SRC-SLL, SLL H.B. 475 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 475
By: Craddick (Sponsor)
State Affairs
4-30-97
Engrossed


DIGEST 

Currently, participants in the Teacher Retirement System of Texas may
elect in lieu of the standard retirement benefit an optional lifetime
retirement plan that provides an annuity for a beneficiary after the
retiree dies.  The beneficiary is designated at the time the participant
retires and cannot be altered, including by court order in a divorce
decree.  This bill will set forth provisions for revocation of beneficiary
designation under certain retirement benefit options. 

PURPOSE

As proposed, H.B. 475 sets forth provisions for revocation of beneficiary
designation under certain retirement benefit options. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Teacher Retirement System of Texas
in SECTION 1 (Section 824.1012(c), Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 824B, Government Code, by adding Section
824.1012, as follows: 

Sec.  824.1012.  REVOCATION OF BENEFICIARY DESIGNATION FOR CERTAIN
RETIREMENT BENEFIT OPTIONS.  (a) Authorizes certain retirees, as an
exception to Section 824.101(c), to revoke the designation of the
beneficiary to receive the annuity on the death of the retiree, if a court
in a divorce proceeding involving the retiree and beneficiary approves or
orders the revocation in the divorce decree or acceptance of a property
settlement.  Provides that the revocation takes effect when the Teacher
Retirement System (retirement system) receives it. 

(b) Provides that a revocation described by Subsection (a) cancels the
optional annuity selection made by the retiree, effective with the
beginning of payments of the annuity as recomputed under this subsection.
Provides that the retiree is entitled to receive payments of a standard
service or disability retirement annuity, as applicable, reduced for early
retirement, as applicable beginning with the payment for the month after
the month in which the retirement system receives the notice of revocation
and ending on the death of the retiree. 

(c)  Authorizes the retirement system, by rule, to establish requirements
for forms, documentation, and procedures necessary for the administration
of this system. 

SECTION 2. Emergency clause.
  Effective date: upon passage.