75R8593 GCH-F                           

         By Craddick                                            H.B. No. 475

         Substitute the following for H.B. No. 475:

         By Telford                                         C.S.H.B. No. 475

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the effect of certain types of divorce decrees on

 1-3     retirement benefits payable by the Teacher Retirement System of

 1-4     Texas.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter B, Chapter 824, Government Code, is

 1-7     amended by adding Section 824.1012 to read as follows:

 1-8           Sec. 824.1012.  REVOCATION OF BENEFICIARY DESIGNATION FOR

 1-9     CERTAIN RETIREMENT BENEFIT OPTIONS.  (a)  As an exception to

1-10     Section 824.101(c), a retiree who selected an optional service

1-11     retirement annuity under Section 824.204(c)(1), (c)(2), or (c)(5)

1-12     or an optional disability retirement annuity under Section

1-13     824.308(c)(1), (c)(2), or (c)(5) may revoke the designation of the

1-14     beneficiary to receive the annuity on the death of the retiree, if

1-15     a court in a divorce proceeding involving the retiree and

1-16     beneficiary approves or orders the revocation in the divorce decree

1-17     or acceptance of a property settlement.  The revocation takes

1-18     effect when the retirement system receives it.

1-19           (b)  A revocation described by Subsection (a)  cancels the

1-20     optional annuity selection made by the retiree, effective with the

1-21     beginning of payments of the annuity as recomputed under this

1-22     subsection.  The retiree is entitled to receive payments of a

1-23     standard service or disability retirement annuity, as applicable,

1-24     reduced for early retirement, if applicable, beginning with the

 2-1     payment for the month after the month in which the retirement

 2-2     system receives the notice of revocation and ending on the death of

 2-3     the retiree.

 2-4           (c)  The retirement system by rule may establish requirements

 2-5     for forms, documentation, and procedures necessary for the

 2-6     administration of this section.

 2-7           SECTION 2.  The importance of this legislation and the

 2-8     crowded condition of the calendars in both houses create an

 2-9     emergency and an imperative public necessity that the

2-10     constitutional rule requiring bills to be read on three several

2-11     days in each house be suspended, and this rule is hereby suspended,

2-12     and that this Act take effect and be in force from and after its

2-13     passage, and it is so enacted.