 <at least 37 but less than 38 77 percent>
15-9 <at least 38 but less than 39 78 percent>
15-10 <at least 39 but less than 40 79 percent>
15-11 <40 or more 80 percent>
15-12 (f) The standard combined service retirement annuity payable
15-13 for at least 20 years of service credit as a law enforcement or
15-14 custodial officer may not exceed 100 <80> percent of the higher of
15-15 the average compensation computed under Section 814.105 or the
15-16 average compensation computed under Subsection (b).
15-17 SECTION 15. Section 814.108, Government Code, is amended by
15-18 adding Subsection (g) to read as follows:
15-19 (g) Except as provided by Section 814.1081, a person who
15-20 selected an optional service retirement annuity approved by the
15-21 board of trustees or an optional service retirement annuity
15-22 described by Subsection (c)(1) or (c)(2) may not change or revoke a
15-23 beneficiary designation after the person's effective date of
15-24 retirement.
15-25 SECTION 16. Sections 814.207(b), (d), and (e), Government
15-26 Code, are amended to read as follows:
15-27 (b) Except as provided by Subsection (c), an occupational
16-1 disability retirement annuity under this section is an amount, but
16-2 not more than 100 <80> percent, computed on the basis of the
16-3 officer's monthly compensation at the time of the disabling injury
16-4 or disease, times a percentage derived by application of <the table
16-5 provided by> Section 814.107(b).
16-6 (d) The portions <portion> of the annuity under this section
16-7 payable from the law enforcement and custodial officer supplemental
16-8 retirement fund are <is> the amount remaining after deduction of
16-9 any amount payable under Section 814.206, except the portion of an
16-10 amount that exceeds the minimum payments provided by Section
16-11 814.206(b) and that is made for service other than as a law
16-12 enforcement or custodial officer and any amount by which an annuity
16-13 is increased under Subsection (e).
16-14 (e) If a retiring member or retiree under this section
16-15 presents evidence satisfactory to the retirement system that the
16-16 person's condition makes the person incapable of gainful occupation
16-17 and is considered a total disability under federal social security
16-18 law, the retirement system shall increase the person's occupational
16-19 disability retirement annuity to 100 percent of the officer's
16-20 monthly compensation at the time of the disabling injury or
16-21 disease. <If Section 815.405 is held to be invalid by a court of
16-22 competent jurisdiction and the decision becomes final, an annuity
16-23 may not be paid under this section.>
16-24 SECTION 17. Section 814.301, Government Code, is amended by
16-25 adding Subsection (e) to read as follows:
16-26 (e) A beneficiary designation that names a former spouse as
16-27 beneficiary is invalid for purposes of this section unless the
17-1 designation is made after the date of the divorce.
17-2 SECTION 18. Section 814.302(a), Government Code, is amended
17-3 to read as follows:
17-4 (a) If a member eligible to select a death benefit plan
17-5 under Section 814.301 dies without having made a selection, or if a
17-6 selection cannot be made effective, the member's designated
17-7 beneficiary <surviving spouse> may select a plan in the same manner
17-8 as if the member had made the selection. If there is no designated
17-9 beneficiary <surviving spouse>, the personal representative of the
17-10 decedent's estate may make the selection for the benefit of the
17-11 decedent's heirs or devisees. In lieu of selecting a death benefit
17-12 plan, the designated beneficiary <surviving spouse> or, if there is
17-13 none, the personal representative of the decedent's estate, may
17-14 elect to receive a refund of contributions and any applicable
17-15 payment under Section 814.401.
17-16 SECTION 19. Sections 814.401(b) and (d), Government Code,
17-17 are amended to read as follows:
17-18 (b) The benefit provided by this section is payable to the
17-19 beneficiary designated by the member under Section 814.403(b) <a
17-20 person designated by the member in a signed document filed with the
17-21 retirement system>. If a member does not designate a beneficiary
17-22 or if the beneficiary designation cannot be made effective <does
17-23 not survive the member>, the benefit is payable to the member's
17-24 estate.
17-25 (d) A death benefit may not be paid under this section if,
17-26 at the time of death, a death benefit annuity <under Section
17-27 814.301> became effective.
18-1 SECTION 20. Section 814.403, Government Code, is amended to
18-2 read as follows:
18-3 Sec. 814.403. Return of Contributions. (a) Except as
18-4 provided by Subsection (d) <(c)>, if a member dies before
18-5 retirement, the amount in the member's individual account in the
18-6 employees saving account at the time of death is payable as a
18-7 lump-sum death benefit.
18-8 (b) Except as provided by Subsection (c), the <The> benefit
18-9 provided by this section is payable to a person designated by the
18-10 member in a signed and witnessed document filed with the retirement
18-11 system before the member's death. A designation, change, or
18-12 revocation of a beneficiary in a will or other document not filed
18-13 with the retirement system is not effective. If a member does not
18-14 designate a beneficiary or if the beneficiary designation cannot be
18-15 made effective <does not survive the member>, the benefit is
18-16 payable to the member's estate.
18-17 (c) A beneficiary designation that names a former spouse as
18-18 beneficiary is invalid for purposes of this section unless the
18-19 designation is made after the date of the divorce.
18-20 (d) A death benefit may not be paid under this section if,
18-21 at the time of death, a death benefit annuity <under Section
18-22 814.301> became effective.
18-23 SECTION 21. Section 814.501, Government Code, is amended by
18-24 amending Subsection (b) and adding Subsection (c) to read as
18-25 follows:
18-26 (b) The benefit provided by this section is payable to a
18-27 person designated by the retiree in a signed and witnessed document
19-1 filed with the retirement system before the retiree's death. A
19-2 designation, change, or revocation of a beneficiary in a will or
19-3 other document not filed with the retirement system is not
19-4 effective. If a retiree does not designate a beneficiary or if the
19-5 beneficiary designation cannot be made effective <does not survive
19-6 the retiree>, the benefit is payable to the retiree's estate.
19-7 (c) A beneficiary designation that names a former spouse as
19-8 beneficiary is invalid for purposes of this section unless the
19-9 designation is made after the date of the divorce.
19-10 SECTION 22. Sections 814.603(a) and (d), Government Code,
19-11 are amended to read as follows:
19-12 (a) The retirement system shall make a supplemental payment
19-13 as provided by Subsection (d) to persons whose annuities are
19-14 described by Section 814.107, 814.207, 814.305, or 814.601(a) and
19-15 that are based on service retirements, disability retirements, or
19-16 deaths. This supplemental payment is in addition to the regular
19-17 monthly annuity payment. Each person who receives an annuity
19-18 described by this subsection is entitled to receive one payment
19-19 equal to 10 percent of one month's annuity payment for each fiscal
19-20 year that preceded or includes the effective date of the
19-21 requirement or authorization under Subsection (d) and <before the
19-22 fiscal year beginning September 1, 1993,> in which the annuity has
19-23 been paid. A supplemental payment may not exceed 350 percent of a
19-24 monthly annuity. <Only a person whose annuity began in the fiscal
19-25 year ending August 31, 1993, or earlier is eligible for the
19-26 supplemental payment.> Supplemental payments under this subsection
19-27 must comply with Section 811.006.
20-1 (d) The retirement system shall make a supplemental payment
20-2 under this section in the fiscal year ending August 31, 1997. The
20-3 board of trustees may by rule authorize similar supplemental
20-4 payments in succeeding <the> fiscal years <year ending August 31,
20-5 1995>, if the payments are in compliance with Section 811.006.
20-6 SECTION 23. Section 815.006, Government Code, is amended to
20-7 read as follows:
20-8 Sec. 815.006. Compensation; Expenses. (a) Notwithstanding
20-9 Subchapter C of Chapter 659, trustees <Trustees> who are
20-10 contributing members of the retirement system serve without
20-11 compensation but are entitled to reimbursement for all actual and
20-12 necessary expenses that they incur in the performance of official
20-13 board duties.
20-14 (b) Notwithstanding Subchapter C of Chapter 659, subject
20-15 <Subject> to the approval of the board of trustees, trustees who
20-16 are not contributing members of the retirement system may receive:
20-17 (1) compensation; and
20-18 (2) reimbursement for all actual and necessary
20-19 expenses that they incur in the performance of official board
20-20 duties.
20-21 SECTION 24. The heading of Section 815.110, Government Code,
20-22 is amended to read as follows:
20-23 Sec. 815.110. AUDITS <MANAGEMENT AUDIT>.
