By Greenberg H.B. No. 2701
76R3978 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to systems and programs administered by the Teacher
1-3 Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 822.002(a), Government Code, is amended
1-6 to read as follows:
1-7 (a) An employee of the public school system is not permitted
1-8 to be a member of the retirement system if the employee:
1-9 (1) executed and filed a waiver of membership prior to
1-10 the effective date of this subtitle and has not elected membership
1-11 pursuant to Subsection (b);
1-12 (2) is eligible and elects to participate in the
1-13 optional retirement program under Chapter 830, except as provided
1-14 by Section 822.0025;
1-15 (3) is solely employed by a public institution of
1-16 higher education that as a condition of employment requires the
1-17 employee to be enrolled as a student in the institution; or
1-18 (4) has retired under the retirement system and has
1-19 not been reinstated to membership pursuant to Section 823.502,
1-20 824.005, or 824.307.
1-21 SECTION 2. Subchapter A, Chapter 822, Government Code, is
1-22 amended by adding Section 822.0025 to read as follows:
1-23 Sec. 822.0025. OPTIONAL MEMBERSHIP. (a) A person
1-24 participating in the optional retirement program under Chapter 830
2-1 may make a one-time election to cease participation in that program
2-2 and become a member of the retirement system. A contributing
2-3 member of the retirement system who holds a position included in
2-4 the coverage of the optional retirement program may make a one-time
2-5 election to cease participation in the retirement system and begin
2-6 participation in that program.
2-7 (b) The retirement system shall prescribe the form and
2-8 details of an election under this section. The election must be
2-9 filed with the retirement system and the institution of higher
2-10 education by which the person is employed.
2-11 (c) The retirement system may adopt rules for the
2-12 implementation of the election, including rules to prevent contract
2-13 violations under optional retirement program coverage and
2-14 simultaneous credit under the retirement system and the optional
2-15 retirement program for the same service.
2-16 SECTION 3. Subchapter C, Chapter 823, Government Code, is
2-17 amended by adding Section 823.203 to read as follows:
2-18 Sec. 823.203. MEMBERSHIP SERVICE FOR OPTIONAL RETIREMENT
2-19 PROGRAM. A member may not establish service credit in the
2-20 retirement system for any period when the member was participating
2-21 in the optional retirement program under Chapter 830.
2-22 SECTION 4. Sections 823.501(b) and (f), Government Code, are
2-23 amended to read as follows:
2-24 (b) A person eligible to reinstate service credit under this
2-25 section is one who is a [contributing] member of the retirement
2-26 system at the time the service is reinstated.
2-27 (f) A [contributing] member may have an account that was
3-1 terminated by absence from service reactivated by requesting the
3-2 reactivation in writing. The beneficiary of a decedent who was a
3-3 [contributing] member at the time of death may have an account that
3-4 was terminated by the decedent's absence from service reactivated
3-5 by requesting the reactivation in writing before the first payment
3-6 of a death benefit.
3-7 SECTION 5. Section 824.101(c), Government Code, is amended
3-8 to read as follows:
3-9 (c) Only one person may be designated as beneficiary of an
3-10 optional retirement annuity under Section 824.204(c)(1), (c)(2), or
3-11 (c)(5), and a designation of beneficiary under any of those options
3-12 may not be made, changed, or revoked, except as provided by
3-13 Sections 824.1011, [and] 824.1012, and 824.1013, after the later of
3-14 the date on which the retirement system makes the first annuity
3-15 payment to the retiree or the date the first payment becomes due.
3-16 For purposes of this section, the term "makes payment" includes the
3-17 depositing in the mail of a payment warrant or the crediting of an
3-18 account with payment through electronic funds transfer.
3-19 SECTION 6. Section 824.1011(a), Government Code, is amended
3-20 to read as follows:
3-21 (a) A retiree who is receiving a standard service or
3-22 disability retirement annuity under Section 824.203 or 824.304(b)
3-23 and who marries after the date of the person's retirement may
3-24 replace the annuity by selecting an optional retirement annuity
3-25 under Section 824.204(c)(1), (c)(2), or (c)(5) or under Section
3-26 824.308(c)(1), (c)(2), or (c)(5), as applicable, and designating
3-27 the person's spouse as beneficiary before the second [first]
4-1 anniversary of the marriage in the same manner as an annuity
4-2 selection and designation of beneficiary may be made before
4-3 retirement.
