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A BILL TO BE ENTITLED
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AN ACT
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relating to long-term funding of benefits for retired teachers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1575, Insurance Code, is amended by |
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adding Subchapter G-1 to read as follows: |
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SUBCHAPTER G-1. RETIREE HEALTH BENEFITS FUND |
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Sec. 1575.321. DEFINITION. In this subchapter, "retiree |
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health benefits fund" means the public school retiree health |
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benefits fund established under this subchapter. |
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Sec. 1575.322. ADMINISTRATION OF FUND. The trustee shall |
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administer the retiree health benefits fund. |
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Sec. 1575.323. PAYMENTS INTO FUND. (a) The following shall |
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be paid into the retiree health benefits fund: |
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(1) contributions from active employees, employers, |
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and the state as required by the General Appropriations Act; |
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(2) investment income; and |
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(3) other money required or authorized to be paid into |
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the fund. |
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(b) Contributions to the retiree health benefits fund are in |
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addition to other contributions made under this chapter and may be |
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collected in the same manner as other contributions are collected |
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under this chapter. |
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Sec. 1575.324. PAYMENTS FROM FUND. (a) Money in the |
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retiree health benefits fund may be transferred to the retired |
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school employees group insurance fund for use in accordance with |
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Subsection (b). |
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(b) Money in the retiree health benefits fund may be used |
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only to provide health benefits for a retiree who was born on or |
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after September 1, 1977. The legislature reserves the right to |
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specify additional retirees for whom payments may be made from the |
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fund. |
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(c) The retiree health benefits fund is held in trust for |
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the benefit of the retirees described by Subsection (b) and may not |
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be diverted. |
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Sec. 1575.325. INVESTMENT OF FUND. The trustee may invest |
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money in the retiree health benefits fund in the manner provided by |
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Subchapter D, Chapter 825, Government Code, for assets of the |
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Teacher Retirement System of Texas. |
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Sec. 1575.326. MANAGEMENT OF ASSETS. The trustee may |
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commingle, for investment purposes only, the assets of a fund |
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created under this subchapter with another fund created under this |
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chapter or any other trust fund administered by the trustee if the |
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trustee maintains and credits proportionate ownership records. |
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SECTION 2. This Act takes effect September 1, 2009. |