SBW C.S.H.B. 475 75(R)BILL ANALYSIS PENSIONS & INVESTMENTS C.S.H.B. 475 By: Craddick 3-12-97 Committee Report (Substituted) BACKGROUND Current law governing the Teacher Retirement System (TRS) does not allow for the revocation of a beneficiary for joint and survivor annuities, even in cases of divorce. PURPOSE HB 475 allows revocation of a beneficiary designation, canceling the optional benefit payment plan selection effective upon receipt by TRS of a divorce decree ordering the revocation. RULEMAKING AUTHORITY Grants rulemaking authority to the Teacher Retirement System of Texas in Section 824.1012 (c), Government Code. SECTION BY SECTION ANALYSIS SECTION 1: Amends Subchapter B, Chapter 824, Government Code by adding Section 824.1012. Section 824.1012: REVOCATION OF BENEFICIARY DESIGNATION FOR CERTAIN RETIREMENT BENEFIT OPTIONS. (a) Except as provided by Sec. 824.101 (c), permits a retiree to revoke their designated beneficiary for those that selected annuity plans under Sec. 824.204 (c) 1, 2, or 5 or an optional disability annuity under Sec. 824.308 (c) 1, 2, or 5. This is done with the approval of the court and becomes effective when the retirement system receives it. (b) A revocation as provided by Subsection (a) cancels the optional service annuity and replaces it with a "pop-up" annuity (standard service/disability annuity) reduced if applicable for an early retirement annuity. Payments begin the month after the retirement system receives notification and ends upon the retirees death. (c) Grants rulemaking authority to the retirement system to establish requirements for forms, documentation and procedures necessary for administration of this section. SECTION 2: Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute removes the specific authority to designate a new beneficiary if you originally chose options 824.204 (c) 3 or 4. It also requires the retiree to resubmit divorce decree papers to the Teacher Retirement System if the papers were submitted before the effective date of this act.