20-24 SECTION 25. Section 815.110, Government Code, is amended by
20-25 adding Subsection (e) to read as follows:
20-26 (e) The board of trustees annually shall select an
20-27 independent auditor to perform a financial audit of the retirement
21-1 system. The selection shall be made under a competitive bidding
21-2 process in which the state auditor is eligible to bid.
21-3 SECTION 26. Section 815.301(b), Government Code, is amended
21-4 to read as follows:
21-5 (b) The board of trustees may delegate its authority under
21-6 Subsection (a) to the executive director. The board of trustees or
21-7 the executive director may, under the standard of care provided by
21-8 Section 815.307, invest and reinvest any of the retirement system's
21-9 assets and may commingle assets of the trust fund and the law
21-10 enforcement and custodial officer supplemental retirement fund with
21-11 the assets of the Judicial Retirement System of Texas Plan Two for
21-12 investment purposes, as long as proportionate ownership records are
21-13 maintained and credited. Investments may include home office
21-14 facilities, including land, equipment, and office building, used in
21-15 administering the retirement system.
21-16 SECTION 27. Subchapter F, Chapter 815, Government Code, is
21-17 amended by adding Section 815.511 to read as follows:
21-18 Sec. 815.511. APPEAL OF ADMINISTRATIVE DECISION. A person
21-19 aggrieved by a decision of any retirement system administered by
21-20 the board of trustees denying or limiting membership, service
21-21 credit, or eligibility for or the amount of benefits payable by a
21-22 system may appeal the decision to the board. The appeal is a
21-23 contested case under the administrative procedure law, Chapter
21-24 2001. On judicial appeal the standard of review is by substantial
21-25 evidence.
21-26 SECTION 28. (a) Except as provided by Subsections (b) and
21-27 (c) of this section, annuities that are described by Section
22-1 814.107, 814.207, 814.305, or 814.601(a), Government Code, and are
22-2 based on service retirements, disability retirements, or deaths
22-3 that occurred before September 1, 1995, are increased by 12.5
22-4 percent.
22-5 (b) Annuities are increased under Subsection (a) of this
22-6 section only if the actuary for the Employees Retirement System of
22-7 Texas certifies, based on an August 31, 1995, actuarial valuation,
22-8 that all annuity increases and annuity recomputations required or
22-9 authorized by this Act, together with all other actuarial
22-10 liabilities resulting from legislation that is enacted by the 74th
22-11 Legislature in 1995 before August 31 and that has or will become
22-12 law, will not cause the time required to amortize the unfunded
22-13 actuarial liabilities of the retirement system to be increased to a
22-14 period that exceeds 31 years. For purposes of this subsection, a
22-15 bill will become law if it has not taken effect but either has been
22-16 signed by the governor or the time provided for gubernatorial
22-17 action under Section 14, Article IV, Texas Constitution, has
22-18 expired without the governor having vetoed the bill. The increase
22-19 in annuities under Subsection (a) of this section is payable
22-20 beginning with the first monthly payments of the annuities that
22-21 become due after the month in which the actuarial certification
22-22 required by this subsection is made to the board of trustees of the
22-23 retirement system.
22-24 (c) Retirements that occurred under the provisions of
22-25 Section 814.1051 or 814.1071, Government Code, are not increased by
22-26 this section.
22-27 (d) The board of trustees of the retirement system shall pay
23-1 the increased annuities provided by this section from the
23-2 retirement annuity reserve account of the retirement system and may
23-3 transfer to that account from the state accumulation account of the
23-4 retirement system any portion of the amount that exceeds the amount
23-5 in the retirement reserve account available to finance the
23-6 increases in benefits, and that is actuarially determined to be
23-7 necessary to finance the increases, for the duration of the
23-8 annuities to which the increases apply.
23-9 SECTION 29. (a) A member of the Employees Retirement System
23-10 of Texas who is an appointed officer of the 74th House of
23-11 Representatives of the State of Texas, as determined by the house
23-12 journal, who has at least 28 years of service credit in the
23-13 retirement system, and who has attained the age of 50 is eligible
23-14 to make an election under this section.
23-15 (b) A member of the Employees Retirement System of Texas who
23-16 has at least 18 years of service creditable in the retirement
23-17 system, who has served as the executive head of a legislative
23-18 service agency, and who has attained the age of 50 is eligible to
23-19 make an election under this section.
