77R15286 GJH-D
By Armbrister S.B. No. 292
Substitute the following for S.B. No. 292:
By Tillery C.S.S.B. No. 292
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to programs and systems administered by the Employees
1-3 Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 811.001(12) and (14), Government Code,
1-6 are amended to read as follows:
1-7 (12) "Occupational death or disability" means death or
1-8 disability from an injury or disease that directly results from a
1-9 specific act or occurrence determinable by a definite time and
1-10 place, and directly results from a [an inherent] risk or a hazard
1-11 peculiar to and inherent in a duty that arises from and in the
1-12 course of state employment.
1-13 (14) "Retiree" means a person who, except as provided
1-14 by Section 812.203 [or 814.209], receives an annuity based on
1-15 service that was credited to the person in a class of membership.
1-16 SECTION 2. Section 813.201(b), Government Code, is amended to
1-17 read as follows:
1-18 (b) A member may not[, after August 31, 1997,] accrue or
1-19 establish service credit in the employee class of membership when
1-20 the total amount of service credit, multiplied by the percentage in
1-21 effect for computing annuities under Section 814.103, 814.105, or
1-22 814.107 would exceed the number 100. When the maximum amount of
1-23 service credit is accrued or established by a member in the
1-24 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. Section 813.504(a), Government Code, is amended
2-3 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
2-27 unused on the member's date of death.
3-1 (c) Sick leave is creditable in the retirement system at the
3-2 rate of one month of service credit for each 20 days, or 160 hours,
3-3 of accumulated sick leave and one month for each fraction of days
3-4 or hours remaining after division of the total hours of accumulated
3-5 sick leave by 160.
3-6 (d) [(b)] A member who holds a position included in the
3-7 employee class may use sick leave creditable under this section to
3-8 satisfy service requirements for retirement under Section 814.104
3-9 or 814.107 if the sick leave attributed to the eligibility
3-10 requirements remains otherwise unused on the last day of
3-11 employment.
3-12 (e) A death benefit designee under Section 814.302 may use
3-13 the deceased member's sick leave credit under this section to
3-14 qualify for making a death benefit plan selection under Section
3-15 814.302.
3-16 (f) [(c)] Except as provided by Subsection (g) [(d)], the
3-17 disbursing officer of each department or agency shall, before the
3-18 11th day after the effective date of retirement or date of death of
3-19 one or more employees of the department or agency, certify to the
3-20 retirement system:
3-21 (1) the name of each person:
3-22 (A) whose retirement from the department or
3-23 agency, and from state service, became effective during the
3-24 preceding month; or
3-25 (B) who died during the preceding month; and
3-26 (2) the amount of the person's accumulated sick leave
3-27 on the last day of employment or date of death.
4-1 (g) [(d)] The disbursing officer of a department or agency
4-2 that employs a member who applies for retirement under Subsection
4-3 (d) [(b)] shall, not more than 90 or less than 30 days before the
4-4 effective date of the member's retirement, certify to the
4-5 retirement system the amount of the member's accumulated and unused
4-6 sick leave. The officer shall immediately notify the retirement
4-7 system if the member uses sick leave after the date of
4-8 certification.
4-9 (h) [(e)] On receipt of a certification under Subsection (f)
4-10 [(c)] or (g) [(d)], the retirement system shall grant any credit to
4-11 which a retiring member or retiree who is a subject of the
4-12 certification is entitled. An increase in the computation of an
4-13 annuity because of credit provided by this section after a
4-14 certification under Subsection (f) [(c)] begins with the first
4-15 payment that becomes due after certification.
4-16 (i) [(f)] The retirement system shall cancel the retirement
4-17 of a person who used sick leave creditable under this section to
4-18 qualify for service retirement if the sick leave is otherwise used
4-19 by the person before the effective date of retirement.
4-20 (j) [(g)] In this section, "sick leave" does not include
4-21 credit granted under an agency sick-leave pool or under the Family
4-22 and Medical Leave Act of 1993 (Pub. L. 103-3) and its subsequent
4-23 amendments.
4-24 SECTION 5. Section 813.511, Government Code, as added by
4-25 Chapter 1541, Acts of the 76th Legislature, Regular Session, 1999,
4-26 is amended to read as follows:
4-27 Sec. 813.511. CREDIT FOR ACCUMULATED ANNUAL LEAVE. (a) A
5-1 member who holds a position included in the employee class of
5-2 membership during the month that includes the effective date of the
5-3 member's retirement and who retires based on service or a
5-4 disability is entitled to service credit in the retirement system
5-5 for the member's annual leave that has accumulated and is unused on
5-6 the last day of employment.
5-7 (b) A death benefit designee under Section 814.301 or
5-8 814.302 of a member who holds a position included in the employee
5-9 class of membership during the month that includes the member's
5-10 date of death is entitled to service credit in the retirement
5-11 system for the member's annual leave that has accumulated and is
5-12 unused on the member's date of death.
5-13 (c) Annual leave is creditable in the retirement system at
5-14 the rate of one month of service credit for each 20 days, or 160
5-15 hours, of accumulated annual leave and one month for each fraction
5-16 of days or hours remaining after division of the total hours of
5-17 accumulated annual leave by 160.
5-18 (d) [(b)] A member who holds a position included in the
5-19 employee class may use annual leave creditable under this section
5-20 to satisfy service requirements for retirement under Section
5-21 814.104 or 814.107 if the annual leave attributed to the
5-22 eligibility requirements remains otherwise unused on the last day
5-23 of employment.
5-24 (e) A death benefit designee under Section 814.302 may use
5-25 the deceased member's annual leave credit under this section to
5-26 qualify for making a death benefit plan selection under Section
5-27 814.302.
6-1 (f) [(c)] Except as provided by Subsection (g) [(d)], the
6-2 disbursing officer of each department or agency shall, before the
6-3 11th day after the effective date of retirement or date of death of
6-4 one or more employees of the department or agency, certify to the
6-5 retirement system:
6-6 (1) the name of each person:
6-7 (A) whose retirement from the department or
6-8 agency, and from state service, became effective during the
6-9 preceding month; or
6-10 (B) who died during the preceding month; and
6-11 (2) the amount of the person's accumulated annual
6-12 leave on the last day of employment or date of death.
6-13 (g) [(d)] The disbursing officer of a department or agency
6-14 that employs a member who applies for retirement under Subsection
6-15 (d) [(b)] shall, not more than 90 or less than 30 days before the
6-16 effective date of the member's retirement, certify to the
6-17 retirement system the amount of the member's accumulated and unused
6-18 annual leave. The officer shall immediately notify the retirement
6-19 system if the member uses annual leave after the date of
6-20 certification.
6-21 (h) [(e)] On receipt of a certification under Subsection (f)
6-22 [(c)] or (g) [(d)], the retirement system shall grant any credit to
6-23 which a retiring member or retiree who is a subject of the
6-24 certification is entitled. An increase in the computation of an
6-25 annuity because of credit provided by this section after a
6-26 certification under Subsection (f) [(d)] begins with the first
6-27 payment that becomes due after certification.
7-1 (i) [(f)] The retirement system shall cancel the retirement
7-2 of a person who used annual leave creditable under this section to
7-3 qualify for service retirement if the annual leave is otherwise
7-4 used by the person before the effective date of retirement.
7-5 SECTION 6. Subchapter F, Chapter 813, Government Code, is
7-6 amended by adding Section 813.513 to read as follows:
7-7 Sec. 813.513. CREDIT PURCHASE OPTION. (a) An eligible
7-8 member may establish not more than 60 months of equivalent
7-9 membership service credit, including law enforcement or custodial
7-10 officer service, in either the elected class or the employee class.
7-11 (b) A member is eligible to establish service credit under
7-12 this section if the member has at least 120 months of actual
7-13 membership service of the type of service that the member seeks to
7-14 establish.
7-15 (c) A member may establish service credit under this section
7-16 by depositing with the retirement system, for each month of service
7-17 credit, the actuarial present value, at the time of deposit, of the
7-18 additional standard retirement annuity benefits that would be
7-19 attributable to the purchase of the service credit under this
7-20 section, based on rates and tables recommended by the retirement
7-21 system's actuary and adopted by the board of trustees.
7-22 (d) After a member makes the deposits required by this
7-23 section, the retirement system shall grant the member one month of
7-24 equivalent membership service credit for each month of credit
7-25 approved.
7-26 (e) The retirement system shall deposit the amount of the
7-27 actuarial present value of the service credit purchased in the
8-1 member's individual account in the employees saving account.
8-2 (f) The board of trustees may adopt rules to administer this
8-3 section, including rules that impose restrictions on the
8-4 application of this section as necessary to cost-effectively
8-5 administer this section.
8-6 SECTION 7. Subchapter A, Chapter 814, Government Code, is
8-7 amended by adding Section 814.009 to read as follows:
8-8 Sec. 814.009. DEDUCTION FROM ANNUITY. (a) A person who
8-9 receives an annuity under this subchapter may, on a form
8-10 prescribed by and filed with the retirement system, authorize the
8-11 retirement system to deduct from the person's monthly annuity
8-12 payment the amount of a fee for the person's membership in a state
8-13 employee organization that:
8-14 (1) is a certified eligible state employee
8-15 organization under Section 403.0165; and
8-16 (2) has at least 2,500 retirees as members on January
8-17 1 preceding the fiscal year for which the deduction is made.
8-18 (b) An authorization made under this section remains in
8-19 effect until:
8-20 (1) the person who receives the annuity modifies or
8-21 revokes the authorization; or
8-22 (2) the state employee organization fails to meet the
8-23 requirements of Subsection (a).
8-24 (c) The retirement system shall adopt rules to administer
8-25 this section.
8-26 SECTION 8. Section 814.105(a), Government Code, is amended
8-27 to read as follows:
9-1 (a) Except as otherwise provided by this section, the
9-2 standard service retirement annuity for service credited in the
9-3 employee class of membership is an amount computed as the member's
9-4 average monthly compensation for service in that class for the 36
9-5 highest months of compensation multiplied by 2.3 [2.25] percent for
9-6 each year of service credit in that class.
9-7 SECTION 9. Sections 814.107(b) and (f), Government Code, are
9-8 amended to read as follows:
9-9 (b) The standard service retirement annuity payable for at
9-10 least 20 years of service credit as a law enforcement or custodial
9-11 officer is an amount computed on the basis of the member's average
9-12 monthly compensation [for that service] for the 36 highest months
9-13 of compensation in the employee class, times the sum of the
9-14 percentage factor used in the computation of a standard service
9-15 retirement annuity under Section 814.105 plus .5 percent.
9-16 (f) The standard combined service retirement annuity payable
9-17 for at least 20 years of service credit as a law enforcement or
9-18 custodial officer may not exceed 100 percent of the [higher of the]
9-19 average compensation computed under [Section 814.105 or the average
9-20 compensation computed under] Subsection (b).
9-21 SECTION 10. Section 814.108, Government Code, is amended by
9-22 adding Subsection (h) to read as follows:
9-23 (h) A beneficiary designation that names a former spouse as
9-24 beneficiary for a guaranteed optional annuity is invalid unless the
9-25 designation is made after the date of the divorce.
9-26 SECTION 11. Section 814.1081(b), Government Code, is amended
9-27 to read as follows:
10-1 (b) If a retiree files a request as provided by Subsection
10-2 (a), the retirement system shall recompute the annuity as a
10-3 standard service retirement annuity. The increase in the [right to
10-4 receive payment of an] annuity under [as adjusted as provided by]
10-5 this section begins with the monthly [first] payment made to the
10-6 retiree for the month following the month in which [that becomes
10-7 due after the date] a request is filed as provided by Subsection
10-8 (a).
10-9 SECTION 12. Section 814.201, Government Code, is amended by
10-10 amending Subsection (c) and adding Subsection (d) to read as
10-11 follows:
10-12 (c) An application for an occupational disability retirement
10-13 annuity may not be made after the second anniversary of the date
10-14 the injury or disease that causes the disability occurs unless the
10-15 executive director permits the application after that date because
10-16 of a showing of good cause for delay.
10-17 (d) An applicant must submit to medical examination and
10-18 provide other pertinent information as required by the retirement
10-19 system.
10-20 SECTION 13. Section 814.202, Government Code, is amended by
10-21 adding Subsection (e) to read as follows:
10-22 (e) A member otherwise eligible may not apply for or receive
10-23 a nonoccupational disability annuity if the member is eligible for
10-24 a service retirement annuity under Section 814.102 or 814.104.
10-25 SECTION 14. Subchapter C, Chapter 814, Government Code, is
10-26 amended by adding Section 814.2055 to read as follows:
10-27 Sec. 814.2055. AVERAGE MONTHLY COMPENSATION. For purposes of
11-1 Sections 814.206 and 814.207, "average monthly compensation" means:
11-2 (1) a member's average monthly compensation for
11-3 service in the employee class for the 36 highest months of
11-4 compensation; or
11-5 (2) a member's average monthly compensation for
11-6 service in the employee class if a member retires with less than 36
11-7 months of service.
11-8 SECTION 15. Sections 814.206(a) and (b), Government Code, are
11-9 amended to read as follows:
11-10 (a) Except as provided by Subsection (b) and Section
11-11 814.207, a standard disability retirement annuity for service
11-12 credited in the employee class of membership is an amount computed
11-13 at the rate of 2.3 [two] percent for each year of service credit in
11-14 that class, times[:]
11-15 [(1) the member's monthly compensation at the time of
11-16 the disabling injury or disease, if the disability is occupational;
11-17 or]
11-18 [(2)] the member's average monthly compensation [for
11-19 service in the employee class for the 36 highest months of
11-20 compensation, if the disability is nonoccupational].
11-21 (b) A standard disability retirement annuity under this
11-22 section may not be more than 100 percent of the average monthly
11-23 [applicable rate of] compensation or, if occupational, not less
11-24 than 35 percent of the average monthly compensation [applicable
11-25 rate,] or $150 a month, whichever is greater.
11-26 SECTION 16. Section 814.207, Government Code, is amended by
11-27 amending Subsections (b), (c), and (e) and adding Subsection (f) to
12-1 read as follows:
12-2 (b) Except as provided by Subsection (c), an occupational
12-3 disability retirement annuity under this section is an amount, but
12-4 not more than 100 percent, computed on the basis of the officer's
12-5 average monthly compensation [at the time of the disabling injury
12-6 or disease], times a percentage derived by application of Section
12-7 814.107(b).
12-8 (c) A disability retirement annuity under this section is
12-9 not reducible because of age and may not be less than 50 percent of
12-10 the officer's average monthly compensation regardless of the amount
12-11 of service credited to the officer in the employee class.
12-12 (e) If a retiring member or retiree under this section
12-13 presents evidence satisfactory to the retirement system that the
12-14 person's condition makes the person incapable of gainful occupation
12-15 and is considered a total disability under federal social security
12-16 law, the retirement system shall increase the person's occupational
12-17 disability retirement annuity to 100 percent of the officer's
12-18 average monthly compensation [at the time of the disabling injury
12-19 or disease].
12-20 (f) An annuity increase under Subsection (e) is not payable
12-21 before the first month following the month in which the
12-22 satisfactory evidence is received by the retirement system under
12-23 Subsection (e).
12-24 SECTION 17. Section 814.401, Government Code, is amended by
12-25 adding Subsection (e) to read as follows:
12-26 (e) A beneficiary designation that names a former spouse as
12-27 beneficiary is invalid unless the designation is made after the
13-1 date of the divorce.
13-2 SECTION 18. Section 814.505, Government Code, is amended by
13-3 adding Subsection (i) to read as follows:
13-4 (i) A beneficiary designation that names a former spouse as
13-5 beneficiary is invalid unless the designation is made after the
13-6 date of the divorce.
13-7 SECTION 19. Section 815.102, Government Code, is amended to
13-8 read as follows:
13-9 Sec. 815.102. RULEMAKING. (a) Subject to the limitations of
13-10 this subtitle, the board of trustees may adopt rules for:
13-11 (1) eligibility of membership;
13-12 (2) the administration of the funds of the retirement
13-13 system;
13-14 (3) the program of supplemental benefits for law
13-15 enforcement and custodial officers;
13-16 (4) hearings on contested cases or disputed claims;
13-17 and
13-18 (5) [(4)] the transaction of any other business of the
13-19 board.
13-20 (b) Rules adopted under this section related to a hearing on
13-21 a contested case or disputed claim control over rules adopted under
13-22 Section 2003.050.
13-23 SECTION 20. Section 815.103, Government Code, is amended by
13-24 adding Subsection (e) to read as follows:
13-25 (e) Subchapter C, Chapter 2260, does not apply to the
13-26 retirement system. The acceptance of benefits by the retirement
13-27 system under a contract does not waive immunity from suit or
14-1 immunity from liability.
14-2 SECTION 21. Subchapter C, Chapter 815, Government Code, is
14-3 amended by adding Section 815.213 to read as follows:
14-4 Sec. 815.213. ETHICS AND DISCLOSURE REQUIREMENTS. The board
14-5 of trustees shall adopt an investment policy that includes a code
14-6 of ethics. The code of ethics must contain standards of ethical
14-7 conduct and disclosure requirements applicable to the members of
14-8 the board of trustees and employees of the retirement system in the
14-9 administration of this subtitle.
14-10 SECTION 22. Section 815.318, Government Code, is amended to
14-11 read as follows:
14-12 Sec. 815.318. TRANSFER OF ASSETS FROM INTEREST ACCOUNT. (a)
14-13 The retirement system [board of trustees] shall transfer from the
14-14 interest account to the employees saving account amounts of
14-15 interest computed under Section 815.311 at the following times:
14-16 (1) as required during the fiscal year for a member's
14-17 account in the retirement system that is closed before the last day
14-18 of the fiscal year; and
14-19 (2) as of the last day of the fiscal year for a
14-20 member's account that is not closed before the last day of the
14-21 fiscal year.
14-22 (b) As required during the year, the retirement system
14-23 [board of trustees] shall transfer from the interest account to the
14-24 expense account amounts it determines necessary for the payment of
14-25 the retirement system's expenses that exceed the amount of money
14-26 available for those expenses.
14-27 (c) As of the last day of each fiscal year, the retirement
15-1 system [board of trustees] shall transfer from the interest account
15-2 to the retirement annuity reserve account an amount equal to:
15-3 (1) five percent of the mean amount in the retirement
15-4 annuity reserve account for that fiscal year; or
15-5 (2) an amount computed at a greater rate if the
15-6 actuary recommends the greater rate to finance adequately the
15-7 annuities payable from the retirement annuity reserve account.
15-8 (d) After making the transfers required by this section, the
15-9 retirement system [board of trustees], as of the last day of each
15-10 fiscal year, shall transfer the amount remaining in the interest
15-11 account to the state accumulation account.
