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A BILL TO BE ENTITLED
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AN ACT
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relating to public junior college employee participation in the |
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Teacher Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 821.001(7), Government Code, is amended |
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to read as follows: |
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(7) "Employer" means any agents or agencies in the |
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state responsible for public education, including the governing |
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board of any school district or public junior college district |
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created under the laws of this state, any county school board, the |
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board of trustees, the board of regents of any college or |
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university, or any other legally constituted board or agency of any |
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public school, but excluding the State Board of Education, the |
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Texas Education Agency, and the State Board for Educator |
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Certification. |
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SECTION 2. Section 822.001, Government Code, is amended to |
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read as follows: |
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Sec. 822.001. MEMBERSHIP REQUIREMENT. (a) Membership in |
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the retirement system includes: |
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(1) all persons who were members of the retirement |
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system on the day before the effective date of this subtitle; [and] |
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(2) all employees of the public school system; and |
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(3) all employees of a public junior college. |
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(b) Membership in the retirement system is a condition of |
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employment for employees of the public school system or a public |
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junior college unless an employee is excluded from membership under |
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Section 822.002. |
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SECTION 3. Section 822.0015(a), Government Code, is amended |
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to read as follows: |
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(a) In lieu of participating in the Employees Retirement |
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System of Texas, the commissioner of education may elect to |
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participate in the retirement system in the same manner and under |
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the same conditions as a member who is an employee of the public |
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school system or a public junior college. |
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SECTION 4. Subchapter A, Chapter 822, Government Code, is |
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amended by adding Section 822.0016 to read as follows: |
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Sec. 822.0016. OPTIONAL MEMBERSHIP FOR CERTAIN QUALIFIED |
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EMPLOYEES. (a) In this section, "qualified employee" means a |
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person who: |
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(1) was employed by a public junior college before |
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December 31, 2011, and elected to participate in the optional |
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retirement program under Chapter 830; and |
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(2) is actively participating in the optional |
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retirement program. |
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(b) A qualified employee may make a one-time, irrevocable |
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election in a manner provided by the retirement system to |
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participate in the retirement system and cease participation in the |
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optional retirement program. |
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SECTION 5. Section 822.002, Government Code, is amended to |
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read as follows: |
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Sec. 822.002. EXCEPTIONS TO MEMBERSHIP REQUIREMENT. An |
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employee of the public school system or a public junior college is |
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not permitted to be a member of the retirement system if the |
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employee: |
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(1) is eligible and elects to participate in the |
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optional retirement program under Chapter 830; |
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(2) is solely employed by a public institution of |
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higher education that as a condition of employment requires the |
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employee to be enrolled as a student in the institution; or |
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(3) has retired under the retirement system and has |
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not been reinstated to membership pursuant to Section 824.005 or |
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824.307. |
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SECTION 6. Section 822.003(c), Government Code, is amended |
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to read as follows: |
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(c) A person does not terminate membership under Subsection |
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(a)(4) if the person: |
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(1) is performing military service creditable in the |
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retirement system; |
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(2) is on leave of absence from employment in a public |
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school or public junior college; or |
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(3) is earning service credit in another retirement |
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system covered by Chapter 803 or 805. |
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SECTION 7. Section 830.001, Government Code, is amended to |
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read as follows: |
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Sec. 830.001. PURPOSE OF CHAPTER. The purpose of this |
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chapter is to establish a complete retirement program for faculty |
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members employed in certain state-supported institutions of higher |
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education as an incentive that will attract high quality faculties |
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and thereby improve the level of education at state-supported |
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colleges and universities. |
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SECTION 8. Section 830.003, Government Code, is amended to |
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read as follows: |
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Sec. 830.003. APPLICATION. In this chapter, the term |
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"institution of higher education" includes the Texas Higher |
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Education Coordinating Board, the Texas State Technical College |
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System, and the institutions defined in Section 821.001(10), except |
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a public junior college. The term [but] excludes the Rodent and |
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Predatory Animal Control Service. |
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SECTION 9. Section 830.004(c), Government Code, is amended |
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to read as follows: |
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(c) An institution of higher education to which this chapter |
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applies may establish a governmental excess benefit arrangement as |
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provided by Section 415(m) of the Internal Revenue Code of 1986 (26 |
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U.S.C. Section 415(m)) for the purpose of providing to participants |
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in the optional retirement program any portion of a participant's |
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benefits that would otherwise be payable under the terms of the |
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program except for the limitation on benefits imposed by Section |
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415 of the Internal Revenue Code of 1986 (26 U.S.C. Section 415). |
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The governing board of an institution of higher education to which |
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this chapter applies may take any action necessary to establish and |
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implement a governmental excess benefit arrangement authorized in |
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accordance with this subsection. |
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SECTION 10. Section 830.005, Government Code, is amended to |
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read as follows: |
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Sec. 830.005. EXEMPTION FROM TAXES. If qualified to do |
|
|
business in this state, a life insurance or annuity company is |
|
|
exempt from the payment of franchise or premium taxes on annuity or |
|
|
group insurance policies issued under a benefit program authorized |
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|
and at least partly paid for by the governing board of an |
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institution of higher education to which this chapter applies or |
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the Texas Education Agency. |
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SECTION 11. Section 830.006(a), Government Code, is amended |
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to read as follows: |
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(a) The governing board of each institution of higher |
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education to which this chapter applies, other than the Texas |
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|
Higher Education Coordinating Board, shall annually submit a report |
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to the coordinating board that includes information concerning the |
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number of participants and eligible positions and the amount of |
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contributions. |
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SECTION 12. Section 830.101(a), Government Code, is amended |
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|
to read as follows: |
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(a) The governing board of each institution of higher |
|
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education to which this chapter applies shall provide an |
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opportunity to participate in the optional retirement program to |
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all faculty members in the component institutions governed by the |
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board. The State Board of Education shall provide an opportunity to |
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participate in the optional retirement program to the commissioner |
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of education. |
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SECTION 13. Section 830.103, Government Code, is amended to |
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read as follows: |
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Sec. 830.103. EFFECT OF TRANSFERS AND CHANGES IN EMPLOYMENT |
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STATUS. (a) An institution of higher education to which this |
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chapter applies shall accept the transfer of a participant's |
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optional retirement program from another institution of higher |
|
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education to which this chapter applies or from the Texas Education |
|
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Agency. The Texas Education Agency shall accept the transfer of a |
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participant's optional retirement program from an institution of |
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higher education to which this chapter applies if the participant |
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becomes commissioner of education. |
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(b) If, after participating in the optional retirement |
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program for at least one year, a person becomes employed in an |
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institution of higher education to which this chapter applies in a |
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position normally covered by the retirement system, the person |
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shall continue participation in the optional retirement program if |
