76R12956 GCH-D
By Armbrister, et al. S.B. No. 1130
Substitute the following for S.B. No. 1130:
By Greenberg C.S.S.B. No. 1130
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to programs and systems administered by 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. Section 803.402, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 803.402. RECORDS. Except as provided by Section
1-8 825.507, records of members and beneficiaries of a retirement
1-9 system to which this chapter applies that are in the custody of any
1-10 retirement [the] system to which this chapter applies are
1-11 [considered to be personnel records and] confidential and not
1-12 subject to disclosure and are exempt from the public access
1-13 provisions of [information under] Chapter 552. The records or
1-14 information in the records may be transferred between retirement
1-15 systems to which this chapter applies to the extent necessary to
1-16 administer the proportionate retirement program provided by this
1-17 chapter.
1-18 SECTION 2. Section 805.008, Government Code, is amended by
1-19 amending Subsection (c) and adding Subsection (h) to read as
1-20 follows:
1-21 (c) As an alternative to Subsections (a) and (b) and except
1-22 as provided by Subsection (h), the systems by rule may require the
1-23 system from which service credit is transferred to pay monthly an
2-1 amount equal to the portion of the actual value of the monthly
2-2 payment of the annuity that represents the percentage of the total
2-3 amount of service credit that is transferred.
2-4 (h) If a person elects to receive a partial lump-sum payment
2-5 under the law governing the system from which the person is
2-6 retiring, a transfer of an amount equal to the portion of the
2-7 actual value of a lump-sum payment that represents the percentage
2-8 of the amount of service credit transferred shall be made at the
2-9 time the lump-sum payment is made.
2-10 SECTION 3. Section 811.001, Government Code, is amended by
2-11 amending Subdivision (8) and adding Subdivision (18) to read as
2-12 follows:
2-13 (8) "Custodial officer" means a member of the
2-14 retirement system who is employed by the Board of Pardons and
2-15 Paroles or the Texas Department of Criminal Justice as a parole
2-16 officer or caseworker or who is employed by the institutional
2-17 division or the state jail division of the Texas Department of
2-18 Criminal Justice and certified by the department as having a normal
2-19 job assignment that requires frequent or infrequent regularly
2-20 planned contact with, and in close proximity to, inmates of the
2-21 institutional division or inmates or defendants confined in the
2-22 state jail division without the protection of bars, doors, security
2-23 screens, or similar devices and includes assignments normally
2-24 involving supervision or the potential for supervision of inmates
2-25 in inmate housing areas, educational or recreational facilities,
2-26 industrial shops, kitchens, laundries, medical areas, agricultural
2-27 shops or fields, or in other areas on or away from property of the
3-1 institutional division or the state jail division. The term
3-2 includes a member who transfers from the Texas Department of
3-3 Criminal Justice to the managed health care unit of The University
3-4 of Texas Medical Branch or the Texas Tech University Health
3-5 Sciences Center pursuant to Section 9.01, Chapter 238, Acts of the
3-6 73rd Legislature, 1993, elects at the time of transfer to retain
3-7 membership in the retirement system, and is certified by the
3-8 managed health care unit or the health sciences center as having a
3-9 normal job assignment described by this subdivision.
3-10 (18) "Parole officer" has the meaning assigned by
3-11 Section 508.001.
3-12 SECTION 4. Subsection (a), Section 812.101, Government Code,
3-13 is amended to read as follows:
3-14 (a) A member of the retirement system may withdraw all of
3-15 the member's accumulated contributions for service credited in the
3-16 employee class of membership if:
3-17 (1) the member does not hold a position included in
3-18 that class;
3-19 (2) the member does not assume or resume, during the
3-20 30 days after the date on [calendar month following the month in]
3-21 which the member terminates employment, a position included in that
3-22 class; and
3-23 (3) the member's application for withdrawal is filed
3-24 before the member assumes or resumes a position included in that
3-25 class.
3-26 SECTION 5. Section 812.104, Government Code, is amended by
3-27 amending Subsection (a) and adding Subsection (c) to read as
4-1 follows:
4-2 (a) Except as provided by Subsection (c), deposits
4-3 [Deposits] representing interest or membership fees that are
4-4 required of a member to establish service credit under Section
4-5 813.202, 813.302, 813.402, or 813.502 are not refundable.
4-6 (c) At the time a service retirement, disability retirement,
4-7 or death benefit annuity becomes payable, the retirement system
4-8 shall refund any contributions, interest, or membership fees used
4-9 to establish service credit that is not used in computing the
4-10 amount of the annuity.
4-11 SECTION 6. Subsection (b), Section 813.102, Government Code,
4-12 is amended to read as follows:
4-13 (b) A member may reestablish credit by depositing with the
4-14 retirement system in a lump sum the amount withdrawn from a
4-15 membership class, [plus all membership fees due,] plus interest
4-16 computed on the basis of the state fiscal year at an annual rate of
4-17 five percent from the date of withdrawal to the date of redeposit.
4-18 SECTION 7. Subsection (b), Section 813.104, Government Code,
4-19 is amended to read as follows:
4-20 (b) Except as provided by Subsection (c), payments may not
4-21 be made under a rule adopted under this section:
4-22 (1) to establish or reestablish service credit of a
4-23 person who is currently [has] retired or has died; or
4-24 (2) to establish current service under Section
4-25 813.201.
4-26 SECTION 8. Subsection (b), Section 813.201, Government Code,
4-27 is amended to read as follows:
5-1 (b) A member may not, after August 31, 1997 [1991], accrue
5-2 or establish [a total of more than 50 years of] service credit in
5-3 the employee class of membership when the total amount of service
5-4 credit, multiplied by the percentage in effect for computing
5-5 annuities under Section 814.105, would exceed the number 100. When
5-6 the maximum amount [a total of 50 years] of service credit is
5-7 accrued or established by a member in the employee class, member
5-8 and state contributions cease, although the member retains
5-9 membership subject to Section 812.005.
5-10 SECTION 9. Subsection (b), Section 813.202, Government Code,
5-11 is amended to read as follows:
5-12 (b) A member may establish credit under this section by
5-13 depositing with the retirement system in a lump sum a contribution
5-14 computed as provided by Section 813.404 or 813.505, [plus all
5-15 membership fees due,] plus interest computed on the basis of the
5-16 state fiscal year at an annual rate of 10 percent from the date the
5-17 service was performed to the date of deposit.
5-18 SECTION 10. Subsection (b), Section 813.402, Government
5-19 Code, is amended to read as follows:
5-20 (b) A member may establish credit under this section by
5-21 depositing with the retirement system in a lump sum a contribution
5-22 computed as provided by Section 813.404, [plus all membership fees
5-23 due,] plus interest computed at an annual rate of 10 percent from
5-24 the fiscal year in which the service was performed to the date of
5-25 deposit.
5-26 SECTION 11. Subsections (b) and (c), Section 813.506,
5-27 Government Code, are amended to read as follows:
6-1 (b) To be creditable as custodial officer service, service
6-2 performed must be performed as a parole officer or caseworker or
6-3 must meet the requirements of the rules adopted under Subsection
6-4 (a) and [may] be performed by persons in one of the following job
6-5 categories:
6-6 (1) all persons classified as Correctional Officer I
6-7 through warden, including training officers and special operations
6-8 reaction team officers;
6-9 (2) all other employees assigned to work on a unit and
6-10 whose jobs require routine contact with inmates or defendants
6-11 confined in the state jail division, including but not limited to
6-12 farm managers, livestock supervisors, maintenance foremen, shop
6-13 foremen, medical assistants, food service supervisors, stewards,
6-14 education consultants, commodity specialists, and correctional
6-15 counselors;
6-16 (3) employees assigned to administrative offices whose
6-17 jobs require routine contact with inmates or defendants confined in
6-18 the state jail division at least 50 percent of the time, including
6-19 but not limited to investigators, compliance monitors, accountants
6-20 routinely required to audit unit operations, sociologists,
6-21 interviewers, classification officers, and supervising counselors;
6-22 and
6-23 (4) administrative positions whose jobs require
6-24 response to emergency situations involving inmates or defendants
6-25 confined in the state jail division, including but except as
6-26 specified not limited to the director, deputy directors, assistant
6-27 directors, and not more than 25 administrative duty officers.
