SRC-MAX S.B. 1460 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1460
By: Armbrister
State Affairs
4-6-97
As Filed


DIGEST 

The Small Business Job Protection Act (SBJPA) passed in the fall of 1996
creates a new benefit known as a "Qualified Governmental Excess Benefit
Arrangement" through the addition of Section 415(m) of the Internal
Revenue Code of 1996, as amended.  An excess benefit plan is designed to
allow governmental plan participants to improve their retirement benefits.
There are concerns that certain sections of the Internal Revenue Code
impose limitations on a participant's annual benefit. This bill modifies
any limits imposed under Section 415 so that the governmental plan benefit
does not have to be curtailed  in any manner. 

PURPOSE

As proposed, S.B. 1460 sets forth provisions for the designation of excess
benefits.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 830.004, Government Code, by adding Subsection
(c), to authorize an institution of higher education to establish a
qualified governmental excess benefit arrangement as provided in Section
415(m) of the Internal Revenue Code of 1986, as amended, for the purpose
of providing to participants in the optional retirement program that part
of the participant's benefits otherwise payable under the terms of the
optional retirement program, except in certain circumstances.  Authorizes
the governing board of an institution of higher education to take such
action to develop a qualified governmental excess benefit arrangement as
provided by this section. 

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