4-4 SECTION 7. Section 824.1012, Government Code, as added by
4-5 Chapter 1416, Acts of the 75th Legislature, Regular Session, 1997,
4-6 is redesignated as Section 824.1013 to read as follows:
4-7 Sec. 824.1013 [824.1012]. CHANGE OF BENEFICIARY AFTER
4-8 RETIREMENT. (a) A retiree receiving an optional retirement
4-9 annuity under Section 824.204(c)(1), (c)(2), or (c)(5) or Section
4-10 824.308(c)(1), (c)(2), or (c)(5) may change the designated
4-11 beneficiary as provided by this section for the benefits payable
4-12 after the retiree's death under those sections.
4-13 (b) If the beneficiary designated at the time of the
4-14 retiree's retirement is the spouse or former spouse of the retiree:
4-15 (1) the spouse or former spouse must give written,
4-16 notarized consent to the change; or
4-17 (2) a court with jurisdiction over the marriage must
4-18 have ordered the change.
4-19 (c) A beneficiary designated under this section is entitled
4-20 on the retiree's death to receive monthly payments of the
4-21 survivor's portion of the retiree's optional retirement annuity for
4-22 the shorter of:
4-23 (1) the remainder of the life expectancy of the
4-24 beneficiary designated as of the effective date of the retiree's
4-25 retirement; or
4-26 (2) the remainder of the new beneficiary's life.
4-27 (d) A retiree may not change a beneficiary under this
5-1 section after retirement if the retiree has previously changed or
5-2 designated after retirement a beneficiary for optional retirement
5-3 annuity payments under this subtitle.
5-4 SECTION 8. Section 824.202, Government Code, is amended by
5-5 adding Subsection (g) to read as follows:
5-6 (g) For the sole purpose of determining eligibility to
5-7 receive a service retirement annuity, the retirement system shall
5-8 consider service performed in this state as a participant in the
5-9 optional retirement program under Chapter 830 as if it were service
5-10 for which credit is established in the retirement system.
5-11 SECTION 9. Sections 824.203(a) and (e), Government Code, are
5-12 amended to read as follows:
5-13 (a) Except as provided by Subsections (c), (d), and (e), the
5-14 standard service retirement annuity is an amount computed on the
5-15 basis of the member's average annual compensation for the three
5-16 years of service, whether or not consecutive, in which the member
5-17 received the highest annual compensation, times 2.1 [two] percent
5-18 for each year of service credit in the retirement system.
5-19 (e) The annual standard service retirement annuity for a
5-20 person who immediately before retirement holds a position as a
5-21 classroom teacher or full-time librarian, or the annual death
5-22 benefit annuity based on the service of a member who at the time of
5-23 death held a position as a classroom teacher or full-time
5-24 librarian, may not be less than an amount computed on the basis of
5-25 the minimum annual salary provided by the Education Code for a
5-26 classroom teacher or full-time librarian, multiplied by 2.1 [two]
5-27 percent for each year of service credit in the retirement system.
6-1 SECTION 10. Subchapter C, Chapter 824, Government Code, is
6-2 amended by adding Section 824.2045 to read as follows:
6-3 Sec. 824.2045. PARTIAL LUMP-SUM OPTION. (a) A member who
6-4 is eligible for an unreduced service retirement annuity and is not
6-5 participating in the deferred retirement option plan under
6-6 Subchapter I may select a standard service retirement annuity or an
6-7 optional service retirement annuity described by Section 824.204,
6-8 together with a partial lump-sum distribution.
6-9 (b) The amount of the lump-sum distribution under this
6-10 section may not exceed the sum of 36 months of a standard service
6-11 retirement annuity computed without regard to this section.
6-12 (c) The service retirement annuity selected by the member
6-13 shall be actuarially reduced to reflect the lump-sum option
6-14 selected by the member and shall be actuarially equivalent to a
6-15 standard or optional service retirement annuity, as applicable,
6-16 without the partial lump-sum distribution. The annuity and lump
6-17 sum shall be computed to result in no actuarial loss to the
6-18 retirement system.