23-20 (c) An election under this section must be made in writing
23-21 and filed with the Employees Retirement System of Texas before
23-22 January 1, 1996, and is irrevocable after filing. A person who
23-23 makes an election under Subsection (a) must retire on the first
23-24 effective retirement date that occurs after the date of filing.
23-25 After the filing of an election under this section, the retirement
23-26 system shall consider all the service credit established by the
23-27 person who makes the election, including service credit established
24-1 after the date the election is filed, as if it were performed as a
24-2 member of the elected class of membership.
24-3 SECTION 30. (a) The board of trustees of the Employees
24-4 Retirement System of Texas may increase annuities based on service
24-5 credited in the employee class of membership for retirements or
24-6 deaths that occur after August 31, 1995, and before September 1,
24-7 1996, if the retirement system's actuary certifies that the
24-8 adjustment will not cause the time required to amortize the
24-9 unfunded actuarial liabilities of the retirement system to be
24-10 increased to a period that exceeds 31 years.
24-11 (b) The rate of an adjustment under this section may not
24-12 exceed the rate provided under Section 28 of this Act. The board
24-13 may not adopt an adjustment under this section before September 1,
24-14 1996. An adjustment under this section does not apply to an
24-15 annuity until the first anniversary of the beginning of payments of
24-16 the annuity.
24-17 (c) The board of trustees shall pay annuities adjusted as
24-18 provided by this section in the same manner as annuities increased
24-19 under Section 28 of this Act are paid.
24-20 SECTION 31. Subchapter A, Chapter 830, Government Code, is
24-21 amended by adding Section 830.0011 to read as follows:
24-22 Sec. 830.0011. DEFINITION. Notwithstanding Section 821.001,
24-23 in this chapter "retirement system" means the Teacher Retirement
24-24 System of Texas or the Employees Retirement System of Texas, as the
24-25 context requires.
24-26 SECTION 32. Section 830.106, Government Code, is amended to
24-27 read as follows:
25-1 Sec. 830.106. Eligibility for Resumption of Membership. A
25-2 participant in the optional retirement program is not eligible for
25-3 membership in the retirement system unless the person:
25-4 (1) terminates employment covered by the optional
25-5 retirement program; and
25-6 (2) becomes employed in the public school system or
25-7 with a state agency in a position that is not eligible for
25-8 participation in the optional retirement program.
25-9 SECTION 33. Subchapter B, Chapter 832, Government Code, is
25-10 amended by adding Section 832.102 to read as follows:
25-11 Sec. 832.102. RESUMPTION OF FULL-TIME JUDICIAL SERVICE. (a)
25-12 A retiree who resumes service as a judicial officer other than by
25-13 appointment or assignment described in Section 832.101 may not
25-14 rejoin or receive credit in the retirement system for the resumed
25-15 service.
25-16 (b) The retirement system shall suspend annuity payments to
25-17 a retiree who resumes service described by this section. A
25-18 suspension of payments begins on the date a retiree takes the oath
25-19 of office and ends on a date when:
25-20 (1) the retiree no longer holds the office; and
25-21 (2) the retiree, or the retiree's beneficiary if the
25-22 retiree has died, has applied to the retirement system for
25-23 resumption of payments.
25-24 (c) Time during which annuity payments are suspended as
25-25 provided by this section does not reduce the number of months
25-26 payments are to be made under an optional benefit plan providing
25-27 for a specific amount of benefits for a guaranteed number of months
26-1 after retirement.
26-2 (d) Before a retiree takes the oath of office for a position
26-3 as a judicial officer other than under appointment or assignment
26-4 described by Section 832.101, the retiree shall notify the
26-5 retirement system in writing of the resumption of office and the
26-6 projected dates of service.
26-7 SECTION 34. Subchapter B, Chapter 833, Government Code, is
26-8 amended by adding Section 833.1031 to read as follows:
26-9 Sec. 833.1031. MILITARY SERVICE CREDIT GOVERNED BY UNIFORMED
26-10 SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT. The retirement
26-11 system may adopt rules to comply with the Uniformed Services
26-12 Employment and Reemployment Rights Act (38 U.S.C. Section 4301 et
26-13 seq.) and other federal laws affecting the crediting of military
26-14 service.
