By: Armbrister, Staples, Bernsen S.B. No. 273
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain rights and benefits, including retirement
1-3 benefits administered by the Teacher Retirement System of Texas,
1-4 for public school teachers and certain other governmental
1-5 employees.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 803.402, Government Code, is amended to
1-8 read as follows:
1-9 Sec. 803.402. RECORDS. Except as provided by other law
1-10 [Section 825.507], records of members and beneficiaries of a
1-11 retirement system to which this chapter applies that are in the
1-12 custody of any retirement system to which this chapter applies are
1-13 confidential and not subject to disclosure and are exempt from the
1-14 public access provisions of Chapter 552. The records or
1-15 information in the records may be transferred between retirement
1-16 systems to which this chapter applies to the extent necessary to
1-17 administer the proportionate retirement program provided by this
1-18 chapter.
1-19 SECTION 2. Section 821.103, Government Code, is amended to
1-20 read as follows:
1-21 Sec. 821.103. CANCELLATION OF TEACHER CERTIFICATE.
1-22 (a) After receiving notice from the board of trustees of an
1-23 offense under Section 821.101 and after complying with Chapter 2001
1-24 and rules adopted by the State Board for Educator Certification [a
1-25 hearing], the State Board for Educator Certification [state
2-1 commissioner of education] may cancel the teacher certificate of a
2-2 person if the State Board for Educator Certification [commissioner]
2-3 determines that the person committed the offense.
2-4 (b) The executive director of the State Board for Educator
2-5 Certification may enter into an agreed sanction [A person whose
2-6 teacher certificate is canceled under this section may appeal the
2-7 commissioner's decision to the State Board of Education].
2-8 (c) A criminal prosecution of an offender under Section
2-9 821.101 is not a prerequisite to action by the State Board for
2-10 Educator Certification or its executive director [commissioner
2-11 under this section].
2-12 SECTION 3. Section 822.002, Government Code, is amended to
2-13 read as follows:
2-14 Sec. 822.002. EXCEPTIONS TO MEMBERSHIP REQUIREMENT.
2-15 [(a)] An employee of the public school system is not permitted to
2-16 be a member of the retirement system if the employee:
2-17 (1) [ executed and filed a waiver of membership prior
2-18 to the effective date of this subtitle and has not elected
2-19 membership pursuant to Subsection (b);]
2-20 [(2)] is eligible and elects to participate in the
2-21 optional retirement program under Chapter 830;
2-22 (2) [(3)] is solely employed by a public institution
2-23 of higher education that as a condition of employment requires the
2-24 employee to be enrolled as a student in the institution; or
2-25 (3) [(4)] has retired under the retirement system and
2-26 has not been reinstated to membership pursuant to Section
3-1 [823.502,] 824.005[,] or 824.307.
3-2 [(b) An employee under Subsection (a)(1) may become a member
3-3 of the retirement system at the beginning of a school year, but the
3-4 employee will not be entitled to credit for waived service unless
3-5 payment for the waived service is made under Section 823.202.]
3-6 SECTION 4. Section 822.006, Government Code, is amended to
3-7 read as follows:
3-8 Sec. 822.006. RESUMPTION OF MEMBERSHIP AFTER TERMINATION. A
3-9 person whose membership in the retirement system has been
3-10 terminated and who resumes membership must enter the retirement
3-11 system on the same terms as a person entering service for the first
3-12 time and is not entitled to credit for previous or other terminated
3-13 service unless it is reinstated under Section 823.501 [or 823.502].
3-14 SECTION 5. Subsection (a), Section 823.004, Government Code,
3-15 is amended to read as follows:
3-16 (a) All credit for military service, out-of-state service,
3-17 developmental leave, [service previously waived, work experience in
3-18 a career or technological field,] and service transferred to the
3-19 retirement system under Chapter 805 shall be computed on a
3-20 September 1 through August 31 school year. Payments for service
3-21 described by this section must be completed not later than the
3-22 later of the member's retirement date or the last day of the month
3-23 in which the member submits a retirement application.
3-24 SECTION 6. Subchapter B, Chapter 823, Government Code, is
3-25 amended to read as follows:
4-1 [SUBCHAPTER B. ESTABLISHMENT OF PRIOR SERVICE]
4-2 [Sec. 823.101. CREDITABLE PRIOR SERVICE. Prior service
4-3 creditable in the retirement system is:]
4-4 [(1) service as an employee performed before:]
4-5 [(A) September 1, 1937, for a person who became
4-6 a member of the retirement system or was eligible to become a
4-7 member before September 1, 1949; or]
4-8 [(B) September 1, 1949, for a person who first
4-9 became eligible to be a member of the retirement system after
4-10 August 31, 1949; and]
4-11 [(2) military service performed during World War I or
4-12 before the first anniversary of the date that war ended.]
4-13 [Sec. 823.102. STATEMENT OF PRIOR SERVICE. (a) At the time
4-14 a person becomes a member of the retirement system for the first
4-15 time, the person shall file with the retirement system a detailed
4-16 statement of all prior service claimed.]
4-17 [(b) If a member fails to file a statement as provided by
4-18 Subsection(a), has at least five years of membership service
4-19 credit, and has no unpaid waived, withdrawn, or delinquent service,
4-20 the member is entitled to and may file a statement claiming prior
4-21 service.]
4-22 [(c) The board of trustees may adopt rules for the filing of
4-23 statements of prior service.]
4-24 [Sec. 823.103. PRIOR SERVICE CREDIT. (a) As soon as
4-25 practicable after a member files a statement of prior service as
4-26 provided by Section 823.102, the board of trustees shall:]
5-1 [(1) verify the service claimed;]
5-2 [(2) make necessary adjustments in the application;]
5-3 [(3) grant one year of prior service credit for each
5-4 year of prior service approved; and]
5-5 [(4) notify the member of the amount of prior service
5-6 credit granted.]
5-7 [(b) The board of trustees may adopt rules for the granting
5-8 of prior service credit.]
5-9 [Sec. 823.104. RESTORATION OF CERTIFICATE FOR PRIOR SERVICE
5-10 EXCLUDED BECAUSE OF LATE INITIAL EMPLOYMENT. A person required to
5-11 become a member of the retirement system because of the repeal of
5-12 the exception to required membership for persons first employed in
5-13 public education at age 60 or older may obtain credit for service
5-14 performed while not a member by depositing the member contributions
5-15 and membership fees that would otherwise have been deducted from
5-16 the person's compensation for that service had the person been a
5-17 member. The deposits must be paid within one year after the date
5-18 the person first becomes a member of the retirement system.
5-19 Persons not making payment of these amounts within one year may
5-20 obtain credit for the service under Section 825.403(h) as if member
5-21 contributions had been required at the time of the service. The
5-22 board of trustees may adopt rules to implement this section.]
5-23 SECTION 7. Section 823.202, Government Code, is amended to
5-24 read as follows:
5-25 [Sec. 823.202. MEMBERSHIP SERVICE PREVIOUSLY WAIVED.
5-26 (a) An employee who has previously executed and filed a waiver of
6-1 membership in the retirement system and who, after the waiver,
6-2 becomes a member may establish membership service credit for
6-3 service as an employee that would have been creditable as
6-4 membership service when performed except for the waiver.]
6-5 [(b) A member may establish credit under this section by
6-6 depositing with the retirement system for each year of service
6-7 claimed an amount equal to:]
6-8 [(1) the contributions that the person would have paid
6-9 had the person been a member of the retirement system during that
6-10 year; plus]
6-11 [(2) interest computed at an annual rate of five
6-12 percent of the amount of each payment that would have been due had
6-13 the person been a member, from the hypothetical payment due date to
6-14 the date of deposit.]
