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A BILL TO BE ENTITLED
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AN ACT
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relating to the deduction of qualified health insurance premiums |
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from annuities payable by the Teacher Retirement System of Texas to |
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certain retired public safety officers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 824, Government Code, is |
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amended by adding Section 824.007 to read as follows: |
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Sec. 824.007. DEDUCTIONS FROM SERVICE OR DISABILITY |
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RETIREMENT ANNUITY. (a) In this section, "program administrator" |
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means the person who administers the uniform program under Section |
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1601.102, Insurance Code. |
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(b) An individual eligible to participate in the uniform |
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program under Section 1601.102, Insurance Code, may authorize the |
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retirement system to deduct the amount of the contribution and any |
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other qualified health insurance premium from the individual's |
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regular monthly service or disability retirement annuity payment if |
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the individual is: |
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(1) eligible to receive a monthly annuity from the |
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retirement system greater than the amount of the authorized |
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deduction; and |
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(2) eligible under Section 402(l), Internal Revenue |
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Code of 1986, or a similar law, to elect to exclude from annual |
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gross income up to $3,000 of distributions from an eligible |
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retirement plan used for qualified health insurance premiums. |
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(c) An individual may authorize the deduction described by |
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Subsection (b) on a form provided by the program administrator. The |
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program administrator shall coordinate the implementation of an |
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authorization under Subsection (b) with the retirement system. |
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(d) After making the deductions, the retirement system |
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shall pay to the program administrator an aggregate amount for all |
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individuals who authorize annuity deductions under Subsection (b). |
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(e) If an individual no longer receives a monthly annuity |
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greater than the amount of the authorized deduction, the retirement |
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system: |
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(1) shall inform the program administrator; and |
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(2) is not required to make any deduction under this |
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section for the individual. |
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(f) The retirement system is not required to accept an |
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authorization for a deduction under this section if payment of |
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qualified health insurance premiums by deduction from a retirement |
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plan annuity is not required for an eligible retiree to elect the |
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gross income exclusion described by Subsection (b)(2). |
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SECTION 2. This Act takes effect September 1, 2009. |