7-1 (c) The Texas Department of Criminal Justice, the managed
7-2 health care unit of The University of Texas Medical Branch[,] or
7-3 the Texas Tech University Health Sciences Center, or the Board of
7-4 Pardons and Paroles, as applicable, shall determine a person's
7-5 eligibility to receive credit as a custodial officer. A
7-6 determination of the department, [or] unit, or board may not be
7-7 appealed by an employee but is subject to change by the retirement
7-8 system.
7-9 SECTION 12. Subchapter F, Chapter 813, Government Code, is
7-10 amended by adding Section 813.511 to read as follows:
7-11 Sec. 813.511. CREDIT FOR ACCUMULATED ANNUAL LEAVE. (a) A
7-12 member who holds a position included in the employee class of
7-13 membership during the month that includes the effective date of the
7-14 member's retirement and who retires based on service or a
7-15 disability is entitled to service credit in the retirement system
7-16 for the member's annual leave that has accumulated and is unused on
7-17 the last day of employment. Annual leave is creditable in the
7-18 retirement system at the rate of one month of service credit for
7-19 each 20 days, or 160 hours, of accumulated annual leave and one
7-20 month for each fraction of days or hours remaining after division
7-21 of the total hours of accumulated annual leave by 160.
7-22 (b) A member who holds a position included in the employee
7-23 class may use annual leave creditable under this section to satisfy
7-24 service requirements for retirement under Section 814.104 or
7-25 814.107 if the annual leave attributed to the eligibility
7-26 requirements remains otherwise unused on the last day of
7-27 employment.
8-1 (c) Except as provided by Subsection (d), the disbursing
8-2 officer of each department or agency shall, before the 11th day
8-3 after the effective date of retirement of one or more employees of
8-4 the department or agency, certify to the retirement system:
8-5 (1) the name of each person whose retirement from the
8-6 department or agency, and from state service, became effective
8-7 during the preceding month; and
8-8 (2) the amount of the person's accumulated annual
8-9 leave on the last day of employment.
8-10 (d) The disbursing officer of a department or agency that
8-11 employs a member who applies for retirement under Subsection (b)
8-12 shall, not more than 90 or less than 30 days before the effective
8-13 date of the member's retirement, certify to the retirement system
8-14 the amount of the member's accumulated and unused annual leave.
8-15 The officer shall immediately notify the retirement system if the
8-16 member uses annual leave after the date of certification.
8-17 (e) On receipt of a certification under Subsection (c) or
8-18 (d), the retirement system shall grant any credit to which a
8-19 retiring member or retiree who is a subject of the certification is
8-20 entitled. An increase in the computation of an annuity because of
8-21 credit provided by this section after a certification under
8-22 Subsection (d) begins with the first payment that becomes due after
8-23 certification.
8-24 (f) The retirement system shall cancel the retirement of a
8-25 person who used annual leave creditable under this section to
8-26 qualify for service retirement if the annual leave is otherwise
8-27 used by the person before the effective date of retirement.
9-1 SECTION 13. Section 814.104, Government Code, is amended by
9-2 amending Subsection (a) and adding Subsection (c) to read as
9-3 follows:
9-4 (a) Except as provided by Section 814.102 or by rule adopted
9-5 under Section 813.304(d) or 803.202(a)(2) [803.202(2)], a member
9-6 who has service credit in the retirement system is eligible to
9-7 retire and receive a service retirement annuity if the member:
9-8 (1) [if the member] is at least 60 years old and has
9-9 at least 5 years of service credit in the employee class; or
9-10 (2) has at least 5 years of service credit in the
9-11 employee class and [if] the sum of the member's age and amount of
9-12 service credit in the employee class, including months of age and
9-13 credit, equals or exceeds the number 80.
9-14 (c) For the sole purpose of determining eligibility to
9-15 receive a service retirement annuity, the retirement system shall
9-16 consider service performed as a participant in the optional
9-17 retirement program under Chapter 830 as if it were service for
9-18 which credit is established in the retirement system.
9-19 SECTION 14. Section 814.1041, Government Code, is amended to
9-20 read as follows:
9-21 Sec. 814.1041. TEMPORARY SERVICE RETIREMENT OPTION FOR
9-22 MEMBERS AFFECTED BY PRIVATIZATION OR OTHER REDUCTION IN WORKFORCE.
9-23 (a) This section applies only to members of the employee class who
9-24 are not otherwise eligible to retire and whose positions with the
9-25 Texas Workforce Commission, the Texas Department of Human Services,
9-26 [or] the Texas Department of Mental Health and Mental Retardation,
9-27 or the Texas Department of Health are eliminated as a result of
10-1 contracts with private service providers or other reductions in
10-2 services provided by those agencies and who separate from state
10-3 service at that time.
10-4 (b) A member described by Subsection (a) is eligible to
10-5 retire and receive a service retirement annuity if the member's age
10-6 and service credit, each equally increased only as needed to meet
10-7 minimum age and service requirements, but not by more than [by]
10-8 three years, would meet the minimum age and service requirements
10-9 for service retirement under Section 814.104(a) at the time the
10-10 member separates from state service as described by Subsection (a).
10-11 The annuity of a person who retires under this subsection is
10-12 computed on the person's accrued service credit increased by the
10-13 minimum amount of service credit necessary to meet the service
10-14 credit requirement for retirement, but not by more than three
10-15 years.
10-16 (c) [A member described by Subsection (a) becomes eligible
10-17 to retire and receive a service retirement annuity on the date on
10-18 which the member would have met the age and service requirements
10-19 for service retirement under Section 814.104(a) had the member
10-20 remained employed by the state if, on the date of separation from
10-21 state service, the member's age and service credit, each increased
10-22 by five years, would meet age and service requirements for service
10-23 retirement under Section 814.104(a). The annuity of a person who
10-24 retires under this subsection is computed on the person's accrued
10-25 service credit.]
10-26 [(d) If a member described by Subsection (c) is reemployed
10-27 by the state before retirement, the time between the member's
11-1 separation from state service and reemployment may be used only to
11-2 compute eligibility for service retirement and may not be used to
11-3 compute the amount of any service retirement annuity.]
11-4 [(e)] A member who applies to retire under this section and
11-5 the state agency from which the member separated from service shall
11-6 provide documentation required by the retirement system to
11-7 establish eligibility to retire under this section.
11-8 (d) [(f)] This section applies only to positions eliminated
11-9 by privatization or other reductions in workforce before September
11-10 1, 2001 [1999].
11-11 SECTION 15. Subchapter B, Chapter 814, Government Code, is
11-12 amended by adding Section 814.1042 to read as follows:
11-13 Sec. 814.1042. SERVICE FOR CERTAIN GOVERNMENTAL EMPLOYERS.
11-14 (a) For the sole purpose of determining eligibility to receive a
11-15 service retirement annuity under Section 814.104(a)(2), the
11-16 retirement system shall consider not more than 60 months, or
11-17 portions of months, of service performed for a Texas governmental
11-18 employer by a member who has at least five years of service credit,
11-19 excluding military service, in the employee class as if it were
11-20 service for which credit is established in the retirement system.
11-21 (b) A member who seeks the application of this section must
11-22 provide documentation satisfactory to the retirement system of the
11-23 amount of service performed for the governmental employer.
11-24 (c) Service described by this section may not be used in
11-25 determining eligibility for participation in the Texas Employees
11-26 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
11-27 Texas Insurance Code).
12-1 SECTION 16. Subsections (c), (d), and (e), Section 814.107,
12-2 Government Code, are amended to read as follows:
12-3 (c) The standard combined service retirement annuity that is
12-4 payable under this section is based on retirement on or after the
12-5 attainment of the normal retirement age, which for purposes of this
12-6 section is the earlier of either the age of 50 or the age at which
12-7 the sum of the member's age and amount of service credit in the
12-8 employee class equals the number 80 [at the age of 50 or older]. A
12-9 law enforcement or custodial officer who retires before attaining
12-10 the normal retirement age [of 50] is entitled to an annuity that is
12-11 actuarially reduced from the annuity available at the normal
12-12 retirement age [of 50] to the law enforcement or custodial officer
12-13 service credit annuity amount available at the sum of the member's
12-14 age and amount of employee class service credit. The annuity
12-15 [earlier retirement age and] is payable from the law enforcement
12-16 and custodial officer supplemental retirement fund.
12-17 (d) A member who retires under this section retires
12-18 simultaneously from the employee class of membership. Benefits for
12-19 service in the employee class of membership become payable from the
12-20 trust fund established by Section 815.310 at the normal retirement
12-21 age [of 50] under the computation provided by Section 814.105.
12-22 Optional retirement annuities provided by Section 814.108 are
12-23 available to a member eligible to receive a service retirement
12-24 annuity under this section, but the same optional plan and designee
12-25 must be selected for the portion of the annuity payable from the
12-26 law enforcement and custodial officer supplemental retirement fund
12-27 and the portion payable from the trust fund established by Section
13-1 815.310.
13-2 (e) The amount payable from the law enforcement and
13-3 custodial officer supplemental retirement fund is reducible by the
13-4 amount paid from the trust fund established by Section 815.310 for
13-5 service as a law enforcement or custodial officer. The total
13-6 combined amount of an annuity under this section may not be less
13-7 than the authorized benefit under Subsection (b) subtracted by any
13-8 amount necessary because of selection of an optional annuity,
13-9 because of retirement before the normal retirement age [of 50], or
13-10 as provided by Subsection (f).
13-11 SECTION 17. Subchapter B, Chapter 814, Government Code, is
13-12 amended by adding Section 814.1082 to read as follows:
13-13 Sec. 814.1082. PARTIAL LUMP-SUM OPTION. (a) A member who
13-14 is eligible for an unreduced service retirement annuity may select
13-15 a standard retirement annuity or an optional retirement annuity
13-16 described by Section 814.108 together with a partial lump-sum
13-17 distribution.
13-18 (b) The amount of the lump-sum distribution under this
13-19 section may not exceed the sum of 36 months of a standard service
13-20 retirement annuity computed without regard to this section.
13-21 (c) The service retirement annuity selected by the member
13-22 shall be actuarially reduced to reflect the lump-sum option
13-23 selected by the member and shall be actuarially equivalent to a
13-24 standard or optional service retirement annuity, as applicable,
13-25 without the partial lump-sum distribution. The annuity and lump
13-26 sum shall be computed to result in no actuarial loss to the
13-27 retirement system.
14-1 (d) Unless otherwise specified in rules adopted by the board
14-2 of trustees, the lump-sum distribution will be made as a single
14-3 payment payable at the time that the first monthly annuity payment
14-4 is paid to the retiree.
14-5 (e) The amount of the lump-sum distribution will be deducted
14-6 from any amount otherwise payable under Section 814.505.
14-7 (f) The partial lump-sum option under this section may be
14-8 elected only once by a member and may not be elected by a retiree.
14-9 A member retiring under the proportionate retirement program under
14-10 Chapter 803 is not eligible for the partial lump-sum option.
14-11 (g) Before a retiring member selects a partial lump-sum
14-12 distribution under this section, the retirement system shall
14-13 provide a written notice to the member of the amount by which the
14-14 member's annuity will be reduced because of the selection. The
14-15 member shall be asked to sign a copy of or a receipt for the
14-16 notice, and the retirement system shall maintain the signed copy or
14-17 receipt.
14-18 (h) The board of trustees may adopt rules for the
14-19 implementation of this section and may authorize the option to be
14-20 used for a death benefit annuity. This section does not apply to a
14-21 disability retirement annuity.
14-22 SECTION 18. Section 814.202, Government Code, is amended by
14-23 adding Subsection (d) to read as follows:
14-24 (d) For the sole purpose of determining eligibility to
14-25 receive a disability retirement annuity under Subsection (a)(3),
14-26 the retirement system shall consider service performed as a
14-27 participant in the optional retirement program under Chapter 830 as
15-1 if it were service for which credit is established in the
15-2 retirement system.
15-3 SECTION 19. Subsection (b), Section 814.302, Government
15-4 Code, is amended to read as follows:
15-5 (b) If a person dies who, at the time of death, was a
15-6 contributing member of a retirement program administered by the
15-7 board of trustees and was eligible, having met the requirements of
15-8 service credit and attained age, for a service retirement annuity
15-9 based on service in one or more board-administered programs or was
15-10 a contributing member of the employee class, had at least three
15-11 years of service credit in that class, and would have been eligible
15-12 to retire under the proportionate retirement program under Chapter
15-13 803, but was not eligible to select a death benefit plan, the
15-14 person's surviving spouse may select a plan in the same manner that
15-15 the decedent could have made the selection if the decedent had
15-16 retired on the last day of the month in which the person died. If
15-17 there is no surviving spouse, the guardian of the decedent's
15-18 surviving minor children may select a plan. If the decedent is not
15-19 survived by a spouse or minor children, an annuity may not be paid
15-20 under this subsection.
15-21 SECTION 20. Section 815.103, Government Code, is amended by
15-22 adding Subsection (d) to read as follows:
15-23 (d) The board of trustees may accept on behalf of the
15-24 retirement system gifts of money or other property from any public
15-25 or private source.
15-26 SECTION 21. Subsection (e), Section 815.110, Government
15-27 Code, is amended to read as follows:
16-1 (e) The board of trustees [annually] shall select an
16-2 independent auditor to perform an annual [a] financial audit of the
16-3 retirement system. The selection shall be in accordance with the
16-4 requirements of Chapter 2254 for obtaining the services of a
16-5 certified public accountant [made under a competitive bidding
16-6 process in which the state auditor is eligible to bid].
16-7 SECTION 22. Subsection (f), Section 815.202, Government
16-8 Code, is amended to read as follows:
16-9 (f) The board of trustees may specifically delegate any
16-10 right, power, or duty imposed or conferred on the executive
16-11 director by law to another employee of the retirement system. If
16-12 not so specifically delegated, the executive director may delegate
16-13 to another employee of the retirement system any right, power, or
16-14 duty assigned to the executive director.
16-15 SECTION 23. Section 815.208, Government Code, is amended by
16-16 adding Subsections (d) and (e) to read as follows:
16-17 (d) The board of trustees may compensate employees of the
16-18 retirement system, whether subject to or exempt from the overtime
16-19 provisions of the Fair Labor Standards Act of 1938 (29 U.S.C.
16-20 Section 201 et seq.), at the rate equal to the employees' regular
16-21 rate of pay for work performed on a legal holiday or for other
16-22 compensatory time accrued, when taking compensatory time off would
16-23 be disruptive to the system's normal business functions.
16-24 (e) The retirement system is exempt from Subchapter K,
16-25 Chapter 659, and Chapter 660, to the extent the board of trustees
16-26 determines an exemption is necessary for the performance of
16-27 fiduciary duties.
17-1 SECTION 24. Section 815.301, Government Code, is amended by
17-2 adding Subsection (f) to read as follows:
17-3 (f) For purposes of the investment authority of the board of
17-4 trustees under Section 67, Article XVI, Texas Constitution,
17-5 "securities" means any investment instrument within the meaning of
17-6 the term as defined by Section 4, The Securities Act (Article
17-7 581-4, Vernon's Texas Civil Statutes), 15 U.S.C. Section 77b(a)(1),
17-8 or 15 U.S.C. Section 78c(a)(10).
17-9 SECTION 25. Section 815.322, Government Code, is amended to
17-10 read as follows:
17-11 Sec. 815.322. TRANSFER OF ASSETS TO ADJUST AMOUNT IN
17-12 RETIREMENT ANNUITY RESERVE ACCOUNT. After making the transfers
17-13 required by Section 815.318, the executive director [board of
17-14 trustees] shall make a transfer to make the amount in the
17-15 retirement annuity reserve account equal, as of the last day of
17-16 each fiscal year, to the actuarial present value of the annuities
17-17 for which a transfer of assets has been made as required by Section
17-18 815.319. The transfer shall be:
17-19 (1) a transfer from the retirement annuity reserve
17-20 account to the state accumulation account of the amount by which
17-21 the amount in the retirement annuity reserve account exceeds the
17-22 actuarial present value of the annuities; or
17-23 (2) a transfer from the state accumulation account to
17-24 the retirement annuity reserve account of the amount by which the
17-25 actuarial present value of the annuities exceeds the amount in the
17-26 retirement annuity reserve account.
17-27 SECTION 26. Subsection (a), Section 815.502, Government
18-1 Code, is amended to read as follows:
18-2 (a) If a valid application for payment based on money or
18-3 credit in a member's individual account in the employees saving
18-4 account is not filed with the retirement system before the
18-5 expiration of five years after the last day of the most recent
18-6 month of service for which the member has credit in the retirement
18-7 system, the retirement system may [shall] mail a notice to the
18-8 member at the member's most recent address as shown on system
18-9 records. If no address is available or if the notice is returned
18-10 unclaimed, the retirement system shall cause a notice to be
18-11 published in a newspaper of general circulation in the state.
18-12 SECTION 27. Section 815.503, Government Code, is amended to
18-13 read as follows:
18-14 Sec. 815.503. [MEMBERS'] RECORDS. (a) Records of members
18-15 and annuitants [beneficiaries] under retirement plans administered
18-16 by the retirement system that are in the custody of the system or
18-17 of an administrator, carrier, or other governmental agency acting
18-18 in cooperation with or on behalf of the retirement system are
18-19 [considered to be personnel records and are required to be treated
18-20 as] confidential and not subject to public disclosure and are
18-21 exempt from the public access provisions of Chapter 552, except as
18-22 otherwise provided by this section [information under Section
18-23 552.101].
18-24 (b) Records may be released to a member or annuitant or to
18-25 an authorized attorney, family member, or representative acting on
18-26 behalf of the member or annuitant. The retirement system may
18-27 release the records to an administrator, carrier, or agent or
19-1 attorney acting on behalf of the retirement system, to another
19-2 governmental entity having a legitimate need for the information to
19-3 perform the purposes of the retirement system, or to a party in
19-4 response to a subpoena issued under applicable law.
19-5 (c) The records of a member or annuitant remain confidential
19-6 after release to a person as authorized by this section. The
19-7 records of a member or annuitant may become part of the public
19-8 record of an administrative or judicial proceeding related to a
19-9 contested case under Subtitle D or E or this subtitle, unless the
19-10 records are closed to public access by a protective order issued
19-11 under applicable law.
19-12 SECTION 28. Section 815.505, Government Code, is amended to
19-13 read as follows:
19-14 Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT AND
19-15 CUSTODIAL OFFICERS. Not later than the 12th day of the month
19-16 following the month in which a person begins or ceases employment
19-17 as a law enforcement officer or custodial officer, the Public
19-18 Safety Commission, the Texas Alcoholic Beverage Commission, the
19-19 Parks and Wildlife Commission, the State Board of Pharmacy, the
19-20 Board of Pardons and Paroles, or the Texas Board of Criminal
19-21 Justice, as applicable, shall certify to the retirement system, in
19-22 the manner prescribed by the system, the name of the employee and
19-23 such other information as the system determines is necessary for
19-24 the crediting of service and financing of benefits under this
19-25 subtitle.
19-26 SECTION 29. Section 815.511, Government Code, is amended to
19-27 read as follows:
20-1 Sec. 815.511. [APPEAL OF] ADMINISTRATIVE DECISION; APPEAL
20-2 AND NEGOTIATION. (a) The board of trustees may modify or delete a
20-3 proposed finding of fact or conclusion of law contained in a
20-4 proposal for decision submitted by an administrative law judge or
20-5 other hearing examiner, or make alternative findings of fact and
20-6 conclusions of law, in a proceeding considered to be a contested
20-7 case under Chapter 2001. The board of trustees shall state in
20-8 writing the specific reason for its determination and may adopt
20-9 rules for the implementation of this subsection.
20-10 (b) A person aggrieved by a decision of any retirement
20-11 system administered by the board of trustees denying or limiting
20-12 membership, service credit, or eligibility for or the amount of
20-13 benefits payable by a system may appeal the decision to the board.
20-14 The appeal is considered to be an appeal of a contested case under
20-15 the administrative procedure law, Chapter 2001. On judicial appeal
20-16 the standard of review is by substantial evidence.
20-17 (c) Notwithstanding Subsection (b), the retirement system
20-18 and a person aggrieved by a decision of the system may at any time
20-19 informally negotiate an award of benefits. Negotiated benefits may
20-20 not exceed the maximum benefits otherwise available or required by
20-21 law.
20-22 (d) On behalf of the retirement system, the executive
20-23 director may refer an appeal made under Subsection (b) to the State
20-24 Office of Administrative Hearings for a hearing or, notwithstanding
20-25 Section 2003.021 or other law, employ or contract for the services
20-26 of an administrative law judge or hearing examiner not affiliated
20-27 with the State Office of Administrative Hearings to conduct the
21-1 hearing.
21-2 SECTION 30. Section 840.102, Government Code, is amended by
21-3 amending Subsection (a) and adding Subsection (g) to read as
21-4 follows:
21-5 (a) Except as provided by Subsection (g), each [Each]
21-6 payroll period, a judicial officer who is a member of the
21-7 retirement system is required to contribute six percent of the
21-8 officer's state compensation for the period to the retirement
21-9 system.
21-10 (g) A member who accrues 20 years of service credit in the
21-11 retirement system ceases making contributions under this section
21-12 but is considered a contributing member for all other purposes
21-13 under this subtitle.
21-14 SECTION 31. Subsection (b), Section 840.103, Government
21-15 Code, is amended to read as follows:
21-16 (b) Not later than December 31 [Before November 2] of each
21-17 even-numbered year, the retirement system shall certify to the
21-18 Legislative Budget Board and to the budget division of the
21-19 governor's office for review:
21-20 (1) an actuarial valuation of the retirement system to
21-21 determine the percentage of annual payroll required from the state
21-22 to finance fully the retirement system as provided by Section
21-23 840.106;
21-24 (2) an estimate of the amount necessary to pay the
21-25 state's contribution under Subdivision (1) for the following
21-26 biennium; and
21-27 (3) as a separate item, an estimate of the amount, in
22-1 addition to anticipated receipts from membership fees, required to
22-2 administer the retirement system for the following biennium.
22-3 SECTION 32. Section 840.301, Government Code, is amended by
22-4 adding Subsection (c) to read as follows:
22-5 (c) For purposes of the investment authority of the board of
22-6 trustees under Section 67, Article XVI, Texas Constitution,
22-7 "securities" means any investment instrument within the meaning of
22-8 the term as defined by Section 4, The Securities Act (Article
22-9 581-4, Vernon's Texas Civil Statutes), 15 U.S.C. Section 77b(a)(1),
22-10 or 15 U.S.C. Section 78c(a)(10).
22-11 SECTION 33. Section 840.402, Government Code, is amended to
22-12 read as follows:
22-13 Sec. 840.402. RETIREMENT SYSTEM RECORDS. Records of members
22-14 and annuitants [beneficiaries] of the retirement system [that are
22-15 in the custody of the system] are [considered to be personnel
22-16 records and are required to be treated as] confidential within the
22-17 terms of Section 815.503 [information under Section 552.101].
22-18 SECTION 34. Subdivision (18), Subsection (a), Section 3,
22-19 Texas Employees Uniform Group Insurance Benefits Act (Article
22-20 3.50-2, Vernon's Texas Insurance Code), is amended to read as
22-21 follows:
22-22 (18) "Institution of higher education" means any
22-23 public community/junior college or senior college or university, or
22-24 any other agency of higher education within the meaning and
22-25 jurisdiction of Chapter 61, Education Code, except The University
22-26 of Texas System and The Texas A&M University System. [The term
22-27 does not include Texas Tech University and the University of
23-1 Houston System unless either of these entities elects to
23-2 participate in accordance with Section 3A of this Act.]
23-3 SECTION 35. Section 3A, Texas Employees Uniform Group
23-4 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
23-5 Code), is amended to read as follows:
23-6 Sec. 3A. PARTICIPATION BY CERTAIN ENTITIES [CERTAIN
23-7 INSTITUTIONS MAY ELECT TO PARTICIPATE]. (a) The Texas Municipal
23-8 Retirement System and the Texas County and District Retirement
23-9 System shall [Texas Tech University, the University of Houston
23-10 System, or both may] participate in the Texas Employees Uniform
23-11 Group Insurance [Benefits] Program administered by the Employees
23-12 Retirement System of Texas under this Act. Participation is
23-13 limited to the officers and employees of the systems; eligible
23-14 dependents of the officers and employees; persons who have retired
23-15 from either system, who receive or are eligible to receive an
23-16 annuity from either system or under Chapter 803, Government Code,
23-17 based on at least 10 years of service credit, who have at least
23-18 three years of service with a department, including either system,
23-19 whose employees are authorized to participate in the program
23-20 provided by this Act, and who were officers or employees of either
23-21 system; and eligible dependents of the retired officers and
23-22 employees. An officer or employee of either system is an employee
23-23 for purposes of this Act, and a retired officer or employee of
23-24 either system is an annuitant for purposes of this Act.
23-25 Participation under this subsection does not include the governing
23-26 bodies of either system, the municipalities or subdivisions
23-27 participating in either system, or the trustees, officers, or
24-1 employees, or their dependents, of the participating municipalities
24-2 or subdivisions. A participant described by this subsection may
24-3 not receive a state contribution for premiums [The university or
24-4 system must notify the trustee of its election to participate not
24-5 later than April 1, 1992].
24-6 (b) A person who began employment with, or became an officer
24-7 of, the Texas Turnpike Authority within the three-year period
24-8 preceding August 31, 1997, who was an officer or employee of the
24-9 Texas Turnpike Authority on that date, who became an officer or
24-10 employee of the North Texas Tollway Authority on September 1, 1997,
24-11 and who retires or is eligible to retire with at least 10 years of
24-12 service credit under the proportionate retirement program
24-13 established by Chapter 803, Government Code, or under one of the
24-14 public retirement systems to which Chapter 803 applies may
24-15 participate in the programs and coverages provided by this Act as
24-16 an annuitant and may obtain coverage for the person's dependents as
24-17 any other participating annuitant. The North Texas Tollway
24-18 Authority is responsible for payment of the contributions the state
24-19 would make if the annuitants were state employees.
24-20 SECTION 36. Section 4B, Texas Employees Uniform Group
24-21 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
24-22 Code), is amended by adding Subsections (c-1), (c-2), and (c-3) to
24-23 read as follows:
24-24 (c-1) The board of trustees may modify or delete a proposed
24-25 finding of fact or conclusion of law contained in a proposal for
24-26 decision submitted by an administrative law judge or other hearing
24-27 examiner, or make alternative findings of fact and conclusions of
25-1 law, in a proceeding considered to be a contested case under
25-2 Chapter 2001, Government Code. The board of trustees shall state
25-3 in writing the specific reason for the determination and may adopt
25-4 rules for the implementation of this subsection.
25-5 (c-2) Notwithstanding Subsections (c) and (d) of this
25-6 section, the trustee and a person who has standing to pursue an
25-7 administrative appeal may at any time informally negotiate an award
25-8 of benefits. Negotiated benefits may not exceed the maximum
25-9 benefits otherwise available or required by law.
25-10 (c-3) On behalf of the trustee, the executive director may
25-11 refer an appeal made under Subsection (c) of this section to the
25-12 State Office of Administrative Hearings for a hearing or,
25-13 notwithstanding Section 2003.021, Government Code, or other law,
25-14 employ or contract for the services of an administrative law judge
25-15 or hearing examiner not affiliated with the State Office of
25-16 Administrative Hearings to conduct the hearing.
25-17 SECTION 37. Section 5, Texas Employees Uniform Group
25-18 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
25-19 Code), is amended by amending Subsections (a), (d), and (f) and
25-20 adding Subsection (e) to read as follows:
25-21 (a) The trustee is authorized, empowered, and directed to
25-22 establish plans of group coverages for active employees and retired
25-23 employees which in the trustee's discretion may include but are not
25-24 necessarily limited to the following: group life coverages,
25-25 accidental death and dismemberment, health benefits plans,
25-26 including but not limited to hospital care and benefits, surgical
25-27 care and treatment, medical care and treatment, dental care,
26-1 obstetrical benefits, prescribed drugs, medicines, and prosthetic
26-2 devices and supplemental benefits, supplies, and services in
26-3 conformity with the provisions of this Act, protection against
26-4 either long or short term loss of salary and any other group
26-5 coverages which in the discretion of the trustee with consultation
26-6 from the advisory committee shall be deemed advisable. All rules
26-7 and regulations shall be promulgated pursuant thereto. The trustee
26-8 shall determine the coverages desired for state employees and other
26-9 eligible participants [will submit this information to the State
26-10 Board of Insurance for any recommendations as to the types and
26-11 sufficiency of such coverages. The State Board of Insurance will
26-12 notify the board of trustees within 30 days as to any such
26-13 recommendations and will furnish the board of trustees with a list
26-14 of all carriers authorized to do business in the State of Texas who
26-15 would be eligible to bid on the coverages that are to be insured by
26-16 a carrier]. The trustee will notify eligible [those] carriers that
26-17 competitive bidding will be conducted and that they are to submit
26-18 their bids to the trustee [State Board of Insurance] by a specified
26-19 date if they wish to bid on the contract. An actuary selected by
26-20 the trustee shall advise the trustee as to the actuarial soundness
26-21 of the bids received. [The State Board of Insurance will, after
26-22 the designated closing date of receiving bids, examine and evaluate
26-23 the bidding contracts and certify their actuarial soundness to the
26-24 trustee within 15 days from the closing date.] The trustee shall
26-25 select the desired carrier or carriers and will notify the bidding
26-26 eligible carriers as to the results of the bidding. The trustee
26-27 shall select the desired carrier or carriers to provide services
27-1 that will [which shall] be in the best interest of the employees
27-2 covered by this Act. The trustee is not required to select the
27-3 lowest bid but shall take into consideration other factors such as
27-4 ability to service contracts, past experience, financial ability,
27-5 and other relevant criteria. Should the trustee select a carrier
27-6 whose bid differs from that advertised, such deviation shall be
27-7 recorded and the reasons for such deviation shall be fully
27-8 justified and explained in the minutes of the next meeting of the
27-9 trustee. The trustee shall submit the coverages provided by the
27-10 group plan for competitive bidding at least every six years.
27-11 (d) No department shall establish, continue, or authorize
27-12 payroll deductions or reductions for any benefits or coverage as
27-13 provided in this Act without the express approval of the trustee[,
27-14 except for benefits from the deferred compensation program
27-15 established pursuant to Chapter 197, Acts of the 63rd Legislature,
27-16 Regular Session, 1973 (Article 6252-3b, Vernon's Texas Civil
27-17 Statutes)].
27-18 (e) Before the first day of each state fiscal biennium, the
27-19 trustee shall estimate for an average 60-day period during the
27-20 biennium the expenditures from the fund anticipated for self-funded
27-21 plans, considering claims and administrative expenses for those
27-22 plans that are projected to be incurred. The trustee shall place
27-23 the estimated amount in a contingency reserve fund to provide for
27-24 adverse fluctuations in claims or administrative expenses. The
27-25 trustee shall include in each request for legislative
27-26 appropriations to the program the amount the trustee determines to
27-27 be necessary to maintain the contingency reserve fund at the level
28-1 required by this subsection. The trustee may invest and reinvest
28-2 any portion of the contingency reserve fund under the standard of
28-3 care provided by Section 815.307, Government Code, considering the
28-4 functional need to provide for adverse fluctuations in claims or
28-5 administrative expenses. The interest on, earnings of, and
28-6 proceeds from the sale of investments of assets in the contingency
28-7 reserve fund shall be credited to the fund.
28-8 (f) The trustee, in its sole discretion and in accordance
28-9 with the requirements of this section, shall determine those plans
28-10 of coverages for which the trustee does not intend to purchase
28-11 insurance and which it intends to provide directly from the
28-12 Employees Life, Accident, and Health Insurance and Benefits Fund.
28-13 Any plan of coverages for which the trustee does not purchase
28-14 insurance but provides under this Act on a self-funded basis is
28-15 exempt from any other insurance law unless the law expressly
28-16 applies to this plan or this Act. A qualified actuary selected by
28-17 the trustee shall advise the trustee as to an actuarially sound
28-18 level of contributions required to provide coverages directly from
28-19 the fund. [The trustee shall make an estimate of the unrestricted
28-20 balance of the fund. Unless such estimated unrestricted balance is
28-21 equal to at least 10 percent of the total benefits expected to be
28-22 provided directly from the fund as a result of claims incurred
28-23 during the fiscal year, the trustee shall include in the
28-24 contributions required the amount necessary to establish an
28-25 unrestricted balance in the fund of not less than 10 percent. The
28-26 unrestricted balance shall be placed in a contingency reserve fund
28-27 to provide for adverse fluctuations in future charges, claims,
29-1 costs, or expenses of the program.]
29-2 SECTION 38. Section 6, Texas Employees Uniform Group
29-3 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
29-4 Code), is amended to read as follows:
29-5 Sec. 6. BENEFIT CERTIFICATES; IDENTIFICATION CARDS. (a) The
29-6 trustees shall provide for the issuance to each employee insured
29-7 under this Act a certificate of insurance setting forth the
29-8 benefits to which the employee is entitled, to whom the benefits
29-9 are payable, to whom the claims shall be submitted, and summarizing
29-10 the provisions of the policy principally affecting the employee.
29-11 (b) The trustee may issue a single identification card to
29-12 participants in a health benefits plan and separately administered
29-13 coverage under this Act that offers pharmacy benefits. The card
29-14 may contain information regarding both health and pharmacy
29-15 benefits.
29-16 SECTION 39. Section 7, Texas Employees Uniform Group
29-17 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
29-18 Code), is amended to read as follows:
29-19 Sec. 7. ANNUAL REPORT. The [As soon as practicable after
29-20 the end of each calendar year but not later than 90 days
29-21 thereafter, the] trustee shall make a written report not later than
29-22 January 1 of each year to the governor, lieutenant governor,
29-23 speaker of the house of representatives, and Legislative Budget
29-24 Board [State Board of Insurance] concerning the coverages provided
29-25 and the benefits and services being received by all employees
29-26 insured under the provisions of this Act and including information
29-27 about the effectiveness and efficiency of managed care cost
30-1 containment practices and fraud detection and prevention
30-2 procedures. [It shall be the duty of the State Board of Insurance
30-3 to review such report and advise the trustee in regard to the
30-4 features of the coverages provided for employees and cooperate
30-5 fully with the trustee in carrying out the purposes of the Act.]
30-6 SECTION 40. Section 8, Texas Employees Uniform Group
30-7 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
30-8 Code), is amended to read as follows:
30-9 Sec. 8. REINSURANCE. The trustee, in its sole discretion
30-10 and under conditions it approves, may reinsure any coverage that it
30-11 has determined will be provided directly from the fund in
30-12 accordance with Section 5(f) of this Act. [(a) The trustee shall
30-13 arrange with any carrier or carriers issuing any policy or policies
30-14 under this Act for the reinsurance, under conditions approved by
30-15 the trustee, of portions of the total amount of insurance under
30-16 such policy or policies, with other qualified carriers which elect
30-17 to participate in the reinsurance.]
30-18 [(b) The trustee shall determine for and in advance of a
30-19 policy year which qualified carriers are eligible to participate as
30-20 reinsurers and the amount of insurance under a policy or policies
30-21 which is to be allocated to the issuing company and reinsurers.
30-22 The trustee shall make this determination when a participating
30-23 company withdraws.]
30-24 SECTION 41. Section 10, Texas Employees Uniform Group
30-25 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
30-26 Code), is amended by adding Subsection (c) to read as follows:
30-27 (c) The records of a participant in the Texas Employees
31-1 Uniform Group Insurance Program in the custody of the trustee, or
31-2 of an administrator or carrier acting on behalf of the trustee, are
31-3 confidential and not subject to disclosure and are exempt from the
31-4 public access provisions of Chapter 552, Government Code, except as
31-5 provided by this subsection. Records may be released to a
31-6 participant or to an authorized attorney, family member, or
31-7 representative acting on behalf of the participant. The trustee
31-8 may release the records to an administrator, carrier, or agent or
31-9 attorney acting on behalf of the trustee, to another governmental
31-10 entity, to a medical provider of the participant for the purpose of
31-11 carrying out the purposes of this Act, or to a party in response to
31-12 a subpoena issued under applicable law. The records of a
31-13 participant remain confidential after release to a person as
31-14 authorized by this subsection. The records of a participant may
31-15 become part of the public record of an administrative or judicial
31-16 proceeding related to a contested case under this Act, unless the
31-17 records are closed to public access by a protective order issued
31-18 under applicable law.
31-19 SECTION 42. Subdivision (3), Subsection (e), Section 11,
31-20 Texas Employees Uniform Group Insurance Benefits Act (Article
31-21 3.50-2, Vernon's Texas Insurance Code), is amended to read as
31-22 follows:
31-23 (3) An annuitant [A retiree] participating in optional
31-24 term life insurance coverage is not eligible for premium-waived
31-25 extended insurance benefits [or accelerated life insurance
31-26 benefits] if the total disability [or terminal condition,
31-27 respectively,] begins after the date of retirement. Accidental
32-1 death and dismemberment insurance coverage ceases on the date of
32-2 retirement, regardless of age. An annuitant participating in
32-3 optional term life insurance coverage is eligible for accelerated
32-4 life insurance benefits as provided by rules adopted under the
32-5 authority of Subsection (d) of this section, as added by Chapter
32-6 1048, Acts of the 75th Legislature, Regular Session, 1997.
32-7 SECTION 43. Section 11A, Texas Employees Uniform Group
32-8 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
32-9 Code), is amended to read as follows:
32-10 Sec. 11A. PAYMENT OF ACCELERATED BENEFITS; IRREVOCABLE
32-11 DESIGNATION OF BENEFICIARY. [(a)] The trustee shall adopt rules
32-12 requiring a group life insurance program provided to employees,
32-13 including annuitants or dependents, to include a provision allowing
32-14 the employee, annuitant, or dependent to make, in conjunction with
32-15 receipt of a viatical settlement, an irrevocable designation of
32-16 beneficiary for part or all of the group life coverage benefits. A
32-17 viatical settlement is not valid for any coverage under the Texas
32-18 Employees Uniform Group Insurance Program unless the employee,
32-19 annuitant, or dependent has a terminal illness or terminal injury,
32-20 as defined by rules adopted by the trustee, at the time application
32-21 for benefits is made.[:]
32-22 [(1) elect to receive an accelerated benefit under
32-23 Article 3.50-6, Insurance Code, subject to the provisions of that
32-24 article; or]
32-25 [(2) make, in conjunction with receipt of a viatical
32-26 settlement, an irrevocable designation of a beneficiary for all or
32-27 a part of the group life coverage benefits.]
33-1 [(b)] In this section, "viatical settlement" has the meaning
33-2 assigned by Article 3.50-6A, Insurance Code.
33-3 SECTION 44. Section 13, Texas Employees Uniform Group
33-4 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
33-5 Code), is amended by adding Subsection (e) to read as follows:
33-6 (e) Except as provided by Section 13A of this Act, on
33-7 application to the trustee and arrangement for payment of
33-8 contributions, a former member of a board or commission described
33-9 by Section 3(a)(5)(A)(vi) of this Act or a former member of the
33-10 governing body of an institution of higher education remains
33-11 eligible for participation in a group health coverage plan offered
33-12 under this Act as long as no lapse in coverage occurs after the end
33-13 of the former member's term. A participant described by this
33-14 subsection may not receive a state contribution for premiums, but
33-15 the governing body of an institution of higher education may elect
33-16 to pay from local funds part or all of the contributions the state
33-17 would pay for similar coverage of other participants in the
33-18 program. The participant's contribution for coverage under a group
33-19 health coverage plan may not be greater than the contribution for
33-20 continuation coverage under the Consolidated Omnibus Budget
33-21 Reconciliation Act of 1985 (Pub. L. No. 99-272).
33-22 SECTION 45. Subsection (d), Section 13B, Texas Employees
33-23 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
33-24 Texas Insurance Code), is amended to read as follows:
33-25 (d) Each employee shall be enrolled in the premium
33-26 conversion benefit portion of the cafeteria plan [unless the
33-27 employee notifies the trustee in writing that the employee elects
34-1 not to be enrolled]. Notwithstanding any provision of Section 16B
34-2 of this Act to the contrary, the trustee may not establish a fee or
34-3 charge for administering the premium conversion benefit portion of
34-4 the cafeteria plan.
34-5 SECTION 46. The Texas Employees Uniform Group Insurance
34-6 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
34-7 amended by adding Section 16A to read as follows:
34-8 Sec. 16A. MANAGEMENT OF ASSETS. The trustee may commingle
34-9 for investment purposes the assets of any fund created under this
34-10 Act with any other fund created under this Act or any other trust
34-11 fund administered by the trustee, as long as proportionate
34-12 ownership records are maintained and credited.
34-13 SECTION 47. The Texas Employees Uniform Group Insurance
34-14 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
34-15 amended by adding Section 16C to read as follows:
34-16 Sec. 16C. EMPLOYEES' HEALTH CARE STABILIZATION TRUST FUND.
34-17 (a) The employees' health care stabilization trust fund is a
34-18 special fund in the treasury outside the general revenue fund.
34-19 (b) The fund is composed of:
34-20 (1) money transferred to the fund at the direction of
34-21 the legislature;
34-22 (2) gifts and grants contributed to the fund; and
34-23 (3) the returns received as interest on, and from
34-24 investment of, money in the fund.
34-25 (c) The trustee shall administer the fund. The trustee may
34-26 manage and invest the money in the fund under the standard of care
34-27 provided by Section 815.307, Government Code. In administering the
35-1 fund, the trustee shall make investments in a manner that preserves
35-2 the purchasing power of the fund's assets.
35-3 (d) Money in the fund may not be spent for any purpose,
35-4 except that the interest and investment returns of the fund may be
35-5 appropriated only for the purpose of stabilizing the cost of state
35-6 and participant contributions for health care coverage under this
35-7 Act by minimizing to the greatest extent possible increases in
35-8 those contributions.
35-9 (e) The fund is exempt from the application of Section
35-10 403.095, Government Code.
35-11 SECTION 48. Subsection (a), Section 18, Texas Employees
35-12 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
35-13 Texas Insurance Code), is amended to read as follows:
35-14 (a) The group benefits advisory committee is composed of 26
35-15 voting members as provided by this section. The office of the
35-16 attorney general, the office of the comptroller, the Railroad
35-17 Commission of Texas, the General Land Office, and the Department of
35-18 Agriculture are entitled to be represented by one member each on
35-19 the committee, who may be appointed by the governing body of the
35-20 state agency or elected by and from the employees of the agency, as
35-21 determined by rule by the governing body of the agency. One
35-22 employee shall be elected from each of the remaining eight largest
35-23 state agencies that are governed by appointed officers by and from
35-24 the employees of those agencies. One nonvoting member shall be the
35-25 executive director of the Employees Retirement System of Texas.
35-26 One member shall be an expert in employee benefit issues from the
35-27 private sector, appointed by the governor. One member shall be an
36-1 expert in employee benefits issues from the private sector,
36-2 appointed by the lieutenant governor. One member shall be a
36-3 retired state employee appointed by the trustee. One member shall
36-4 be a state employee of a state agency eligible for membership in
36-5 the Texas Small State Agency Task Force [other than one of the
36-6 eight largest state agencies], appointed by the trustee. Not more
36-7 than one employee from a particular state agency may serve on the
36-8 committee. Each of the seven largest institutions of higher
36-9 education, as determined by the number of employees on the payroll
36-10 of an institution, shall elect one member of the committee from
36-11 among persons who have each been nominated by a petition signed by
36-12 at least 300 employees. Two members shall be employees of
36-13 institutions of higher education, other than the seven largest
36-14 institutions of higher education, who are appointed by the Texas
36-15 Higher Education Coordinating Board, but not more than one employee
36-16 shall be from any one institution. The members shall elect a
36-17 presiding officer from their membership to serve a one-year term.
36-18 SECTION 49. Subsection (b), Section 19, Texas Employees
36-19 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
36-20 Texas Insurance Code), is amended to read as follows:
36-21 (b) A surviving spouse of an employee or a retiree who is
36-22 entitled to monthly benefits paid by a retirement system named in
36-23 this Act may, following the death of the employee or retiree, elect
36-24 to retain the spouse's authorized coverages and also retain
36-25 authorized coverages for any dependent of the spouse, at the group
36-26 rate for employees, provided such coverage was previously secured
36-27 by the employee or retiree for the spouse or dependent, and the
37-1 spouse directs the applicable retirement system to deduct required
37-2 contributions from the monthly benefits paid the surviving spouse
37-3 by the retirement system. A surviving dependent of a retiree who
37-4 was receiving monthly benefits paid by a retirement system named in
37-5 this Act may, after the death of the retiree and if the retiree
37-6 leaves no surviving spouse, elect to retain any coverage previously
37-7 secured by the retiree, at the group rate for employees, until the
37-8 dependent becomes ineligible for coverage for a reason other than
37-9 the death of the member of the group. A dependent who makes an
37-10 election under this subsection and who is entitled to monthly
37-11 benefits from a retirement system named in this Act based on the
37-12 service of the deceased retiree must direct the applicable
37-13 retirement system to deduct required contributions for the coverage
37-14 from the monthly benefits paid the surviving dependent by the
37-15 retirement system. If funds are specifically appropriated for the
37-16 purpose, the state shall pay the same portion of the cost of the
37-17 required contributions for a deceased retiree's surviving spouse or
37-18 other surviving dependent who elects to retain coverage under this
37-19 subsection as it pays for similar dependent coverage for an
37-20 employee or retiree participating in the program.
37-21 SECTION 50. Subsection (a), Section 403.026, Government
37-22 Code, as added by Chapter 1153, Acts of the 75th Legislature,
37-23 Regular Session, 1997, is amended to read as follows:
37-24 (a) The comptroller shall conduct a study each biennium to
37-25 determine the number and type of fraudulent claims for medical or
37-26 health care benefits submitted:
37-27 (1) under the state Medicaid program; or
38-1 (2) [under group health insurance programs
38-2 administered through the Employees Retirement System of Texas for
38-3 active and retired state employees; or]
38-4 [(3)] by or on behalf of a state employee and
38-5 administered by the attorney general under Chapter 501, Labor Code.
38-6 SECTION 51. Section 609.007, Government Code, is amended by
38-7 adding Subsection (d) to read as follows:
38-8 (d) A contract created under this section need not be in
38-9 writing and may be communicated to the plan administrator
38-10 electronically or by any other means approved by the plan's
38-11 trustees.
38-12 SECTION 52. Section 609.505, Government Code, is amended by
38-13 amending Subsection (a) and adding Subsections (c) and (d) to read
38-14 as follows:
38-15 (a) The board of trustees, in accordance with rules adopted
38-16 under this subchapter, may contract with a [qualified] vendor
38-17 qualified to participate in a deferred compensation plan.
38-18 (c) A vendor or investment product having an ownership or
38-19 other financial interest in the contractor selected by the board of
38-20 trustees to administer a deferred compensation plan is not
38-21 qualified to participate in that plan.
38-22 (d) The board of trustees shall select vendors or investment
38-23 products based on the quality of investment performance, proven
38-24 ability to manage institutional assets, minimum net worth
38-25 requirements, fee structure, compliance with applicable federal and
38-26 state laws, and other criteria established by the board. The board
38-27 of trustees shall determine the minimum and maximum number of
39-1 vendors and investment products that may be offered by a plan at
39-2 any particular time.
39-3 SECTION 53. Section 609.510, Government Code, is amended to
39-4 read as follows:
39-5 Sec. 609.510. EXEMPTION FOR CERTAIN CONTRACTS. A contract
39-6 authorized by Section 609.505 [for TexaSaver] or by Section 609.509
39-7 for either deferred compensation plan is exempt from:
39-8 (1) Subtitle D, Title 10;
39-9 (2) Chapter 463; and
39-10 (3) Chapter 2254.
39-11 SECTION 54. Section 615.001, Government Code, is amended to
39-12 read as follows:
39-13 Sec. 615.001. DEFINITION. In this chapter, "minor child"
39-14 means a child who, on the date of the death of an individual listed
39-15 under Section 615.003, is younger than 18 [21] years of age.
39-16 SECTION 55. Subchapter C, Chapter 2155, Government Code, is
39-17 amended by adding Section 2155.146 to read as follows:
39-18 Sec. 2155.146. CERTAIN PURCHASES BY EMPLOYEES RETIREMENT
39-19 SYSTEM OF TEXAS. (a) The Employees Retirement System of Texas is
39-20 delegated all purchasing functions relating to the purchase of
39-21 goods or services from funds other than general revenue funds for a
39-22 purpose the retirement system determines relates to the fiduciary
39-23 duties of the retirement system.
39-24 (b) The Employees Retirement System of Texas shall acquire
39-25 goods or services by any procurement method approved by the board
39-26 of trustees of the retirement system that provides the best value
39-27 to the retirement system. The retirement system shall consider the
40-1 best value standards enumerated in Section 2155.074, as added by
40-2 Chapter 1206, Acts of the 75th Legislature, Regular Session, 1997.
40-3 (c) The commission shall procure goods or services for the
40-4 Employees Retirement System of Texas at the request of the
40-5 retirement system, and the retirement system may use the services
40-6 of the commission in procuring goods or services.
40-7 SECTION 56. Subsection (b), Section 2171.055, Government
40-8 Code, is amended to read as follows:
40-9 (b) An institution of higher education as defined by Section
40-10 61.003, Education Code, is not required to participate in the
40-11 commission's contracts for travel agency services or other travel
40-12 services purchased from funds other than general revenue funds or
40-13 educational and general funds as defined by Section 51.009,
40-14 Education Code. The Employees Retirement System of Texas is not
40-15 required to participate in the commission's contracts for travel
40-16 agency services or other travel services purchased from funds other
40-17 than general revenue funds.
40-18 SECTION 57. (a) Monthly payments of a retirement or death
40-19 benefit annuity by the Employees Retirement System of Texas under
40-20 Subtitle B, Title 8, Government Code, are increased beginning with
40-21 the first payment of the annuities that becomes due on or after the
40-22 effective date of this section.
40-23 (b) The increase does not apply to annuities payable under
40-24 Section 814.103, Government Code.
40-25 (c) The amount of the monthly increase is computed by
40-26 multiplying the previous monthly benefit by a percentage determined
40-27 in accordance with the following table:
41-1 LATEST RETIREMENT DATE OR,
41-2 IF APPLICABLE, DATE OF DEATH INCREASE
41-3 Before September 1, 1953 49%
41-4 On or after September 1, 1953, but before September 1, 1954 47%
41-5 On or after September 1, 1954, but before September 1, 1955 52%
41-6 On or after September 1, 1955, but before September 1, 1956 45%
41-7 On or after September 1, 1956, but before September 1, 1958 49%
41-8 On or after September 1, 1958, but before September 1, 1959 52%
41-9 On or after September 1, 1959, but before September 1, 1960 47%
41-10 On or after September 1, 1960, but before September 1, 1961 49%
41-11 On or after September 1, 1961, but before September 1, 1962 47%
41-12 On or after September 1, 1962, but before September 1, 1963 45%
41-13 On or after September 1, 1963, but before September 1, 1964 47%
41-14 On or after September 1, 1964, but before September 1, 1965 49%
41-15 On or after September 1, 1965, but before September 1, 1967 52%
41-16 On or after September 1, 1967, but before September 1, 1968 54%
41-17 On or after September 1, 1968, but before September 1, 1970 49%
41-18 On or after September 1, 1970, but before September 1, 1972 54%
41-19 On or after September 1, 1972, but before September 1, 1973 47%
41-20 On or after September 1, 1973, but before September 1, 1974 37%
41-21 On or after September 1, 1974, but before September 1, 1975 35%
41-22 On or after September 1, 1975, but before September 1, 1976 45%
41-23 On or after September 1, 1976, but before September 1, 1977 41%
41-24 On or after September 1, 1977, but before September 1, 1978 49%
41-25 On or after September 1, 1978, but before September 1, 1979 37%
41-26 On or after September 1, 1979, but before September 1, 1981 23%
41-27 On or after September 1, 1981, but before September 1, 1982 20%
42-1 On or after September 1, 1982, but before September 1, 1983 22%
42-2 On or after September 1, 1983, but before September 1, 1984 23%
42-3 On or after September 1, 1984, but before September 1, 1985 20%
42-4 On or after September 1, 1985, but before September 1, 1986 23%
42-5 On or after September 1, 1986, but before September 1, 1987 19%
42-6 On or after September 1, 1987, but before September 1, 1988 20%
42-7 On or after September 1, 1988, but before September 1, 1989 15%
42-8 On or after September 1, 1989, but before September 1, 1990 12%
42-9 On or after September 1, 1990, but before September 1, 1991 9%
42-10 On or after September 1, 1991, but before September 1, 1992 7%
42-11 On or after September 1, 1992, but before September 1, 1993 6%
42-12 On or after September 1, 1993, but before September 1, 1994 12%
42-13 On or after September 1, 1994, but before September 1, 1995 9%
42-14 On or after September 1, 1995, but before September 1, 1996 6%
42-15 On or after September 1, 1996, but before September 1, 1997 3%
42-16 On or after September 1, 1997, but before September 1, 1998 2%
42-17 On or after September 1, 1998, but before September 1, 1999 1%
42-18 SECTION 58. The Employees Retirement System of Texas shall
42-19 make a supplemental payment under Section 814.603(d), Government
42-20 Code, in the fiscal year beginning September 1, 2000, if the
42-21 payment is in compliance with Section 811.006, Government Code.
42-22 SECTION 59. The Employees Retirement System of Texas shall
42-23 recompute each annuity being paid under Subtitle E, Title 8,
42-24 Government Code, on December 31, 1999, as if the retirement or
42-25 death on which the annuity is based occurs on that date. Payments
42-26 of an annuity recomputed under this section begin with the first
42-27 payments that become due after December 31, 1999.
43-1 SECTION 60. The change in law made by this Act to Section
43-2 814.1041, Government Code, prevails over any other Act of the 76th
43-3 Legislature, Regular Session, 1999, regardless of the relative
43-4 dates of enactment, that purports to amend Section 814.1041 or
43-5 create a similar provision to allow a temporary retirement option
43-6 for members of the Employees Retirement System of Texas whose
43-7 positions are subject to privatization or a reduction in workforce
43-8 or who are transferred between state agencies, and any amendment to
43-9 Section 814.1041, Government Code, or similar provision in another
43-10 Act of the 76th Legislature, Regular Session, 1999, has no effect.
43-11 SECTION 61. Before October 1, 1999, the Board of Pardons and
43-12 Paroles and the Texas Department of Criminal Justice shall certify
43-13 to the Employees Retirement System of Texas, in the manner
43-14 prescribed by the retirement system, the name of each person
43-15 employed by the board on September 1, 1999, as a custodial officer
43-16 as defined by Section 811.001, Government Code, as amended by this
43-17 Act, and such other information as the system determines is
43-18 necessary for the crediting of service and financing of benefits
43-19 under Subtitle B, Title 8, Government Code.
43-20 SECTION 62. Section 813.405, Government Code, and
43-21 Subsections (b), (c), and (g), Section 5, Texas Employees Uniform
43-22 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
43-23 Insurance Code), are repealed.
43-24 SECTION 63. (a) Except as provided by Subsection (b) of
43-25 this section, Subsection (b), Section 814.302, Government Code, as
43-26 amended by this Act, applies only to deaths of contributing members
43-27 of the Employees Retirement System of Texas that occur on or after
44-1 the effective date of this Act.
44-2 (b) The surviving spouse of a contributing member of the
44-3 Employees Retirement System of Texas who died before the effective
44-4 date of this Act and whose account has not been refunded may apply
44-5 for and receive a death benefit annuity under Subsection (b),
44-6 Section 814.302, Government Code, as amended by this Act. The
44-7 effective date of an annuity under this subsection is the last day
44-8 of the month in which the member died. The amount of an annuity
44-9 payable under this subsection will be determined under the plan
44-10 terms in effect in the month in which the member died. The
44-11 retirement system shall make a lump-sum payment of all unpaid
44-12 annuity payments under this subsection at the time the first
44-13 payment of the annuity becomes due on or after the effective date
44-14 of this Act. This subsection expires December 31, 1999.
44-15 SECTION 64. Notwithstanding Section 3A, Texas Employees
44-16 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
44-17 Texas Insurance Code), as amended by this Act, a person who retires
44-18 from the Texas County and District Retirement System or the Texas
44-19 Municipal Retirement System on or after the effective date of this
44-20 Act but before September 1, 2002, is not required to meet the
44-21 requirement of three years of service for a department whose
44-22 employees are authorized to participate in the program provided by
44-23 that Act to continue participation authorized by that section.
44-24 SECTION 65. Section 814.1082, Government Code, as added by
44-25 this Act, applies only to retirements that occur on or after
44-26 January 1, 2000.
44-27 SECTION 66. This Act takes effect September 1, 1999, except
45-1 Sections 42, 43, and 57, which take effect January 1, 2000.
45-2 SECTION 67. The importance of this legislation and the
45-3 crowded condition of the calendars in both houses create an
45-4 emergency and an imperative public necessity that the
45-5 constitutional rule requiring bills to be read on three several
45-6 days in each house be suspended, and this rule is hereby suspended.