78S30091 DLF-F
By: Swinford H.B. No. 19
A BILL TO BE ENTITLED
AN ACT
relating to certain governmental benefit plans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1551.102, Insurance Code, is amended by
adding Subsection (i) to read as follows:
(i) Subject to Section 1551.323, an individual and the
individual's dependents are eligible to participate in the group
benefits program as an annuitant and the dependents of an annuitant
if the individual:
(1) served in a position for which the individual was
eligible to participate in the group benefits program under Section
1551.101 on or before August 31, 2003; and
(2) at the time of retirement meets the requirements
for eligibility for participation in the program as an annuitant as
those requirements existed on August 31, 2003.
SECTION 2. Section 1551.111, Insurance Code, is amended by
adding Subsection (e) to read as follows:
(e) Subject to Section 1551.323, an individual and the
individual's dependents are eligible to participate in the group
benefits program as an annuitant and the dependents of an annuitant
as described under this section if the individual:
(1) served as an officer or employee as described by
Subsection (b)(1) on or before August 31, 2003; and
(2) at the time of retirement meets the requirements
for eligibility for participation in the program as an annuitant as
those requirements existed on August 31, 2003.
SECTION 3. Section 1551.112, Insurance Code, is amended by
adding Subsection (c) to read as follows:
(c) Subject to Section 1551.323, an individual and the
individual's dependents are eligible to participate in the group
benefits program as an annuitant and the dependents of an annuitant
as described under this section if the individual:
(1) served in a position described by Subsection (a)
on or before August 31, 2003; and
(2) at the time of retirement meets the requirements
for eligibility for participation in the program as an annuitant as
those requirements existed on August 31, 2003.
SECTION 4. Subchapter G, Chapter 1551, Insurance Code, is
amended by adding Section 1551.323 to read as follows:
Sec. 1551.323. COST OF CERTAIN ANNUITANTS. (a) An
annuitant eligible to participate under Section 1551.102(i),
1551.111(e), or 1551.112(c) is, except as provided by this
subsection, required to pay the total cost, as determined by the
board, attributable to the participation of that individual and the
dependents of that individual until the date the individual is 65
years of age. If the General Appropriations Act or other similar
legislation addresses the payment of those costs, those costs shall
be paid in the manner specified by that legislation.
(b) This section applies only to an individual who is
eligible to participate as an annuitant under Section 1551.102(i),
1551.111(e), or 1551.112(c) and who is not eligible to participate
under another provision of Section 1551.102, 1551.111, or 1551.112.
SECTION 5. Section 1575.004, Insurance Code, as amended by
Chapter 1231 (S.B. No. 1369), Chapter 201 (H.B. No. 3459), and
Chapter 1276 (H.B. No. 3507), Acts of the 78th Legislature, Regular
Session, 2003, is reenacted and amended to read as follows:
Sec. 1575.004. DEFINITION OF RETIREE. (a) In this chapter,
"retiree" means:
(1) an individual not eligible for coverage under a
plan provided under Chapter 1551 or 1601 who:
(A) is at least 65 years of age and has taken a
service retirement under the Teacher Retirement System of Texas
with at least 10 years of service credit in the system for actual
service in public schools in this state; [or]
(B) was employed in actual service in public
schools in this state during or before the 2003-2004 school year and
at the time of retirement meets the requirements for eligibility as
a retiree as those requirements existed on August 31, 2004; or
(C) has taken a service retirement under the
Teacher Retirement System of Texas and who has at least 10 years of
service credit for actual public service in the public schools in
this state or has at least five years of service credit for actual
public service in the public schools in this state and has five
years of military service credited in the Teacher Retirement System
of Texas, and the sum of the individual's age and amount of service
credit earned for service in the public schools of this state equals
or exceeds the number 80; or
(2) an individual who:
(A) has taken a disability retirement under the
Teacher Retirement System of Texas; and
(B) is entitled to receive monthly benefits from
the Teacher Retirement System of Texas.
(b) In this section, "public school" has the meaning
assigned by Section 821.001, Government Code.
SECTION 6. Section 1575.211, Insurance Code, as added by
Chapter 1231 (S.B. No. 1369) and Chapter 201 (H.B. No. 3459), Acts
of the 78th Legislature, Regular Session, 2003, is amended by
adding Subsection (c) to read as follows:
(c) A retiree eligible to participate under Section
1575.004(a)(1)(B) is, except as provided by this subsection,
required to pay the total cost, as determined by the trustee,
attributable to the participation of that individual and the
dependents of that individual until the date the individual is 65
years of age. The General Appropriations Act or other similar
legislation may specify a different allocation of total costs for
retirees eligible to participate under Section 1575.004(a)(1)(B)
and the dependents of those retirees. This subsection applies only
to an individual who is eligible to participate as an annuitant
under Section 1575.004(a)(1)(B) and who is not eligible to
participate under another provision of Section 1575.004.
SECTION 7. Subchapter F, Chapter 2054, Government Code, is
amended by adding Section 2054.131 to read as follows:
Sec. 2054.131. ELECTRONIC BENEFITS ENROLLMENT AND
ADMINISTRATION SYSTEM. (a) In this section, "work site benefits
plan" means a plan or other arrangement to provide to officers,
employees, or former officers or employees:
(1) insurance, including health, life, and disability
insurance and health benefits plans;
(2) flexible spending accounts; or
(3) savings or retirement benefits.
(b) If the comptroller determines that a cost savings may be
realized through a private vendor selected under this section, the
comptroller may implement a project that establishes a common
electronic infrastructure through which each state agency,
including any retirement system created by statute or by the
constitution, shall:
(1) require its work site benefits plan participants
to electronically:
(A) enroll in any work site benefits plans
provided to the person by the state or a state agency;
(B) add, change, or delete benefits;
(C) sign any payroll deduction agreements to
implement a contribution made to a plan in which the participant
enrolls;
(D) terminate participation in a voluntary plan;
(E) initiate account investment changes and
withdrawals in a retirement plan;
(F) obtain information regarding plan benefits;
and
(G) communicate with the plan administrator; and
(2) administer its work site benefits plans
electronically by using the project to:
(A) enroll new plan participants and, when
appropriate, terminate plan participation;
(B) generate eligibility and enrollment reports
for plan participants;
(C) link plan administration with payroll
administration to facilitate payroll deductions for a plan;
(D) facilitate single-source billing
arrangements between the agency and a plan provider; and
(E) transmit and receive information regarding
the plan.
(c) The electronic infrastructure established under
Subsection (a) may include TexasOnline, the Internet, intranets,
extranets, and wide area networks.
(d) If the comptroller implements an electronic
infrastructure project under this section, the comptroller shall
select and contract with a single private vendor to implement the
project. The contract must require the application of the project
to all state agencies without cost to the state until the project is
initially implemented.
(e) The private vendor selected under Subsection (d) must
offer existing information resources technology for use in the
project that:
(1) will be available to all state agencies, including
retirement systems;
(2) includes each agency's work site benefits plan
participants;
(3) will use, to the extent possible, the department's
information technology standards, including information security,
privacy and disaster recovery, and Internet-based technology
standards;
(4) includes applications and a supporting platform
that are already developed and used in connection with the
electronic enrollment of work site benefits plans offered by other
multiple plan providers;
(5) is available for use with a wide variety of plan
and benefit providers;
(6) can be easily modified to permit changes in
benefits offered by the state or a state agency;
(7) provides a solution to overcome limitations caused
by the incompatibility of different legacy systems used by
different state agencies and plan providers;
(8) is available for use over the Internet through
existing or new websites or portals; and
(9) is supported, to the extent necessary, by:
(A) laptop and desktop enrollment and
administration capabilities; and
(B) a telephone call center.
SECTION 8. If the electronic infrastructure under Section
2054.131, Government Code, as added by this Act, is established,
the comptroller as soon as reasonably possible shall develop a
timetable and procedures under which each state agency shall
implement the electronic infrastructure project for use by all work
site benefits plan participants, including officers and employees
and former officers and employees.
SECTION 9. Section 1575.163, Insurance Code, as added by
Chapter 201 (H.B. No. 3459), Acts of the 78th Legislature, Regular
Session, 2003, is repealed.
SECTION 10. (a) Except as provided by Subsection (b) of
this section:
(1) this Act takes effect immediately if this Act
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution;
and
(2) if this Act does not receive the vote necessary for
immediate effect, this Act takes effect on the 91st day after the
last day of the legislative session.
(b) Sections 5 and 6 of this Act take effect September 1,
2004.