26-15 SECTION 35. Subchapter B, Chapter 838, Government Code, is
26-16 amended by adding Section 838.1031 to read as follows:
26-17 Sec. 838.1031. MILITARY SERVICE CREDIT GOVERNED BY UNIFORMED
26-18 SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT. The retirement
26-19 system may adopt rules to comply with the Uniformed Services
26-20 Employment and Reemployment Rights Act (38 U.S.C. Section 4301 et
26-21 seq.) and other federal laws affecting the crediting of military
26-22 service.
26-23 SECTION 36. Sections 3(a)(2) and (5), Texas Employees
26-24 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
26-25 Texas Insurance Code), are amended to read as follows:
26-26 (2) "Annuitant" shall mean an officer or employee who
26-27 retires under:
27-1 (A) the jurisdiction of the Employees Retirement
27-2 System of Texas and either receives an annuity or is eligible to
27-3 receive an annuity, pursuant to Subtitle B, D, or E of Title 8,
27-4 Government Code, or Chapter 803, Government Code, that is based on
27-5 at least 10 years of service credit or eligibility under Section
27-6 814.002 or 814.102, Government Code;
27-7 (B) the jurisdiction of the Teacher Retirement
27-8 System of Texas and either receives an annuity or is eligible to
27-9 receive an annuity, pursuant to Subtitle C, Title 8, Government
27-10 Code, or Chapter 803, Government Code, that is based on at least 10
27-11 years of service credit, whose last state employment prior to
27-12 retirement, including employment by a public community/junior
27-13 college, was as an employee of a department whose employees are
27-14 authorized to participate in the Texas employees uniform group
27-15 insurance program <the Teacher Retirement System of Texas, school
27-16 districts established within state eleemosynary institutions, the
27-17 Texas Rehabilitation Commission, the Central Education Agency, the
27-18 Texas Higher Education Coordinating Board, or an institution of
27-19 higher education>;
27-20 (C) the optional retirement program established
27-21 by Chapter 830, Government Code, and either receives an annuity or
27-22 is eligible to receive an annuity under that program, if the
27-23 person's last state employment before retirement, including
27-24 employment by a public community/junior college, was as an <officer
27-25 or> employee of a department whose employees are authorized to
27-26 participate in the Texas employees uniform group insurance program
27-27 and if the person either:
28-1 (i) would have been eligible to retire and
28-2 receive a service retirement annuity from the Teacher Retirement
28-3 System of Texas or the Employees Retirement System of Texas based
28-4 on at least 10 years of service credit had the person not elected
28-5 to participate in the optional retirement program; or
28-6 (ii) is disabled as determined by the
28-7 Employees Retirement System of Texas <the Texas Higher Education
28-8 Coordinating Board or an institution of higher education>; or
28-9 (D) any other federal or state statutory
28-10 retirement program to which an institution of higher education has
28-11 made employer contributions, if the employee has met service
28-12 requirements, age requirements, and other applicable requirements
28-13 comparable to the requirements for retirement under the Teacher
28-14 Retirement System of Texas, based on at least 10 years of service
28-15 credit<, and if the person either:>
28-16 <(i) would have been eligible to retire
28-17 and receive a service retirement annuity from the Teacher
28-18 Retirement System of Texas based on at least 10 years of service
28-19 credit had the person not elected to participate in the optional
28-20 retirement program; or>
28-21 <(ii) is disabled>.
