SBW H.B. 1334 75(R)BILL ANALYSIS


PENSIONS & INVESTMENTS
H.B. 1334
By: Hochberg
4-9-97
Committee Report (Unamended)



BACKGROUND 

Currently, a person who retires under the Teacher Retirement System and
chooses one of two optional retirement annuity plans can never make a
change in beneficiary after the retiree's annuity payments have begun.
Some retirees would like to have the option on changing the designated
beneficiary.  Two conditions must be met in order to make such a change
without affecting the actuarial assumptions on which the benefit was
originally calculated.  First, there must be a way to prevent a change of
beneficiary motivated by a decline in the health of the original
beneficiary.  Second, the new beneficiary must not be eligible for
benefits beyond the predicted lifespan of the original beneficiary.  If
TRS allowed a retiree to change the beneficiary with the understanding
that the annuity payments would not be recomputed to reflect the age and
life expectancy of the new beneficiary, the costs to TRS are minimized. 

PURPOSE

To allow a retiree who retired under TRS and selected an optional
retirement annuity plan to change the beneficiary designated at the time
of retirement after annuity payments have begun. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION1:  Amends Section 824.101(c), Government Code to add an exception
provided by Sections 824.1011 and 824.1012 

SECTION 2:  Amends Subchapter B, Chapter 824, Government Code by adding
Section 824.1012.  CHANGE OF BENEFICIARY AFTER RETIREMENT.  

(a)  Allows a retiree receiving an optional annuity to change the
designated beneficiary as provided in the referenced section. 

(b)  States that if the spouse or former spouse is the designated
beneficiary at the time of the retiree's retirement, the spouse or former
spouse must give written notarized consent to the change or a court with
jurisdiction over the marriage must order the change. 

(c)  States the length of time the designated beneficiary will receive
monthly payments of the survivor's portion of the retiree's optional
retirement annuity. 

(d)  States the conditions under which a retiree may not change a
beneficiary for optional retirement annuity payments. 

SECTION 3:  Emergency clause.