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the person has had no intervening employment in the public schools |
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other than as commissioner of education or a position in an |
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institution of higher education to which this chapter applies. |
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SECTION 14. Section 830.105(b), Government Code, is amended |
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to read as follows: |
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(b) A change of company providing optional retirement |
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program benefits or a participant's transfer between institutions |
|
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of higher education to which this chapter applies is not a |
|
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termination of employment. |
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SECTION 15. Section 830.106, Government Code, is amended to |
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read as follows: |
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Sec. 830.106. ELIGIBILITY FOR RESUMPTION OF MEMBERSHIP. A |
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participant in the optional retirement program is not eligible for |
|
|
membership in the retirement system unless: |
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(1) the person: |
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(A) [(1)] terminates employment covered by the |
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optional retirement program; and |
|
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(B) [(2)] becomes employed in the public school |
|
|
system or with a state agency in a position that is not eligible for |
|
|
participation in the optional retirement program; or |
|
|
(2) the person is a qualified employee under Section |
|
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822.0016 who makes an election to participate in the retirement |
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system. |
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SECTION 16. Sections 830.2015(a) and (c), Government Code, |
|
|
are amended to read as follows: |
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(a) Each fiscal year, the governing board of an institution |
|
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of higher education to which this chapter applies may make a |
|
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contribution to the optional retirement program as provided by this |
|
|
section. The governing board may use any source of funds for the |
|
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contribution. |
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(c) The governing board of an institution of higher |
|
|
education to which this chapter applies may contribute an amount |
|
|
under this section to the benefit of a participant employed by the |
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[an] institution of higher education on or before August 31, 1995, |
|
|
that is different from the amount the governing board contributes |
|
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to the benefit of a participant employed by the [an] institution of |
|
|
higher education after that date. |
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SECTION 17. Sections 830.202(c), (d), (e), and (g), |
|
|
Government Code, are amended to read as follows: |
|
|
(c) The disbursing officer of an institution of higher |
|
|
education to which this chapter applies and, if applicable, of the |
|
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Texas Education Agency shall pay the contributions collected under |
|
|
this section to a company providing an optional retirement program |
|
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for that institution not later than the third business day after the |
|
|
date the funds become legally available. If possible, the |
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disbursing officer shall send the state's contributions and the |
|
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participants' contributions together, and otherwise shall send the |
|
|
participants' contributions at the time of withholding and the |
|
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state's contributions on receipt from the comptroller. This |
|
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subsection does not apply to a supplemental payroll. This |
|
|
subsection applies only to a currently authorized company or a |
|
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company with at least 50 participants at the institution. |
|
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(d) An institution of higher education to which this chapter |
|
|
applies and, if applicable, the Texas Education Agency shall |
|
|
certify to the comptroller, in the manner provided for estimate of |
|
|
state contributions to the retirement system, estimates of funds |
|
|
required for the payments by the state under this section. |
|
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(e) The disbursing officer of an institution of higher |
|
|
education to which this chapter applies and, if applicable, of the |
|
|
Texas Education Agency, shall: |
|
|
(1) send contributions to a company providing an |
|
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optional retirement program for the institution by electronic |
|
|
transfer if the institution is currently able to send funds by |
|
|
electronic transfer; or |
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(2) certify to the Texas Higher Education Coordinating |
|
|
Board that the company is unable to receive funds by electronic |
|
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transfer and send contributions by paper check. |
|
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(g) At least once each fiscal year, an institution of higher |
|
|
education to which this chapter applies and the Texas Education |
|
|
Agency shall give notice to each participant in the optional |
|
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retirement program at the institution or agency indicating which |
|
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companies are unable to receive funds by electronic transfer. |
|
|
SECTION 18. Section 830.203(a)(3), Government Code, is |
|
|
amended to read as follows: |
|
|
(3) "Noneducational and general funds" means all funds |
|
|
of an institution of higher education to which this chapter applies |
|
|
except those funds used as a method of financing for an |
|
|
institutional appropriation in the General Appropriations Act or |
|
|
dedicated by the Constitution of the State of Texas. |
|
|
SECTION 19. Section 1551.003(14), Insurance Code, is |
|
|
amended to read as follows: |
|
|
(14) "State agency" means a commission, board, |
|
|
department, division, institution of higher education other than a |
|
|
public junior college, or other agency of this state created by the |
|
|
constitution or statutes of this state. The term also includes the |
|
|
Texas Municipal Retirement System and the Texas County and District |
|
|
Retirement System. |
|
|
SECTION 20. Section 1551.006(b), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(b) In this chapter, "institution of higher education" does |
|
|
not include: |
|
|
(1) an entity in The University of Texas System, as |
|
|
described by Section 65.02, Education Code; [and] |
|
|
(2) an entity in The Texas A&M University System, as |
|
|
described by Subtitle D, Title 3, Education Code, including the |
|
|
Texas Veterinary Medical Diagnostic Laboratory; or |
|
|
(3) a public junior college. |
|
|
SECTION 21. Section 1551.102, Insurance Code, is amended by |
|
|
adding Subsection (j) to read as follows: |
|
|
(j) An individual is eligible to participate in the group |
|
|
benefits program as provided by Subsection (a) if the individual |
|
|
retires under Chapter 822, Government Code, after making an |
|
|
election to participate in the Teacher Retirement System of Texas |
|
|
under Section 822.0016, Government Code, and the individual: |
|
|
(1) is at least 50 years old and has at least 10 years |
|
|
of eligible service credit; |
|
|
(2) has at least 25 years of eligible service credit; |
|
|
or |
|
|
(3) has at least 10 years of eligible service credit |
|
|
and the sum of the individual's service credit and attained age |
|
|
equals or exceeds the number 70. |
|
|
SECTION 22. Section 1575.002, Insurance Code, is amended by |
|
|
amending Subdivision (1) and adding Subdivision (5-a) to read as |
|
|
follows: |
|
|
(1) "Active employee" means a contributing member of |
|
|
the Teacher Retirement System of Texas who: |
|
|
(A) is employed by: |
|
|
(i) a public school; or |
|
|
(ii) a public junior college; and |
|
|
(B) is not entitled to coverage under a plan |
|
|
provided under Chapter 1551 or 1601. |
|
|
(5-a) "Public junior college" has the meaning assigned |
|
|
by Section 61.003, Education Code. |
|
|
SECTION 23. Section 1575.204(a), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(a) Each state fiscal year, each public school and public |
|
|
junior college shall contribute to the fund the amount prescribed |
|
|
by the General Appropriations Act, which may not be less than 0.25 |
|
|
percent or greater than 0.75 percent of the salary of each active |
|
|
employee of the public school or public junior college. The public |
|
|
school or public junior college shall make the contributions on a |
|
|
monthly basis and as otherwise prescribed by the trustee. |
|
|
SECTION 24. Section 1575.211, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 1575.211. COST SHARING. (a) The total costs for the |
|
|
operation of the group program shall be shared among the state, the |
|
|
public schools and public junior colleges, the active employees, |
|
|
and the retirees in the manner prescribed by the General |
|
|
Appropriations Act. |
|
|
(b) In determining the allocation of total costs under this |
|
|
section, the state shall pay not more than 55 percent of the total |
|
|
costs, retirees shall pay at least 30 percent of the total costs, |
|
|
and the balance shall be paid by active employees and public schools |
|
|
and public junior colleges. |
|
|
SECTION 25. Section 1575.402(a), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(a) The Retirees Advisory Committee is composed of the |
|
|
following nine members appointed by the trustee: |
|
|
(1) one member who is an active school or public junior |
|
|
college administrator; |
|
|
(2) one member who is a retired school or public junior |
|
|
college administrator; |
|
|
(3) two members who are active teachers or public |
|
|
junior college faculty members; |
|
|
(4) three members who are retired teachers or public |
|
|
junior college faculty members; |
|
|
(5) one member who is an active member of the auxiliary |
|
|
personnel of a school district or public junior college district; |
|
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and |
|
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(6) one member who is a retired member of the auxiliary |
|
|
personnel of a school district or public junior college district. |
|
|
SECTION 26. Section 1575.403(b), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(b) Five members' terms, including the terms of the active |
|
|
school or public junior college administrator, one active teacher |
|
|
or public junior college faculty member, two retired teachers or |
|
|
public junior college faculty members, and the retired member of |
|
|
the auxiliary personnel, expire February 1, 2002, and every fourth |
|
|
year after that date. |
|
|
SECTION 27. Section 1579.002(5), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(5) "Participating entity" means an entity |
|
|
participating in the uniform group coverage program established |
|
|
under this chapter. The term includes: |
|
|
(A) a school district; |
|
|
(B) a public junior college district; |
|
|
(C) another educational district whose employees |
|
|
are members of the Teacher Retirement System of Texas; |
|
|
(D) [(C)] a regional education service center; |
|
|
and |
|
|
(E) [(D)] a charter school that meets the |
|
|
requirements of Section 1579.154. |
|
|
SECTION 28. Sections 1579.151(a) and (b), Insurance Code, |
|
|
are amended to read as follows: |
|
|
(a) Each school district or public junior college district |
|
|
with 500 or fewer employees and each regional education service |
|
|
center is required to participate in the program. |
|
|
(b) Notwithstanding Subsection (a), a school district or |
|
|
public junior college district otherwise subject to Subsection (a) |
|
|
that, on January 1, 2001, was individually self-funded for the |
|
|
provision of health coverage to its employees may elect not to |
|
|
participate in the program. |
|
|
SECTION 29. Section 1579.152, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 1579.152. PARTICIPATION OF OTHER SCHOOL DISTRICTS. A |
|
|
[Effective September 1, 2005, a] school district or public junior |
|
|
college district with more than 500 employees may elect to |
|
|
participate in the program. A school district or public junior |
|
|
college district that elects to participate under this section |
|
|
shall apply for participation in the manner prescribed by the |
|
|
trustee by rule. |
|
|
SECTION 30. Section 1579.251(a), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(a) The state shall assist employees of participating |
|
|
school districts, public junior college districts, and charter |
|
|
schools in the purchase of group health coverage under this chapter |
|
|
by providing for each covered employee the amount of $900 each state |
|
|
fiscal year or a greater amount as provided by the General |
|
|
Appropriations Act. The state contribution, as applicable, shall |
|
|
be distributed through the school finance formulas under Chapters |
|
|
41 and 42, Education Code, and used by school districts and charter |
|
|
schools as provided by Section 42.260, Education Code. |
|
|
SECTION 31. (a) The changes to Sections 822.001 and |
|
|
822.002, Government Code, as amended by this Act, apply only to a |
|
|
person who is first employed by a public junior college on or after |
|
|
January 1, 2012, and to a former employee who has withdrawn |
|
|
retirement contributions under Section 822.003, Government Code, |
|
|
and is reemployed by a public junior college on or after January 1, |
|
|
2012. |
|
|
(b) The changes to Section 1575.002, Insurance Code, as |
|
|
amended by this Act, apply only to a person who is first employed by |
|
|
a public junior college on or after January 1, 2012. |
|
|
SECTION 32. This Act takes effect September 1, 2011. |