1-1 By: King of Parker, et al. H.B. No. 2152 1-2 (Senate Sponsor - Shapiro) 1-3 (In the Senate - Received from the House May 11, 1999; 1-4 May 12, 1999, read first time and referred to Committee on State 1-5 Affairs; May 14, 1999, reported favorably by the following vote: 1-6 Yeas 7, Nays 0; May 14, 1999, sent to printer.) 1-7 A BILL TO BE ENTITLED 1-8 AN ACT 1-9 relating to a partial lump-sum distribution on retirement from the 1-10 Texas County and District Retirement System. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter A, Chapter 844, Government Code, is 1-13 amended by adding Section 844.009 to read as follows: 1-14 Sec. 844.009. PARTIAL LUMP-SUM DISTRIBUTION ON SERVICE 1-15 RETIREMENT. (a) This section applies to all subdivisions that 1-16 elect after December 31, 1999, to begin participation in the 1-17 retirement system. The governing body of any subdivision 1-18 participating as of December 31, 1999, may adopt the provisions of 1-19 this section: 1-20 (1) on the terms provided by Subchapter H; or 1-21 (2) if the board of trustees determines that, based on 1-22 computations by the retirement system's actuary, the adoption would 1-23 not impair the ability of the subdivision to fund all obligations 1-24 against its account in the subdivision accumulation fund before the 1-25 25th anniversary of the subdivision's most recent actuarial 1-26 valuation date. 1-27 (b) A member who is eligible and applies for service 1-28 retirement may simultaneously apply for a partial lump-sum 1-29 distribution under this section. 1-30 (c) The amount of a lump-sum distribution under this section 1-31 may not exceed 100 percent of the total contributions and 1-32 accumulated interest in the member's individual account in the 1-33 employees saving fund attributable to the credited service on which 1-34 the member has applied for retirement. 1-35 (d) The lump-sum distribution will be made as a single 1-36 payment paid at the same time as the first monthly annuity payment. 1-37 (e) For all purposes, the member's basic annuity is the 1-38 annuity actuarially determined from the sum remaining under Section 1-39 844.002(b) after deducting the amount of the lump-sum distribution. 1-40 (f) The amount of a lump-sum distribution made under this 1-41 section is considered to be an annuity payment for the purpose of 1-42 determining whether the amount in the retiree's individual account 1-43 in the employees saving fund available for distribution at the time 1-44 of retirement exceeds the total amount of annuity payments made. 1-45 (g) A member's guardian, attorney in fact, conservator, or 1-46 trustee may make an application for the member under Subsection 1-47 (b). 1-48 (h) No portion of a benefit awarded to an alternate payee 1-49 under a qualified domestic relations order may be distributed in 1-50 the form of a lump sum under this section, except that if the 1-51 member and the alternate payee agree in writing that the alternate 1-52 payee will receive a lump-sum payment instead of benefits awarded 1-53 under the qualified domestic relations order, the amount of the 1-54 lump-sum distribution described in the agreement may be paid 1-55 directly to the alternate payee in complete satisfaction of the 1-56 alternate payee's marital property rights and interest in the 1-57 member's benefit. 1-58 (i) Section 842.110(h) does not apply to a person who 1-59 receives a partial lump-sum payment under this section, unless the 1-60 person receives the payment as an alternate payee under Subsection 1-61 (h). 1-62 SECTION 2. This Act takes effect December 31, 1999. 1-63 SECTION 3. The importance of this legislation and the 1-64 crowded condition of the calendars in both houses create an 2-1 emergency and an imperative public necessity that the 2-2 constitutional rule requiring bills to be read on three several 2-3 days in each house be suspended, and this rule is hereby suspended. 2-4 * * * * *