6-19 (d) The retiring member may choose a lump sum equal to 12
6-20 months of a standard service retirement annuity and payable at the
6-21 same time that the first monthly payment of the annuity is paid, a
6-22 lump sum equal to 24 months of a standard annuity and payable in
6-23 one or two annual payments, or a lump sum equal to 36 months of a
6-24 standard annuity and payable in one, two, or three annual payments.
6-25 (e) The amount of the lump-sum distribution will be deducted
6-26 from any amounts otherwise payable under Section 824.503.
6-27 (f) The partial lump-sum option under this section may be
7-1 elected only once by a member and may not be elected by a retiree.
7-2 A member retiring under the proportionate retirement program under
7-3 Chapter 803 is not eligible for the partial lump-sum option.
7-4 (g) The board of trustees may adopt rules for the
7-5 implementation of this section.
7-6 SECTION 11. Section 824.304, Government Code, is amended by
7-7 adding Subsection (e) to read as follows:
7-8 (e) For the sole purpose of determining eligibility to
7-9 receive a disability retirement annuity, the retirement system
7-10 shall consider service performed in this state as a participant in
7-11 the optional retirement program under Chapter 830 as if it were
7-12 service for which credit is established in the retirement system.
7-13 SECTION 12. Sections 824.602(a) and (d), Government Code,
7-14 are amended to read as follows:
7-15 (a) The retirement system may not, under Section 824.601,
7-16 withhold a monthly benefit payment if the retiree is employed in a
7-17 Texas public educational institution:
7-18 (1) as a substitute only with pay not more than the
7-19 daily rate of substitute pay established by the employer and, if
7-20 the retiree is a disability retiree, the employment has not
7-21 exceeded a total of 90 days in the school year;
7-22 (2) in a position, other than as a substitute, on no
7-23 more than a one-half time basis for the month;
7-24 (3) in one or more positions on as much as a full-time
7-25 basis, if[:]
7-26 [(A)] the work occurs in not more than six
7-27 months of a school year that begins after the retiree's effective
8-1 date of retirement;
8-2 [(B) the work occurs in no more than six months
8-3 of the school year; and]
8-4 [(C) the retiree executes on a form and within
8-5 any deadline prescribed by the retirement system a written election
8-6 to have this exception apply for the school year in determining
8-7 whether benefits are to be suspended for employment after
8-8 retirement;] or
8-9 (4) in a position, other than as a substitute, on no
8-10 more than a one-half time basis for no more than 90 days in the
8-11 school year, if the retiree is a disability retiree.
8-12 (d) A retiree to whom [who has elected to avoid loss of
8-13 monthly benefits in a school year pursuant to] Subsection (a)(3)
8-14 applies is not eligible during that school year for any other
8-15 exceptions to loss of benefits provided in this section. If a
8-16 retiree is employed under [elects] the exemption provided in
8-17 Subsection (a)(3) for a school year, the retirement system must
8-18 include any previous employment during the school year, including
8-19 any employment that relied upon the exemptions in Subsection (a)(1)
8-20 or (a)(2), in determining whether and when the retiree has exceeded
8-21 six months of employment in the school year.
8-22 SECTION 13. Section 824.802(a), Government Code, is amended
8-23 to read as follows:
8-24 (a) A contributing member who is eligible under Section
8-25 824.202 to retire and receive a standard service retirement annuity
8-26 that is not reduced for retirement at an early age and who has at
8-27 least 25 years of service credit in the retirement system may,
9-1 before September 1, 1999, if the member remains an employee, elect
9-2 to participate in the deferred retirement option plan.
9-3 SECTION 14. Section 824.805, Government Code, is amended to
9-4 read as follows:
9-5 Sec. 824.805. TERMINATION OF PARTICIPATION IN PLAN. (a)
9-6 Except as provided by Subsection (b), a [A] member terminates
9-7 participation in the plan by:
9-8 (1) retirement;
9-9 (2) death; or
9-10 (3) expiration of the period for which participation
9-11 was approved.
9-12 (b) A member participating in the plan on September 1, 1999,
9-13 may, before September 1, 2000, elect to discontinue participation
9-14 in the plan on a form prescribed by and filed with the retirement
9-15 system. The retirement system shall make account transfers and
9-16 change records for a member who elects under this subsection to
9-17 discontinue participation in the plan as if the member had never
9-18 participated in the plan.
9-19 SECTION 15. Section 825.405(c), Government Code, is amended
9-20 to read as follows:
9-21 (c) Monthly, employers shall:
9-22 (1) report to the retirement system in a form
9-23 prescribed by the system a certification of the total amount of
9-24 salary paid above the statutory minimum salary and the total amount
9-25 of employer contributions due under this section for the payroll
9-26 period; and
9-27 (2) retain information, as determined by the
10-1 retirement system, sufficient to allow administration of this
10-2 section, [The employer's form showing deductions and certification
10-3 of earnings must provide the retirement system with information
10-4 sufficient to administer this section, as determined by the
10-5 system,] including information for each employee showing the
10-6 applicable minimum salary as well as aggregate annual compensation.
10-7 SECTION 16. Section 825.406(c), Government Code, is amended
10-8 to read as follows:
10-9 (c) Monthly, employers shall:
10-10 (1) report to the retirement system in a form
10-11 prescribed by the system a certification of the total amount of
10-12 salary paid from federal funds and private grants and the total
10-13 amounts provided by the funds and grants for state contributions
10-14 for the employees; and
10-15 (2) retain the following information:
10-16 (A) [(1)] the name of each employee paid in
10-17 whole or part from a grant;
10-18 (B) [(2)] the source of the grant;
10-19 (C) [(3)] the amount of the employee's salary
10-20 paid from the grant;
10-21 (D) [(4)] the amount of the money provided by
10-22 the grant for state contributions for the employee; and
10-23 (E) [(5)] any other information the retirement
10-24 system determines is necessary to enforce this section.
10-25 SECTION 17. Section 825.407(c), Government Code, is amended
10-26 to read as follows:
10-27 (c) The designated disbursing officer of each general
11-1 academic teaching institution and the designated disbursing officer
11-2 of each medical and dental unit shall:
11-3 (1) submit to the retirement system, at a time and in
11-4 the manner prescribed by the retirement system, a monthly report
11-5 containing a certification of the total amount of salary paid from
11-6 noneducational and general funds and the total amount of employer
11-7 contributions due under this section for the payroll period; and
11-8 (2) maintain and retain the following information:
11-9 (A) [(1)] the name of each member employed by
11-10 the institution or unit who, for the most recent payroll period,
11-11 was paid wholly or partly from noneducational and general funds;
11-12 (B) [(2)] the amount of the employee's salary
11-13 for the most recent payroll period that was paid from
11-14 noneducational and general funds;
11-15 [(3) a certification of the total amount of employer
11-16 contributions due under this section for the payroll period;] and
11-17 (C) [(4)] any other information the retirement
11-18 system determines is necessary to administer this section.
11-19 SECTION 18. Section 825.408(a), Government Code, is amended
11-20 to read as follows:
11-21 (a) An employing district that fails to remit, before the
11-22 11th day after the last day of a month, all member and employer
11-23 deposits and documentation of the deposits required by this
11-24 subchapter to be remitted by the district for the month shall pay
11-25 to the retirement system, in addition to the deposits, interest on
11-26 the unpaid or undocumented amounts at an annual rate compounded
11-27 monthly. The rate of interest is the rate established under
12-1 Section 825.313(b)(2), plus two percent. Interest required under
12-2 this section is creditable to the interest account.
12-3 SECTION 19. Section 825.515, Government Code, is amended to
12-4 read as follows:
12-5 Sec. 825.515. INFORMATION ABOUT MEMBER POSITIONS. (a) At
12-6 least annually, the [The] retirement system shall acquire and
12-7 maintain records identifying members and the types of positions
12-8 they hold [have held] as members[, the length of service in each
12-9 type of position, and whether service in each type of position is
12-10 or was as a full-time employee]. The type of position shall be
12-11 identified as Administrative/Professional, Teacher/Full-Time
12-12 Librarian, Support, or Bus Driver. [The retirement system shall
12-13 cooperate with the commissioner of education in maintaining
12-14 information about the employment status of members of the
12-15 retirement system.]
