78R1635 SGA-D

By:  Pickett                                                      H.B. No. 258



A BILL TO BE ENTITLED

AN ACT

relating to correcting errors in the distribution of benefits by a 
public retirement system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 802, Government Code, is 
amended by adding Section 802.1024 to read as follows:
	Sec. 802.1024.  CORRECTION OF ERRORS.  (a)  Except as 
provided by Subsection (b), if an error in the records of a public 
retirement system results in a person receiving more or less money 
than the person is entitled to receive under this subtitle, the 
governing body of the retirement system shall correct the error and 
so far as practicable adjust future payments so that the actuarial 
equivalent of the benefit to which the person is entitled is paid.
	(b)  A public retirement system  may correct the overpayment 
of benefits to a person entitled to receive payments from the system 
by the method described by Subsection (a) only for an overpayment 
made during the two years preceding the date the governing body of 
the system discovers the overpayment.  A public retirement system 
may not recover from the recipient any overpayment made more than 
two years before the discovery of the overpayment.
	SECTION 2.  Section 12(b), Chapter 451, Acts of the 72nd 
Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas 
Civil Statutes), is amended to read as follows:
	(b)  If any change or error in the records of the retirement 
system is discovered or results in any member, surviving spouse, or 
beneficiary receiving from the retirement system more or less than 
the member, surviving spouse, or beneficiary would have been 
entitled to receive had the records been correct, the retirement 
board shall have the power to correct such error.  Except as 
provided by Section 802.1024, Government Code, the retirement 
system shall, [and] as far as possible, [to] adjust the payments in 
such a manner that the actuarial equivalent of the benefits to which 
the member, surviving spouse, or beneficiary was correctly entitled 
shall be paid.
	SECTION 3.  Section 10.02, Chapter 452, Acts of the 72nd 
Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's 
Texas Civil Statutes), is amended to read as follows:
	Sec. 10.02.  CORRECTION OF ERRORS.  If any change or error 
in the records of the police retirement system should be discovered 
or should result in any member, retired member, surviving spouse, 
or beneficiary receiving from the police retirement system more or 
less than such member, retired member, surviving spouse, or 
beneficiary would have been entitled to receive had the records 
been correct, the police retirement board shall have the power to 
correct such error.  Except as provided by Section 802.1024, 
Government Code, the retirement system shall, [and] as far as 
possible, [to] adjust the payments so that the actuarial equivalent 
of the benefits to which the member, retired member, surviving 
spouse, or beneficiary was correctly entitled shall be paid.
	SECTION 4.  Section 3.03(d), Chapter 824, Acts of the 73rd 
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas 
Civil Statutes), is amended to read as follows:
	(d)  Except as provided by Section 802.1024, Government 
Code, the [The] board may reduce the amount of a benefit to which a 
retiree or beneficiary is otherwise entitled in order to reimburse 
the fund for an overpayment or incorrect payment of benefits to the 
retiree or beneficiary.
	SECTION 5.  This Act applies only to an underpayment or 
overpayment of benefits by a public retirement system that is made 
by the governing body of the system on or after the effective date 
of this Act.  An underpayment or overpayment made before the 
effective date of this Act is governed by the law as it existed 
immediately before the effective date of this Act, and the former 
law is continued in effect for that purpose.
	SECTION 6.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.