28-22 (5)(A) "Employee" shall mean any appointive or
28-23 elective <state> officer or employee in the service of the State of
28-24 Texas, including an employee of an institution of higher education:
28-25 (i) who is retired or retires and is an
28-26 annuitant under the jurisdiction of the Employees Retirement System
28-27 of Texas, pursuant to Subtitle B, D, or E;<, or Chapter 803, Title
29-1 8, Government Code,>
29-2 (ii) who is retired or retires and is an
29-3 annuitant under the jurisdiction of the Teacher Retirement System
29-4 of Texas, pursuant to Subtitle C, Title 8, Government Code, or
29-5 pursuant to Chapter 803, Government Code, and whose last employment
29-6 with the state prior to retirement, including employment by a
29-7 public community/junior college, was as an employee of a
29-8 department whose employees are authorized to participate in the
29-9 Texas employees uniform group insurance program <the Teacher
29-10 Retirement System of Texas, school districts established within
29-11 state eleemosynary institutions, the Texas Rehabilitation
29-12 Commission, the Central Education Agency, the Texas Higher
29-13 Education Coordinating Board, or an institution of higher
29-14 education, or who is retired or retires and is an annuitant under
29-15 the optional retirement program established by Chapter 830,
29-16 Government Code, if the person's last state employment before
29-17 retirement, including employment by a public community/junior
29-18 college, was as an officer or employee of the Texas Higher
29-19 Education Coordinating Board, or an institution of higher
29-20 education, and if the person either:>
29-21 <(a) would have been eligible to
29-22 retire and receive a service retirement annuity from the Teacher
29-23 Retirement System of Texas had the person not elected to
29-24 participate in the optional retirement program; or>
29-25 <(b) is disabled>;
29-26 (iii) who is retired or retires and is an
29-27 annuitant under the optional retirement program established by
30-1 Chapter 830, Government Code, if the person's last state employment
30-2 before retirement, including employment by a public
30-3 community/junior college, was as an employee of a department whose
30-4 employees are authorized to participate in the Texas employees
30-5 uniform group insurance program, and if the person either:
30-6 (a) would have been eligible to
30-7 retire and receive a service retirement annuity from the Teacher
30-8 Retirement System of Texas or the Employees Retirement System of
30-9 Texas had the person not elected to participate in the optional
30-10 retirement program; or
30-11 (b) is disabled as determined by the
30-12 Employees Retirement System of Texas;
30-13 (iv) <(ii)> who receives <his>
30-14 compensation for services rendered to the State of Texas, other
30-15 than an employee of an institution of higher education described by
30-16 this subdivision, on a warrant issued pursuant to a payroll
30-17 certified by a department or by an elected or duly appointed
30-18 officer of this state;
30-19 (v) <(iii)> who receives payment for the
30-20 performance of personal services on a warrant issued pursuant to a
30-21 payroll certified by a department and drawn by the State
30-22 Comptroller of Public Accounts upon the State Treasurer against
30-23 appropriations made by the Texas Legislature from any state funds
30-24 or against any trust funds held by the State Treasurer or who is
30-25 paid from funds of an official budget of a state department, rather
30-26 than from funds of the General Appropriations Act;
30-27 (vi) <(iv)> who is appointed, subject to
31-1 confirmation of the senate, as a member of a board or commission
31-2 with administrative responsibility over a statutory agency having
31-3 statewide jurisdiction whose employees are covered by this Act;
31-4 (vii) <(v)> who is a member of the
31-5 governing body of an institution of higher education, as that term
31-6 is defined by this Act <Section 61.003, Education Code, including
31-7 subsequent amendments to that section>;
31-8 (viii) <(vi)> who is a member of the State
31-9 Board of Education;
31-10 (ix) <(vii)> who receives compensation for
31-11 services rendered to an institution of higher education on a
31-12 warrant or check issued pursuant to a payroll certified by an
31-13 institution of higher education or by an elected or duly appointed
31-14 officer of this state, and who is eligible for participation in the
31-15 Teacher Retirement System of Texas; or
31-16 (x) <(viii)> who receives compensation for
31-17 services rendered to an institution of higher education as provided
31-18 by this subdivision but is not permitted to be a member of the
31-19 Teacher Retirement System of Texas because the person is solely
31-20 employed by an institution of higher education that as a condition
31-21 of employment requires the person to be enrolled as a student in an
31-22 institution of higher education in graduate-level courses and who
31-23 is employed by the institution at least 20 hours a week.
31-24 (B) Persons performing personal services for the
31-25 State of Texas as independent contractors shall never be considered
31-26 employees of the state for purposes of this Act.