12-16 (b) [Each school year, the retirement system shall provide
12-17 to the commissioner of education information, of a type and in a
12-18 form determined by the commissioner, that allows contributing
12-19 members of the retirement system to be identified in information
12-20 submitted to the commissioner by school districts under the
12-21 Education Code.]
12-22 [(c)] Information contained in records of the retirement
12-23 system maintained under this section is confidential within the
12-24 limits prescribed by Section 825.507.
12-25 SECTION 20. Sections 825.516(a) and (b), Government Code,
12-26 are amended to read as follows:
12-27 (a) A retiree who is receiving an annuity from the
13-1 retirement system may request the system to withhold from the
13-2 retiree's monthly annuity payment membership dues for a nonprofit
13-3 association of retired school employees in this state, if the
13-4 association is statewide and its membership includes at least five
13-5 percent of all retirees of the retirement system. The request for
13-6 withholding must be on a form provided by the retirement system.
13-7 (b) After the retirement system receives a request
13-8 authorized by this section, the system may [shall] make the
13-9 requested deductions until the earlier of:
13-10 (1) the date the annuity is terminated; or
13-11 (2) the first payment of the annuity after the date
13-12 the system receives a written request signed by the retiree
13-13 canceling the request for the withholding.
13-14 SECTION 21. Section 16A(d), Article 3.50-4, Insurance Code,
13-15 is amended to read as follows:
13-16 (d) Monthly, employers shall:
13-17 (1) report to the trustee in a form prescribed by the
13-18 trustee a certification of the total amount of salary paid from
13-19 federal funds and private grants and the total amounts provided by
13-20 the funds and grants for state contributions for the employees; and
13-21 (2) maintain and retain the following information:
13-22 (A) [(1)] the name of each [active] employee
13-23 paid in whole or part from a grant;
13-24 (B) [(2)] the source of the grant;
13-25 (C) [(3)] the amount of the [active] employee's
13-26 salary paid from the grant;
13-27 (D) [(4)] the amount of the money provided by
14-1 the grant for state contributions for the [active] employee; and
14-2 (E) [(5)] any other information the trustee
14-3 determines is necessary to enforce this section.
14-4 SECTION 22. Subchapter E, Chapter 3, Insurance Code, is
14-5 amended by adding Article 3.50-4A to read as follows:
14-6 Art. 3.50-4A. INSURANCE FOR SCHOOL DISTRICT EMPLOYEES AND
14-7 RETIREES
14-8 Sec. 1. DEFINITIONS. In this article:
14-9 (1) "Employee" means a person who is a participating
14-10 member of the Teacher Retirement System of Texas and is not
14-11 participating in a group insurance program under the Texas
14-12 Employees Uniform Group Insurance Benefits Act (Article 3.50-2,
14-13 Vernon's Texas Insurance Code) or the Texas State College and
14-14 University Employees Uniform Insurance Benefits Act (Article
14-15 3.50-3, Vernon's Texas Insurance Code).
14-16 (2) "Retiree" means a person who:
14-17 (A) has retired under the Teacher Retirement
14-18 System of Texas with at least 10 years of credit for service in
14-19 public schools of this state or has retired under that system for
14-20 disability and is entitled to receive an annuity from the system
14-21 based on the person's service; and
14-22 (B) is not eligible to participate in the group
14-23 insurance program provided under the Texas Employees Uniform Group
14-24 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
14-25 Code) or the Texas State College and University Employees Uniform
14-26 Insurance Benefits Act (Article 3.50-3, Vernon's Texas Insurance
14-27 Code).
15-1 (3) "Trustee" means the Teacher Retirement System of
15-2 Texas.
15-3 Sec. 2. INSURANCE COVERAGE. (a) The trustee shall contract
15-4 with one or more carriers authorized to provide life insurance in
15-5 this state to offer employees and retirees optional permanent life
15-6 insurance coverage.
15-7 (b) The trustee shall contract with one or more carriers
15-8 authorized to provide long-term health care insurance in this state
15-9 to offer employees and retirees optional long-term health care
15-10 insurance coverage. The long-term care insurance coverage shall
15-11 include home, community, and institutional care.
15-12 (c) The trustee shall contract with one or more carriers
15-13 authorized to provide disability insurance in this state to offer
15-14 employees optional insurance against short-term or long-term loss
15-15 of salary because of disability.
15-16 (d) A contract entered into under this section is subject to
15-17 competitive bidding.
15-18 (e) Insurance coverage provided under this section shall be
15-19 made available periodically during open enrollment periods
15-20 determined by the trustee.
15-21 Sec. 3. ADMINISTRATION. (a) The trustee shall adopt rules
15-22 for the selection of contractors under this article. The rules
15-23 must require the contractors to administer enrollment, adjudication
15-24 of claims, and coordination of services under the insurance
15-25 coverages and require the contractors to account for premiums
15-26 collected and disbursed under the coverages.
15-27 (b) The trustee may adopt other rules necessary to
16-1 administer the program provided under this article.
16-2 Sec. 4. PARTICIPATION IN COVERAGE. (a) The trustee shall
16-3 offer the coverages provided under this article to employees
16-4 through their employers and to retirees through the trustee's
16-5 administration of the retirement system.
16-6 (b) The full cost of premiums in a plan of insurance
16-7 coverage provided under this article is the responsibility of the
16-8 enrollees.
16-9 (c) An employee participating in a plan of insurance
16-10 coverage provided under this article shall pay premiums by payroll
16-11 deduction remitted by the employee's employer at the times and in
16-12 the manner provided by the trustee.
16-13 (d) A retiree participating in a plan of insurance coverage
16-14 provided under this article shall pay premiums by deduction from
16-15 the retiree's monthly retirement annuity.
16-16 Sec. 5. SCHOOL DISTRICT EMPLOYEES AND RETIREES OPTIONAL
16-17 INSURANCE TRUST FUND. (a) The school district employees and
16-18 retirees optional insurance trust fund is created as a trust fund
16-19 outside the state treasury to be held by the Texas Treasury
16-20 Safekeeping Trust Company and administered by the trustee on behalf
16-21 of the participants in the plans of insurance coverage provided
16-22 under this article.
16-23 (b) Premiums paid by enrollees, amounts recovered under
16-24 contracts for the implementation of the program provided by this
16-25 article, and investment and depository income of the fund shall be
16-26 credited to the fund.
16-27 (c) Money in the fund may be used only for the purpose of
17-1 providing the program of insurance coverage provided under this
17-2 article, including the expenses of administering the program.
17-3 (d) The trustee may invest the fund in the manner provided
17-4 by Section 67(a)(3), Article XVI, Texas Constitution.
17-5 SECTION 23. Subchapter B, Chapter 609, Government Code, is
17-6 amended by adding Section 609.1015 to read as follows:
17-7 Sec. 609.1015. CREATION OF PLAN; PARTICIPATION. (a) The
17-8 board of trustees of the Teacher Retirement System of Texas is the
17-9 trustee and the plan administrator of a 457 plan it shall establish
17-10 under this subchapter for school district employees who are members
17-11 of the retirement system.
17-12 (b) The board of trustees of the Teacher Retirement System
17-13 of Texas shall administer all aspects of the plan.
17-14 (c) The board of trustees of the Teacher Retirement System
17-15 of Texas may designate a person to assist in the execution of the
17-16 board's authority and responsibilities as plan administrator.
17-17 SECTION 24. Sections 22.004(c) and (d), Education Code, are
17-18 amended to read as follows:
17-19 (c) Each district shall report the district's compliance
17-20 with this subsection to the executive director of the Teacher
17-21 Retirement System of Texas not later than March [November] 1 of
17-22 each even-numbered year in the manner required by the board of
17-23 trustees of the Teacher Retirement System of Texas. The report
17-24 must be based on the district group health coverage plan in effect
17-25 during the preceding plan year [on November 1] and must include:
17-26 (1) appropriate documentation of:
17-27 (A) the district's contract for group health
18-1 coverage with a provider licensed to do business in this state by
18-2 the Texas Department of Insurance or a risk pool authorized under
18-3 Chapter 172, Local Government Code; or
18-4 (B) a resolution of the board of trustees of the
18-5 district authorizing a self-insurance plan for district employees
18-6 and of the district's review of district ability to cover the
18-7 liability assumed;
18-8 (2) the schedule of benefits;
18-9 (3) the premium rate sheet, including the amount paid
18-10 by the district and employee;
18-11 (4) the number of employees covered by each health
18-12 coverage plan offered by the district; and
18-13 (5) any other information considered appropriate by
18-14 the executive director of the Teacher Retirement System of Texas.
18-15 (d) Based on the criteria prescribed by Subsection (a), the
18-16 executive director of the Teacher Retirement System of Texas shall
18-17 certify whether a district's coverage is comparable to the basic
18-18 health coverage provided under the Texas Employees Uniform Group
18-19 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
18-20 Code). If the executive director of the Teacher Retirement System
18-21 of Texas determines that the group health coverage offered by a
18-22 district is not comparable, the executive director shall report
18-23 that information to the district and to the Legislative Budget
18-24 Board. The executive director shall submit a report to the
18-25 legislature not later than September [January] 1 of each
18-26 even-numbered [odd numbered] year describing the status of each
18-27 district's group health coverage program based on the information
19-1 contained in the report required by Subsection (c) and the
19-2 certification required by this subsection.
19-3 SECTION 25. (a) Monthly payments of a death or retirement
19-4 benefit annuity by the Teacher Retirement System of Texas are
19-5 increased beginning with the payment due at the end of September
19-6 1999.
19-7 (b) The increase does not apply to payments under Section
19-8 824.304(a), 824.404, or 824.501, Government Code.
19-9 (c) Except as provided by Subsection (d) of this section,
19-10 the amount of the monthly increase is computed by multiplying the
19-11 previous monthly benefit by a percentage determined in accordance
19-12 with the following table:
19-13 LATEST RETIREMENT DATE OR,
19-14 IF APPLICABLE, DATE OF DEATH INCREASE
19-15 Before September 1, 1973 5%
19-16 On or after September 1, 1973, but before September 1, 1974 6%
19-17 On or after September 1, 1974, but before September 1, 1979 5%
19-18 On or after September 1, 1979, but before September 1, 1981 6%
19-19 On or after September 1, 1981, but before September 1, 1982 7%
19-20 On or after September 1, 1982, but before September 1, 1983 6%
19-21 On or after September 1, 1983, but before September 1, 1990 7%
19-22 On or after September 1, 1990, but before September 1, 1991 6%
19-23 On or after September 1, 1991, but before September 1, 1992 7%
19-24 On or after September 1, 1992, but before September 1, 1995 6%
19-25 On or after September 1, 1995, but before September 1, 1997 5%
19-26 (d) After making the computations required by Subsection (c)
19-27 of this section, the retirement system shall increase each
20-1 recomputed annuity by five percent, which is a benefit equivalent
20-2 to the benefit provided by using a 2.1 percent multiplier for
20-3 computing annuities.
20-4 SECTION 26. (a) Notwithstanding Section 824.1011,
20-5 Government Code, as amended by this Act, a person who is receiving
20-6 a standard service or disability retirement annuity under Section
20-7 824.203 or 824.304(b), Government Code, on the effective date of
20-8 this Act and who married after retirement but before that date may,
20-9 before September 1, 2000, replace the annuity by selecting an
20-10 optional annuity and designating the person's spouse as beneficiary
20-11 as if the person had married after the effective date of this Act.
20-12 (b) Notwithstanding Section 824.1011, Government Code, as
20-13 amended by this Act, a person who retired before September 1, 1992,
20-14 and is receiving a standard disability retirement annuity under
20-15 Section 824.304(b), Government Code, on the effective date of this
20-16 Act may before September 1, 2001, replace the annuity by selecting
20-17 an optional annuity described by Section 824.308, Government Code.
20-18 An optional annuity selected under this subsection shall be
20-19 actuarially reduced based on reduction factors as they existed at
20-20 the time of retirement.
20-21 SECTION 27. This Act takes effect September 1, 1999.
20-22 SECTION 28. The importance of this legislation and the
20-23 crowded condition of the calendars in both houses create an
20-24 emergency and an imperative public necessity that the
20-25 constitutional rule requiring bills to be read on three several
20-26 days in each house be suspended, and this rule is hereby suspended.