1-1 By: Armbrister, Staples, Bernsen S.B. No. 273
1-2 (In the Senate - Filed January 17, 2001; January 22, 2001,
1-3 read first time and referred to Committee on Education;
1-4 April 30, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; April 30, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 273 By: Nelson
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to certain rights and benefits, including retirement
1-11 benefits administered by the Teacher Retirement System of Texas,
1-12 for public school teachers and certain other governmental
1-13 employees.
1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15 SECTION 1. Section 803.402, Government Code, is amended to
1-16 read as follows:
1-17 Sec. 803.402. RECORDS. Except as provided by other law
1-18 [Section 825.507], records of members and beneficiaries of a
1-19 retirement system to which this chapter applies that are in the
1-20 custody of any retirement system to which this chapter applies are
1-21 confidential and not subject to disclosure and are exempt from the
1-22 public access provisions of Chapter 552. The records or
1-23 information in the records may be transferred between retirement
1-24 systems to which this chapter applies to the extent necessary to
1-25 administer the proportionate retirement program provided by this
1-26 chapter.
1-27 SECTION 2. Section 821.103, Government Code, is amended to
1-28 read as follows:
1-29 Sec. 821.103. CANCELLATION OF TEACHER CERTIFICATE.
1-30 (a) After receiving notice from the board of trustees of an
1-31 offense under Section 821.101 and after complying with Chapter 2001
1-32 and rules adopted by the State Board for Educator Certification [a
1-33 hearing], the State Board for Educator Certification [state
1-34 commissioner of education] may cancel the teacher certificate of a
1-35 person if the State Board for Educator Certification [commissioner]
1-36 determines that the person committed the offense.
1-37 (b) The executive director of the State Board for Educator
1-38 Certification may enter into an agreed sanction [A person whose
1-39 teacher certificate is canceled under this section may appeal the
1-40 commissioner's decision to the State Board of Education].
1-41 (c) A criminal prosecution of an offender under Section
1-42 821.101 is not a prerequisite to action by the State Board for
1-43 Educator Certification or its executive director [commissioner
1-44 under this section].
1-45 SECTION 3. Section 822.002, Government Code, is amended to
1-46 read as follows:
1-47 Sec. 822.002. EXCEPTIONS TO MEMBERSHIP REQUIREMENT.
1-48 [(a)] An employee of the public school system is not permitted to
1-49 be a member of the retirement system if the employee:
1-50 (1) [ executed and filed a waiver of membership prior
1-51 to the effective date of this subtitle and has not elected
1-52 membership pursuant to Subsection (b);]
1-53 [(2)] is eligible and elects to participate in the
1-54 optional retirement program under Chapter 830;
1-55 (2) [(3)] is solely employed by a public institution
1-56 of higher education that as a condition of employment requires the
1-57 employee to be enrolled as a student in the institution; or
1-58 (3) [(4)] has retired under the retirement system and
1-59 has not been reinstated to membership pursuant to Section
1-60 [823.502,] 824.005[,] or 824.307.
1-61 [(b) An employee under Subsection (a)(1) may become a member
1-62 of the retirement system at the beginning of a school year, but the
1-63 employee will not be entitled to credit for waived service unless
1-64 payment for the waived service is made under Section 823.202.]
2-1 SECTION 4. Section 822.006, Government Code, is amended to
2-2 read as follows:
2-3 Sec. 822.006. RESUMPTION OF MEMBERSHIP AFTER TERMINATION. A
2-4 person whose membership in the retirement system has been
2-5 terminated and who resumes membership must enter the retirement
2-6 system on the same terms as a person entering service for the first
2-7 time and is not entitled to credit for previous or other terminated
2-8 service unless it is reinstated under Section 823.501 [or 823.502].
2-9 SECTION 5. Subsection (a), Section 823.004, Government Code,
2-10 is amended to read as follows:
2-11 (a) All credit for military service, out-of-state service,
2-12 developmental leave, [service previously waived, work experience in
2-13 a career or technological field,] and service transferred to the
2-14 retirement system under Chapter 805 shall be computed on a
2-15 September 1 through August 31 school year. Payments for service
2-16 described by this section must be completed not later than the
2-17 later of the member's retirement date or the last day of the month
2-18 in which the member submits a retirement application.
2-19 SECTION 6. Subchapter B, Chapter 823, Government Code, is
2-20 amended to read as follows:
2-21 [SUBCHAPTER B. ESTABLISHMENT OF PRIOR SERVICE]
2-22 [Sec. 823.101. CREDITABLE PRIOR SERVICE. Prior service
2-23 creditable in the retirement system is:]
2-24 [(1) service as an employee performed before:]
2-25 [(A) September 1, 1937, for a person who became
2-26 a member of the retirement system or was eligible to become a
2-27 member before September 1, 1949; or]
2-28 [(B) September 1, 1949, for a person who first
2-29 became eligible to be a member of the retirement system after
2-30 August 31, 1949; and]
2-31 [(2) military service performed during World War I or
2-32 before the first anniversary of the date that war ended.]
2-33 [Sec. 823.102. STATEMENT OF PRIOR SERVICE. (a) At the time
2-34 a person becomes a member of the retirement system for the first
2-35 time, the person shall file with the retirement system a detailed
2-36 statement of all prior service claimed.]
2-37 [(b) If a member fails to file a statement as provided by
2-38 Subsection(a), has at least five years of membership service
2-39 credit, and has no unpaid waived, withdrawn, or delinquent service,
2-40 the member is entitled to and may file a statement claiming prior
2-41 service.]
2-42 [(c) The board of trustees may adopt rules for the filing of
2-43 statements of prior service.]
2-44 [Sec. 823.103. PRIOR SERVICE CREDIT. (a) As soon as
2-45 practicable after a member files a statement of prior service as
2-46 provided by Section 823.102, the board of trustees shall:]
2-47 [(1) verify the service claimed;]
2-48 [(2) make necessary adjustments in the application;]
2-49 [(3) grant one year of prior service credit for each
2-50 year of prior service approved; and]
2-51 [(4) notify the member of the amount of prior service
2-52 credit granted.]
2-53 [(b) The board of trustees may adopt rules for the granting
2-54 of prior service credit.]
2-55 [Sec. 823.104. RESTORATION OF CERTIFICATE FOR PRIOR SERVICE
2-56 EXCLUDED BECAUSE OF LATE INITIAL EMPLOYMENT. A person required to
2-57 become a member of the retirement system because of the repeal of
2-58 the exception to required membership for persons first employed in
2-59 public education at age 60 or older may obtain credit for service
2-60 performed while not a member by depositing the member contributions
2-61 and membership fees that would otherwise have been deducted from
2-62 the person's compensation for that service had the person been a
2-63 member. The deposits must be paid within one year after the date
2-64 the person first becomes a member of the retirement system.
2-65 Persons not making payment of these amounts within one year may
2-66 obtain credit for the service under Section 825.403(h) as if member
2-67 contributions had been required at the time of the service. The
2-68 board of trustees may adopt rules to implement this section.]
2-69 SECTION 7. Section 823.202, Government Code, is amended to
3-1 read as follows:
3-2 [Sec. 823.202 .MEMBERSHIP SERVICE PREVIOUSLY WAIVED.
3-3 (a) An employee who has previously executed and filed a waiver of
3-4 membership in the retirement system and who, after the waiver,
3-5 becomes a member may establish membership service credit for
3-6 service as an employee that would have been creditable as
3-7 membership service when performed except for the waiver.]
3-8 [(b) A member may establish credit under this section by
3-9 depositing with the retirement system for each year of service
3-10 claimed an amount equal to:]
3-11 [(1) the contributions that the person would have paid
3-12 had the person been a member of the retirement system during that
3-13 year; plus]
3-14 [(2) interest computed at an annual rate of five
3-15 percent of the amount of each payment that would have been due had
3-16 the person been a member, from the hypothetical payment due date to
3-17 the date of deposit.]
3-18 [(c) The retirement system shall determine in each case the
3-19 amount of money to be deposited by a member claiming credit under
3-20 this section. The system may not provide benefits based on the
3-21 claimed service until the determined amount has been fully paid.]
3-22 SECTION 8. Subsection (e), Section 824.002, Government Code,
3-23 is amended to read as follows:
3-24 (e) Not later than the later of a member's retirement date
3-25 or the last day of the month in which the member's application for
3-26 retirement is submitted, a member applying for service retirement
3-27 may reinstate withdrawn contributions,[;] make deposits for
3-28 [service previously waived,] military service[,] and equivalent
3-29 membership service,[;] and receive service credit as provided by
3-30 this subtitle.
3-31 SECTION 9. Subsection (a), Section 824.1012, Government
3-32 Code, is amended to read as follows:
3-33 (a) As an exception to Section 824.101(c), a retiree who
3-34 selected an optional service retirement annuity under Section
3-35 824.204(c)(1), (c)(2), or (c)(5) or an optional disability
3-36 retirement annuity under Section 824.308(c)(1), (c)(2), or (c)(5)
3-37 may revoke the designation of the beneficiary to receive the
3-38 annuity on the death of the retiree, if a court in a divorce
3-39 proceeding involving the retiree and beneficiary approves or orders
3-40 the revocation in the divorce decree or acceptance of a property
3-41 settlement or if the beneficiary is the spouse, a former spouse, or
3-42 an adult child of the retiree and signs a notarized consent to the
3-43 revocation. The revocation takes effect when the retirement system
3-44 receives it.
3-45 SECTION 10. Subsection (c), Section 824.304, Government
3-46 Code, is amended to read as follows:
3-47 (c) Before the 31st day after the date on which the medical
3-48 board certifies a member's disability, the member may reinstate
3-49 withdrawn contributions and make deposits for [service previously
3-50 waived,] military service[,] and equivalent membership service and
3-51 receive service credit as provided by this subtitle.
3-52 SECTION 11. Section 824.306, Government Code, is amended to
3-53 read as follows:
3-54 [Sec. 824.306. REPORT OF EARNINGS OF DISABILITY RETIREE.
3-55 (a) A disability retiree who is less than 60 years old annually
3-56 shall submit a report of earnings to the retirement system. The
3-57 retirement system shall examine each report and may require at any
3-58 time that a disability retiree undergo a medical examination by one
3-59 or more physicians the retirement system designates, if the retiree
3-60 has reported earnings that the board of trustees considers
3-61 excessive.]
3-62 [(b) The board of trustees may adopt rules establishing
3-63 limits on the annual earnings of disability retirees and such other
3-64 rules as are necessary to administer this section.]
3-65 [(c) If a disability retiree refuses to submit an annual
3-66 report of earnings, the retirement system shall discontinue the
3-67 retiree's annuity payment until the retiree submits to a medical
3-68 examination by one or more physicians designated by the retirement
3-69 system.]
4-1 SECTION 12. Subsections (b), (c), and (d), Section 824.404,
4-2 Government Code, are amended to read as follows:
4-3 (b) If the designated beneficiary is the spouse or a
4-4 dependent parent of the decedent, the beneficiary may elect to
4-5 receive for life a monthly benefit of $250 [$200], beginning
4-6 immediately or on the date the beneficiary becomes 65 years old,
4-7 whichever is later.
4-8 (c) If the designated beneficiary is the spouse of the
4-9 decedent and has one or more children less than 18 years old or has
4-10 custody of one or more children of the decedent who are less than
4-11 18 years old, the designated beneficiary may elect to receive:
4-12 (1) a monthly benefit of $350 [$300] payable until the
4-13 youngest child becomes 18 years old; and
4-14 (2) when the youngest child has attained the age of
4-15 18, a monthly benefit for life of $250 [$200], beginning on the
4-16 date the beneficiary becomes 65 years old.
4-17 (d) If the designated beneficiary or beneficiaries are the
4-18 decedent's dependent children who are less than 18 years old, their
4-19 guardian may elect to receive for them:
4-20 (1) a monthly benefit of $350 [$300], payable as long
4-21 as two or more children are less than 18 years old; and
4-22 (2) a monthly benefit of $250 [$200], payable as long
4-23 as only one child is less than 18 years old.
4-24 SECTION 13. Section 824.603, Government Code, is amended to
4-25 read as follows:
4-26 Sec. 824.603. Exclusion From Credit. Employment of a
4-27 retiree described by Section 824.602(a) does not entitle a retiree
4-28 to additional service credit, and the retiree so employed is not
4-29 required to make contributions to the system from compensation for
4-30 that employment. [Such employment may not be considered in applying
4-31 the provisions of Section 823.502.]
4-32 SECTION 14. Subsection (a), Section 825.307, Government
4-33 Code, is amended to read as follows:
4-34 (a) The retirement system shall deposit in a member's
4-35 individual account in the member savings account:
4-36 (1) the amount of contributions to the retirement
4-37 system that is deducted from the member's compensation;
4-38 (2) the portion of a deposit made on or after
4-39 resumption of membership that represents the amount of retirement
4-40 benefits received;
4-41 (3) the portion of a deposit to reinstate service
4-42 credit previously canceled that represents the amount withdrawn or
4-43 refunded;
4-44 (4) [the portion of a deposit to establish membership
4-45 service credit previously waived that is required by Section
4-46 823.202(b)(1);]
4-47 [(5) the portion of a deposit to establish membership
4-48 service credit for service performed after retirement that is
4-49 required by Section 823.502(c)(3);]
4-50 [(6)] the portion of a deposit to establish military
4-51 service credit required by Section 823.302(c);
4-52 (5) [(7)] the portion of a deposit to establish
4-53 equivalent membership service credit required by Section
4-54 823.401(d), 823.402(e)(1) or (e)(2), [823.404(c),] or
4-55 823.3021(f)(1); and
4-56 (6) [(8)] interest earned on money in the account as
4-57 provided by Subsections (b) and (c) and Section 825.313(c).
4-58 SECTION 15. Section 825.308, Government Code, is amended to
4-59 read as follows:
4-60 Sec. 825.308. State Contribution Account. The retirement
4-61 system shall deposit in the state contribution account:
4-62 (1) all state contributions to the retirement system
4-63 required by Section 825.404;
4-64 (2) amounts from the interest account as provided by
4-65 Section 825.313(b)(2) [825.313(b)(5)];
4-66 (3) retirement annuities waived or forfeited in
4-67 accordance with Section 824.601 or 824.004;
4-68 (4) fees collected under Section 825.403(h);
4-69 (5) fees and interest for reinstatement of service
5-1 credit or establishment of membership service credit as provided by
5-2 Section [823.202,] 823.501[, or 823.502];
5-3 (6) the portion of a deposit required by Section
5-4 823.302 to establish military service credit that represents a fee;
5-5 and
5-6 (7) the portion of a deposit required by Section
5-7 823.401(e) to establish out-of-state service credit that
5-8 represents a fee.
5-9 SECTION 16. Subsection (a), Section 825.408, Government
5-10 Code, is amended to read as follows:
5-11 (a) An employing district that fails to remit, before the
5-12 fourth [11th] day after the last day of a month, all member and
5-13 employer deposits and documentation of the deposits required by
5-14 this subchapter to be remitted by the district for the month shall
5-15 pay to the retirement system, in addition to the deposits, interest
5-16 on the unpaid or undocumented amounts at an annual rate compounded
5-17 monthly. The rate of interest is the rate established under
5-18 Section 825.313(b)(1), plus two percent. Interest required under
5-19 this section is creditable to the interest account.
5-20 SECTION 17. The heading of Section 825.507, Government Code,
5-21 is amended to read as follows:
5-22 Sec. 825.507. RECORD CONFIDENTIALITY [OF INFORMATION ABOUT
5-23 MEMBERS, RETIREES, ANNUITANTS, BENEFICIARIES, OR ALTERNATE PAYEES].
5-24 SECTION 18. Section 825.507, Government Code, is amended by
5-25 amending Subsections (a) through (d) and adding Subsections (f) and
5-26 (g) to read as follows:
5-27 (a) Records of a participant [Information contained in
5-28 records] that are in the custody of the retirement system or of an
5-29 administrator, carrier, attorney, consultant, or governmental
5-30 agency acting in cooperation with or on behalf of the retirement
5-31 system are [concerning an individual member, retiree, annuitant,
5-32 beneficiary, or alternate payee is] confidential and not subject to
5-33 public disclosure in a form that would identify an individual and
5-34 are exempt from the public access provisions of Chapter 552, except
5-35 as otherwise provided by this section.
5-36 (b) The retirement system may release records of a
5-37 participant, including a participant to which Chapter 803 applies,
5-38 to [under Section 552.101, and may not be disclosed in a form
5-39 identifiable with a specific individual unless]:
5-40 (1) the participant or the participant's attorney or
5-41 guardian or another person who the executive director determines is
5-42 acting on behalf of the participant;
5-43 (2) [the information is disclosed to:]
5-44 [(A)] the [individual or the individual's
5-45 attorney, guardian,] executor or[,] administrator of[, conservator,
5-46 or other person who the executive director determines is acting in
5-47 the interest of the individual or] the deceased participant's
5-48 [individual's] estate, including information relating to the
5-49 deceased participant's beneficiary;
5-50 (3) [(B)] a spouse or former spouse of the participant
5-51 [individual] if the executive director determines that the
5-52 information is relevant to the spouse's or former spouse's interest
5-53 in member accounts, benefits, or other amounts payable by the
5-54 retirement system;
5-55 (4) an administrator, carrier, consultant, attorney,
5-56 or agent acting on behalf of the retirement system;
5-57 (5) a governmental entity, an employer, or the
5-58 designated agent of an employer, only to the extent the retirement
5-59 system needs to share the information to perform the purposes of
5-60 the retirement system, as determined by the executive director;
5-61 (6) [(C) a governmental official or employee if the
5-62 executive director determines that disclosure of the information
5-63 requested is reasonably necessary to the performance of the duties
5-64 of the official or employee; or]
5-65 [(D)] a person authorized by the participant
5-66 [individual] in writing to receive the information;
5-67 (7) a federal or state criminal law enforcement agency
5-68 that requests a record for a law enforcement purpose;
5-69 (8) the attorney general to the extent necessary to
6-1 enforce child support; or
6-2 (9) a party in response [(2) the information is
6-3 disclosed pursuant] to a subpoena issued under applicable law if
6-4 [and] the executive director determines that the participant
6-5 [individual] will have a reasonable opportunity to contest the
6-6 subpoena.
6-7 (c) The records of a participant remain confidential after
6-8 release to a person as authorized by this section.
6-9 [(b)] This section does not prevent the disclosure or
6-10 confirmation, on an individual basis, of the status or identity of
6-11 a participant [an individual] as a member, former member, retiree,
6-12 deceased member or retiree, beneficiary, or alternate payee of the
6-13 retirement system.
6-14 (d) [(c)] The executive director may designate other
6-15 employees of the retirement system to make the necessary
6-16 determinations under this section [Subsection (a)].
6-17 [(d)] A determination and disclosure under this section
6-18 [Subsection (a)] may be made without notice to the participant
6-19 [individual member, retiree, annuitant, beneficiary, or alternate
6-20 payee].
6-21 (f) This section does not authorize the retirement system to
6-22 compile or disclose a list of participants' names, addresses, or
6-23 social security numbers unless the executive director determines
6-24 that a compilation or disclosure is necessary to administer the
6-25 retirement system.
6-26 (g) In this section, "participant" means a member, former
6-27 member, retiree, annuitant, beneficiary, or alternate payee of the
6-28 retirement system.
6-29 SECTION 19. Notwithstanding Section 824.601, Government
6-30 Code, the Teacher Retirement System of Texas may not withhold a
6-31 monthly benefit payment from a retiree who:
6-32 (1) before January 1, 2001, retired under Section
6-33 824.202, Government Code; and
6-34 (2) is employed by a school district or an
6-35 open-enrollment charter school.
6-36 SECTION 20. Section 1, Chapter 22, Acts of the 57th
6-37 Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
6-38 Texas Civil Statutes), as amended by Chapters 1340 and 1341, Acts
6-39 of the 75th Legislature, Regular Session, 1997, is amended to read
6-40 as follows:
6-41 Sec. 1. (a) This section and Section 2 of this Act apply
6-42 to:
6-43 (1) the governing boards [Local Boards of Education of
6-44 the Public Schools of this State, the Governing Boards] of [the]
6-45 state-supported institutions of higher education;
6-46 (2) [,] the Texas Higher Education Coordinating Board;
6-47 (3) [,] the Texas Education Agency;
6-48 (4) [,] the Texas School for the Deaf;
6-49 (5) [,] the Texas School for the Blind and Visually
6-50 Impaired;
6-51 (6) [,] the Texas Department of Mental Health and
6-52 Mental Retardation and the state schools, state hospitals, and
6-53 other facilities and institutions under its jurisdiction;
6-54 (7) [,] the Texas Department of Health and facilities
6-55 and institutions under its jurisdiction;
6-56 (8) [,] the Texas Youth Commission and facilities and
6-57 institutions under its jurisdiction;[, and]
6-58 (9) the governing boards of Centers for Community
6-59 Mental Health and Mental Retardation Services, county hospitals,
6-60 city hospitals, city-county hospitals, hospital authorities,
6-61 hospital districts, affiliated state agencies, and each of their
6-62 political subdivisions; and
6-63 (10) a school district or an open-enrollment charter
6-64 school.
6-65 (b) An entity described by Subsection (a) of this section
6-66 [of each of them,] may enter into agreements with the entity's
6-67 [their] employees for the purchase of annuities or for
6-68 contributions to any type of investment for the entity's [their]
6-69 employees as authorized in Section 403(b), [of the] Internal
7-1 Revenue Code of 1986 [1954], and its subsequent amendments [as it
7-2 existed on January 1, 1981].
7-3 SECTION 21. Section 2, Chapter 22, Acts of the 57th
7-4 Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
7-5 Texas Civil Statutes), is amended to read as follows:
7-6 Sec. 2. (a) If an employee of an [a governmental] entity
7-7 covered by Section 1 of this Act is paid by the Comptroller of
7-8 Public Accounts, the comptroller may take the action, in regard to
7-9 that employee, that is authorized by Subsection (b) of this
7-10 section. If an employee of an [a governmental] entity covered by
7-11 Section 1 is not paid by the comptroller, the governing board of
7-12 the [governmental] entity may take the action in regard to that
7-13 employee.
7-14 (b) The comptroller or the governing board, as appropriate
7-15 [the case may be], may:
7-16 (1) reduce the salary of participants when authorized
7-17 by the participants and shall apply the amount of the reduction to
7-18 the purchase of annuity contracts or to contributions to any type
7-19 of investment authorized in Section 403(b), [of the] Internal
7-20 Revenue Code of 1986 [1954], and its subsequent amendments [as it
7-21 existed on January 1, 1981], the exclusive control of which will
7-22 vest in the participants; [and]
7-23 (2) develop a system to allow or require participants
7-24 to electronically authorize:
7-25 (A) participation under this Act;
7-26 (B) purchases of annuity contracts; and
7-27 (C) contributions to investments; and
7-28 (3) except in the case of a school district or an
7-29 open-enrollment charter school, approve a list of annuities or
7-30 investments that meet the requirements of Section 403(b), Internal
7-31 Revenue Code of 1986, and its subsequent amendments, that may be
7-32 purchased;
7-33 (4) in the case of a school district or an
7-34 open-enrollment charter school, with the input of employees,
7-35 approve a list of no fewer than 10 companies through which an
7-36 annuity or investment is to be purchased and whose annuity or
7-37 investment product meets the requirements of Section 403(b),
7-38 Internal Revenue Code of 1986, and its subsequent amendments. The
7-39 comptroller or governing board may add approved companies as
7-40 appropriate. The following provisions are applicable to annuity or
7-41 investment products available through a school district or an
7-42 open-enrollment charter school:
7-43 (A) the employee is entitled to designate any
7-44 agent, broker, or company through which the annuity or investment
7-45 is to be purchased so long as the company, agent, or broker is
7-46 appropriately licensed by the Texas Department of Insurance and the
7-47 State Securities Board (in the case of securities) and there does
7-48 not exist any disciplinary action or adverse orders by the Texas
7-49 Department of Insurance or the State Securities Board against such
7-50 agent, broker, or company;
7-51 (B) it is the responsibility of the comptroller
7-52 or governing board to make certain that all agents, brokers, and
7-53 companies who do business with employees of the entity meet
7-54 applicable requirements in this section;
7-55 (C) for any eligible annuity offered under this
7-56 subdivision, each company or agent shall provide to each
7-57 prospective customer a uniform disclosure notice that provides the
7-58 following information:
7-59 (i) the name of the agent, agency, or
7-60 company selling the annuity along with the address and telephone
7-61 number;
7-62 (ii) the name of the company underwriting
7-63 the annuity, along with the address and telephone number;
7-64 (iii) license numbers of the person
7-65 selling the product and the name of the agency that issued the
7-66 license; and
7-67 (iv) for variable products, the notice
7-68 must include the prospectus and other required purchasing
7-69 information that is required by law to be provided to the
8-1 prospective purchaser; and
8-2 (D) for fixed annuity products, the notice must
8-3 state:
8-4 (i) the current rate of interest (or
8-5 formula used to calculate the current rate of interest);
8-6 (ii) the guaranteed rate of interest;
8-7 (iii) how interest is credited (daily,
8-8 monthly, annually);
8-9 (iv) the amount of any up-front,
8-10 surrender, or market value adjustment charges;
8-11 (v) whether or not the product contains
8-12 any bonus accumulation values, and if so, the period of time the
8-13 annuity must be in force before the client is entitled to the full
8-14 bonus accumulation value;
8-15 (vi) how the amount of the death benefit
8-16 under the annuity is calculated (gross value or net value after
8-17 surrender charges);
8-18 (vii) whether or not personal loans are
8-19 available under the annuity; and
8-20 (viii) any restrictions on accessibility
8-21 of money once the client is retired or no longer employed by the
8-22 entity.
8-23 [(c) The employee is entitled to designate any agent,
8-24 broker, or company through which the annuity or investment is to be
8-25 purchased.]
8-26 SECTION 22. Subsection (h), Section 16, Article 3.50-4,
8-27 Insurance Code, is amended to read as follows:
8-28 (h) An employing district that fails to remit, before the
8-29 fourth [11th] day after the last day of the month, all member
8-30 deposits required by this section to be remitted by the district
8-31 for the month shall pay to the Texas public school retired
8-32 employees group insurance fund, in addition to the deposits,
8-33 interest on the unpaid amounts at the annual rate of six percent
8-34 compounded monthly.
8-35 SECTION 23. Article 3.50-4A, Insurance Code, as added by
8-36 Chapter 372, Acts of the 76th Legislature, Regular Session, 1999,
8-37 is amended by adding Subsection (f) to read as follows:
8-38 (f) A premium or contribution on a policy, insurance
8-39 contract, or agreement authorized as provided by this article is
8-40 not subject to any state tax, regulatory fee, or surcharge,
8-41 including a premium or maintenance tax or fee.
8-42 SECTION 24. Article 3.50-4A, Insurance Code, as added by
8-43 Chapter 1540, Acts of the 76th Legislature, Regular Session, 1999,
8-44 is amended by adding Section 6 to read as follows:
8-45 Sec. 6. EXEMPTION FROM STATE TAXES AND FEES. A premium or
8-46 contribution on a policy, insurance contract, or agreement
8-47 authorized as provided by this article is not subject to any state
8-48 tax, regulatory fee, or surcharge, including a premium or
8-49 maintenance tax or fee.
8-50 SECTION 25. The following provisions of the Government Code
8-51 are repealed:
8-52 (1) Section 823.404;
8-53 (2) Section 823.502; and
8-54 (3) Subsection (e), Section 825.507.
8-55 SECTION 26. (a) A member of the Teacher Retirement System
8-56 of Texas who was an employee of a public institution of higher
8-57 education between March 31, 1969, and August 31, 1977, and, as a
8-58 condition of that employment, was required to be enrolled as a
8-59 student in the institution, may establish service credit for
8-60 employment by the institution during that period if:
8-61 (1) the member made deposits to establish that service
8-62 credit before September 1, 1978, and those deposits were
8-63 subsequently withdrawn; and
8-64 (2) the member deposits, not later than September 1,
8-65 2002, with the Teacher Retirement System of Texas an amount
8-66 computed under Section 823.501, Government Code.
8-67 (b) Section 825.410, Government Code, applies to the payment
8-68 of deposits under Subsection (a) of this section.
8-69 (c) Notwithstanding Subsection (e), Section 805.002,
9-1 Government Code, service credit that is canceled by a termination
9-2 of membership in the Teacher Retirement System of Texas or service
9-3 described in Subsection (a) of this section may be reinstated by a
9-4 member of the Employees Retirement System of Texas if the person
9-5 reinstating the service purchases the service under this section
9-6 not later than September 1, 2002.
9-7 SECTION 27. (a) The changes in law made to Chapter 22, Acts
9-8 of the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
9-9 Vernon's Texas Civil Statutes), by this Act do not apply to the
9-10 contract between an employee of a school district or
9-11 open-enrollment charter school and a company offering investments
9-12 or annuities that was entered into under Chapter 22, Acts of the
9-13 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
9-14 Vernon's Texas Civil Statutes), before the effective date of this
9-15 Act.
9-16 (b) A contract described by Subsection (a) of this section
9-17 is governed by the law in effect immediately before the effective
9-18 date of this Act, and the former law is continued in effect for
9-19 that purpose.
9-20 SECTION 28. This Act takes effect September 1, 2001.
9-21 * * * * *