HBA-SEB H.B. 2540 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2540 By: Davis, Yvonne Pensions and Investments 4/9/1999 Introduced BACKGROUND AND PURPOSE At one time, Texas law did not authorize survivor benefits for divorced spouses of employees of the Dallas Police and Fire Pension Fund. In 1984, the Retirement Equity Act became federal law. That Act gave a court the right to award survivor benefits to a divorced spouse. Article 6243a-1, which was enacted in 1989, governs the pension system for police officers and firefighters in certain cities, including Dallas, and applies the Retirement Equity Act. That article, however, does not apply to a spouse who was divorced prior to 1989. H.B. 2540 amends Article 6243a-1 to designate a former spouse as an alternate payee and to entitle the former spouse to receive benefits in the same portion as a surviving spouse if the former spouse was originally awarded a share of the benefits in a qualified domestic relations order. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 6.06, Article 6243a-1, V.T.C.S., by adding Subsection (u), as follows: (u) Provides that in this subsection "alternate payee" and "qualified domestic relations order" have the meanings assigned by Section 804.001, Government Code. "Alternate payee" means a spouse, former spouse, child, or other dependent of a member or retiree who is recognized by a domestic relations order as having a right to receive all or a portion of the benefits payable to a member by a public retirement system. "Qualified domestic relations order" means a domestic relations order which creates or recognizes the existence of an alternate payee's right or assigns the right to receive all or a portion of the benefits payable to a member by a public retirement system and directs the system to disburse those benefits to the alternate payee. Establishes that a person has the status of a surviving spouse and is entitled to the same portion of benefits payable to a surviving spouse as was awarded in a qualified domestic relations order applicable to an alternate payee's former spouse if the person is the alternate payee and the former spouse awarded a share of benefits payable under this article (Pension System for Police Officers and Firefighters in Certain Cities). Provides that this subsection applies notwithstanding any provision of this article to the contrary. Specifies that this subsection does not increase the amount of benefits otherwise payable under this article to a surviving spouse. SECTION 2. Effective date: September 1, 1999. Provides that this Act applies to all payments of benefits to a surviving spouse that are made on or after that date. SECTION 3. Emergency clause.