15-12 SECTION 23. Section 815.402(a), Government Code, is amended
15-13 to read as follows:
15-14 (a) Except as provided by Section 813.201, each [Each]
15-15 payroll period, each department or agency of the state shall cause
15-16 to be deducted from each member's compensation a contribution of:
15-17 (1) six percent of the compensation if the member is
15-18 not a member of the legislature; or
15-19 (2) eight percent of the compensation if the member is
15-20 a member of the legislature.
15-21 SECTION 24. Section 815.503, Government Code, is amended to
15-22 read as follows:
15-23 Sec. 815.503. RECORDS. (a) Records of members, [and]
15-24 annuitants, retirees, beneficiaries, and alternate payees under
15-25 retirement plans administered by the retirement system that are in
15-26 the custody of the system or of an administrator, carrier, or other
15-27 governmental agency acting in cooperation with or on behalf of the
16-1 retirement system are confidential and not subject to public
16-2 disclosure and are exempt from the public access provisions of
16-3 Chapter 552, except as otherwise provided by this section.
16-4 (b) Records may be released to a member, [or] annuitant,
16-5 retiree, beneficiary, or alternate payee or to an authorized
16-6 attorney, family member, or representative acting on behalf of the
16-7 member, [or] annuitant, retiree, beneficiary, or alternate payee.
16-8 The retirement system may release the records to an administrator,
16-9 carrier, or agent or attorney acting on behalf of the retirement
16-10 system, to another governmental entity having a legitimate need for
16-11 the information to perform the purposes of the retirement system,
16-12 or to a party in response to a subpoena issued under applicable
16-13 law.
16-14 (c) The records of a member, [or] annuitant, retiree,
16-15 beneficiary, or alternate payee remain confidential after release
16-16 to a person as authorized by this section. The records of a
16-17 member, [or] annuitant, retiree, beneficiary, or alternate payee
16-18 may become part of the public record of an administrative or
16-19 judicial proceeding related to a contested case under Subtitle D or
16-20 E or this subtitle, and the member, annuitant, retiree,
16-21 beneficiary, or alternate payee waives the confidentiality of the
16-22 records, including medical records unless the records are closed to
16-23 public access by a protective order issued under applicable law.
16-24 (d) The retirement system may require a person to provide
16-25 the person's social security number as the system considers
16-26 necessary to ensure the proper administration of all services,
16-27 benefits, plans, and programs under the retirement system's
17-1 administration, oversight, or participation, or as otherwise
17-2 required by state or federal law.
17-3 SECTION 25. Section 840.402, Government Code, is amended to
17-4 read as follows:
17-5 Sec. 840.402. RETIREMENT SYSTEM RECORDS. Records of members,
17-6 [and] annuitants, retirees, beneficiaries, and alternate payees of
17-7 the retirement system are confidential in the manner provided by
17-8 [within the terms of] Section 815.503.
17-9 SECTION 26. The provisions of any other Act of the 77th
17-10 Legislature, Regular Session, that purport to impose ethics and
17-11 disclosure requirements for the management or investment of state
17-12 funds do not apply to the Employees Retirement System of Texas or
17-13 the funds administered by that system regardless of the relative
17-14 dates of enactment of the other Act and this Act.
17-15 SECTION 27. Sections 3(a)(2) and (8), Texas Employees
17-16 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
17-17 Texas Insurance Code), are amended to read as follows:
17-18 (2) "Annuitant" shall mean an officer or employee who
17-19 has at least 10 [three] years of service as an eligible employee
17-20 with a department whose employees are authorized to participate in
17-21 the Texas employees uniform group insurance benefits program or who
17-22 has at least five years of membership and five years of military
17-23 service credited in the Employees Retirement System of Texas and
17-24 who retires under:
17-25 (A) the jurisdiction of the Employees Retirement
17-26 System of Texas and either receives an annuity or is eligible to
17-27 receive an annuity, pursuant to Subtitle B, D, or E of Title 8,
18-1 Government Code, or Chapter 803, Government Code, that is based on
18-2 at least 10 years of service credit or eligibility under Section
18-3 814.002 or 814.102, Government Code;
18-4 (B) the jurisdiction of the Teacher Retirement
18-5 System of Texas and either receives an annuity or is eligible to
18-6 receive an annuity, pursuant to Subtitle C, Title 8, Government
18-7 Code, or Chapter 803, Government Code, that is based on at least 10
18-8 years of service credit, whose last state employment prior to
18-9 retirement, including employment by a public community/junior
18-10 college, was as an employee of a department whose employees are
18-11 authorized to participate in the Texas employees uniform group
18-12 insurance program;
18-13 (C) the optional retirement program established
18-14 by Chapter 830, Government Code, and either receives an annuity or
18-15 is eligible to receive an annuity under that program, if the person
18-16 either:
18-17 (i) would have been eligible to retire and
18-18 receive a service retirement annuity from the Teacher Retirement
18-19 System of Texas or the Employees Retirement System of Texas based
18-20 on at least 10 years of service credit had the person not elected
18-21 to participate in the optional retirement program; or
18-22 (ii) is disabled as determined by the
18-23 Employees Retirement System of Texas; or
18-24 (D) any other federal or state statutory
18-25 retirement program to which an institution of higher education has
18-26 made employer contributions, if the employee has met service
18-27 requirements, age requirements, and other applicable requirements
19-1 comparable to the requirements for retirement under the Teacher
19-2 Retirement System of Texas, based on at least 10 years of service
19-3 credit.
19-4 (8) "Dependent" shall mean the spouse of an employee
19-5 or retired employee and:
19-6 (A) an unmarried child under 25 years of age,
19-7 including an adopted child and a stepchild, foster child, or other
19-8 child who is in a regular parent-child relationship;
19-9 (B) any such child, regardless of age, who the
19-10 trustee determines lives with or whose care is provided by an
19-11 employee or annuitant on a regular basis if:
19-12 (i) such child is mentally retarded or
19-13 physically incapacitated to such an extent as to be dependent upon
19-14 the employee or retired employee for care or support, as the
19-15 trustee shall determine;
19-16 (ii) such child's coverage under this Act
19-17 has not lapsed; and
19-18 (iii) such child is at least 25 years old
19-19 and was enrolled as a participant in the health benefits coverage
19-20 under the uniform program on the date of the child's 25th birthday;
19-21 and
19-22 (C) any such child who is unmarried, regardless
19-23 of age, for purposes of health benefits coverage under this Act, on
19-24 expiration of the child's continuation coverage under the
19-25 Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L.
19-26 99-272) and its subsequent amendments.
19-27 SECTION 28. Section 4, Texas Employees Uniform Group
20-1 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
20-2 Code), is amended to read as follows:
20-3 Sec. 4. ADMINISTRATION. The administration and
20-4 implementation of this Act are vested solely in the trustee. As it
20-5 shall deem necessary to insure the proper administration of this
20-6 Act and the insurance coverages, services, and benefits provided
20-7 for or authorized by this Act, the trustee, as an agency of the
20-8 State of Texas, shall have full power and authority to hire
20-9 employees. The duties of such employees and their compensation
20-10 shall be determined and assigned by the trustee. The trustee may,
20-11 on a competitive bid basis, contract with a qualified, experienced
20-12 firm of group insurance specialists or an administering firm who
20-13 shall act for the trustee in a capacity as independent
20-14 administrators and managers of the programs authorized under this
20-15 Act. The independent administrator so selected by the trustee shall
20-16 assist the trustee to insure the proper administration of the Act
20-17 and the coverages, services, and benefits provided for or
20-18 authorized by the Act and shall be paid by the trustee.
20-19 Compensation of all persons employed by the trustee and their
20-20 expenses shall be paid at such rates and in such amounts as the
20-21 trustee shall approve, providing that in no case shall they be
20-22 greater than those expenses paid for like or similar services.
20-23 Also, as an agency of the State of Texas, the trustee shall have
20-24 full power and authority to enter into interagency contracts with
20-25 any department of the State of Texas. The interagency contracts
20-26 shall provide for reimbursement to the state departments and shall
20-27 define the services to be performed by the departments for the
21-1 trustee. The trustee shall have full power and authority to
21-2 promulgate all rules, regulations, plans, procedures, and orders
21-3 reasonably necessary to implement and carry out the purposes and
21-4 provisions of this Act in all its particulars, including but not
21-5 limited to the following:
21-6 (a) preparation of specifications for coverages
21-7 provided by authority of this Act;
21-8 (b) prescribing the time at which and the conditions
21-9 under which an employee, annuitant, or dependent is eligible for
21-10 all coverages provided under this Act;
21-11 (c) determination of the methods and procedures of
21-12 claims administration;
21-13 (d) determination of the amount of employee payroll
21-14 deductions and reductions and the responsibility of establishing
21-15 procedures by which such deductions and reductions shall be made;
21-16 (e) establishment of procedures by which the trustee
21-17 shall decide contested cases arising from programs or coverages
21-18 provided under authority of this Act;
21-19 (f) continuing study of the operation of all coverages
21-20 provided under this Act, including such matters as gross and net
21-21 cost, administration costs, benefits, utilization of benefits, and
21-22 claims administration;
21-23 (g) administration of the Employees Life, Accident,
21-24 and Health Insurance and Benefits Fund, providing for the beginning
21-25 and ending dates of coverages of employees and annuitants and their
21-26 dependents under all benefit plans;
21-27 (h) adoption of all rules and regulations consistent
22-1 with the provisions of this Act and its purpose as it deems
22-2 necessary to carry out its statutory duties and responsibilities;
22-3 (i) development of basic plans of group coverages and
22-4 benefits applicable to all employees. The trustee also may provide
22-5 for optional group coverages and benefits in addition to the basic
22-6 plan;
22-7 (j) to provide either additional statewide optional
22-8 programs or individual agency optional programs as the trustee may
22-9 determine is appropriate;
22-10 (k) design, development, adoption, implementation, and
22-11 administration of a cafeteria plan;
22-12 (l) purchase of liability insurance for the coverage
22-13 of the trustees, employees, and agents of the board of trustees in
22-14 such amounts as the board of trustees, in its sole discretion,
22-15 considers reasonable and necessary;
22-16 (m) development of health benefits plans that permit
22-17 access to high quality, cost-effective health care;
22-18 (n) designing, implementing, and monitoring health
22-19 benefits plan features intended to discourage excessive
22-20 utilization, promote efficiency, and contain costs;
22-21 (o) development and continuing refinement of a health
22-22 care benefit strategy consistent with evolving benefit delivery
22-23 systems; [and]
22-24 (p) development of a funding strategy to efficiently
22-25 utilize employer contributions to achieve the purposes of this Act
22-26 and which is reasonable and assures employees and retired employee
22-27 annuitants a fair choice among health benefit plans as set out in
23-1 Section 14 of this Act; and
23-2 (q) appointment of an advisory committee for the
23-3 program provided by this Act under the terms provided by Section
23-4 815.509, Government Code.
23-5 SECTION 29. Section 4B(c), Texas Employees Uniform Group
23-6 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
23-7 Code), is amended to read as follows:
23-8 (c) A decision by the executive director under Subsection
23-9 (a) [or (a-1)] of this section may be appealed only to the trustee.
23-10 An appeal to the trustee is a contested case under the
23-11 administrative procedure law, Chapter 2001, Government Code.
23-12 Standing to pursue an administrative appeal under this section is
23-13 limited to employees, participants, annuitants, and covered
23-14 dependents participating in the Texas employees uniform group
23-15 insurance program or, after the death of an employee, [a]
23-16 participant, annuitant, or covered dependent, to the person's
23-17 [participant's] estate, personal representative, heirs at law, or
23-18 designated beneficiary.
23-19 SECTION 30. Section 5(j), Texas Employees Uniform Group
23-20 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
23-21 Code), is amended to read as follows:
23-22 (j) The trustee may not contract for or provide a plan of
23-23 coverage that:
23-24 (1) excludes or limits coverage or services for
23-25 acquired immune deficiency syndrome, as defined by the Centers for
23-26 Disease Control of the United States Public Health Service, or
23-27 human immunodeficiency virus infection; or
24-1 (2) provides coverage for serious mental illness that
24-2 is less extensive than the minimum coverage [provided] for serious
24-3 mental illness required by Section 3, Article 3.51-14, Insurance
24-4 Code [any physical illness].
24-5 SECTION 31. Section 10, Texas Employees Uniform Group
24-6 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
24-7 Code), is amended by amending Subsection (c) and adding Subsection
24-8 (d) to read as follows:
24-9 (c) The records of a participant in the Texas Employees
24-10 Uniform Group Insurance Program in the custody of the trustee, or
24-11 of an administrator or carrier acting on behalf of the trustee, are
24-12 confidential and not subject to disclosure and are exempt from the
24-13 public access provisions of Chapter 552, Government Code, except as
24-14 provided by this subsection. Records may be released to a
24-15 participant or to an authorized attorney, family member, or
24-16 representative acting on behalf of the participant. The trustee
24-17 may release the records to an administrator, carrier, or agent or
24-18 attorney acting on behalf of the trustee, to another governmental
24-19 entity, to a medical provider of the participant for the purpose of
24-20 carrying out the purposes of this Act, or to a party in response to
24-21 a subpoena issued under applicable law. The records of a
24-22 participant remain confidential after release to a person as
24-23 authorized by this subsection. The records of a participant may
24-24 become part of the public record of an administrative or judicial
24-25 proceeding related to a contested case under this Act, unless the
24-26 records are closed to public access by a protective order issued
24-27 under applicable law. If a participant's records have become part
25-1 of the public record of a proceeding and the records are not the
25-2 subject of a protective order, the participant is considered to
25-3 have waived the privacy of the participant's records.
25-4 (d) The trustee may require an individual to disclose the
25-5 individual's social security number as the trustee considers
25-6 necessary to properly administer this Act and any coverage,
25-7 service, or benefit authorized by this Act or as otherwise required
25-8 by state or federal law.
25-9 SECTION 32. The Texas Employees Uniform Group Insurance
25-10 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
25-11 amended by adding Section 10A to read as follows:
25-12 Sec. 10A. EXCLUSIVE REMEDY. The remedies provided under this
25-13 Act are the exclusive remedies available to an employee,
25-14 participant, annuitant, or dependent.
25-15 SECTION 33. Section 13A, Texas Employees Uniform Group
25-16 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
25-17 Code), is amended to read as follows:
25-18 Sec. 13A. ADMINISTRATIVE PROCESS AND SANCTIONS FOR INSURANCE
25-19 PROGRAM VIOLATIONS [EXPULSION FROM GROUP INSURANCE PROGRAM]. (a)
25-20 The Employees Retirement System of Texas [After notice and hearing
25-21 as provided by this section, the trustee] may impose one or more
25-22 sanctions described by this section against [expel from
25-23 participation in the Texas employees uniform group insurance
25-24 program] any employee, participant, annuitant, or dependent who:
25-25 (1) submits a materially false [fraudulent] claim or
25-26 application for coverage under [or has defrauded or attempted to
25-27 defraud] any health maintenance organization or insurance or
26-1 benefits plan offered under the program;
26-2 (2) defrauds or attempts to defraud any health
26-3 maintenance organization or insurance or benefits plan offered
26-4 under the program;
26-5 (3) obtains or induces the extension of coverage under
26-6 any program provided under this Act by a materially negligent or
26-7 intentional misrepresentation, a failure to disclose material
26-8 information, or fraud; or
26-9 (4) induces the extension of coverage under any
26-10 program provided under this Act by supplying false information on
26-11 an application for coverage or in related documentation or in any
26-12 communication.
26-13 (b) On receipt of a complaint or on its own motion, if the
26-14 retirement system determines that an employee, participant,
26-15 annuitant, or dependent has engaged in conduct described by
26-16 Subsection (a) of this section, the retirement system [trustee]
26-17 may:
26-18 (1) expel from the program the [call and hold a
26-19 hearing to determine whether an] employee, participant, annuitant,
26-20 or dependent;
26-21 (2) impose limitations on the person's participation
26-22 in the program;
26-23 (3) rescind any coverage obtained or extended as a
26-24 result of the conduct under Subsection (a) of this section;
26-25 (4) deny a claim arising from coverage; or
26-26 (5) require the person to reimburse the Employees
26-27 Life, Accident, and Health Insurance and Benefits Trust Account for
27-1 any benefit obtained as a result of the conduct.
27-2 (c) An expulsion under Subsection (b) of this section may be
27-3 permanent or for a specified period. A rescission of coverage
27-4 under Subsection (b) of this section may be from the date of
27-5 inception of the coverage or from the date of the prohibited
27-6 conduct [has submitted a fraudulent claim or application for
27-7 coverage under or has defrauded or attempted to defraud any health
27-8 maintenance organization or insurance or benefits plan offered
27-9 under the Texas employees uniform group insurance program].
27-10 (d) A person may appeal a determination made under
27-11 Subsection (a) or (b) of this section only to the board of
27-12 trustees.
27-13 [(c)] A proceeding under this subsection [section] is a
27-14 contested case under the administrative procedure law, Chapter
27-15 2001, Government Code. Section 4B of this Act applies to an appeal
27-16 to the board of trustees under this subsection. The appellant has
27-17 the burden of proof and any sanction imposed is stayed during an
27-18 appeal under this subsection. If a person fails to make a timely
27-19 appeal, any sanction relates back to the date of the retirement
27-20 system's determination.
27-21 [(d) At the conclusion of the hearing, if the trustee issues
27-22 a decision that finds that the accused employee, annuitant, or
27-23 dependent submitted a fraudulent claim or application for coverage
27-24 or has defrauded or attempted to defraud any health maintenance
27-25 organization or insurance or benefits plan offered under the Texas
27-26 employees uniform group insurance program, the trustee shall expel
27-27 the employee, annuitant, or dependent from participation in the
28-1 program.]
28-2 [(e)] An appeal of a decision of the trustee under this
28-3 subsection [section] is under the substantial evidence rule.
28-4 (e) [(f)] An employee, participant, annuitant, or dependent
28-5 expelled from the Texas employees uniform group insurance program
28-6 may not participate in any plan of coverage offered by the program
28-7 for the [a] period determined by the retirement system [trustee of
28-8 not more than five years from the date the expulsion from the
28-9 program takes effect].
28-10 SECTION 34. The Texas Employees Uniform Group Insurance
28-11 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
28-12 amended by adding Section 13A-1 to read as follows:
28-13 Sec. 13A-1. MISCONDUCT INFORMATION. (a) This section
28-14 applies to:
28-15 (1) the Employees Retirement System of Texas;
28-16 (2) a carrier or other insurance company or health
28-17 maintenance organization;
28-18 (3) an administering firm or other insurance support
28-19 organization that provides information or services to the Texas
28-20 employees uniform group insurance program or the Employees
28-21 Retirement System of Texas;
28-22 (4) an agent or third-party administrator authorized
28-23 under this Act or licensed under the insurance laws of this state;
28-24 (5) a regulatory authority or department; and
28-25 (6) a board member, executive director, employee,
28-26 auditor, or actuary of an entity described by this section.
28-27 (b) A person may collect from, furnish to, or exchange with
29-1 another person information, including medical records or other
29-2 confidential information, to the extent the person considers
29-3 necessary to detect or to impose a sanction for a criminal act, a
29-4 misrepresentation, or nondisclosure that is related to an attempt
29-5 to obtain coverage, payment, reimbursement, or a benefit under this
29-6 Act.
29-7 (c) A person who acts under Subsection (b) of this section
29-8 is immune from suit and criminal or civil liability unless the
29-9 person acts with malice or intent to defraud.
29-10 SECTION 35. Section 13B, Texas Employees Uniform Group
29-11 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
29-12 Code), is amended by adding Subsection (e) to read as follows:
29-13 (e) The trustee may adopt rules for the use of a debit card
29-14 or other similar technology for claims administration under this
29-15 section.
29-16 SECTION 36. Section 615.001, Government Code, is amended to
29-17 read as follows:
29-18 Sec. 615.001. DEFINITION. In this chapter, "minor child"
29-19 means a child who:
29-20 (1) [,] on the date of the death of an individual
29-21 listed under Section 615.003, is younger than 18 years of age; and
29-22 (2) if the child is not a biological or adopted child,
29-23 was claimed as a dependent on the federal income tax return of an
29-24 individual listed under Section 615.003 for the year preceding the
29-25 year of the individual's death.
29-26 SECTION 37. Section 615.023(b), Government Code, is amended
29-27 to read as follows:
30-1 (b) A child's entitlement to assistance payable under this
30-2 section ends on the child's 18th [21st] birthday. At that time,
30-3 payments to any other surviving minor children shall be adjusted,
30-4 as necessary, to conform to the amounts payable under Subsection
30-5 (a).
30-6 SECTION 38. Section 615.042(a), Government Code, is amended
30-7 to read as follows:
30-8 (a) The [board of trustees of the] Employees Retirement
30-9 System of Texas shall notify the comptroller of the retirement
30-10 system's [board's] determination that a claim under this chapter is
30-11 valid and justifies payment.
30-12 SECTION 39. Section 615.043, Government Code, is amended to
30-13 read as follows:
30-14 Sec. 615.043. DENIAL OF CLAIM. If the [board of trustees of
30-15 the] Employees Retirement System of Texas denies a claim, the
30-16 retirement system [board] shall send a notice of the denial to:
30-17 (1) the person making the claim; or
30-18 (2) the duly qualified guardian or legal
30-19 representative of a surviving minor child or dependent sibling, if
30-20 a claim is being made on behalf of the child or sibling.
30-21 SECTION 40. Section 615.044, Government Code, is amended to
30-22 read as follows:
30-23 Sec. 615.044. APPEALS. (a) An eligible survivor or the
30-24 eligible survivor's legal representative [A person] whose claim for
30-25 payment [to a surviving spouse, minor child, or dependent parent or
30-26 sibling] is denied [or the person's legal representative] may
30-27 appeal the denial to the board of trustees of the Employees
31-1 Retirement System of Texas [a district court of the residence of
31-2 the surviving spouse, minor child, or dependent parent or sibling
31-3 or to a district court in Travis County].
31-4 (b) An appeal under this section is considered to be an
31-5 appeal of a contested case under Chapter 2001 and shall be
31-6 conducted as provided by Section 815.511 [must be made not later
31-7 than the 20th day after the date the claimant or legal
31-8 representative receives notice of the denial].
31-9 (c) Judicial review of a decision under this section is
31-10 under the substantial evidence rule as provided by Chapter 2001
31-11 [Proceedings on the appeal are by trial de novo, as that term is
31-12 used in an appeal from a justice court to the county court].
31-13 SECTION 41. Subchapter C, Chapter 615, Government Code, is
31-14 amended by adding Section 615.045 to read as follows:
31-15 Sec. 615.045. RECORDS. (a) Records of individuals listed by
31-16 Section 615.003 and of survivors eligible for benefits under this
31-17 chapter that are in the custody of the retirement system or a
31-18 carrier, administering firm as defined by the Texas Employees
31-19 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
31-20 Texas Insurance Code), or other governmental agency acting with or
31-21 on behalf of the retirement system are confidential, not subject to
31-22 public disclosure, and exempt from the public information
31-23 provisions of Chapter 552, except as otherwise provided by this
31-24 section.
31-25 (b) Records may be released to an eligible survivor or to an
31-26 authorized attorney, family member, or representative acting on
31-27 behalf of the eligible survivor. The retirement system may release
32-1 the records to an administering firm, carrier, agent, or attorney
32-2 acting on behalf of the retirement system, to another governmental
32-3 entity having a legitimate need for the information to perform the
32-4 purposes of the retirement system, or to a party in response to a
32-5 subpoena issued under applicable law.
32-6 (c) The records of individuals listed by Section 615.003 and
32-7 of eligible survivors remain confidential after release to a person
32-8 as authorized by this section. The records of individuals listed
32-9 by Section 615.003 and of eligible survivors may become part of the
32-10 public record of an administrative or judicial proceeding related
32-11 to an appeal filed under this chapter, unless the records are
32-12 closed to public access by a protective order issued under
32-13 applicable law.
32-14 SECTION 42. Section 615.074(a), Government Code, is amended
32-15 to read as follows:
32-16 (a) An eligible surviving dependent who is a minor child is
32-17 entitled to continue health insurance coverage until the earlier of
32-18 [the dependent]:
32-19 (1) the date the dependent reaches the age of 18 [21]
32-20 years; or
32-21 (2) the date the dependent becomes eligible for group
32-22 health insurance through another employer.
32-23 SECTION 43. Section 814.1041, Government Code, as amended by
32-24 Chapters 1013 and 1541, Acts of the 76th Legislature, Regular
32-25 Session, 1999, is reenacted to read as follows:
32-26 Sec. 814.1041. TEMPORARY SERVICE RETIREMENT OPTION FOR
32-27 MEMBERS AFFECTED BY PRIVATIZATION OR OTHER REDUCTION IN WORKFORCE.
33-1 (a) This section applies only to members of the employee class who
33-2 are not otherwise eligible to retire and whose positions with the
33-3 Texas Workforce Commission, the Texas Department of Human Services,
33-4 the Texas Department of Mental Health and Mental Retardation, or
33-5 the Texas Department of Health are eliminated as a result of
33-6 contracts with private service providers or other reductions in
33-7 services provided by those agencies and who separate from state
33-8 service at that time.
33-9 (b) A member described by Subsection (a) is eligible to
33-10 retire and receive a service retirement annuity if the member's age
33-11 and service credit, each equally increased only as needed to meet
33-12 minimum age and service requirements, but not by more than three
33-13 years, would meet the minimum age and service requirements for
33-14 service retirement under Section 814.104(a) at the time the member
33-15 separates from state service as described by Subsection (a). The
33-16 annuity of a person who retires under this subsection is computed
33-17 on the person's accrued service credit increased by the minimum
33-18 amount of service credit necessary to meet the service credit
33-19 requirement for retirement, but not by more than three years.
33-20 (c) A member who applies to retire under this section and
33-21 the state agency from which the member separated from service shall
33-22 provide documentation required by the retirement system to
33-23 establish eligibility to retire under this section.
33-24 (d) This section applies only to positions eliminated by
33-25 privatization or other reductions in workforce before September 1,
33-26 2001.
33-27 SECTION 44. The following sections are repealed:
34-1 (1) Section 813.511, Government Code, as added by
34-2 Chapter 226, Acts of the 76th Legislature, Regular Session, 1999;
34-3 (2) Section 814.1042, Government Code, as added by
34-4 Chapter 264, Acts of the 76th Legislature, Regular Session, 1999;
34-5 (3) Section 814.1043, Government Code;
34-6 (4) Section 840.101, Government Code;
34-7 (5) Section 4B(a-1), Texas Employees Uniform Group
34-8 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
34-9 Code); and
34-10 (6) Section 18, Texas Employees Uniform Group
34-11 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
34-12 Code).
34-13 SECTION 45. (a) This section applies only to annuities that
34-14 are described by Sections 814.104, 814.1041, 814.107, 814.206,
34-15 814.207, 814.301, 814.302, and 814.305, Government Code, and that
34-16 are based on service retirements, disability retirements, or deaths
34-17 that occurred before September 1, 2001.
34-18 (b) Payments of an annuity adjusted under this section shall
34-19 begin with the first payment that becomes due after December 31,
34-20 2001.
34-21 (c) The amount of an annuity payable on the first day the
34-22 annuity became payable shall be adjusted for plan changes to
34-23 reflect:
34-24 (1) current multiplier values and, if applicable, the
34-25 amount of service credited at the time of retirement or death, as
34-26 specified by Section 814.105, 814.107, 814.206, 814.207, 814.301,
34-27 or 814.302, Government Code;
35-1 (2) current applicable actuarial reduction factors for
35-2 benefits elected under Section 814.108, 814.1081, 814.1082,
35-3 814.206(d), 814.301(a), or 814.302(a), Government Code; and
35-4 (3) current minimum standard annuity and maximum
35-5 service percentage values specified by Section 814.105(b),
35-6 Government Code.
35-7 (d) Annuities shall be adjusted for changes described by
35-8 Sections 814.008, 814.108(d), and 814.1081, Government Code, that
35-9 occurred after the date the annuity first became payable and before
35-10 January 1, 2002.
35-11 (e) After any adjustment under Subsection (c) or (d) of this
35-12 section is made, the amount of the annuities shall be adjusted
35-13 under this section by multiplying the amount of each annuity by a
35-14 fraction, not less than one, the numerator of which is the Consumer
35-15 Price Index for all urban consumers as reported by the U.S. Bureau
35-16 of Labor Statistics (CPI-U) for December 2001, and the denominator
35-17 of which is the CPI-U for August of the fiscal year in which the
35-18 annuity first became payable. If the CPI-U for December 2001 is
35-19 not available for a computation under this subsection, the
35-20 numerator is the most recent month's CPI-U available at the time of
35-21 the computation, increased for each month from that month until
35-22 December 2001 by a factor equal to the average of the monthly
35-23 percentage increases in the CPI-U for the 12-month period ending
35-24 with that month.
35-25 (f) The board of trustees of the Employees Retirement System
35-26 of Texas may adopt rules to implement this section.
35-27 (g) An adjustment under this section may not cause a
36-1 reduction in the amount of an annuity payable immediately before
36-2 December 31, 2001.
36-3 (h) Adjustments made under this section and rules adopted by
36-4 the board of trustees under this section must comply with Section
36-5 401(a) of the Internal Revenue Code of 1986, as amended, and rules
36-6 adopted under that section and Section 811.006, Government Code.
36-7 SECTION 46. (a) The change in law made by this Act to
36-8 Section 3(a)(2), Texas Employees Uniform Group Insurance Benefits
36-9 Act (Article 3.50-2, Vernon's Texas Insurance Code), does not apply
36-10 to a person who, on August 31, 2001:
36-11 (1) was an eligible employee with an employer whose
36-12 employees were eligible to participate in the uniform group
36-13 insurance program;
36-14 (2) was eligible to participate as a retiree in the
36-15 uniform group insurance program; or
36-16 (3) had satisfied any service requirements under the
36-17 Texas Employees Uniform Group Insurance Benefits Act for
36-18 participation as a retiree in the uniform group insurance program.
36-19 (b) The participation in the uniform group insurance program
36-20 of a person described in Subsection (a) of this section is governed
36-21 by the law in effect immediately before the effective date of this
36-22 Act, and the former law is continued in effect for that purpose.
36-23 SECTION 47. The change in law made by this Act to Section
36-24 3(a)(8)(B), Texas Employees Uniform Group Insurance Benefits Act
36-25 (Article 3.50-2, Vernon's Texas Insurance Code), applies only to a
36-26 dependent who was not covered by the basic coverage of a health
36-27 benefits plan under Article 3.50-2, Insurance Code, on August 31,
37-1 2001.
37-2 SECTION 48. (a) Except as provided by this section, this
37-3 Act takes effect September 1, 2001.
37-4 (b) Section 813.513, Government Code, as added by this Act,
37-5 takes effect January 1, 2002.