31-27 SECTION 37. Section 4B, Texas Employees Uniform Group
32-1 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
32-2 Code), is amended by adding Subsection (a-1) and amending
32-3 Subsection (c) to read as follows:
32-4 (a-1) If the executive director determines that a
32-5 participant has obtained coverage under any program provided under
32-6 the authority of this Act through the use of any material
32-7 misrepresentation or fraud or has fraudulently induced the
32-8 extension of coverage by making a material misrepresentation or by
32-9 supplying false information on any application for coverage or
32-10 related documentation or in any communication, the executive
32-11 director may rescind the coverage to the date of the inception of
32-12 the coverage or to the date of the fraudulent act or material
32-13 misrepresentation, deny any claim arising out of the fraudulently
32-14 induced coverage, or both. Remedies available to the executive
32-15 director under this subsection are in addition to and independent
32-16 of any expulsion action that may be instituted under Section 13A of
32-17 this Act. A decision of the executive director under this
32-18 subsection may be appealed to the trustee as provided by Subsection
32-19 (c) of this section.
32-20 (c) A decision by the executive director under Subsection
32-21 (a) or (a-1) of this section may be appealed only to the trustee.
32-22 An appeal to the trustee is a contested case under the
32-23 administrative procedure law, Chapter 2001, Government Code.
32-24 Standing to pursue an administrative appeal under this section is
32-25 limited to employees, annuitants, and covered dependents
32-26 participating in the Texas employees uniform group insurance
32-27 program or, after the death of a participant, to the participant's
33-1 estate, personal representative, heirs at law, or designated
33-2 beneficiary <Administrative Procedure and Texas Register Act
33-3 (Article 6252-13a, Vernon's Texas Civil Statutes)>.
33-4 SECTION 38. Section 5(f), Texas Employees Uniform Group
33-5 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
33-6 Code), is amended to read as follows:
33-7 (f) The trustee, in its sole discretion and in accordance
33-8 with the requirements of this section, shall determine those plans
33-9 of coverages for which the trustee does not intend to purchase
33-10 insurance and which it intends to provide directly from the
33-11 Employees Life, Accident, and Health Insurance and Benefits Fund.
33-12 Any plan of coverages for which the trustee does not purchase
33-13 insurance but provides under this Act on a self-funded basis is
33-14 exempt from any other insurance law unless the law expressly
33-15 applies to this plan or this Act. The trustee shall make an
33-16 estimate of the unrestricted balance of the fund. Unless such
33-17 estimated unrestricted balance is equal to at least 10 percent of
33-18 the total benefits expected to be provided directly from the fund
33-19 as a result of claims incurred during the fiscal year, the trustee
33-20 shall include in the contributions required the amount necessary to
33-21 establish an unrestricted balance in the fund of not less than 10
33-22 percent. The unrestricted balance shall be placed in a contingency
33-23 reserve fund to provide for adverse fluctuations in future charges,
33-24 claims, costs, or expenses of the program.
33-25 SECTION 39. Section 13A, Texas Employees Uniform Group
33-26 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
33-27 Code), is amended to read as follows:
34-1 Sec. 13A. Expulsion From Group Insurance Program.
34-2 (a) After notice and hearing as provided by this section, the
34-3 trustee may expel from participation in the Texas employees uniform
34-4 group insurance program any employee, annuitant, or dependent who
34-5 submits a fraudulent claim or application for coverage under or has
34-6 defrauded or attempted to defraud any health maintenance
34-7 organization or insurance or benefits plan offered under the
34-8 program.
34-9 (b) On receipt of a complaint or on its own motion, the
34-10 trustee may call and hold a hearing to determine whether <or not>
34-11 an employee, annuitant, or dependent has submitted a fraudulent
34-12 claim or application for coverage under or has defrauded or
34-13 attempted to defraud any health maintenance organization or
34-14 insurance or benefits plan offered under the Texas employees
34-15 uniform group insurance program.
34-16 (c) A proceeding under this section is a contested case
34-17 under the administrative procedure law, Chapter 2001, Government
34-18 Code <Administrative Procedure and Texas Register Act (Article
34-19 6252-13a, Vernon's Texas Civil Statutes)>.
34-20 (d) At the conclusion of the hearing, if the trustee issues
34-21 a decision that finds that the accused employee, annuitant, or
34-22 dependent submitted a fraudulent claim or application for coverage
34-23 or has defrauded or attempted to defraud any health maintenance
34-24 organization or insurance or benefits plan offered under the Texas
34-25 employees uniform group insurance program, the trustee shall expel
34-26 the employee, annuitant, or dependent from participation in the
34-27 program.
35-1 (e) An appeal of a decision of the trustee under this
35-2 section is under the substantial evidence rule.
35-3 (f) An employee, annuitant, or dependent expelled from the
35-4 Texas employees uniform group insurance program may not participate
35-5 in a health maintenance organization or be insured under <by> any
35-6 <health> insurance or benefits plan offered by the program for a
35-7 period determined by the trustee of not more than five years from
35-8 the date the expulsion from the program takes effect.
35-9 SECTION 40. Section 14(a), Texas Employees Uniform Group
35-10 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
35-11 Code), is amended to read as follows:
35-12 (a) The trustee shall use the amount appropriated for
35-13 employer contributions in accordance with Section 15 of this Act
35-14 <and Subsection (a-1) of this section> to fund the basic coverage.
35-15 The trustee may equitably allocate to each health benefits plan the
35-16 employer contributions that would be required to fund basic health
35-17 coverage for participants in the plans to the extent funds are
35-18 available. In allocating the employer contributions among plans,
35-19 the trustee shall consider the relevant risk characteristics of
35-20 each plan's enrollment, including demographic variations in the use
35-21 and cost of health care and the prevailing cost patterns in the
35-22 area in which the plan operates. The allocation must be reasonable
35-23 and set in a manner which assures employees a fair choice among
35-24 health benefit plans providing a basic plan. The contribution set
35-25 for each employee shall be within the total amount appropriated in
35-26 the General Appropriations Act.
35-27 SECTION 41. Section 609.507, Government Code, is amended to
36-1 read as follows:
36-2 Sec. 609.507. Financial Institution as Qualified Vendor.
36-3 <(a)> Each bank or savings and loan association that is a
36-4 qualified vendor is not required to comply with Chapter 404 with
36-5 regard to deferrals and investment income, but shall comply with
36-6 plan rules that deal with vendors and investment products <shall:>
36-7 <(1) treat deferred amounts and investment income as
36-8 state funds; and>
36-9 <(2) comply with Chapter 404.>
36-10 <(b) The state treasurer shall monitor each bank or savings
36-11 and loan association that is a qualified vendor for compliance with
36-12 Chapter 404. The state treasurer shall immediately notify the
36-13 board of trustees of a violation of that chapter that the treasurer
36-14 observes.>
36-15 <(c) The board of trustees is entitled to rely on the
36-16 supervision of the state treasurer>.
36-17 SECTION 42. The following provisions are repealed:
36-18 (1) Section 814.107(h), Government Code;
36-19 (2) Section 815.108, Government Code;
36-20 (3) Section 815.403(g), Government Code; and
36-21 (4) Section 14(a-1), Texas Employees Uniform Group
36-22 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
36-23 Code).
36-24 SECTION 43. (a) The Employees Retirement System of Texas
36-25 shall recompute each annuity that is based on the service of a
36-26 person who has retired under Section 814.1071, Government Code, to
36-27 include an amount, proportional to the amount authorized for each
37-1 year of credit under Section 814.107, Government Code, for each
37-2 whole month of credit as a law enforcement or custodial officer
37-3 that was not used in the original computation of the annuity.
37-4 (b) The increases in annuities provided by this section are
37-5 payable, from the law enforcement and custodial officer
37-6 supplemental retirement fund, beginning with the first payments of
37-7 the annuities that become due after the month in which the
37-8 retirement system's actuary certifies to the board of trustees that
37-9 the increases will not cause the time required to amortize the
37-10 unfunded actuarial liabilities of the retirement system to be
37-11 increased to a period that exceeds 31 years.
37-12 SECTION 44. The Judicial Retirement System of Texas Plan One
37-13 shall suspend payments of an annuity to any retiree who before the
37-14 effective date of this Act resumed service for which a suspension
37-15 is required by Section 832.102, Government Code, as added by this
37-16 Act. The suspension shall apply beginning with annuity payments
37-17 that become due in the month after the month in which this section
37-18 takes effect and ending as provided by Section 832.102.
37-19 SECTION 45. This Act takes effect August 28, 1995, except
37-20 Section 8, which takes effect September 1, 1995.
37-21 SECTION 46. The importance of this legislation and the
37-22 crowded condition of the calendars in both houses create an
37-23 emergency and an imperative public necessity that the
37-24 constitutional rule requiring bills to be read on three several
37-25 days in each house be suspended, and this rule is hereby suspended.