SRC-ARR H.B. 264 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 264
76R1136 GCH-DBy: Hochberg (Cain)
State Affairs
4/28/1999
Engrossed


DIGEST 

Currently, a person who retires under the Employees Retirement System (ERS)
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 of changing the designated
beneficiary. If ERS allows 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 cost to ERS are
minimized. H.B. 264 would authorize a retiree who retired under ERS and
selected an optional retirement annuity plan to change the beneficiary
designated at the time of retirement after annuity payments have begun.  

PURPOSE

As proposed, H.B. 264 authorizes a change of beneficiary by a retiree of
the Employees Retirement System of Texas.  

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 Chapter 814A, Government Code, by adding Section 814.008,
as follows: 

Sec. 814.008. CHANGE OF BENEFICIARY AFTER RETIREMENT. Authorizes a retiree
receiving an optional service or disability retirement annuity approved by
the board of trustees or described by Section 814.108(c)(1) or (c)(2) to
change the designated beneficiary as provided by this section for the
benefits payable after the retiree's death. Provides that if the
beneficiary designated at the time of the retiree's retirement is the
spouse or former spouse of the retiree certain action must be taken.
Provides that a beneficiary designated under this section is entitled on
the retiree's death to receive monthly payments of the survivor's portion
of the retiree's optional retirement annuity for the shorter of certain
periods. Prohibits a retiree from changing a beneficiary under this section
after retirement if the retiree has previously changed after retirement a
beneficiary for optional retirement annuity payments under this subtitle.  

SECTION 2. Amends Section 814.108(g), Government Code, to make a conforming
change. 

SECTION 3. Emergency clause.
                      Effective date: upon passage.