| TO: | Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3347 by Truitt (Relating to plan provisions required for maintaining retirement plan qualification for the Teacher Retirement System of Texas.), As Introduced |
The bill would update state law governing the Teacher Retirement System (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 changes in the bill would have no significant impact to the actuarial liabilities of TRS.
| Source Agencies: | 323 Teacher Retirement System
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| LBB Staff: | JOB, JRO, JGM, JW
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