| TO: | Honorable Joe Straus, Speaker of the House, House of Representatives |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3347 by Truitt (Relating to plan qualification provisions for and certain health insurance deductions under the Teacher Retirement System of Texas.), As Passed 2nd House |
The bill would update state law governing the TRS retirement plan to maintain compliance with federal tax code requirements for qualified plans. The bill would make changes to state law governing the definition of salary and wages in the TRS plan to include "differential pay: for active duty military under the federal "Heroes Act" (Heroes Earnings Assistance and Relief Tax Act of 2008). The bill also conforms state law to federal law for members who die while performing active military duty and their survivors. The bill also allows a nonspouse beneficiary to rollover an eligible distribution to an IRA; thereby electing to continue the deferral of taxes on those funds as permitted under the federal Pension Protection Act of 2006 and the Worker, Retiree, and Employer Recovery Act of 2008. The bill would also make other updates needed to keep TRS rollover provisions consistent with federal law rollover provisions.
The bill would allow for the withholding of health insurance premiums for eligible retired public safety officers participating in the
TRS would incur additional administrative and technology expenses associated with implementing the provisions of the bill. TRS assumes that these costs could be absorbed within the current administrative budget.
| Source Agencies: | 323 Teacher Retirement System
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| LBB Staff: | JOB, SZ, KJG, JGM, JW
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