HB 2427 would amend the Government Code and Vernon’s Texas Civil Statutes, Chapter 22, Article 6628a-5 and would provide for several changes relative to the Teacher Retirement System (TRS). The provisions of the bill include the following:

• Requires the board of trustees to adopt rules providing for the reduction of disability retirement benefits for members whose incomes exceed compensation earned before retirement and for the reinstatement of benefits for members whose incomes no longer exceed previous compensation. Disability retirees who receive reduced benefits may still participate in the group health insurance program by paying an additional premium, up to the full cost of their participation.
• Provides oversight of 403(b) investment products and requires sellers of 403(b) investment products to disclose the registration of the products to potential purchasers. Requires TRS to maintain a list of qualified 403(b) investment products on its website. Grants TRS enforcement authority over 403(b) investment products including authority to deny, suspend, or revoke registration or levy an administrative fine not to exceed $1,000 and requires the board to adopt a schedule of penalties, in rule, based on the seriousness of violations.
• Requires the board to adopt policies to address the provision of group and individual member retirement counseling and requires the board to make individual retirement counseling available in conjunction with group sessions.
• Removes the statutory requirement for TRS to conduct the Public School Employees’ Health Coverage Comparability Study.
• Specifies that the sunset commission shall review the board in 2019 and every 12^th year afterwards.

According to TRS, the provisions and recommendations in the bill should not have an actuarial impact on TRS.

SOURCES:

Email correspondence from Chief Operating Officer of Teacher Retirement System, Pattie Featherston, March 20, 2007.