By: Shapiro S.B. No. 1226
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the deferred retirement option plan in the Teacher
1-2 Retirement System of Texas.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 824.802, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 824.802. Participation in Plan. (a) A contributing
1-7 member who is eligible under Section 824.202 to retire and receive
1-8 a standard service retirement annuity that is not reduced for
1-9 retirement at an early age and who has at least 25 years of service
1-10 credit in the retirement system may, if the member remains an
1-11 employee, elect to participate in the deferred retirement option
1-12 plan. Notwithstanding Chapter 805, a member may transfer to the
1-13 retirement system service credit established in the Employees
1-14 Retirement System of Texas. Service credit transferred under this
1-15 subsection may be used to establish eligibility for participation
1-16 in and the amount of benefits under the plan.
1-17 (b) An election to participate in the plan must be on a form
1-18 prescribed by and filed with the retirement system. An election
1-19 [may be made only once and] must state the period that the member
1-20 wishes to participate in the plan. The period must be a minimum of
1-21 12 consecutive months and be in 12-month increments. The maximum
1-22 period a member may participate in the plan is 60 consecutive
1-23 months. [An election under this section is irrevocable after
1-24 filing.] The filing of an election under this section is not
2-1 considered for any purpose an application for retirement, and a
2-2 person is not considered a retiree for any purpose because of the
2-3 filing.
2-4 (c) A contributing member may revoke an election to
2-5 participate in the plan on a form prescribed by and filed with the
2-6 retirement system. A revocation may be made only once. On
2-7 revocation, the retirement system shall transfer all contributions
2-8 and interest in the deferred retirement option account as a result
2-9 of the member's election to the appropriate system accounts.
2-10 (d) The effective date of a member's participation or
2-11 revocation of participation in the plan is the first day of the
2-12 month after the month in which an election or revocation is
2-13 received and approved by the retirement system. The retirement
2-14 system shall approve the election or revocation filed by a member
2-15 who is eligible to make the election or revocation.
2-16 SECTION 2. Subsection (b), Section 824.803, Government Code,
2-17 is amended to read as follows:
2-18 (b) For purposes of the plan, the amount of service credit
2-19 used to compute [computation of] the service retirement annuity of
2-20 a member participating in the plan is determined as of the
2-21 effective date of participation in the plan. The amount of the
2-22 annuity is computed on the effective date of termination of
2-23 participation according to the formula used to compute annuities
2-24 that is in effect at that time. A participating member is not
2-25 eligible to receive a postretirement increase made applicable to
2-26 annuitants during the member's participation in the plan.
3-1 SECTION 3. Subsections (a), (c), and (d), Section 824.804,
3-2 Government Code, are amended to read as follows:
3-3 (a) On the effective date of a member's participation in the
3-4 plan, the retirement system shall make the transfers required by
3-5 Section 825.309 to the retired reserve account as if the member had
3-6 retired on that date. The retirement system shall transfer
3-7 monthly, during the period of the member's participation in the
3-8 plan, from the retired reserve account to an account for the member
3-9 in the deferred retirement option account an amount equal to 61
3-10 [79] percent of the amount the member would receive [have received]
3-11 that month under a standard service retirement annuity if the
3-12 member had retired the preceding month [on the effective date of
3-13 plan participation].
3-14 (c) If a member dies during participation in the plan or
3-15 after participation but before retirement, the decedent's
3-16 designated beneficiary is entitled to the accumulated amount in the
3-17 decedent's account in the deferred retirement option account,
3-18 including creditable interest. The beneficiary is also entitled to
3-19 a death benefit based on age, compensation, and years of service
3-20 [on the effective date of participation in the plan and on age] on
3-21 the date of death.
3-22 (d) Notwithstanding any other provisions to the contrary, a
3-23 person who has filed an election to participate in the deferred
3-24 retirement option plan in accordance with this subchapter on or
3-25 before August 31, 1999, shall be entitled, after September 1, 1999,
3-26 and for the remainder of the member's period of participation in
4-1 the deferred retirement option plan, to receive monthly transfers
4-2 to the member's account in the deferred retirement option account
4-3 in the amount equal to 79 percent of the amount the member would
4-4 receive that month under a standard service retirement annuity if
4-5 the member had retired the preceding month [Payment of the benefit
4-6 provided under the plan is in addition to any annuity otherwise
4-7 payable under this subtitle].
4-8 SECTION 4. This Act takes effect September 1, 1999.
4-9 SECTION 5. The importance of this legislation and the
4-10 crowded condition of the calendars in both houses create an
4-11 emergency and an imperative public necessity that the
4-12 constitutional rule requiring bills to be read on three several
4-13 days in each house be suspended, and this rule is hereby suspended.