By Craddick H.B. No. 475 75R1273 GCH-D 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. Section 824.101(c), Government Code, is amended 1-7 to read as follows: 1-8 (c) Only one person may be designated as beneficiary of an 1-9 optional retirement annuity under Section 824.204(c)(1), (c)(2), or 1-10 (c)(5), and a designation of beneficiary under either of those 1-11 options may not be made, changed, or revoked after the later of the 1-12 date on which the retirement system makes the first annuity payment 1-13 to the retiree or the date the first payment becomes due, except as 1-14 provided by Section 824.107. For purposes of this section, the 1-15 term "makes payment" includes the depositing in the mail of a 1-16 payment warrant or the crediting of an account with payment through 1-17 electronic funds transfer. 1-18 SECTION 2. Subchapter B, Chapter 824, Government Code, is 1-19 amended by adding Section 824.107 to read as follows: 1-20 Sec. 824.107. REVOCATION OF BENEFICIARY BY DIVORCE DECREE. 1-21 (a) In this section, "divorce decree" means a judgment, decree, or 1-22 order, including a document approving a property settlement 1-23 agreement, that is issued by a court under a domestic relations law 1-24 of this or another state in conjunction with the dissolution of a 2-1 marriage and that relates to the marital property rights of a 2-2 member or retiree and that person's former spouse. 2-3 (b) If the retirement system receives a certified copy of a 2-4 divorce decree that purports to revoke or order the revocation of a 2-5 designation by a retiree of a beneficiary under this subchapter, 2-6 the retirement system shall change its records in accordance with 2-7 the decree. 2-8 (c) If a divorce decree revokes or orders the revocation of 2-9 a designation of a beneficiary made by a retiree who selected an 2-10 optional retirement annuity other than an annuity described by 2-11 Section 824.204(c)(1) or (c)(2), the retiree may select another 2-12 beneficiary in the manner provided by this subchapter. 2-13 (d) If a divorce decree revokes or orders the revocation of 2-14 a designation of a beneficiary made by a retiree who selected an 2-15 optional retirement annuity under Section 824.204(c)(1) or (c)(2), 2-16 the retiree may not select another beneficiary, but the retirement 2-17 system shall increase the retiree's reduced annuity to the standard 2-18 service retirement annuity that the retiree would otherwise be 2-19 entitled to receive if the retiree had not selected an optional 2-20 annuity. The retirement system shall adjust the standard annuity 2-21 as appropriate for early retirement as permitted by law and 2-22 postretirement benefit increases provided after the date of the 2-23 retiree's retirement. 2-24 (e) Payment of an annuity increased under Subsection (d) 2-25 begins with the payment for the month after the month in which the 2-26 retirement system receives a copy of the retiree's divorce decree 2-27 and is payable to the retiree for the remainder of the retiree's 3-1 life. 3-2 SECTION 3. If the Teacher Retirement System of Texas 3-3 received before the effective date of this Act a certified copy of 3-4 a divorce decree that purports to revoke or order the revocation of 3-5 a designation of a beneficiary by a retiree of the retirement 3-6 system, the retirement system shall change its records and, as 3-7 appropriate, begin payment of any increased annuity with the 3-8 payment for the month after the month in which this Act takes 3-9 effect. 3-10 SECTION 4. The importance of this legislation and the 3-11 crowded condition of the calendars in both houses create an 3-12 emergency and an imperative public necessity that the 3-13 constitutional rule requiring bills to be read on three several 3-14 days in each house be suspended, and this rule is hereby suspended, 3-15 and that this Act take effect and be in force from and after its 3-16 passage, and it is so enacted.