By Turner of Coleman                                  H.B. No. 3642
         76R7411 GJH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain administrative procedures of 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 822.005, Government Code, is amended by
 1-6     adding Subsection (d) to read as follows:
 1-7           (d)  The retirement system shall adopt procedures to track
 1-8     and compile information of all applications filed under this
 1-9     section from the time an application is made until any warrant for
1-10     the refund is issued by the retirement system.
1-11           SECTION 2.  Section 824.004, Government Code, is amended by
1-12     adding Subsection (e) to read as follows:
1-13           (e)  The retirement system may not require a person filing a
1-14     waiver of benefits under this section to submit a sworn affidavit
1-15     or obtain a seal in order to receive the accumulated contributions.
1-16           SECTION 3.  Sections 825.307(a) and (b), Government Code, are
1-17     amended to read as follows:
1-18           (a)  The retirement system shall deposit in a member's
1-19     individual account in the member savings account:
1-20                 (1)  the amount of contributions to the retirement
1-21     system that is deducted from the member's compensation;
1-22                 (2)  the portion of a deposit made on or after
1-23     resumption of membership that represents the amount of retirement
1-24     benefits received;
 2-1                 (3)  the portion of a deposit to reinstate service
 2-2     credit previously canceled that represents the amount withdrawn or
 2-3     refunded;
 2-4                 (4)  the portion of a deposit to establish membership
 2-5     service credit previously waived that is required by Section
 2-6     823.202(b)(1);
 2-7                 (5)  the portion of a deposit to establish membership
 2-8     service credit for service performed after retirement that is
 2-9     required by Section 823.502(c)(3) or (c)(5);
2-10                 (6)  the portion of a deposit to establish military
2-11     service credit required by Section 823.302(c);
2-12                 (7)  the portion of a deposit to establish equivalent
2-13     membership service credit required by Section 823.401(d),
2-14     823.402(e)(1) or (e)(2), or 823.3021(f)(1); and
2-15                 (8)  interest earned on money in the account as
2-16     provided by Subsections (b) and (c) and Section 825.313(c)
2-17     [825.313(b)(1)].
2-18           (b)  Interest on a member's contribution is computed at the
2-19     rate of five percent a year on the average balance in the account
2-20     during the preceding fiscal year.  The retirement system shall
2-21     credit interest on the last day [August 31] of each month [year].
2-22           SECTION 4.  Section 825.309(a), Government Code, is amended
2-23     to read as follows:
2-24           (a)  The retirement system shall transfer to the retired
2-25     reserve account:
2-26                 (1)  from the member savings account, an amount equal
2-27     to the accumulated contributions in a member's individual account
 3-1     when the member retires or when the retirement system approves the
 3-2     payment of any benefit authorized under this subtitle on the
 3-3     member's retirement or death;
 3-4                 (2)  from the state contribution account, an amount
 3-5     certified by the actuary or determined under actuarial tables
 3-6     adopted by the board of trustees pursuant to Section 825.105 as
 3-7     necessary to provide for the payment of the benefit as it becomes
 3-8     due; and
 3-9                 (3)  from the interest account, the amount required by
3-10     Section 825.313(b)(1) [825.313(b)(2)].
3-11           SECTION 5.  Section 825.312(a), Government Code, is amended
3-12     to read as follows:
3-13           (a)  The retirement system shall deposit in the expense
3-14     account:
3-15                 (1)  money transferred from the interest account under
3-16     Section 825.313(d) [825.313(c)] and
3-17                 (2)  money received from the Texas Public School
3-18     Employees Group Insurance Program for service performed for the
3-19     program by the retirement system.
3-20           SECTION 6.  Section 825.313, Government Code, is amended to
3-21     read as follows:
3-22           Sec. 825.313.  TRANSFERS FROM INTEREST OR STATE CONTRIBUTION
3-23     ACCOUNT.  (a)  Annually, the retirement system shall transfer from
3-24     the interest account to the state contribution account amounts
3-25     accumulated under Section 825.311(2).
3-26           (b)  On August 31 of each year, the retirement system shall
3-27     make the following transfers from the interest account:
 4-1                 (1)  [to the member savings account, an amount computed
 4-2     using the rate prescribed by Section 825.307(b);]
 4-3                 [(2)]  to the retired reserve account, an amount equal
 4-4     to 4 3/4 percent of the average balance of the retired reserve
 4-5     account for that fiscal year or, if the transfer is authorized by
 4-6     resolution of the board, an amount computed at a greater rate if
 4-7     the actuary recommends the greater rate to adequately fund the
 4-8     retired reserve account; and
 4-9                 (2) [(3)]  to the state contribution account, the
4-10     amount remaining in the interest account after the other transfers
4-11     required or authorized by this section are made.
4-12           (c)  Each month the retirement system shall transfer from the
4-13     interest account to the member savings account an amount computed
4-14     using the rate prescribed by Section 825.307(b).
4-15           (d)  The board of trustees, by resolution recorded in its
4-16     minutes, may transfer from the interest account to the expense
4-17     account an amount necessary to cover the expenses of the retirement
4-18     system for the fiscal year that exceed the amount of operating
4-19     expenses appropriated under Section 825.404(d) and that are
4-20     required to perform the fiduciary duties of the board, including
4-21     the expense of servicing mortgages insured by the Federal Housing
4-22     Administration under the National Housing Act (12 U.S.C. Section
4-23     1701 et seq.).
4-24           SECTION 7.  Section 825.314(b), Government Code, is amended
4-25     to read as follows:
4-26           (b)  The staff of the retirement system shall report to the
4-27     board at each board meeting the amounts and uses since the
 5-1     preceding board meeting of any money expended by the system from
 5-2     amounts transferred under Section 825.314(d) [825.313(c)] and
 5-3     include an explanation of why the amounts were needed to perform
 5-4     the fiduciary duties of the board.  The retirement system annually
 5-5     shall prepare and issue to each contributing member and annuitant
 5-6     and to the governor, lieutenant governor, and speaker of the house
 5-7     of representatives a summary of the reports presented during the
 5-8     preceding year to the board.
 5-9           SECTION 8.  Section 825.407(f), Government Code, is amended
5-10     to read as follows:
5-11           (f)  Any portion of the reimbursement required under this
5-12     section to be made for a fiscal year by a general academic teaching
5-13     institution or a medical and dental unit that remains unpaid on the
5-14     first day of the next fiscal year accrues interest, beginning on
5-15     that day or the due date for the portion, whichever is later, at an
5-16     annual rate, compounded monthly, equal to the rate established
5-17     under Section 825.313(b)(1) [825.313(b)], plus two percent.
5-18           SECTION 9.  Section 825.408(a), Government Code, is amended
5-19     to read as follows:
5-20           (a)  An employing district that fails to remit, before the
5-21     11th day after the last day of a month, all member and employer
5-22     deposits required by this subchapter to be remitted by the district
5-23     for the month shall pay to the retirement system, in addition to
5-24     the deposits, interest on the unpaid amounts at an annual rate
5-25     compounded monthly.  The rate of interest is the rate established
5-26     under Section 825.313(b)(1) [825.313(b)(2)], plus two percent.
5-27     Interest required under this section is creditable to the interest
 6-1     account.
 6-2           SECTION 10.  Subchapter F, Chapter 825, Government Code, is
 6-3     amended by adding Section 825.518 to read as follows:
 6-4           Sec. 825.518.  ANNUAL REPORT.  The Teacher Retirement System
 6-5     of Texas shall submit a statistical analysis based on information
 6-6     compiled under Section 822.005(d) not later than the 25th day of
 6-7     the month following the end of each fiscal year to the governor,
 6-8     the lieutenant governor, the speaker of the house of
 6-9     representatives, the executive director of the State Pension Review
6-10     Board, the appropriate oversight committees of the house and
6-11     senate, and the Legislative Budget Board.
6-12           SECTION 11.  Section 830.203(f), Government Code, is amended
6-13     to read as follows:
6-14           (f)  Any portion of the reimbursement required under this
6-15     section to be made for a fiscal year by a general academic teaching
6-16     institution or a medical and dental unit that remains unpaid on the
6-17     first day of the next fiscal year accrues interest, beginning on
6-18     that day or the due date for the portion, whichever is later, at an
6-19     annual rate, compounded monthly, equal to the rate established
6-20     under Section 825.313(b)(1) [825.313(b)], plus two percent.
6-21           SECTION 12.  This Act takes effect September 1, 1999, and
6-22     applies only to a withdrawal application that is submitted under
6-23     Section 822.005, Government Code, as amended by this Act, on or
6-24     after that date.  A withdrawal application submitted  before the
6-25     effective date of this Act is governed by the law in effect on the
6-26     day the withdrawal application was filed, and the former law is
6-27     continued in effect for that purpose.
 7-1           SECTION 13.  The importance of this legislation and the
 7-2     crowded condition of the calendars in both houses create an
 7-3     emergency and an imperative public necessity that the
 7-4     constitutional rule requiring bills to be read on three several
 7-5     days in each house be suspended, and this rule is hereby suspended.