6-15 [(c) The retirement system shall determine in each case the
6-16 amount of money to be deposited by a member claiming credit under
6-17 this section. The system may not provide benefits based on the
6-18 claimed service until the determined amount has been fully paid.]
6-19 SECTION 8. Subsection (e), Section 824.002, Government Code,
6-20 is amended to read as follows:
6-21 (e) Not later than the later of a member's retirement date
6-22 or the last day of the month in which the member's application for
6-23 retirement is submitted, a member applying for service retirement
6-24 may reinstate withdrawn contributions,[;] make deposits for
6-25 [service previously waived,] military service[,] and equivalent
6-26 membership service,[;] and receive service credit as provided by
7-1 this subtitle.
7-2 SECTION 9. Subsection (a), Section 824.1012, Government
7-3 Code, is amended to read as follows:
7-4 (a) As an exception to Section 824.101(c), a retiree who
7-5 selected an optional service retirement annuity under Section
7-6 824.204(c)(1), (c)(2), or (c)(5) or an optional disability
7-7 retirement annuity under Section 824.308(c)(1), (c)(2), or (c)(5)
7-8 may revoke the designation of the beneficiary to receive the
7-9 annuity on the death of the retiree, if a court in a divorce
7-10 proceeding involving the retiree and beneficiary approves or orders
7-11 the revocation in the divorce decree or acceptance of a property
7-12 settlement or if the beneficiary is the spouse, a former spouse, or
7-13 an adult child of the retiree and signs a notarized consent to the
7-14 revocation. The revocation takes effect when the retirement system
7-15 receives it.
7-16 SECTION 10. Subsection (e), Section 824.203, Government
7-17 Code, is amended to read as follows:
7-18 [(e) The annual standard service retirement annuity for a
7-19 person who immediately before retirement holds a position as a
7-20 classroom teacher or full-time librarian, or the annual death
7-21 benefit annuity based on the service of a member who at the time of
7-22 death held a position as a classroom teacher or full-time
7-23 librarian, may not be less than an amount computed on the basis of
7-24 the minimum annual salary provided by the Education Code for a
7-25 classroom teacher or full-time librarian, multiplied by 2.2 percent
7-26 for each year of service credit in the retirement system.]
8-1 SECTION 11. Subsection (c), Section 824.304, Government
8-2 Code, is amended to read as follows:
8-3 (c) Before the 31st day after the date on which the medical
8-4 board certifies a member's disability, the member may reinstate
8-5 withdrawn contributions and make deposits for [service previously
8-6 waived,] military service[,] and equivalent membership service and
8-7 receive service credit as provided by this subtitle.
8-8 SECTION 12. Section 824.306, Government Code, is amended to
8-9 read as follows:
8-10 [Sec. 824.306. REPORT OF EARNINGS OF DISABILITY RETIREE.
8-11 (a) A disability retiree who is less than 60 years old annually
8-12 shall submit a report of earnings to the retirement system. The
8-13 retirement system shall examine each report and may require at any
8-14 time that a disability retiree undergo a medical examination by one
8-15 or more physicians the retirement system designates, if the retiree
8-16 has reported earnings that the board of trustees considers
8-17 excessive.]
8-18 [(b) The board of trustees may adopt rules establishing
8-19 limits on the annual earnings of disability retirees and such other
8-20 rules as are necessary to administer this section.]
8-21 [(c) If a disability retiree refuses to submit an annual
8-22 report of earnings, the retirement system shall discontinue the
8-23 retiree's annuity payment until the retiree submits to a medical
8-24 examination by one or more physicians designated by the retirement
8-25 system.]
8-26 SECTION 13. Subsections (b), (c), and (d), Section 824.404,
9-1 Government Code, are amended to read as follows:
9-2 (b) If the designated beneficiary is the spouse or a
9-3 dependent parent of the decedent, the beneficiary may elect to
9-4 receive for life a monthly benefit of $250 [$200], beginning
9-5 immediately or on the date the beneficiary becomes 65 years old,
9-6 whichever is later.
9-7 (c) If the designated beneficiary is the spouse of the
9-8 decedent and has one or more children less than 18 years old or has
9-9 custody of one or more children of the decedent who are less than
9-10 18 years old, the designated beneficiary may elect to receive:
9-11 (1) a monthly benefit of $350 [$300] payable until the
9-12 youngest child becomes 18 years old; and
9-13 (2) when the youngest child has attained the age of
9-14 18, a monthly benefit for life of $250 [$200], beginning on the
9-15 date the beneficiary becomes 65 years old.
9-16 (d) If the designated beneficiary or beneficiaries are the
9-17 decedent's dependent children who are less than 18 years old, their
9-18 guardian may elect to receive for them:
9-19 (1) a monthly benefit of $350 [$300], payable as long
9-20 as two or more children are less than 18 years old; and
9-21 (2) a monthly benefit of $250 [$200], payable as long
9-22 as only one child is less than 18 years old.
9-23 SECTION 14. Section 824.603, Government Code, is amended to
9-24 read as follows:
9-25 Sec. 824.603. Exclusion From Credit. Employment of a
9-26 retiree described by Section 824.602(a) does not entitle a retiree
10-1 to additional service credit, and the retiree so employed is not
10-2 required to make contributions to the system from compensation for
10-3 that employment. [Such employment may not be considered in applying
10-4 the provisions of Section 823.502.]
10-5 SECTION 15. Subsection (a), Section 825.307, Government
10-6 Code, is amended to read as follows:
10-7 (a) The retirement system shall deposit in a member's
10-8 individual account in the member savings account:
10-9 (1) the amount of contributions to the retirement
10-10 system that is deducted from the member's compensation;
10-11 (2) the portion of a deposit made on or after
10-12 resumption of membership that represents the amount of retirement
10-13 benefits received;
10-14 (3) the portion of a deposit to reinstate service
10-15 credit previously canceled that represents the amount withdrawn or
10-16 refunded;
10-17 (4) [the portion of a deposit to establish membership
10-18 service credit previously waived that is required by Section
10-19 823.202(b)(1);]
10-20 [(5) the portion of a deposit to establish membership
10-21 service credit for service performed after retirement that is
10-22 required by Section 823.502(c)(3);]
10-23 [(6)] the portion of a deposit to establish military
10-24 service credit required by Section 823.302(c);
10-25 (5) [(7)] the portion of a deposit to establish
10-26 equivalent membership service credit required by Section
11-1 823.401(d), 823.402(e)(1) or (e)(2), [823.404(c),] or
11-2 823.3021(f)(1); and
11-3 (6) [(8)] interest earned on money in the account as
11-4 provided by Subsections (b) and (c) and Section 825.313(c).
11-5 SECTION 16. Section 825.308, Government Code, is amended to
11-6 read as follows:
11-7 Sec. 825.308. State Contribution Account. The retirement
11-8 system shall deposit in the state contribution account:
11-9 (1) all state contributions to the retirement system
11-10 required by Section 825.404;
11-11 (2) amounts from the interest account as provided by
11-12 Section 825.313(b)(2) [825.313(b)(5)];
11-13 (3) retirement annuities waived or forfeited in
11-14 accordance with Section 824.601 or 824.004;
11-15 (4) fees collected under Section 825.403(h);
11-16 (5) fees and interest for reinstatement of service
11-17 credit or establishment of membership service credit as provided by
11-18 Section [823.202,] 823.501[, or 823.502];
11-19 (6) the portion of a deposit required by Section
11-20 823.302 to establish military service credit that represents a fee;
11-21 and
11-22 (7) the portion of a deposit required by Section
11-23 823.401(e) to establish out-of-state service credit that
11-24 represents a fee.
11-25 SECTION 17. Subsection (a), Section 825.408, Government
11-26 Code, is amended to read as follows:
12-1 (a) An employing district that fails to remit, before the
12-2 fifth working [11th] day after the last day of a month, all member
12-3 and employer deposits and documentation of the deposits required by
12-4 this subchapter to be remitted by the district for the month shall
12-5 pay to the retirement system, in addition to the deposits, interest
12-6 on the unpaid or undocumented amounts at an annual rate compounded
12-7 monthly. The rate of interest is the rate established under
12-8 Section 825.313(b)(1), plus two percent. Interest required under
12-9 this section is creditable to the interest account.
12-10 SECTION 18. The heading of Section 825.507, Government Code,
12-11 is amended to read as follows:
12-12 Sec. 825.507. RECORD CONFIDENTIALITY [OF INFORMATION ABOUT
12-13 MEMBERS, RETIREES, ANNUITANTS, BENEFICIARIES, OR ALTERNATE PAYEES].
12-14 SECTION 19. Section 825.507, Government Code, is amended by
12-15 amending Subsections (a) through (d) and adding Subsections (f) and
12-16 (g) to read as follows:
12-17 (a) Records of a participant [Information contained in
12-18 records] that are in the custody of the retirement system or of an
12-19 administrator, carrier, attorney, consultant, or governmental
12-20 agency acting in cooperation with or on behalf of the retirement
12-21 system are [concerning an individual member, retiree, annuitant,
12-22 beneficiary, or alternate payee is] confidential and not subject to
12-23 public disclosure in a form that would identify an individual and
12-24 are exempt from the public access provisions of Chapter 552, except
12-25 as otherwise provided by this section.
12-26 (b) The retirement system may release records of a
13-1 participant, including a participant to which Chapter 803 applies,
13-2 to [under Section 552.101, and may not be disclosed in a form
13-3 identifiable with a specific individual unless]:
13-4 (1) the participant or the participant's attorney or
13-5 guardian or another person who the executive director determines is
13-6 acting on behalf of the participant;
13-7 (2) [the information is disclosed to:]
13-8 [(A)] the [individual or the individual's
13-9 attorney, guardian,] executor or[,] administrator of[, conservator,
13-10 or other person who the executive director determines is acting in
13-11 the interest of the individual or] the deceased participant's
13-12 [individual's] estate, including information relating to the
13-13 deceased participant's beneficiary;
13-14 (3) [(B)] a spouse or former spouse of the participant
13-15 [individual] if the executive director determines that the
13-16 information is relevant to the spouse's or former spouse's interest
13-17 in member accounts, benefits, or other amounts payable by the
13-18 retirement system;
13-19 (4) an administrator, carrier, consultant, attorney,
13-20 or agent acting on behalf of the retirement system;
13-21 (5) a governmental entity, an employer, or the
13-22 designated agent of an employer, only to the extent the retirement
13-23 system needs to share the information to perform the purposes of
13-24 the retirement system, as determined by the executive director;
13-25 (6) [(C) a governmental official or employee if the
13-26 executive director determines that disclosure of the information
14-1 requested is reasonably necessary to the performance of the duties
14-2 of the official or employee; or]
14-3 [(D)] a person authorized by the participant
14-4 [individual] in writing to receive the information;
14-5 (7) a federal or state criminal law enforcement agency
14-6 that requests a record for a law enforcement purpose;
14-7 (8) the attorney general to the extent necessary to
14-8 enforce child support; or
14-9 (9) a party in response [(2) the information is
14-10 disclosed pursuant] to a subpoena issued under applicable law if
14-11 [and] the executive director determines that the participant
14-12 [individual] will have a reasonable opportunity to contest the
14-13 subpoena.
14-14 (c) The records of a participant remain confidential after
14-15 release to a person as authorized by this section.
14-16 [(b)] This section does not prevent the disclosure or
14-17 confirmation, on an individual basis, of the status or identity of
14-18 a participant [an individual] as a member, former member, retiree,
14-19 deceased member or retiree, beneficiary, or alternate payee of the
14-20 retirement system.
14-21 (d) [(c)] The executive director may designate other
14-22 employees of the retirement system to make the necessary
14-23 determinations under this section [Subsection (a)].
14-24 [(d)] A determination and disclosure under this section
14-25 [Subsection (a)] may be made without notice to the participant
14-26 [individual member, retiree, annuitant, beneficiary, or alternate
15-1 payee].
15-2 (f) This section does not authorize the retirement system to
15-3 compile or disclose a list of participants' names, addresses, or
15-4 social security numbers unless the executive director determines
15-5 that a compilation or disclosure is necessary to administer the
15-6 retirement system.
15-7 (g) In this section, "participant" means a member, former
15-8 member, retiree, annuitant, beneficiary, or alternate payee of the
15-9 retirement system.
15-10 SECTION 20. Notwithstanding Section 824.601, Government
15-11 Code, the Teacher Retirement System of Texas may not withhold a
15-12 monthly benefit payment from a retiree who:
15-13 (1) before January 1, 2001, retired under Section
15-14 824.202, Government Code; and
15-15 (2) is employed by a school district or an
15-16 open-enrollment charter school.
15-17 SECTION 21. Section 1, Chapter 22, Acts of the 57th
15-18 Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
15-19 Texas Civil Statutes), as amended by Chapters 1340 and 1341, Acts
15-20 of the 75th Legislature, Regular Session, 1997, is amended to read
15-21 as follows:
15-22 Sec. 1. (a) This section and Section 2 of this Act apply
15-23 to:
15-24 (1) the governing boards [Local Boards of Education of
15-25 the Public Schools of this State, the Governing Boards] of [the]
15-26 state-supported institutions of higher education;
16-1 (2) [,] the Texas Higher Education Coordinating Board;
16-2 (3) [,] the Texas Education Agency;
16-3 (4) [,] the Texas School for the Deaf;
16-4 (5) [,] the Texas School for the Blind and Visually
16-5 Impaired;
16-6 (6) [,] the Texas Department of Mental Health and
16-7 Mental Retardation and the state schools, state hospitals, and
16-8 other facilities and institutions under its jurisdiction;
16-9 (7) [,] the Texas Department of Health and facilities
16-10 and institutions under its jurisdiction;
16-11 (8) [,] the Texas Youth Commission and facilities and
16-12 institutions under its jurisdiction;[, and]
16-13 (9) the governing boards of Centers for Community
16-14 Mental Health and Mental Retardation Services, county hospitals,
16-15 city hospitals, city-county hospitals, hospital authorities,
16-16 hospital districts, affiliated state agencies, and each of their
16-17 political subdivisions; and
16-18 (10) a school district or an open-enrollment charter
16-19 school.
16-20 (b) An entity described by Subsection (a) of this section
16-21 [of each of them,] may enter into agreements with the entity's
16-22 [their] employees for the purchase of annuities or for
16-23 contributions to any type of investment for the entity's [their]
16-24 employees as authorized in Section 403(b), [of the] Internal
16-25 Revenue Code of 1986 [1954], and its subsequent amendments [as it
16-26 existed on January 1, 1981].
17-1 SECTION 22. Section 2, Chapter 22, Acts of the 57th
17-2 Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
17-3 Texas Civil Statutes), is amended to read as follows:
17-4 Sec. 2. (a) If an employee of an [a governmental] entity
17-5 covered by Section 1 of this Act is paid by the Comptroller of
17-6 Public Accounts, the comptroller may take the action, in regard to
17-7 that employee, that is authorized by Subsection (b) of this
17-8 section. If an employee of an [a governmental] entity covered by
17-9 Section 1 is not paid by the comptroller, the governing board of
17-10 the [governmental] entity may take the action in regard to that
17-11 employee.
17-12 (b) The comptroller or the governing board, as appropriate
17-13 [the case may be], may:
17-14 (1) reduce the salary of participants when authorized
17-15 by the participants and shall apply the amount of the reduction to
17-16 the purchase of annuity contracts or to contributions to any type
17-17 of investment authorized in Section 403(b), [of the] Internal
17-18 Revenue Code of 1986 [1954], and its subsequent amendments [as it
17-19 existed on January 1, 1981], the exclusive control of which will
17-20 vest in the participants; [and]
17-21 (2) develop a system to allow or require participants
17-22 to electronically authorize:
17-23 (A) participation under this Act;
17-24 (B) purchases of annuity contracts; and
17-25 (C) contributions to investments; and
17-26 (3) except in the case of a school district or an
18-1 open-enrollment charter school, approve a list of annuities or
18-2 investments that meet the requirements of Section 403(b), Internal
18-3 Revenue Code of 1986, and its subsequent amendments, that may be
18-4 purchased;
18-5 (4) in the case of a school district or an
18-6 open-enrollment charter school, with the input of employees,
18-7 approve a list of no fewer than 10 companies through which an
18-8 annuity or investment is to be purchased and whose annuity or
18-9 investment product meets the requirements of Section 403(b),
18-10 Internal Revenue Code of 1986, and its subsequent amendments. The
18-11 comptroller or governing board may add approved companies as
18-12 appropriate. The following provisions are applicable to annuity or
18-13 investment products available through a school district or an
18-14 open-enrollment charter school:
18-15 (A) the employee is entitled to designate any
18-16 agent, broker, or company through which the annuity or investment
18-17 is to be purchased so long as the company, agent, or broker is
18-18 appropriately licensed by the Texas Department of Insurance and the
18-19 State Securities Board (in the case of securities) and there does
18-20 not exist any disciplinary action or adverse orders by the Texas
18-21 Department of Insurance or the State Securities Board against such
18-22 agent, broker, or company;
18-23 (B) it is the responsibility of the comptroller
18-24 or governing board to make certain that all agents, brokers, and
18-25 companies who do business with employees of the entity meet
18-26 applicable requirements in this section;
19-1 (C) for any eligible annuity offered under this
19-2 subdivision, each company or agent shall provide to each
19-3 prospective customer a uniform disclosure notice that provides the
19-4 following information:
19-5 (i) the name of the agent, agency, or
19-6 company selling the annuity along with the address and telephone
19-7 number;
19-8 (ii) the name of the company underwriting
19-9 the annuity, along with the address and telephone number;
19-10 (iii) license numbers of the person
19-11 selling the product and the name of the agency that issued the
19-12 license; and
19-13 (iv) for variable products, the notice
19-14 must include the prospectus and other required purchasing
19-15 information that is required by law to be provided to the
19-16 prospective purchaser; and
19-17 (D) for fixed annuity products, the notice must
19-18 state:
19-19 (i) the current rate of interest (or
19-20 formula used to calculate the current rate of interest);
19-21 (ii) the guaranteed rate of interest;
19-22 (iii) how interest is credited (daily,
19-23 monthly, annually);
19-24 (iv) the amount of any up-front,
19-25 surrender, or market value adjustment charges;
19-26 (v) whether or not the product contains
20-1 any bonus accumulation values, and if so, the period of time the
20-2 annuity must be in force before the client is entitled to the full
20-3 bonus accumulation value;
20-4 (vi) how the amount of the death benefit
20-5 under the annuity is calculated (gross value or net value after
20-6 surrender charges);
20-7 (vii) whether or not personal loans are
20-8 available under the annuity; and
20-9 (viii) any restrictions on accessibility
20-10 of money once the client is retired or no longer employed by the
20-11 entity.
20-12 [(c) The employee is entitled to designate any agent,
20-13 broker, or company through which the annuity or investment is to be
20-14 purchased.]
20-15 SECTION 23. Subsection (h), Section 16, Article 3.50-4,
20-16 Insurance Code, is amended to read as follows:
20-17 (h) An employing district that fails to remit, before the
20-18 fifth working [11th] day after the last day of the month, all
20-19 member deposits required by this section to be remitted by the
20-20 district for the month shall pay to the Texas public school retired
20-21 employees group insurance fund, in addition to the deposits,
20-22 interest on the unpaid amounts at the annual rate of six percent
20-23 compounded monthly.
20-24 SECTION 24. Article 3.50-4A, Insurance Code, as added by
20-25 Chapter 372, Acts of the 76th Legislature, Regular Session, 1999,
20-26 is amended by adding Subsection (f) to read as follows:
21-1 (f) A premium or contribution on a policy, insurance
21-2 contract, or agreement authorized as provided by this article is
21-3 not subject to any state tax, regulatory fee, or surcharge,
21-4 including a premium or maintenance tax or fee.
21-5 SECTION 25. Article 3.50-4A, Insurance Code, as added by
21-6 Chapter 1540, Acts of the 76th Legislature, Regular Session, 1999,
21-7 is amended by adding Section 6 to read as follows:
21-8 Sec. 6. EXEMPTION FROM STATE TAXES AND FEES. A premium or
21-9 contribution on a policy, insurance contract, or agreement
21-10 authorized as provided by this article is not subject to any state
21-11 tax, regulatory fee, or surcharge, including a premium or
21-12 maintenance tax or fee.
21-13 SECTION 26. The following provisions of the Government Code
21-14 are repealed:
21-15 (1) Section 823.404;
21-16 (2) Section 823.502; and
21-17 (3) Subsection (e), Section 825.507.
21-18 SECTION 27. (a) A member of the Teacher Retirement System
21-19 of Texas who was an employee of a public institution of higher
21-20 education between March 31, 1969, and August 31, 1977, and, as a
21-21 condition of that employment, was required to be enrolled as a
21-22 student in the institution, may establish service credit for
21-23 employment by the institution during that period if:
21-24 (1) the member made deposits to establish that service
21-25 credit before September 1, 1978, and those deposits were
21-26 subsequently withdrawn; and
22-1 (2) the member deposits, not later than September 1,
22-2 2002, with the Teacher Retirement System of Texas an amount
22-3 computed under Section 823.501, Government Code.
22-4 (b) Section 825.410, Government Code, applies to the payment
22-5 of deposits under Subsection (a) or (d) of this section.
22-6 (c) Notwithstanding Subsection (e), Section 805.002,
22-7 Government Code, service credit that is canceled by a termination
22-8 of membership in the Teacher Retirement System of Texas or service
22-9 described in Subsection (a) of this section may be reinstated by a
22-10 member of the Employees Retirement System of Texas if the person
22-11 reinstating the service purchases the service under this section
22-12 not later than September 1, 2002.
22-13 (d) A person to whom Chapter 805, Government Code, applies
22-14 and who was an employee of a public institution of higher education
22-15 between March 31, 1969, and August 31, 1977, may establish service
22-16 credit for employment by the institution during that period if:
22-17 (1) the person's part-time employment by the
22-18 institution averaged at least 20 hours a week for at least 4-1/2
22-19 months during a school year; and
22-20 (2) the person deposits, not later than September 1,
22-21 2002, with the Teacher Retirement System of Texas the amount
22-22 required by the retirement system on May 1, 2001, to establish
22-23 credit for unreported service.
22-24 SECTION 28. (a) The changes in law made to Chapter 22, Acts
22-25 of the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
22-26 Vernon's Texas Civil Statutes), by this Act do not apply to the
23-1 contract between an employee of a school district or
23-2 open-enrollment charter school and a company offering investments
23-3 or annuities that was entered into under Chapter 22, Acts of the
23-4 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
23-5 Vernon's Texas Civil Statutes), before the effective date of this
23-6 Act.
23-7 (b) A contract described by Subsection (a) of this section
23-8 is governed by the law in effect immediately before the effective
23-9 date of this Act, and the former law is continued in effect for
23-10 that purpose.
23-11 SECTION 29. This Act takes effect September 1, 2001.