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.