1-1 AN ACT 1-2 relating to a partial lump-sum distribution on retirement from the 1-3 Texas County and District Retirement System. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter A, Chapter 844, Government Code, is 1-6 amended by adding Section 844.009 to read as follows: 1-7 Sec. 844.009. PARTIAL LUMP-SUM DISTRIBUTION ON SERVICE 1-8 RETIREMENT. (a) This section applies to all subdivisions that 1-9 elect after December 31, 1999, to begin participation in the 1-10 retirement system. The governing body of any subdivision 1-11 participating as of December 31, 1999, may adopt the provisions of 1-12 this section: 1-13 (1) on the terms provided by Subchapter H; or 1-14 (2) if the board of trustees determines that, based on 1-15 computations by the retirement system's actuary, the adoption would 1-16 not impair the ability of the subdivision to fund all obligations 1-17 against its account in the subdivision accumulation fund before the 1-18 25th anniversary of the subdivision's most recent actuarial 1-19 valuation date. 1-20 (b) A member who is eligible and applies for service 1-21 retirement may simultaneously apply for a partial lump-sum 1-22 distribution under this section. 1-23 (c) The amount of a lump-sum distribution under this section 1-24 may not exceed 100 percent of the total contributions and 2-1 accumulated interest in the member's individual account in the 2-2 employees saving fund attributable to the credited service on which 2-3 the member has applied for retirement. 2-4 (d) The lump-sum distribution will be made as a single 2-5 payment paid at the same time as the first monthly annuity payment. 2-6 (e) For all purposes, the member's basic annuity is the 2-7 annuity actuarially determined from the sum remaining under Section 2-8 844.002(b) after deducting the amount of the lump-sum distribution. 2-9 (f) The amount of a lump-sum distribution made under this 2-10 section is considered to be an annuity payment for the purpose of 2-11 determining whether the amount in the retiree's individual account 2-12 in the employees saving fund available for distribution at the time 2-13 of retirement exceeds the total amount of annuity payments made. 2-14 (g) A member's guardian, attorney in fact, conservator, or 2-15 trustee may make an application for the member under Subsection 2-16 (b). 2-17 (h) No portion of a benefit awarded to an alternate payee 2-18 under a qualified domestic relations order may be distributed in 2-19 the form of a lump sum under this section, except that if the 2-20 member and the alternate payee agree in writing that the alternate 2-21 payee will receive a lump-sum payment instead of benefits awarded 2-22 under the qualified domestic relations order, the amount of the 2-23 lump-sum distribution described in the agreement may be paid 2-24 directly to the alternate payee in complete satisfaction of the 2-25 alternate payee's marital property rights and interest in the 2-26 member's benefit. 2-27 (i) Section 842.110(h) does not apply to a person who 3-1 receives a partial lump-sum payment under this section, unless the 3-2 person receives the payment as an alternate payee under Subsection 3-3 (h). 3-4 SECTION 2. This Act takes effect December 31, 1999. 3-5 SECTION 3. The importance of this legislation and the 3-6 crowded condition of the calendars in both houses create an 3-7 emergency and an imperative public necessity that the 3-8 constitutional rule requiring bills to be read on three several 3-9 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2152 was passed by the House on May 11, 1999, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 2152 was passed by the Senate on May 26, 1999, by the following vote: Yeas 30, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor