81R5072 TJS-D
 
  By: Herrero H.B. No. 687
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to long-term funding of benefits for retired teachers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 1575, Insurance Code, is amended by
  adding Subchapter G-1 to read as follows:
  SUBCHAPTER G-1.  RETIREE HEALTH BENEFITS FUND
         Sec. 1575.321.  DEFINITION.  In this subchapter, "retiree
  health benefits fund" means the public school retiree health
  benefits fund established under this subchapter.
         Sec. 1575.322.  ADMINISTRATION OF FUND. The trustee shall
  administer the retiree health benefits fund.
         Sec. 1575.323.  PAYMENTS INTO FUND. (a) The following shall
  be paid into the retiree health benefits fund:
               (1)  contributions from active employees, employers,
  and the state as required by the General Appropriations Act;
               (2)  investment income; and
               (3)  other money required or authorized to be paid into
  the fund.
         (b)  Contributions to the retiree health benefits fund are in
  addition to other contributions made under this chapter and may be
  collected in the same manner as other contributions are collected
  under this chapter.
         Sec. 1575.324.  PAYMENTS FROM FUND. (a) Money in the
  retiree health benefits fund may be transferred to the retired
  school employees group insurance fund for use in accordance with
  Subsection (b).
         (b)  Money in the retiree health benefits fund may be used
  only to provide health benefits for a retiree who was born on or
  after September 1, 1977. The legislature reserves the right to
  specify additional retirees for whom payments may be made from the
  fund.
         (c)  The retiree health benefits fund is held in trust for
  the benefit of the retirees described by Subsection (b) and may not
  be diverted.
         Sec. 1575.325.  INVESTMENT OF FUND.  The trustee may invest
  money in the retiree health benefits fund in the manner provided by
  Subchapter D, Chapter 825, Government Code, for assets of the
  Teacher Retirement System of Texas.
         Sec. 1575.326.  MANAGEMENT OF ASSETS.  The trustee may
  commingle, for investment purposes only, the assets of a fund
  created under this subchapter with another fund created under this
  chapter or any other trust fund administered by the trustee if the
  trustee maintains and credits proportionate ownership records.
         SECTION 2.  This Act takes effect September 1, 2009.