1-1 AN ACT
1-2 relating to programs and systems administered by the Employees
1-3 Retirement System of Texas and to certain other public retirement
1-4 systems.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subdivisions (12) and (14), Section 811.001,
1-7 Government Code, are amended to read as follows:
1-8 (12) "Occupational death or disability" means death or
1-9 disability from an injury or disease that directly results from a
1-10 specific act or occurrence determinable by a definite time and
1-11 place, and directly results from a [an inherent] risk or a hazard
1-12 peculiar to and inherent in a duty that arises from and in the
1-13 course of state employment.
1-14 (14) "Retiree" means a person who, except as provided
1-15 by Section 812.203 [or 814.209], receives an annuity based on
1-16 service that was credited to the person in a class of membership.
1-17 SECTION 2. Subsection (b), Section 813.201, Government Code,
1-18 is amended to read as follows:
1-19 (b) A member may not[, after August 31, 1997,] accrue or
1-20 establish service credit in the employee class of membership when
1-21 the total amount of service credit, multiplied by the percentage in
1-22 effect for computing annuities under Section 814.103, 814.105, or
1-23 814.107 would exceed the number 100. When the maximum amount of
1-24 service credit is accrued or established by a member in the
1-25 employee or elected class, member and state contributions cease,
2-1 although the member retains membership subject to Section 812.005.
2-2 SECTION 3. Subsection (a), Section 813.504, Government
2-3 Code, is amended to read as follows:
2-4 (a) A person [member of the employee class] may reestablish
2-5 service credit previously canceled in the retirement system if:
2-6 (1) the person is a member of the employee class and
2-7 at least six months have elapsed since the end of the month in
2-8 which the cancellation became effective; or
2-9 (2) the person is:
2-10 (A) a former member of the employee class; and
2-11 (B) a participant in the optional retirement
2-12 program under Chapter 830.
2-13 SECTION 4. Section 813.509, Government Code, is amended to
2-14 read as follows:
2-15 Sec. 813.509. CREDIT FOR ACCUMULATED SICK LEAVE. (a) A
2-16 member who holds a position included in the employee class of
2-17 membership during the month that includes the effective date of the
2-18 member's retirement and who retires based on service or a
2-19 disability is entitled to service credit in the retirement system
2-20 for the member's sick leave that has accumulated and is unused on
2-21 the last day of employment.
2-22 (b) A death benefit designee under Section 814.301 or
2-23 814.302 of a member who holds a position included in the employee
2-24 class of membership during the month that includes the member's
2-25 date of death is entitled to service credit in the retirement
2-26 system for the member's sick leave that has accumulated and is
3-1 unused on the member's date of death.
3-2 (c) Sick leave is creditable in the retirement system at the
3-3 rate of one month of service credit for each 20 days, or 160 hours,
3-4 of accumulated sick leave and one month for each fraction of days
3-5 or hours remaining after division of the total hours of accumulated
3-6 sick leave by 160.
3-7 (d) [(b)] A member who holds a position included in the
3-8 employee class may use sick leave creditable under this section to
3-9 satisfy service requirements for retirement under Section 814.104
3-10 or 814.107 if the sick leave attributed to the eligibility
3-11 requirements remains otherwise unused on the last day of
3-12 employment.
3-13 (e) A death benefit designee under Section 814.302 may use
3-14 the deceased member's sick leave credit under this section to
3-15 qualify for making a death benefit plan selection under Section
3-16 814.302.
3-17 (f) [(c)] Except as provided by Subsection (g) [(d)], the
3-18 disbursing officer of each department or agency shall, before the
3-19 11th day after the effective date of retirement or date of death of
3-20 one or more employees of the department or agency, certify to the
3-21 retirement system:
3-22 (1) the name of each person:
3-23 (A) whose retirement from the department or
3-24 agency, and from state service, became effective during the
3-25 preceding month; or
3-26 (B) who died during the preceding month; and
4-1 (2) the amount of the person's accumulated sick leave
4-2 on the last day of employment or date of death.
4-3 (g) [(d)] The disbursing officer of a department or agency
4-4 that employs a member who applies for retirement under Subsection
4-5 (d) [(b)] shall, not more than 90 or less than 30 days before the
4-6 effective date of the member's retirement, certify to the
4-7 retirement system the amount of the member's accumulated and unused
4-8 sick leave. The officer shall immediately notify the retirement
4-9 system if the member uses sick leave after the date of
4-10 certification.
4-11 (h) [(e)] On receipt of a certification under Subsection (f)
4-12 [(c)] or (g) [(d)], the retirement system shall grant any credit to
4-13 which a retiring member or retiree who is a subject of the
4-14 certification is entitled. An increase in the computation of an
4-15 annuity because of credit provided by this section after a
4-16 certification under Subsection (f) [(c)] begins with the first
4-17 payment that becomes due after certification.
4-18 (i) [(f)] The retirement system shall cancel the retirement
4-19 of a person who used sick leave creditable under this section to
4-20 qualify for service retirement if the sick leave is otherwise used
4-21 by the person before the effective date of retirement.
4-22 (j) [(g)] In this section, "sick leave" does not include
4-23 credit granted under an agency sick-leave pool or under the Family
4-24 and Medical Leave Act of 1993 (Pub. L. 103-3) and its subsequent
4-25 amendments.
4-26 SECTION 5. Section 813.511, Government Code, as added by
5-1 Chapter 1541, Acts of the 76th Legislature, Regular Session, 1999,
5-2 is amended to read as follows:
5-3 Sec. 813.511. CREDIT FOR ACCUMULATED ANNUAL LEAVE. (a) A
5-4 member who holds a position included in the employee class of
5-5 membership during the month that includes the effective date of the
5-6 member's retirement and who retires based on service or a
5-7 disability is entitled to service credit in the retirement system
5-8 for the member's annual leave that has accumulated and is unused on
5-9 the last day of employment.
5-10 (b) A death benefit designee under Section 814.301 or
5-11 814.302 of a member who holds a position included in the employee
5-12 class of membership during the month that includes the member's
5-13 date of death is entitled to service credit in the retirement
5-14 system for the member's annual leave that has accumulated and is
5-15 unused on the member's date of death.
5-16 (c) Annual leave is creditable in the retirement system at
5-17 the rate of one month of service credit for each 20 days, or 160
5-18 hours, of accumulated annual leave and one month for each fraction
5-19 of days or hours remaining after division of the total hours of
5-20 accumulated annual leave by 160.
5-21 (d) [(b)] A member who holds a position included in the
5-22 employee class may use annual leave creditable under this section
5-23 to satisfy service requirements for retirement under Section
5-24 814.104 or 814.107 if the annual leave attributed to the
5-25 eligibility requirements remains otherwise unused on the last day
5-26 of employment.
6-1 (e) A death benefit designee under Section 814.302 may use
6-2 the deceased member's annual leave credit under this section to
6-3 qualify for making a death benefit plan selection under Section
6-4 814.302.
6-5 (f) [(c)] Except as provided by Subsection (g) [(d)], the
6-6 disbursing officer of each department or agency shall, before the
6-7 11th day after the effective date of retirement or date of death of
6-8 one or more employees of the department or agency, certify to the
6-9 retirement system:
6-10 (1) the name of each person:
6-11 (A) whose retirement from the department or
6-12 agency, and from state service, became effective during the
6-13 preceding month; or
6-14 (B) who died during the preceding month; and
6-15 (2) the amount of the person's accumulated annual
6-16 leave on the last day of employment or date of death.
6-17 (g) [(d)] The disbursing officer of a department or agency
6-18 that employs a member who applies for retirement under Subsection
6-19 (d) [(b)] shall, not more than 90 or less than 30 days before the
6-20 effective date of the member's retirement, certify to the
6-21 retirement system the amount of the member's accumulated and unused
6-22 annual leave. The officer shall immediately notify the retirement
6-23 system if the member uses annual leave after the date of
6-24 certification.
6-25 (h) [(e)] On receipt of a certification under Subsection (f)
6-26 [(c)] or (g) [(d)], the retirement system shall grant any credit to
7-1 which a retiring member or retiree who is a subject of the
7-2 certification is entitled. An increase in the computation of an
7-3 annuity because of credit provided by this section after a
7-4 certification under Subsection (f) [(d)] begins with the first
7-5 payment that becomes due after certification.
7-6 (i) [(f)] The retirement system shall cancel the retirement
7-7 of a person who used annual leave creditable under this section to
7-8 qualify for service retirement if the annual leave is otherwise
7-9 used by the person before the effective date of retirement.
7-10 SECTION 6. Subchapter F, Chapter 813, Government Code, is
7-11 amended by adding Section 813.513 to read as follows:
7-12 Sec. 813.513. CREDIT PURCHASE OPTION. (a) An eligible
7-13 member may establish not more than 60 months of equivalent
7-14 membership service credit, including law enforcement or custodial
7-15 officer service, in either the elected class or the employee class.
7-16 (b) A member is eligible to establish service credit under
7-17 this section if the member has at least 120 months of actual
7-18 membership service of the type of service that the member seeks to
7-19 establish.
7-20 (c) A member may establish service credit under this section
7-21 by depositing with the retirement system, for each month of service
7-22 credit, the actuarial present value, at the time of deposit, of the
7-23 additional standard retirement annuity benefits that would be
7-24 attributable to the purchase of the service credit under this
7-25 section, based on rates and tables recommended by the retirement
7-26 system's actuary and adopted by the board of trustees.
8-1 (d) After a member makes the deposits required by this
8-2 section, the retirement system shall grant the member one month of
8-3 equivalent membership service credit for each month of credit
8-4 approved.
8-5 (e) The retirement system shall deposit the amount of the
8-6 actuarial present value of the service credit purchased in the
8-7 member's individual account in the employees saving account.
8-8 (f) The board of trustees may adopt rules to administer this
8-9 section, including rules that impose restrictions on the
8-10 application of this section as necessary to cost-effectively
8-11 administer this section.
8-12 SECTION 7. Subchapter A, Chapter 814, Government Code, is
8-13 amended by adding Section 814.009 to read as follows:
8-14 Sec. 814.009. DEDUCTION FROM ANNUITY. (a) A person who
8-15 receives an annuity under this subchapter may, on a form
8-16 prescribed by and filed with the retirement system, authorize the
8-17 retirement system to deduct from the person's monthly annuity
8-18 payment the amount of a fee for the person's membership in a state
8-19 employee organization that:
8-20 (1) is a certified eligible state employee
8-21 organization under Section 403.0165; or
8-22 (2) has at least 2,500 retirees as members on January
8-23 1 preceding the fiscal year for which the deduction is made.
8-24 (b) An authorization made under this section remains in
8-25 effect until:
8-26 (1) the person who receives the annuity modifies or
9-1 revokes the authorization; or
9-2 (2) the state employee organization fails to meet the
9-3 requirements of Subsection (a).
9-4 (c) The retirement system shall adopt rules to administer
9-5 this section.
9-6 SECTION 8. Subsection (a), Section 814.105, Government Code,
9-7 is amended to read as follows:
9-8 (a) Except as otherwise provided by this section, the
9-9 standard service retirement annuity for service credited in the
9-10 employee class of membership is an amount computed as the member's
9-11 average monthly compensation for service in that class for the 36
9-12 highest months of compensation multiplied by 2.3 [2.25] percent for
9-13 each year of service credit in that class.
9-14 SECTION 9. Subsections (b) and (f), Section 814.107,
9-15 Government Code, are amended to read as follows:
9-16 (b) The standard service retirement annuity payable for at
9-17 least 20 years of service credit as a law enforcement or custodial
9-18 officer is an amount computed on the basis of the member's average
9-19 monthly compensation [for that service] for the 36 highest months
9-20 of compensation in the employee class, times the sum of the
9-21 percentage factor used in the computation of a standard service
9-22 retirement annuity under Section 814.105 plus .5 percent.
9-23 (f) The standard combined service retirement annuity payable
9-24 for at least 20 years of service credit as a law enforcement or
9-25 custodial officer may not exceed 100 percent of the [higher of the]
9-26 average compensation computed under [Section 814.105 or the average
10-1 compensation computed under] Subsection (b).
10-2 SECTION 10. Section 814.108, Government Code, is amended by
10-3 adding Subsection (h) to read as follows:
10-4 (h) A beneficiary designation that names a former spouse as
10-5 beneficiary for a guaranteed optional annuity is invalid unless the
10-6 designation is made after the date of the divorce.
10-7 SECTION 11. Subsection (b), Section 814.1081, Government
10-8 Code, is amended to read as follows:
10-9 (b) If a retiree files a request as provided by Subsection
10-10 (a), the retirement system shall recompute the annuity as a
10-11 standard service retirement annuity. The increase in the [right to
10-12 receive payment of an] annuity under [as adjusted as provided by]
10-13 this section begins with the monthly [first] payment made to the
10-14 retiree for the month following the month in which [that becomes
10-15 due after the date] a request is filed as provided by Subsection
10-16 (a).
10-17 SECTION 12. Section 814.201, Government Code, is amended by
10-18 amending Subsection (c) and adding Subsection (d) to read as
10-19 follows:
10-20 (c) An application for an occupational disability retirement
10-21 annuity may not be made after the second anniversary of the date
10-22 the injury or disease that causes the disability occurs unless the
10-23 executive director permits the application after that date because
10-24 of a showing of good cause for delay.
10-25 (d) An applicant must submit to medical examination and
10-26 provide other pertinent information as required by the retirement
11-1 system.
11-2 SECTION 13. Section 814.202, Government Code, is amended by
11-3 adding Subsection (e) to read as follows:
11-4 (e) A member otherwise eligible may not apply for or receive
11-5 a nonoccupational disability annuity if the member is eligible for
11-6 a service retirement annuity under Section 814.102 or 814.104.
11-7 SECTION 14. Subchapter C, Chapter 814, Government Code, is
11-8 amended by adding Section 814.2055 to read as follows:
11-9 Sec. 814.2055. AVERAGE MONTHLY COMPENSATION. For purposes
11-10 of Sections 814.206 and 814.207, "average monthly compensation"
11-11 means:
11-12 (1) a member's average monthly compensation for
11-13 service in the employee class for the 36 highest months of
11-14 compensation; or
11-15 (2) a member's average monthly compensation for
11-16 service in the employee class if a member retires with less than 36
11-17 months of service.
11-18 SECTION 15. Subsections (a) and (b), Section 814.206,
11-19 Government Code, are amended to read as follows:
11-20 (a) Except as provided by Subsection (b) and Section
11-21 814.207, a standard disability retirement annuity for service
11-22 credited in the employee class of membership is an amount computed
11-23 at the rate of 2.3 [two] percent for each year of service credit in
11-24 that class, times[:]
11-25 [(1) the member's monthly compensation at the time of
11-26 the disabling injury or disease, if the disability is occupational;
12-1 or]
12-2 [(2)] the member's average monthly compensation [for
12-3 service in the employee class for the 36 highest months of
12-4 compensation, if the disability is nonoccupational].
12-5 (b) A standard disability retirement annuity under this
12-6 section may not be more than 100 percent of the average monthly
12-7 [applicable rate of] compensation or, if occupational, not less
12-8 than 35 percent of the average monthly compensation [applicable
12-9 rate,] or $150 a month, whichever is greater.
12-10 SECTION 16. Section 814.207, Government Code, is amended by
12-11 amending Subsections (b), (c), and (e) and adding Subsection (f) to
12-12 read as follows:
12-13 (b) Except as provided by Subsection (c), an occupational
12-14 disability retirement annuity under this section is an amount, but
12-15 not more than 100 percent, computed on the basis of the officer's
12-16 average monthly compensation [at the time of the disabling injury
12-17 or disease], times a percentage derived by application of Section
12-18 814.107(b).
12-19 (c) A disability retirement annuity under this section is
12-20 not reducible because of age and may not be less than 50 percent of
12-21 the officer's average monthly compensation regardless of the amount
12-22 of service credited to the officer in the employee class.
12-23 (e) If a retiring member or retiree under this section
12-24 presents evidence satisfactory to the retirement system that the
12-25 person's condition makes the person incapable of gainful occupation
12-26 and is considered a total disability under federal social security
13-1 law, the retirement system shall increase the person's occupational
13-2 disability retirement annuity to 100 percent of the officer's
13-3 average monthly compensation [at the time of the disabling injury
13-4 or disease].
13-5 (f) An annuity increase under Subsection (e) is not payable
13-6 before the first month following the month in which the
13-7 satisfactory evidence is received by the retirement system under
13-8 Subsection (e).
13-9 SECTION 17. Section 814.401, Government Code, is amended by
13-10 adding Subsection (e) to read as follows:
13-11 (e) A beneficiary designation that names a former spouse as
13-12 beneficiary is invalid unless the designation is made after the
13-13 date of the divorce.
13-14 SECTION 18. Section 814.505, Government Code, is amended by
13-15 adding Subsection (i) to read as follows:
13-16 (i) A beneficiary designation that names a former spouse as
13-17 beneficiary is invalid unless the designation is made after the
13-18 date of the divorce.
13-19 SECTION 19. Section 815.102, Government Code, is amended to
13-20 read as follows:
13-21 Sec. 815.102. RULEMAKING. (a) Subject to the limitations
13-22 of this subtitle, the board of trustees may adopt rules for:
13-23 (1) eligibility of membership;
13-24 (2) the administration of the funds of the retirement
13-25 system;
13-26 (3) the program of supplemental benefits for law
14-1 enforcement and custodial officers;
14-2 (4) hearings on contested cases or disputed claims;
14-3 and
14-4 (5) [(4)] the transaction of any other business of the
14-5 board.
14-6 (b) Rules adopted under this section related to a hearing on
14-7 a contested case or disputed claim control over rules adopted under
14-8 Section 2003.050.
14-9 SECTION 20. Section 815.103, Government Code, is amended by
14-10 adding Subsection (e) to read as follows:
14-11 (e) Subchapter C, Chapter 2260, does not apply to the
14-12 retirement system. The acceptance of benefits by the retirement
14-13 system under a contract does not waive immunity from suit or
14-14 immunity from liability.
14-15 SECTION 21. Subchapter C, Chapter 815, Government Code, is
14-16 amended by adding Section 815.213 to read as follows:
14-17 Sec. 815.213. ETHICS AND DISCLOSURE REQUIREMENTS. The board
14-18 of trustees shall adopt an investment policy that includes a code
14-19 of ethics. The code of ethics must contain standards of ethical
14-20 conduct and disclosure requirements applicable to the members of
14-21 the board of trustees and employees of the retirement system in the
14-22 administration of this subtitle.
14-23 SECTION 22. Section 815.318, Government Code, is amended to
14-24 read as follows:
14-25 Sec. 815.318. TRANSFER OF ASSETS FROM INTEREST ACCOUNT.
14-26 (a) The retirement system [board of trustees] shall transfer from
15-1 the interest account to the employees saving account amounts of
15-2 interest computed under Section 815.311 at the following times:
15-3 (1) as required during the fiscal year for a member's
15-4 account in the retirement system that is closed before the last day
15-5 of the fiscal year; and
15-6 (2) as of the last day of the fiscal year for a
15-7 member's account that is not closed before the last day of the
15-8 fiscal year.
15-9 (b) As required during the year, the retirement system
15-10 [board of trustees] shall transfer from the interest account to the
15-11 expense account amounts it determines necessary for the payment of
15-12 the retirement system's expenses that exceed the amount of money
15-13 available for those expenses.
15-14 (c) As of the last day of each fiscal year, the retirement
15-15 system [board of trustees] shall transfer from the interest account
15-16 to the retirement annuity reserve account an amount equal to:
15-17 (1) five percent of the mean amount in the retirement
15-18 annuity reserve account for that fiscal year; or
15-19 (2) an amount computed at a greater rate if the
15-20 actuary recommends the greater rate to finance adequately the
15-21 annuities payable from the retirement annuity reserve account.
15-22 (d) After making the transfers required by this section, the
15-23 retirement system [board of trustees], as of the last day of each
15-24 fiscal year, shall transfer the amount remaining in the interest
15-25 account to the state accumulation account.
15-26 SECTION 23. Subsection (a), Section 815.402, Government
16-1 Code, is amended to read as follows:
16-2 (a) Except as provided by Section 813.201, each [Each]
16-3 payroll period, each department or agency of the state shall cause
16-4 to be deducted from each member's compensation a contribution of:
16-5 (1) six percent of the compensation if the member is
16-6 not a member of the legislature; or
16-7 (2) eight percent of the compensation if the member is
16-8 a member of the legislature.
16-9 SECTION 24. Section 815.503, Government Code, is amended to
16-10 read as follows:
16-11 Sec. 815.503. RECORDS. (a) Records of members, [and]
16-12 annuitants, retirees, beneficiaries, and alternate payees under
16-13 retirement plans administered by the retirement system that are in
16-14 the custody of the system or of an administrator, carrier, or other
16-15 governmental agency acting in cooperation with or on behalf of the
16-16 retirement system are confidential and not subject to public
16-17 disclosure and are exempt from the public access provisions of
16-18 Chapter 552, except as otherwise provided by this section.
16-19 (b) Records may be released to a member, [or] annuitant,
16-20 retiree, beneficiary, or alternate payee or to an authorized
16-21 attorney, family member, or representative acting on behalf of the
16-22 member, [or] annuitant, retiree, beneficiary, or alternate payee.
16-23 The retirement system may release the records to an administrator,
16-24 carrier, or agent or attorney acting on behalf of the retirement
16-25 system, to another governmental entity having a legitimate need for
16-26 the information to perform the purposes of the retirement system,
17-1 or to a party in response to a subpoena issued under applicable
17-2 law.
17-3 (c) The records of a member, [or] annuitant, retiree,
17-4 beneficiary, or alternate payee remain confidential after release
17-5 to a person as authorized by this section. The records of a
17-6 member, [or] annuitant, retiree, beneficiary, or alternate payee
17-7 may become part of the public record of an administrative or
17-8 judicial proceeding related to a contested case under Subtitle D or
17-9 E or this subtitle, and the member, annuitant, retiree,
17-10 beneficiary, or alternate payee waives the confidentiality of the
17-11 records, including medical records unless the records are closed to
17-12 public access by a protective order issued under applicable law.
17-13 (d) The retirement system may require a person to provide
17-14 the person's social security number as the system considers
17-15 necessary to ensure the proper administration of all services,
17-16 benefits, plans, and programs under the retirement system's
17-17 administration, oversight, or participation, or as otherwise
17-18 required by state or federal law.
17-19 SECTION 25. Section 840.402, Government Code, is amended to
17-20 read as follows:
17-21 Sec. 840.402. RETIREMENT SYSTEM RECORDS. Records of
17-22 members, [and] annuitants, retirees, beneficiaries, and alternate
17-23 payees of the retirement system are confidential in the manner
17-24 provided by [within the terms of] Section 815.503.
17-25 SECTION 26. The provisions of any other Act of the 77th
17-26 Legislature, Regular Session, 2001, that purport to impose ethics
18-1 and disclosure requirements for the management or investment of
18-2 state funds do not apply to the Employees Retirement System of
18-3 Texas or the funds administered by that system regardless of the
18-4 relative dates of enactment of the other Act and this Act.
18-5 SECTION 27. Subdivisions (2) and (8), Subsection (a),
18-6 Section 3, Texas Employees Uniform Group Insurance Benefits Act
18-7 (Article 3.50-2, Vernon's Texas Insurance Code), are amended to
18-8 read as follows:
18-9 (2) "Annuitant" shall mean an officer or employee who
18-10 has at least 10 [three] years of service as an eligible employee
18-11 with a department whose employees are authorized to participate in
18-12 the Texas employees uniform group insurance benefits program or who
18-13 has at least five years of membership and five years of military
18-14 service credited in the Employees Retirement System of Texas and
18-15 who retires under:
18-16 (A) the jurisdiction of the Employees Retirement
18-17 System of Texas and either receives an annuity or is eligible to
18-18 receive an annuity, pursuant to Subtitle B, D, or E of Title 8,
18-19 Government Code, or Chapter 803, Government Code, that is based on
18-20 at least 10 years of service credit or eligibility under Section
18-21 814.002 or 814.102, Government Code;
18-22 (B) the jurisdiction of the Teacher Retirement
18-23 System of Texas and either receives an annuity or is eligible to
18-24 receive an annuity, pursuant to Subtitle C, Title 8, Government
18-25 Code, or Chapter 803, Government Code, that is based on at least 10
18-26 years of service credit, whose last state employment prior to
19-1 retirement, including employment by a public community/junior
19-2 college, was as an employee of a department whose employees are
19-3 authorized to participate in the Texas employees uniform group
19-4 insurance program;
19-5 (C) the optional retirement program established
19-6 by Chapter 830, Government Code, and either receives an annuity or
19-7 is eligible to receive an annuity under that program, if the person
19-8 either:
19-9 (i) would have been eligible to retire and
19-10 receive a service retirement annuity from the Teacher Retirement
19-11 System of Texas or the Employees Retirement System of Texas based
19-12 on at least 10 years of service credit had the person not elected
19-13 to participate in the optional retirement program; or
19-14 (ii) is disabled as determined by the
19-15 Employees Retirement System of Texas; or
19-16 (D) any other federal or state statutory
19-17 retirement program to which an institution of higher education has
19-18 made employer contributions, if the employee has met service
19-19 requirements, age requirements, and other applicable requirements
19-20 comparable to the requirements for retirement under the Teacher
19-21 Retirement System of Texas, based on at least 10 years of service
19-22 credit.
19-23 (8) "Dependent" shall mean the spouse of an employee
19-24 or retired employee and:
19-25 (A) an unmarried child under 25 years of age,
19-26 including an adopted child and a stepchild, foster child, or other
20-1 child who is in a regular parent-child relationship;
20-2 (B) any such child, regardless of age, who the
20-3 trustee determines lives with or whose care is provided by an
20-4 employee or annuitant on a regular basis if:
20-5 (i) such child is mentally retarded or
20-6 physically incapacitated to such an extent as to be dependent upon
20-7 the employee or retired employee for care or support, as the
20-8 trustee shall determine;
20-9 (ii) such child's coverage under this Act
20-10 has not lapsed; and
20-11 (iii) such child is at least 25 years old
20-12 and was enrolled as a participant in the health benefits coverage
20-13 under the Texas employees uniform group insurance program on the
20-14 date of the child's 25th birthday; and
20-15 (C) any such child who is unmarried, regardless
20-16 of age, for purposes of health benefits coverage under this Act, on
20-17 expiration of the child's continuation coverage under the
20-18 Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L.
20-19 99-272) and its subsequent amendments.
20-20 SECTION 28. Section 4, Texas Employees Uniform Group
20-21 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
20-22 Code), is amended to read as follows:
20-23 Sec. 4. ADMINISTRATION. The administration and
20-24 implementation of this Act are vested solely in the trustee. As it
20-25 shall deem necessary to insure the proper administration of this
20-26 Act and the insurance coverages, services, and benefits provided
21-1 for or authorized by this Act, the trustee, as an agency of the
21-2 State of Texas, shall have full power and authority to hire
21-3 employees. The duties of such employees and their compensation
21-4 shall be determined and assigned by the trustee. The trustee may,
21-5 on a competitive bid basis, contract with a qualified, experienced
21-6 firm of group insurance specialists or an administering firm who
21-7 shall act for the trustee in a capacity as independent
21-8 administrators and managers of the programs authorized under this
21-9 Act. The independent administrator so selected by the trustee
21-10 shall assist the trustee to insure the proper administration of the
21-11 Act and the coverages, services, and benefits provided for or
21-12 authorized by the Act and shall be paid by the trustee.
21-13 Compensation of all persons employed by the trustee and their
21-14 expenses shall be paid at such rates and in such amounts as the
21-15 trustee shall approve, providing that in no case shall they be
21-16 greater than those expenses paid for like or similar services.
21-17 Also, as an agency of the State of Texas, the trustee shall have
21-18 full power and authority to enter into interagency contracts with
21-19 any department of the State of Texas. The interagency contracts
21-20 shall provide for reimbursement to the state departments and shall
21-21 define the services to be performed by the departments for the
21-22 trustee. The trustee shall have full power and authority to
21-23 promulgate all rules, regulations, plans, procedures, and orders
21-24 reasonably necessary to implement and carry out the purposes and
21-25 provisions of this Act in all its particulars, including but not
21-26 limited to the following:
22-1 (a) preparation of specifications for coverages
22-2 provided by authority of this Act;
22-3 (b) prescribing the time at which and the conditions
22-4 under which an employee, annuitant, or dependent is eligible for
22-5 all coverages provided under this Act;
22-6 (c) determination of the methods and procedures of
22-7 claims administration;
22-8 (d) determination of the amount of employee payroll
22-9 deductions and reductions and the responsibility of establishing
22-10 procedures by which such deductions and reductions shall be made;
22-11 (e) establishment of procedures by which the trustee
22-12 shall decide contested cases arising from programs or coverages
22-13 provided under authority of this Act;
22-14 (f) continuing study of the operation of all coverages
22-15 provided under this Act, including such matters as gross and net
22-16 cost, administration costs, benefits, utilization of benefits, and
22-17 claims administration;
22-18 (g) administration of the Employees Life, Accident,
22-19 and Health Insurance and Benefits Fund, providing for the beginning
22-20 and ending dates of coverages of employees and annuitants and their
22-21 dependents under all benefit plans;
22-22 (h) adoption of all rules and regulations consistent
22-23 with the provisions of this Act and its purpose as it deems
22-24 necessary to carry out its statutory duties and responsibilities;
22-25 (i) development of basic plans of group coverages and
22-26 benefits applicable to all employees. The trustee also may provide
23-1 for optional group coverages and benefits in addition to the basic
23-2 plan;
23-3 (j) to provide either additional statewide optional
23-4 programs or individual agency optional programs as the trustee may
23-5 determine is appropriate;
23-6 (k) design, development, adoption, implementation, and
23-7 administration of a cafeteria plan;
23-8 (l) purchase of liability insurance for the coverage
23-9 of the trustees, employees, and agents of the board of trustees in
23-10 such amounts as the board of trustees, in its sole discretion,
23-11 considers reasonable and necessary;
23-12 (m) development of health benefits plans that permit
23-13 access to high quality, cost-effective health care;
23-14 (n) designing, implementing, and monitoring health
23-15 benefits plan features intended to discourage excessive
23-16 utilization, promote efficiency, and contain costs;
23-17 (o) development and continuing refinement of a health
23-18 care benefit strategy consistent with evolving benefit delivery
23-19 systems; [and]
23-20 (p) development of a funding strategy to efficiently
23-21 utilize employer contributions to achieve the purposes of this Act
23-22 and which is reasonable and assures employees and retired employee
23-23 annuitants a fair choice among health benefit plans as set out in
23-24 Section 14 of this Act; and
23-25 (q) appointment of an advisory committee for the
23-26 program provided by this Act under the terms provided by Section
24-1 815.509, Government Code.
24-2 SECTION 29. Subsection (c), Section 4B, Texas Employees
24-3 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
24-4 Texas Insurance Code), is amended to read as follows:
24-5 (c) A decision by the executive director under Subsection
24-6 (a) [or (a-1)] of this section may be appealed only to the trustee.
24-7 An appeal to the trustee is a contested case under the
24-8 administrative procedure law, Chapter 2001, Government Code.
24-9 Standing to pursue an administrative appeal under this section is
24-10 limited to employees, participants, annuitants, and covered
24-11 dependents participating in the Texas employees uniform group
24-12 insurance program or, after the death of an employee, [a]
24-13 participant, annuitant, or covered dependent, to the person's
24-14 [participant's] estate, personal representative, heirs at law, or
24-15 designated beneficiary.
24-16 SECTION 30. Subsection (j), Section 5, Texas Employees
24-17 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
24-18 Texas Insurance Code), is amended to read as follows:
24-19 (j) The trustee may not contract for or provide a plan of
24-20 coverage that:
24-21 (1) excludes or limits coverage or services for
24-22 acquired immune deficiency syndrome, as defined by the Centers for
24-23 Disease Control of the United States Public Health Service, or
24-24 human immunodeficiency virus infection; or
24-25 (2) provides coverage for serious mental illness that
24-26 is less extensive than the minimum coverage [provided] for serious
25-1 mental illness required by Section 3, Article 3.51-14, Insurance
25-2 Code [any physical illness].
25-3 SECTION 31. Section 10, Texas Employees Uniform Group
25-4 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
25-5 Code), is amended by amending Subsection (c) and adding Subsection
25-6 (d) to read as follows:
25-7 (c) The records of a participant in the Texas Employees
25-8 Uniform Group Insurance Program in the custody of the trustee, or
25-9 of an administrator or carrier acting on behalf of the trustee, are
25-10 confidential and not subject to disclosure and are exempt from the
25-11 public access provisions of Chapter 552, Government Code, except as
25-12 provided by this subsection. Records may be released to a
25-13 participant or to an authorized attorney, family member, or
25-14 representative acting on behalf of the participant. The trustee
25-15 may release the records to an administrator, carrier, or agent or
25-16 attorney acting on behalf of the trustee, to another governmental
25-17 entity, to a medical provider of the participant for the purpose of
25-18 carrying out the purposes of this Act, or to a party in response to
25-19 a subpoena issued under applicable law. The records of a
25-20 participant remain confidential after release to a person as
25-21 authorized by this subsection. The records of a participant may
25-22 become part of the public record of an administrative or judicial
25-23 proceeding related to a contested case under this Act, unless the
25-24 records are closed to public access by a protective order issued
25-25 under applicable law. If a participant's records have become part
25-26 of the public record of a proceeding and the records are not the
26-1 subject of a protective order, the participant is considered to
26-2 have waived the privacy of the participant's records.
26-3 (d) The trustee may require an individual to disclose the
26-4 individual's social security number as the trustee considers
26-5 necessary to properly administer this Act and any coverage,
26-6 service, or benefit authorized by this Act or as otherwise required
26-7 by state or federal law.
26-8 SECTION 32. The Texas Employees Uniform Group Insurance
26-9 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
26-10 amended by adding Section 10A to read as follows:
26-11 Sec. 10A. EXCLUSIVE REMEDY. The remedies provided under
26-12 this Act are the exclusive remedies available to an employee,
26-13 participant, annuitant, or dependent.
26-14 SECTION 33. Section 13A, Texas Employees Uniform Group
26-15 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
26-16 Code), is amended to read as follows:
26-17 Sec. 13A. ADMINISTRATIVE PROCESS AND SANCTIONS FOR INSURANCE
26-18 PROGRAM VIOLATIONS [EXPULSION FROM GROUP INSURANCE PROGRAM].
26-19 (a) The Employees Retirement System of Texas [After notice and
26-20 hearing as provided by this section, the trustee] may impose one or
26-21 more sanctions described by this section against [expel from
26-22 participation in the Texas employees uniform group insurance
26-23 program] any employee, participant, annuitant, or dependent who:
26-24 (1) submits a materially false [fraudulent] claim or
26-25 application for coverage under [or has defrauded or attempted to
26-26 defraud] any health maintenance organization or insurance or
27-1 benefits plan offered under the program;
27-2 (2) defrauds or attempts to defraud any health
27-3 maintenance organization or insurance or benefits plan offered
27-4 under the program;
27-5 (3) obtains or induces the extension of coverage under
27-6 any program provided under this Act by a materially negligent or
27-7 intentional misrepresentation, a failure to disclose material
27-8 information, or fraud; or
27-9 (4) induces the extension of coverage under any
27-10 program provided under this Act by supplying false information on
27-11 an application for coverage or in related documentation or in any
27-12 communication.
27-13 (b) On receipt of a complaint or on its own motion, if the
27-14 Employees Retirement System of Texas determines that an employee,
27-15 participant, annuitant, or dependent has engaged in conduct
27-16 described by Subsection (a) of this section, the retirement system
27-17 [trustee] may:
27-18 (1) expel from the program the [call and hold a
27-19 hearing to determine whether an] employee, participant, annuitant,
27-20 or dependent;
27-21 (2) impose limitations on the person's participation
27-22 in the program;
27-23 (3) rescind any coverage obtained or extended as a
27-24 result of the conduct under Subsection (a) of this section;
27-25 (4) deny a claim arising from coverage; or
27-26 (5) require the person to reimburse the Employees
28-1 Life, Accident, and Health Insurance and Benefits Trust Account for
28-2 any benefit obtained as a result of the conduct.
28-3 (c) An expulsion under Subsection (b) of this section may be
28-4 permanent or for a specified period. A rescission of coverage
28-5 under Subsection (b) of this section may be from the date of
28-6 inception of the coverage or from the date of the prohibited
28-7 conduct [has submitted a fraudulent claim or application for
28-8 coverage under or has defrauded or attempted to defraud any health
28-9 maintenance organization or insurance or benefits plan offered
28-10 under the Texas employees uniform group insurance program].
28-11 (d) A person may appeal a determination made under
28-12 Subsection (a) or (b) of this section only to the board of
28-13 trustees.
28-14 [(c)] A proceeding under this subsection [section] is a
28-15 contested case under the administrative procedure law, Chapter
28-16 2001, Government Code. Section 4B of this Act applies to an appeal
28-17 to the board of trustees under this subsection. The appellant has
28-18 the burden of proof and any sanction imposed is stayed during an
28-19 appeal under this subsection. If a person fails to make a timely
28-20 appeal, any sanction relates back to the date of the Employees
28-21 Retirement System of Texas' determination.
28-22 [(d) At the conclusion of the hearing, if the trustee issues
28-23 a decision that finds that the accused employee, annuitant, or
28-24 dependent submitted a fraudulent claim or application for coverage
28-25 or has defrauded or attempted to defraud any health maintenance
28-26 organization or insurance or benefits plan offered under the Texas
29-1 employees uniform group insurance program, the trustee shall expel
29-2 the employee, annuitant, or dependent from participation in the
29-3 program.]
29-4 [(e)] An appeal of a decision of the trustee under this
29-5 subsection [section] is under the substantial evidence rule.
29-6 (e) [(f)] An employee, participant, annuitant, or dependent
29-7 expelled from the Texas employees uniform group insurance program
29-8 may not participate in any plan of coverage offered by the program
29-9 for the [a] period determined by the Employees Retirement System of
29-10 Texas [trustee of not more than five years from the date the
29-11 expulsion from the program takes effect].
29-12 SECTION 34. The Texas Employees Uniform Group Insurance
29-13 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
29-14 amended by adding Section 13A-1 to read as follows:
29-15 Sec. 13A-1. MISCONDUCT INFORMATION. (a) This section
29-16 applies to:
29-17 (1) the Employees Retirement System of Texas;
29-18 (2) a carrier or other insurance company or health
29-19 maintenance organization;
29-20 (3) an administering firm or other insurance support
29-21 organization that provides information or services to the Texas
29-22 employees uniform group insurance program or the Employees
29-23 Retirement System of Texas;
29-24 (4) an agent or third-party administrator authorized
29-25 under this Act or licensed under the insurance laws of this state;
29-26 (5) a regulatory authority or department; and
30-1 (6) a board member, executive director, employee,
30-2 auditor, or actuary of an entity described by this section.
30-3 (b) A person may collect from, furnish to, or exchange with
30-4 another person information, including medical records or other
30-5 confidential information, to the extent the person considers
30-6 necessary to detect or to impose a sanction for a criminal act, a
30-7 misrepresentation, or nondisclosure that is related to an attempt
30-8 to obtain coverage, payment, reimbursement, or a benefit under this
30-9 Act.
30-10 (c) A person who acts under Subsection (b) of this section
30-11 is immune from suit and criminal or civil liability unless the
30-12 person acts with malice or intent to defraud.
30-13 SECTION 35. Section 13B, Texas Employees Uniform Group
30-14 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
30-15 Code), is amended by adding Subsection (e) to read as follows:
30-16 (e) The trustee may adopt rules for the use of a debit card
30-17 or other similar technology for claims administration under this
30-18 section.
30-19 SECTION 36. Section 615.001, Government Code, is amended to
30-20 read as follows:
30-21 Sec. 615.001. DEFINITION. In this chapter, "minor child"
30-22 means a child who:
30-23 (1) [,] on the date of the death of an individual
30-24 listed under Section 615.003, is younger than 18 years of age; and
30-25 (2) if the child is not a biological or adopted child,
30-26 was claimed as a dependent on the federal income tax return of an
31-1 individual listed under Section 615.003 for the year preceding the
31-2 year of the individual's death.
31-3 SECTION 37. Subsection (b), Section 615.023, Government
31-4 Code, is amended to read as follows:
31-5 (b) A child's entitlement to assistance payable under this
31-6 section ends on the child's 18th [21st] birthday. At that time,
31-7 payments to any other surviving minor children shall be adjusted,
31-8 as necessary, to conform to the amounts payable under Subsection
31-9 (a).
31-10 SECTION 38. Subsection (a), Section 615.042, Government
31-11 Code, is amended to read as follows:
31-12 (a) The [board of trustees of the] Employees Retirement
31-13 System of Texas shall notify the comptroller of the retirement
31-14 system's [board's] determination that a claim under this chapter is
31-15 valid and justifies payment.
31-16 SECTION 39. Section 615.043, Government Code, is amended to
31-17 read as follows:
31-18 Sec. 615.043. DENIAL OF CLAIM. If the [board of trustees of
31-19 the] Employees Retirement System of Texas denies a claim, the
31-20 retirement system [board] shall send a notice of the denial to:
31-21 (1) the person making the claim; or
31-22 (2) the duly qualified guardian or legal
31-23 representative of a surviving minor child or dependent sibling, if
31-24 a claim is being made on behalf of the child or sibling.
31-25 SECTION 40. Section 615.044, Government Code, is amended to
31-26 read as follows:
32-1 Sec. 615.044. APPEALS. (a) An eligible survivor or the
32-2 eligible survivor's legal representative [A person] whose claim for
32-3 payment [to a surviving spouse, minor child, or dependent parent or
32-4 sibling] is denied [or the person's legal representative] may
32-5 appeal the denial to the board of trustees of the Employees
32-6 Retirement System of Texas [a district court of the residence of
32-7 the surviving spouse, minor child, or dependent parent or sibling
32-8 or to a district court in Travis County].
32-9 (b) An appeal under this section is considered to be an
32-10 appeal of a contested case under Chapter 2001 and shall be
32-11 conducted as provided by Section 815.511 [must be made not later
32-12 than the 20th day after the date the claimant or legal
32-13 representative receives notice of the denial].
32-14 (c) Judicial review of a decision under this section is
32-15 under the substantial evidence rule as provided by Chapter 2001
32-16 [Proceedings on the appeal are by trial de novo, as that term is
32-17 used in an appeal from a justice court to the county court].
32-18 SECTION 41. Subchapter C, Chapter 615, Government Code, is
32-19 amended by adding Section 615.045 to read as follows:
32-20 Sec. 615.045. RECORDS. (a) Records of individuals listed
32-21 by Section 615.003 and of survivors eligible for benefits under
32-22 this chapter that are in the custody of the Employees Retirement
32-23 System of Texas or a carrier, administering firm as defined by the
32-24 Texas Employees Uniform Group Insurance Benefits Act (Article
32-25 3.50-2, Vernon's Texas Insurance Code), or other governmental
32-26 agency acting with or on behalf of the retirement system are
33-1 confidential, not subject to public disclosure, and exempt from the
33-2 public information provisions of Chapter 552, except as otherwise
33-3 provided by this section.
33-4 (b) Records may be released to an eligible survivor or to an
33-5 authorized attorney, family member, or representative acting on
33-6 behalf of the eligible survivor. The Employees Retirement System
33-7 of Texas may release the records to an administering firm, carrier,
33-8 agent, or attorney acting on behalf of the retirement system, to
33-9 another governmental entity having a legitimate need for the
33-10 information to perform the purposes of the retirement system, or to
33-11 a party in response to a subpoena issued under applicable law.
33-12 (c) The records of individuals listed by Section 615.003 and
33-13 of eligible survivors remain confidential after release to a person
33-14 as authorized by this section. The records of individuals listed
33-15 by Section 615.003 and of eligible survivors may become part of the
33-16 public record of an administrative or judicial proceeding related
33-17 to an appeal filed under this chapter, unless the records are
33-18 closed to public access by a protective order issued under
33-19 applicable law.
33-20 SECTION 42. Subsection (a), Section 615.074, Government
33-21 Code, is amended to read as follows:
33-22 (a) An eligible surviving dependent who is a minor child is
33-23 entitled to continue health insurance coverage until the earlier of
33-24 [the dependent]:
33-25 (1) the date the dependent reaches the age of 18 [21]
33-26 years; or
34-1 (2) the date the dependent becomes eligible for group
34-2 health insurance through another employer.
34-3 SECTION 43. Section 814.1041, Government Code, as amended by
34-4 Chapters 1013 and 1541, Acts of the 76th Legislature, Regular
34-5 Session, 1999, is reenacted to read as follows:
34-6 Sec. 814.1041. TEMPORARY SERVICE RETIREMENT OPTION FOR
34-7 MEMBERS AFFECTED BY PRIVATIZATION OR OTHER REDUCTION IN WORKFORCE.
34-8 (a) This section applies only to members of the employee class who
34-9 are not otherwise eligible to retire and whose positions with the
34-10 Texas Workforce Commission, the Texas Department of Human Services,
34-11 the Texas Department of Mental Health and Mental Retardation, or
34-12 the Texas Department of Health are eliminated as a result of
34-13 contracts with private service providers or other reductions in
34-14 services provided by those agencies and who separate from state
34-15 service at that time.
34-16 (b) A member described by Subsection (a) is eligible to
34-17 retire and receive a service retirement annuity if the member's age
34-18 and service credit, each equally increased only as needed to meet
34-19 minimum age and service requirements, but not by more than three
34-20 years, would meet the minimum age and service requirements for
34-21 service retirement under Section 814.104(a) at the time the member
34-22 separates from state service as described by Subsection (a). The
34-23 annuity of a person who retires under this subsection is computed
34-24 on the person's accrued service credit increased by the minimum
34-25 amount of service credit necessary to meet the service credit
34-26 requirement for retirement, but not by more than three years.
35-1 (c) A member who applies to retire under this section and
35-2 the state agency from which the member separated from service shall
35-3 provide documentation required by the retirement system to
35-4 establish eligibility to retire under this section.
35-5 (d) This section applies only to positions eliminated by
35-6 privatization or other reductions in workforce before September 1,
35-7 2001.
35-8 SECTION 44. The following sections are repealed:
35-9 (1) Section 813.511, Government Code, as added by
35-10 Chapter 226, Acts of the 76th Legislature, Regular Session, 1999;
35-11 (2) Section 814.1042, Government Code, as added by
35-12 Chapter 264, Acts of the 76th Legislature, Regular Session, 1999;
35-13 (3) Section 814.1043, Government Code;
35-14 (4) Section 840.101, Government Code;
35-15 (5) Subsection (a-1), Section 4B, Texas Employees
35-16 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
35-17 Texas Insurance Code); and
35-18 (6) Section 18, Texas Employees Uniform Group
35-19 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
35-20 Code).
35-21 SECTION 45. (a) This section applies only to annuities that
35-22 are described by Sections 814.104, 814.1041, 814.107, 814.206,
35-23 814.207, 814.301, 814.302, and 814.305, Government Code, and that
35-24 are based on service retirements, disability retirements, or deaths
35-25 that occurred before September 1, 2001.
35-26 (b) Payments of an annuity adjusted under this section shall
36-1 begin with the first payment that becomes due after December 31,
36-2 2001.
36-3 (c) The amount of an annuity payable on the first day the
36-4 annuity became payable shall be adjusted for plan changes to
36-5 reflect:
36-6 (1) current multiplier values and, if applicable, the
36-7 amount of service credited at the time of retirement or death, as
36-8 specified by Section 814.105, 814.107, 814.206, 814.207, 814.301,
36-9 or 814.302, Government Code;
36-10 (2) current applicable actuarial reduction factors for
36-11 benefits elected under Section 814.108, 814.1081, 814.1082, or
36-12 Subsection (d), Section 814.206, Subsection (a), Section 814.301,
36-13 or Subsection (a), Section 814.302, Government Code; and
36-14 (3) current minimum standard annuity and maximum
36-15 service percentage values specified by Subsection (b), Section
36-16 814.105, Government Code.
36-17 (d) Annuities shall be adjusted for changes described by
36-18 Section 814.008, Subsection (d), Section 814.108, and Section
36-19 814.1081, Government Code, that occurred after the date the annuity
36-20 first became payable and before January 1, 2002.
36-21 (e) After any adjustment under Subsection (c) or (d) of this
36-22 section is made, the amount of the annuities shall be adjusted
36-23 under this section by multiplying the amount of each annuity by a
36-24 fraction, not less than one, the numerator of which is the Consumer
36-25 Price Index for all urban consumers as reported by the United
36-26 States Bureau of Labor Statistics (CPI-U) for December 2001, and
37-1 the denominator of which is the CPI-U for August of the fiscal year
37-2 in which the annuity first became payable. If the CPI-U for
37-3 December 2001 is not available for a computation under this
37-4 subsection, the numerator is the most recent month's CPI-U
37-5 available at the time of the computation, increased for each month
37-6 from that month until December 2001 by a factor equal to the
37-7 average of the monthly percentage increases in the CPI-U for the
37-8 12-month period ending with that month.
37-9 (f) The board of trustees of the Employees Retirement System
37-10 of Texas may adopt rules to implement this section.
37-11 (g) An adjustment under this section may not cause a
37-12 reduction in the amount of an annuity payable immediately before
37-13 December 31, 2001.
37-14 (h) Adjustments made under this section and rules adopted by
37-15 the board of trustees under this section must comply with Section
37-16 401(a), Internal Revenue Code of 1986, as amended, and rules
37-17 adopted under that section and Section 811.006, Government Code.
37-18 SECTION 46. Section 810.001, Government Code, is amended by
37-19 adding Subsections (g), (h), and (i) to read as follows:
37-20 (g) "Civil union" means any relationship status that grants
37-21 to the parties of the relationship the same legal protections,
37-22 benefits, and responsibilities as are granted to the spouses of a
37-23 marriage.
37-24 (h) For purposes of this title, the state may not give
37-25 effect to a:
37-26 (1) public act, record, or judicial proceeding that
38-1 recognizes or validates a marriage or civil union between persons
38-2 of the same sex; or
38-3 (2) right or claim asserted as a result of the
38-4 purported marriage or civil union.
38-5 (i) Subsection (h) does not preclude the enforcement in this
38-6 state of an order issued in another state relating to child
38-7 custody, child support, or property division, including a qualified
38-8 domestic relations order.
38-9 SECTION 47. (a) The change in law made by this Act to
38-10 Subdivision (2), Subsection (a), Section 3, Texas Employees Uniform
38-11 Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
38-12 Insurance Code), does not apply to a person who, on August 31,
38-13 2001:
38-14 (1) was an eligible employee with an employer whose
38-15 employees were eligible to participate in the uniform group
38-16 insurance program;
38-17 (2) was eligible to participate as a retiree in the
38-18 uniform group insurance program; or
38-19 (3) had satisfied any service requirements under the
38-20 Texas Employees Uniform Group Insurance Benefits Act for
38-21 participation as a retiree in the Texas Employees uniform group
38-22 insurance program.
38-23 (b) The participation in the Texas Employees uniform group
38-24 insurance program of a person described in Subsection (a) of this
38-25 section is governed by the law in effect immediately before the
38-26 effective date of this Act, and the former law is continued in
39-1 effect for that purpose.
39-2 SECTION 48. The change in law made by this Act to Paragraph
39-3 (B), Subdivision (8), Subsection (a), Section 3, Texas Employees
39-4 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
39-5 Texas Insurance Code), applies only to a dependent who was not
39-6 covered by the basic coverage of a health benefits plan under the
39-7 Texas Employees Uniform Group Insurance Benefit Act (Article
39-8 3.50-2, Vernon's Texas Insurance Code), on August 31, 2001.
39-9 SECTION 49. (a) Except as provided by this section, this
39-10 Act takes effect September 1, 2001.
39-11 (b) Section 813.513, Government Code, as added by this Act,
39-12 takes effect January 1, 2002.
S.B. No. 292
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 292 passed the Senate on
April 20, 2001, by a viva-voce vote; and that the Senate concurred
in House amendments on May 27, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 292 passed the House, with
amendments, on May 23, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor