By Shapiro S.B. No. 1226
76R4520 GJH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the deferred retirement option plan in 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 824.802, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 824.802. PARTICIPATION IN PLAN. (a) A contributing
1-8 member who is eligible under Section 824.202 to retire and receive
1-9 a standard service retirement annuity that is not reduced for
1-10 retirement at an early age and who has at least 25 years of service
1-11 credit in the retirement system may, if the member remains an
1-12 employee, elect to participate in the deferred retirement option
1-13 plan. Notwithstanding Chapter 805, a member may transfer to the
1-14 retirement system service credit established in the Employees
1-15 Retirement System of Texas. Service credit transferred under this
1-16 subsection may be used to establish eligibility for participation
1-17 in and the amount of benefits under the plan.
1-18 (b) An election to participate in the plan must be on a form
1-19 prescribed by and filed with the retirement system. An election
1-20 [may be made only once and] must state the period that the member
1-21 wishes to participate in the plan. The period must be a minimum of
1-22 12 consecutive months and be in 12-month increments. The maximum
1-23 period a member may participate in the plan is 60 consecutive
1-24 months. [An election under this section is irrevocable after
2-1 filing.] The filing of an election under this section is not
2-2 considered for any purpose an application for retirement, and a
2-3 person is not considered a retiree for any purpose because of the
2-4 filing.
2-5 (c) A contributing member may revoke an election to
2-6 participate in the plan on a form prescribed by and filed with the
2-7 retirement system. A revocation may be made only once. On
2-8 revocation, the retirement system shall transfer all contributions
2-9 and interest in the deferred retirement option account as a result
2-10 of the member's election to the appropriate system accounts.
2-11 (d) The effective date of a member's participation or
2-12 revocation of participation in the plan is the first day of the
2-13 month after the month in which an election or revocation is
2-14 received and approved by the retirement system. The retirement
2-15 system shall approve the election or revocation filed by a member
2-16 who is eligible to make the election or revocation.
2-17 SECTION 2. Section 824.803(b), Government Code, is amended
2-18 to read as follows:
2-19 (b) For purposes of the plan, the amount of service credit
2-20 used to compute [computation of] the service retirement annuity of
2-21 a member participating in the plan is determined as of the
2-22 effective date of participation in the plan. The amount of the
2-23 annuity is computed on the effective date of termination of
2-24 participation according to the formula used to compute annuities
2-25 that is in effect at that time. A participating member is [not]
2-26 eligible to receive a postretirement increase made applicable to
2-27 annuitants during the member's participation in the plan.
3-1 SECTION 3. Sections 824.804(a) and (c), Government Code, are
3-2 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 95
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 SECTION 4. This Act takes effect September 1, 1999.
3-23 SECTION 5. The importance of this legislation and the
3-24 crowded condition of the calendars in both houses create an
3-25 emergency and an imperative public necessity that the
3-26 constitutional rule requiring bills to be read on three several
3-27 days in each house be suspended, and this rule is hereby suspended.