1-1                                   AN ACT
 1-2     relating to a change of beneficiary by a retiree of the Employees
 1-3     Retirement System of Texas.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter A, Chapter 814, Government Code, is
 1-6     amended by adding Section 814.008 to read as follows:
 1-7           Sec. 814.008.  CHANGE OF BENEFICIARY AFTER RETIREMENT.  (a)
 1-8     A retiree receiving an optional service or disability retirement
 1-9     annuity approved by the board of trustees or described by Section
1-10     814.108(c)(1) or (c)(2) may change the designated beneficiary as
1-11     provided by this section for the benefits payable after the
1-12     retiree's death.
1-13           (b)  If the beneficiary designated at the time of the
1-14     retiree's retirement is the spouse or former spouse of the retiree:
1-15                 (1)  the spouse or former spouse must give written,
1-16     notarized consent to the change; or
1-17                 (2)  a court with jurisdiction over the marriage must
1-18     have ordered the change.
1-19           (c)  A beneficiary designated under this section is entitled
1-20     on the retiree's death to receive monthly payments of the
1-21     survivor's portion of the retiree's optional retirement annuity for
1-22     the shorter of:
1-23                 (1)  the remainder of the life expectancy of the
1-24     beneficiary designated as of the effective date of the retiree's
 2-1     retirement; or
 2-2                 (2)  the remainder of the new beneficiary's life.
 2-3           (d)  A retiree may not change a beneficiary under this
 2-4     section after retirement if the retiree has previously changed
 2-5     after retirement a beneficiary for optional retirement annuity
 2-6     payments under this subtitle.
 2-7           SECTION 2.  Section 814.108(g), Government Code, is amended
 2-8     to read as follows:
 2-9           (g)  Except as provided by Section 814.008 or 814.1081, a
2-10     person who selected an optional service retirement annuity approved
2-11     by the board of trustees or an optional service retirement annuity
2-12     described by Subsection (c)(1) or (c)(2) may not change or revoke a
2-13     beneficiary designation after the person's effective date of
2-14     retirement.
2-15           SECTION 3.  The importance of this legislation and the
2-16     crowded condition of the calendars in both houses create an
2-17     emergency and an imperative public necessity that the
2-18     constitutional rule requiring bills to be read on three several
2-19     days in each house be suspended, and this rule is hereby suspended,
2-20     and that this Act take effect and be in force from and after its
2-21     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 264 was passed by the House on March
         25, 1999, by the following vote:  Yeas 140, Nays 0, 2 present, not
         voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 264 was passed by the Senate on May
         10, 1999, by the following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor