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A BILL TO BE ENTITLED
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AN ACT
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relating to creating defined contribution retirement plans for |
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persons eligible to participate in the Employees Retirement System |
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of Texas and the Teacher Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. CREATION OF DEFINED CONTRIBUTION PLANS |
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SECTION 1.01. Section 812.002, Government Code, is amended |
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by amending Subsection (b) and adding Subsection (d) to read as |
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follows: |
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(b) Subject to Subsection (d), membership [Membership] in |
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the elected class is optional. |
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(d) A person required to participate in the defined |
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contribution plan under Section 816.003 may not become a member of |
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the elected class. |
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SECTION 1.02. Effective September 1, 2012, Section |
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812.003(a), Government Code, is amended to read as follows: |
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(a) Except as provided by Subsection [Subsections] (b) [and
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(d)], membership in the employee class of the retirement system |
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includes all employees and appointed officers of every department, |
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commission, board, agency, or institution of the state except: |
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(1) independent contractors and their employees |
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performing work for the state; [and] |
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(2) persons disqualified from membership under |
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Section 812.201; and |
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(3) persons who are required to or elect to |
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participate in the defined contribution plan under Chapter 816. |
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SECTION 1.03. Sections 812.201(b) and (c), Government Code, |
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are amended to read as follows: |
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(b) Except as provided by Section 816.003(a)(2)(B), a [A] |
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retiree who takes a position not included in a membership class from |
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which the retiree receives retirement benefit payments: |
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(1) is required to become or remain a member if the |
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position is included in the employee class; or |
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(2) may elect to become or remain a member if the |
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position is included in the elected class. |
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(c) A person who is retired from the elected class of |
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membership and who again holds a position included in that class may |
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elect to become a member again by filing notice with the retirement |
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system unless Section 816.003(a)(2)(B) applies. Except as |
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provided by Section 812.203(c), when benefit payments are resumed, |
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the retirement system shall recompute the annuity selected at the |
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time of the person's original retirement to include the additional |
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service established during membership under this subsection. |
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SECTION 1.04. Sections 815.403(b), (d), and (e), Government |
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Code, are amended to read as follows: |
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(b) Before November 2 of each even-numbered year, the |
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retirement system shall certify to the Legislative Budget Board and |
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to the budget division of the governor's office for review: |
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(1) an estimate of the amount necessary to pay the |
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state's contribution under Subsections (a)(1), (a)(2), (a)(3), and |
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(a)(5) for the following biennium; [and] |
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(2) as a separate item, an estimate of the amount |
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required to administer the law enforcement and custodial officer |
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supplemental retirement fund for the following biennium; and |
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(3) an estimate of the amount necessary to pay the |
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state's contribution under Section 816.009(a). |
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(d) Before September 1 of each year, the retirement system |
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shall certify to the state comptroller of public accounts: |
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(1) an estimate of the amount necessary to pay the |
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state's contribution under Subsection (a)(1) for the following |
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fiscal year; |
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(2) an estimate of the amount necessary to pay |
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membership fees for the following fiscal year, if the legislature |
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has appropriated money for that purpose; [and] |
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(3) an estimate of the amount required to pay lump-sum |
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death benefits for retirees under Section 814.501 for the following |
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fiscal year; and |
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(4) an estimate of the amount necessary to pay the |
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state's contribution under Section 816.009(a) for the following |
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fiscal year. |
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(e) All money allocated and appropriated by the state to the |
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retirement system for benefits provided by the retirement system, |
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except money for the payment of lump-sum death benefits, [and] for |
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the payment of benefits from the law enforcement and custodial |
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officer supplemental retirement fund, and for the payment of the |
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state's contribution under Section 816.009(a), shall be paid, based |
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on the annual estimate of the retirement system, in monthly |
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installments to the state accumulation fund. The money required |
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for state contributions and membership fees shall be from |
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respective funds appropriated to pay the compensation of the member |
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for whose benefit the contribution or fee is paid. If the total of |
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the estimated required payments is not equal to the total of the |
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actual payments required for a fiscal year, the retirement system |
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shall certify to the state comptroller of public accounts at the end |
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of that year the amount required for necessary adjustments, and the |
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comptroller shall make the required adjustments. |
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SECTION 1.05. Subtitle B, Title 8, Government Code, is |
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amended by adding Chapter 816 to read as follows: |
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CHAPTER 816. DEFINED CONTRIBUTION PLAN |
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Sec. 816.001. DEFINITIONS. In this chapter: |
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(1) "Defined contribution plan" means the defined |
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contribution plan established under this chapter. |
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(2) "Qualified plan" means an employee benefit plan |
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qualified under Section 401(a), Internal Revenue Code of 1986. |
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Sec. 816.002. ESTABLISHMENT AND ADMINISTRATION OF DEFINED |
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CONTRIBUTION PLAN. (a) The retirement system shall establish and |
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administer a defined contribution plan that is a qualified plan and |
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under which a participant pays contributions to the plan for the |
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purchase of investment products selected by the participant from |
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among products that are offered by companies authorized to provide |
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the products in this state and selected by the retirement system |
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under Subsection (b). |
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(b) The retirement system shall adopt rules for the |
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selection of companies to provide investment products under the |
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defined contribution plan. The rules must provide for the |
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selection of vendors of a wide variety of investment products |
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authorized for a qualified plan. The retirement system shall select |
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vendors every two years. |
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(c) A provider of investment products is exempt from the |
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payment of franchise or premium taxes on products issued under the |
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defined contribution plan. |
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Sec. 816.003. MANDATORY PARTICIPATION IN PLAN. (a) Except |
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as provided by Subsection (b), a person must participate in the |
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defined contribution plan if the person: |
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(1) on or after September 1, 2012: |
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(A) was hired as an employee or appointed as an |
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officer of a department, commission, board, agency, or institution |
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of this state; or |
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(B) was elected: |
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(i) to a state office that is normally |
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filled by statewide election and that is not included in the |
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coverage of the Judicial Retirement System of Texas Plan One or the |
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Judicial Retirement System of Texas Plan Two; |
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(ii) as a member of the legislature; or |
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(iii) as a district or criminal district |
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attorney, to the extent the person receives a salary from the state |
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general revenue fund; and |
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(2) on the date the person was elected, appointed, or |
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hired, as applicable: |
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(A) was not a member of the system; or |
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(B) was a member of the system who was not serving |
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in a position included in the coverage of the system during the 30 |
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days preceding the date the person was elected, appointed, or |
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hired. |
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(b) For purposes of Subsection (a)(1)(A), an office or |
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employment that is included in the coverage of the Teacher |
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Retirement System of Texas, the Judicial Retirement System of Texas |
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Plan One, or the Judicial Retirement System of Texas Plan Two is not |
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a position with a department, commission, board, agency, or |
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institution of the state. |
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Sec. 816.004. OPTIONAL PARTICIPATION IN PLAN. (a) A |
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contributing member of the retirement system may elect to |
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participate in the defined contribution plan. An election to |
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participate in the defined contribution plan under this section |
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must be on a form prescribed by and filed with the retirement |
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system. |
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(b) Participation in the defined contribution plan is an |
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alternative to participation as a contributing member of the |
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retirement system for the same period. |
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(c) An election made under this section is irrevocable. |
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(d) If a person elects to participate in the defined |
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contribution plan under this section, the retirement system shall |
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transfer to the vendors of investment products selected by the |
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participant an amount equal to the actuarial present value of the |
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person's accrued service benefit in the retirement system. The |
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transfer shall be made not later than the 45th day after the date |
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the election is filed with the retirement system. |
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(e) A transfer under Subsection (d) terminates a person's |
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membership in the retirement system and all rights and benefits |
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from the system based on the person's previous service, including |
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the right to withdraw accumulated contributions from the retirement |
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system. |
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Sec. 816.005. EFFECT OF EMPLOYMENT CHANGES. A person |
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participating in the defined contribution plan continues to |
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participate in the plan when the person changes employment to |
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another position included in the coverage of the retirement system. |
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Sec. 816.006. VESTING OF BENEFITS; TERMINATION OF |
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PARTICIPATION. (a) Benefits in the defined contribution plan vest |
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in a participant on the first anniversary of the person's |
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participation in the plan. |
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(b) A person terminates participation in the defined |
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contribution plan, without losing any vested benefits, by: |
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(1) death; |
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(2) retirement; or |
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(3) termination of employment in all positions |
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included in the coverage of the retirement system. |
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(c) The benefits of a product purchased under the defined |
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contribution plan become available under the terms of the annuity |
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but not before the earlier of the date the member: |
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(1) terminates participation as provided by |
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Subsection (b); or |
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(2) attains the age of 70-1/2 years. |
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Sec. 816.007. CREDITABLE SERVICE. A person may not |
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establish in the retirement system credit for service performed |
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during a period the person was participating in the defined |
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contribution plan. |
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Sec. 816.008. INVESTMENT ADVISORY FEES. (a) A participant |
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in the defined contribution plan may authorize the payment of |
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investment advisory fees from the amount in the participant's |
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custodial account or product if: |
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(1) the investment advisory fees for each fiscal year |
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do not exceed two percent of the annual value of the participant's |
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custodial account or product as of the last day of that fiscal year; |
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(2) the fees are paid directly to a registered |
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investment advisor that provides investment advice to the |
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participant; |
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(3) the investment advisor to whom the fees are paid is |
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registered with the Securities and Exchange Commission under the |
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Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) |
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and is engaged full-time in the business of providing investment |
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advice; |
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(4) the participant and the investment advisor enter |
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into a contract, for a term of not more than one year, for services |
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that provides for the payment of fees as provided by this section; |
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and |
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(5) the retirement system has received an official |
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determination from the Internal Revenue Service that payment of |
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investment advisory fees as prescribed by this section is not a |
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distribution of funds that is prohibited or subject to taxation and |
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penalty under the Internal Revenue Code. |
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(b) The executive director of the retirement system shall |
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request an official determination from the Internal Revenue Service |
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concerning whether the payment of investment advisory fees as |
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prescribed by this section is a distribution of funds that is |
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prohibited or subject to taxation and penalty under the Internal |
|
Revenue Code. If the executive director receives an official |
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determination from the Internal Revenue Service as specified by |
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this subsection, the executive director shall file the official |
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determination with the secretary of state's office for publication |
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in the Texas Register. |
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Sec. 816.009. CONTRIBUTIONS. (a) A participant in the |
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defined contribution plan shall make contributions to the plan at |
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the same rate that a member of the retirement system is required to |
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make for current service, and the state shall make contributions to |
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the plan for each participant at the same rate as is made for |
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contributing members of the retirement system. Contributions |
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required under this subsection shall be credited to the benefit of |
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the participant. |
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(b) A participant in the defined contribution plan and the |
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participant's employer shall execute an agreement under which the |
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salary of the participant is reduced by the amount of the |
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contribution required by this section. An agreement under this |
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subsection is irrevocable until the participant terminates |
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participation in the plan under Section 816.006. |
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(c) Participant contributions shall be made in the manner |
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provided by Section 815.402, and state contributions shall be made |
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in the manner provided by Section 815.403. |
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Sec. 816.010. EXCESS BENEFIT ARRANGEMENT. The retirement |
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system may establish a governmental excess benefit arrangement as |
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provided by Section 415(m), Internal Revenue Code of 1986, for the |
|
purpose of providing to participants in the defined contribution |
|
plan any portion of a participant's benefits that would otherwise |
|
be payable under the terms of the plan except for the limitation on |
|
benefits imposed by Section 415, Internal Revenue Code of 1986. |
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Sec. 816.011. HEALTH BENEFITS AND OTHER COVERAGES. A |
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person who participates or who is eligible to participate in the |
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defined contribution plan established under this chapter is |
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eligible for health benefits and other coverages under Subtitle H, |
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Title 8, Insurance Code, to the same extent as a person who is a |
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member or who is eligible to be a member of the retirement system. |
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Sec. 816.012. RULES. The retirement system may adopt rules |
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necessary to implement this chapter. |
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SECTION 1.06. Section 822.001(a), Government Code, is |
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amended to read as follows: |
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(a) Subject to Subsection (b), membership [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. |
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SECTION 1.07. Section 822.0015(a), Government Code, is |
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amended to read as follows: |
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(a) In lieu of participating in the Employees Retirement |
|
System of Texas, the commissioner of education may elect to |
|
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 |
|
school system. |
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SECTION 1.08. Section 822.002, Government Code, is amended |
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to read as follows: |
|
Sec. 822.002. EXCEPTIONS TO MEMBERSHIP REQUIREMENT. An |
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employee of the public school system is not permitted to be a member |
|
of the retirement system if the employee: |
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(1) is eligible and elects to participate in the |
|
optional retirement program under Chapter 830; |
|
(2) is solely employed by a public institution of |
|
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] |
|
(3) has retired under the retirement system and has |
|
not been reinstated to membership pursuant to Section 824.005 or |
|
824.307; or |
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(4) is required to or elects to participate in the |
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defined contribution plan established under Chapter 826. |
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SECTION 1.09. Section 822.005(c), Government Code, is |
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amended to read as follows: |
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(c) Except as provided by Section 826.004, a [A] person is |
|
not entitled to withdraw contributions who is employed, has applied |
|
for employment, or has received a promise of employment, in a |
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position covered by the retirement system. |
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SECTION 1.10. Sections 825.404(b) and (e), Government Code, |
|
are amended to read as follows: |
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(b) Before November 2 of each even-numbered year, the board |
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of trustees shall certify to the comptroller of public accounts for |
|
review and adoption an estimate of the amount necessary to pay the |
|
state's contributions to: |
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(1) the retirement system for the following biennium; |
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and |
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(2) the defined contribution plan under Chapter 826 |
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for the following biennium. |
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(e) All money appropriated by the state to the retirement |
|
system shall be paid to the state contribution account in equal |
|
monthly installments as provided by Section 403.093(c), |
|
[Government Code,] except money appropriated: |
|
(1) under Subsection (d), which remains in the general |
|
revenue fund until expenses are approved under Chapter 2103; and |
|
(2) for the payment of the state's contributions under |
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Section 826.009(a). |
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SECTION 1.11. Section 825.4041(a), Government Code, is |
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amended to read as follows: |
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(a) For purposes of this section, a new member is a person |
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who: |
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(1) was first employed on or after September 1, 2005, |
|
including a former member who withdrew retirement contributions |
|
under Section 822.003 and is reemployed on or after September 1, |
|
2005; and |
|
(2) is not required and has not elected to participate |
|
in the defined contribution plan under Chapter 826. |
|
SECTION 1.12. Subtitle C, Title 8, Government Code, is |
|
amended by adding Chapter 826 to read as follows: |
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CHAPTER 826. DEFINED CONTRIBUTION PLAN |
|
Sec. 826.001. DEFINITIONS. In this chapter: |
|
(1) "Defined contribution plan" means the defined |
|
contribution plan established under this chapter. |
|
(2) "Qualified plan" means an employee benefit plan |
|
qualified under Section 401(a) or 403(b), Internal Revenue Code of |
|
1986. |
|
Sec. 826.002. ESTABLISHMENT AND ADMINISTRATION OF DEFINED |
|
CONTRIBUTION PLAN. (a) The retirement system shall establish and |
|
administer a defined contribution plan that is a qualified plan and |
|
under which a participant pays contributions to the plan for the |
|
purchase of investment products selected by the participant from |
|
among products that are offered by companies authorized to provide |
|
the products in this state and selected by the retirement system |
|
under Subsection (b). |
|
(b) The retirement system shall adopt rules for the |
|
selection of companies to provide investment products under the |
|
defined contribution plan. The rules must provide for the |
|
selection of vendors of a wide variety of investment products |
|
authorized for a qualified plan. The retirement system shall select |
|
vendors every two years. |
|
(c) A provider of investment products is exempt from the |
|
payment of franchise or premium taxes on products issued under the |
|
defined contribution plan. |
|
Sec. 826.003. MANDATORY PARTICIPATION IN PLAN. A person |
|
must participate in the defined contribution plan if the person: |
|
(1) is an employee who was employed on or after |
|
September 1, 2012; and |
|
(2) on the date the person began employment: |
|
(A) was not a member of the system; or |
|
(B) was a member of the system who was not serving |
|
in a position included in the coverage of the system during the 30 |
|
days preceding the date the person was elected, appointed, or |
|
hired. |
|
Sec. 826.004. OPTIONAL PARTICIPATION IN PLAN. (a) An |
|
employee who is a contributing member of the retirement system may |
|
elect to participate in the defined contribution plan. An election |
|
to participate in the defined contribution plan under this section |
|
must be on a form prescribed by and filed with the retirement |
|
system. |
|
(b) Participation in the defined contribution plan is an |
|
alternative to participation as a contributing member of the |
|
retirement system for the same period. |
|
(c) An election made under this section is irrevocable. |
|
(d) If a person elects to participate in the defined |
|
contribution plan under this section, the retirement system shall |
|
transfer to the vendors of investment products selected by the |
|
participant an amount equal to the actuarial present value of the |
|
person's accrued service benefit in the retirement system. The |
|
transfer shall be made not later than the 45th day after the date |
|
the election is filed with the retirement system. |
|
(e) A transfer under Subsection (d) terminates a person's |
|
membership in the retirement system and all rights and benefits |
|
from the system based on the person's previous service, including |
|
the right to withdraw accumulated contributions from the retirement |
|
system. |
|
Sec. 826.005. EFFECT OF EMPLOYMENT CHANGES. A person |
|
participating in the defined contribution plan continues to |
|
participate in the plan when the person changes employment to |
|
another position included in the coverage of the retirement system. |
|
Sec. 826.006. VESTING OF BENEFITS; TERMINATION OF |
|
PARTICIPATION. (a) Benefits in the defined contribution plan vest |
|
in a participant on the first anniversary of the person's |
|
participation in the plan. |
|
(b) A person terminates participation in the defined |
|
contribution plan, without losing any vested benefits, by: |
|
(1) death; |
|
(2) retirement; or |
|
(3) termination of employment in all positions |
|
included in the coverage of the retirement system. |
|
(c) The benefits of a product purchased under the defined |
|
contribution plan become available under the terms of the annuity |
|
but not before the earlier of the date the member: |
|
(1) terminates participation as provided by |
|
Subsection (b); or |
|
(2) attains the age of 70-1/2 years. |
|
Sec. 826.007. CREDITABLE SERVICE. A person may not |
|
establish in the retirement system credit for service performed |
|
during a period the person was participating in the defined |
|
contribution plan. |
|
Sec. 826.008. INVESTMENT ADVISORY FEES. (a) A participant |
|
in the defined contribution plan may authorize the payment of |
|
investment advisory fees from the amount in the participant's |
|
custodial account or product if: |
|
(1) the investment advisory fees for each fiscal year |
|
do not exceed two percent of the annual value of the participant's |
|
custodial account or product as of the last day of that fiscal year; |
|
(2) the fees are paid directly to a registered |
|
investment advisor that provides investment advice to the |
|
participant; |
|
(3) the investment advisor to whom the fees are paid is |
|
registered with the Securities and Exchange Commission under the |
|
Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) |
|
and is engaged full-time in the business of providing investment |
|
advice; |
|
(4) the participant and the investment advisor enter |
|
into a contract, for a term of not more than one year, for services |
|
that provides for the payment of fees as provided by this section; |
|
and |
|
(5) the retirement system has received an official |
|
determination from the Internal Revenue Service that payment of |
|
investment advisory fees as prescribed by this section is not a |
|
distribution of funds that is prohibited or subject to taxation and |
|
penalty under the Internal Revenue Code. |
|
(b) The executive director of the retirement system shall |
|
request an official determination from the Internal Revenue Service |
|
concerning whether the payment of investment advisory fees as |
|
prescribed by this section is a distribution of funds that is |
|
prohibited or subject to taxation and penalty under the Internal |
|
Revenue Code. If the executive director receives an official |
|
determination from the Internal Revenue Service as specified by |
|
this subsection, the executive director shall file the official |
|
determination with the secretary of state's office for publication |
|
in the Texas Register. |
|
Sec. 826.009. CONTRIBUTIONS. (a) A participant in the |
|
defined contribution plan shall make contributions to the plan at |
|
the same rate that a member of the retirement system is required to |
|
make for current service, and the state shall make contributions to |
|
the plan for each participant at the same rate as is made for |
|
contributing members of the retirement system. Contributions |
|
required under this subsection shall be credited to the benefit of |
|
the participant. |
|
(b) A participant in the defined contribution plan and the |
|
participant's employer shall execute an agreement under which the |
|
salary of the participant is reduced by the amount of the |
|
contribution required by this section. An agreement under this |
|
subsection is irrevocable until the participant terminates |
|
participation in the plan under Section 826.006. |
|
(c) Participant contributions shall be made in the manner |
|
provided by Subchapter E, Chapter 825, for member contributions to |
|
the retirement system. |
|
Sec. 826.010. EXCESS BENEFIT ARRANGEMENT. The retirement |
|
system may establish a governmental excess benefit arrangement as |
|
provided by Section 415(m), Internal Revenue Code of 1986, for the |
|
purpose of providing to participants in the defined contribution |
|
plan any portion of a participant's benefits that would otherwise |
|
be payable under the terms of the plan except for the limitation on |
|
benefits imposed by Section 415, Internal Revenue Code of 1986. |
|
Sec. 826.011. HEALTH BENEFITS AND OTHER COVERAGES. A |
|
person who participates or who is eligible to participate in the |
|
defined contribution plan established under this chapter is |
|
eligible for health benefits and other coverages under Subchapter |
|
D, Chapter 22, Education Code, and Subtitle H, Title 8, Insurance |
|
Code, to the same extent as a person who is a member or who is |
|
eligible to be a member of the retirement system. |
|
Sec. 826.012. RULES. The retirement system may adopt rules |
|
necessary to implement this chapter. |
|
SECTION 1.13. Section 830.002(b), Government Code, is |
|
amended to read as follows: |
|
(b) Participation in the optional retirement program is an |
|
alternative to active membership in the retirement system or |
|
required participation in the defined contribution plan under |
|
Chapter 826, as appropriate. |
|
SECTION 1.14. Sections 830.102(a) and (d), Government Code, |
|
are amended to read as follows: |
|
(a) A person included in the coverage [member] of the |
|
retirement system who is eligible [to participate in the optional
|
|
retirement program] may elect to [continue as a member of the
|
|
retirement system or to] participate in the optional retirement |
|
program. |
|
(d) An eligible person who does not elect to participate in |
|
the optional retirement program is considered to have chosen to |
|
continue membership in the retirement system or to participate in |
|
the defined contribution plan established under Chapter 826, as |
|
applicable. |
|
SECTION 1.15. Section 830.106, Government Code, is amended |
|
to read as follows: |
|
Sec. 830.106. ELIGIBILITY FOR RESUMPTION OF MEMBERSHIP. A |
|
participant in the optional retirement program is not eligible for |
|
membership in the retirement system unless, before September 1, |
|
2012, the person: |
|
(1) terminates employment covered by the optional |
|
retirement program; and |
|
(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. |
|
ARTICLE 2. CONFORMING AMENDMENTS |
|
SECTION 2.01. Effective September 1, 2012, Section |
|
91.003(b), Agriculture Code, is amended to read as follows: |
|
(b) An individual appointed as an inspector or to work in |
|
another capacity with an inspection service under Subsection (a) of |
|
this section is performing work for the state under the supervision |
|
of the department and shall participate in the defined contribution |
|
plan established under Chapter 816 [is a member of the employee
|
|
class of the Employees Retirement System of Texas under Section
|
|
812.003], Government Code. |
|
SECTION 2.02. Effective September 1, 2012, Section |
|
12.012(b), Education Code, is amended to read as follows: |
|
(b) An employee of a home-rule school district who qualifies |
|
for participation in the defined contribution plan administered by |
|
[membership in] the Teacher Retirement System of Texas shall be |
|
covered under the system in the same manner and to the same extent |
|
as a qualified employee employed by an independent school district |
|
is covered. |
|
SECTION 2.03. Effective September 1, 2012, Section |
|
12.057(b), Education Code, is amended to read as follows: |
|
(b) An employee of an independent school district who is |
|
employed on a campus or program granted a charter under this |
|
subchapter and who qualifies for participation in the defined |
|
contribution plan administered by [membership in] the Teacher |
|
Retirement System of Texas shall be covered under the system in the |
|
same manner and to the same extent as a qualified employee of the |
|
independent school district who is employed on a regularly |
|
operating campus or in a regularly operating program. |
|
SECTION 2.04. Effective September 1, 2012, Section |
|
12.1057(a), Education Code, is amended to read as follows: |
|
(a) An employee of an open-enrollment charter school |
|
operating under a charter granted by the State Board of Education |
|
who qualifies for participation in the defined contribution plan |
|
administered by [membership in] the Teacher Retirement System of |
|
Texas shall be covered under the system to the same extent a |
|
qualified employee of a school district is covered. |
|
SECTION 2.05. Effective September 1, 2012, Section |
|
19.009(e), Education Code, is amended to read as follows: |
|
(e) Each employee of the district who qualifies for |
|
participation in the defined contribution plan administered by |
|
[membership in] the Teacher Retirement System of Texas shall be |
|
covered under the system to the same extent a qualified employee of |
|
any other district is covered. |
|
SECTION 2.06. Section 21.0452(b), Education Code, is |
|
amended to read as follows: |
|
(b) The board shall make available at least the following |
|
information regarding each educator preparation program: |
|
(1) the information specified in Sections 21.045(a) |
|
and (b); |
|
(2) in addition to any other appropriate information |
|
indicating the quality of persons admitted to the program, the |
|
average academic qualifications possessed by persons admitted to |
|
the program, including: |
|
(A) average overall grade point average and |
|
average grade point average in specific subject areas; and |
|
(B) average scores on the Scholastic Assessment |
|
Test (SAT), the American College Test (ACT), or the Graduate Record |
|
Examination (GRE), as applicable; |
|
(3) the degree to which persons who complete the |
|
program are successful in obtaining teaching positions; |
|
(4) the extent to which the program prepares teachers, |
|
including general education teachers and special education |
|
teachers, to effectively teach: |
|
(A) students with disabilities; and |
|
(B) students of limited English proficiency, as |
|
defined by Section 29.052; |
|
(5) the activities offered by the program that are |
|
designed to prepare teachers to: |
|
(A) integrate technology effectively into |
|
curricula and instruction, including activities consistent with |
|
the principles of universal design for learning; and |
|
(B) use technology effectively to collect, |
|
manage, and analyze data to improve teaching and learning for the |
|
purpose of increasing student academic achievement; |
|
(6) the perseverance of beginning teachers in the |
|
profession, as determined on the basis of the number of beginning |
|
teachers who maintain status as active contributing participants |
|
[members] in the Teacher Retirement System of Texas for at least |
|
three years after certification in comparison to similar programs; |
|
(7) the results of exit surveys given to program |
|
participants on completion of the program that involve evaluation |
|
of the program's effectiveness in preparing participants to succeed |
|
in the classroom; and |
|
(8) the results of surveys given to school principals |
|
that involve evaluation of the program's effectiveness in preparing |
|
participants to succeed in the classroom, based on experience with |
|
employed program participants. |
|
SECTION 2.07. Effective September 1, 2012, Section |
|
21.452(c), Education Code, is amended to read as follows: |
|
(c) An employee on developmental leave continues to be a |
|
participant in [member of] the Teacher Retirement System of Texas |
|
and is entitled to participate in programs, hold memberships, and |
|
receive benefits afforded by employment in the school district. |
|
SECTION 2.08. Sections 51.107(a) and (b), Education Code, |
|
are amended to read as follows: |
|
(a) A faculty member on faculty development leave shall |
|
continue to be a member of the Teacher Retirement System of Texas or |
|
a participant in the defined contribution plan established under |
|
Chapter 826, Government Code, or [of] the Optional Retirement |
|
Program of the institution of higher education, or to be a member of |
|
or participant in more than one program [both], just as any other |
|
member of the faculty on full-time duty. |
|
(b) The institution of higher education shall cause to be |
|
deducted from the compensation paid to a member of the faculty on |
|
faculty development leave the deposit and [membership] dues |
|
required to be paid by him to the Teacher Retirement System of Texas |
|
or to the Optional Retirement Program, or both, the contribution |
|
for Old Age and Survivors Insurance, and any other amounts required |
|
or authorized to be deducted from the compensation paid any faculty |
|
member. |
|
SECTION 2.09. Effective September 1, 2012, Section |
|
51.926(b), Education Code, is amended to read as follows: |
|
(b) A person who participates in a qualified football |
|
coaches plan may also participate in another retirement plan [or be
|
|
a member of a retirement system] established by law for employees of |
|
institutions of higher education. |
|
SECTION 2.10. Section 606.061(4), Government Code, is |
|
amended to read as follows: |
|
(4) "State employee" includes an elected or appointed |
|
state officer but does not include an individual who: |
|
(A) is compensated by fees; or |
|
(B) is in a position eligible for membership in |
|
the Teacher Retirement System of Texas or participation in the |
|
defined contribution plan administered by that system under Chapter |
|
826 unless the person is employed by a state department, agency, or |
|
institution. |
|
SECTION 2.11. The heading to Subchapter D, Chapter 661, |
|
Government Code, is amended to read as follows: |
|
SUBCHAPTER D. PAYMENTS FOR VACATION TIME TO CONTRIBUTING |
|
PARTICIPANTS IN [MEMBERS OF] EMPLOYEES RETIREMENT SYSTEM WHO RETIRE |
|
SECTION 2.12. Section 661.091(a), Government Code, is |
|
amended to read as follows: |
|
(a) A contributing member of the Employees Retirement |
|
System of Texas or participant in the defined contribution plan |
|
administered by that system under Chapter 816 who retires is |
|
entitled to be paid in a lump sum, from funds of the agency or |
|
department from which the member retires, for the member's accrued |
|
vacation time as of the date of retirement. |
|
SECTION 2.13. Section 2252.901(d)(2), Government Code, is |
|
amended to read as follows: |
|
(2) "Retired agency employee" means a person: |
|
(A) whose last state service before retirement |
|
was for the state agency with which the retiree contracts to perform |
|
services; and |
|
(B) who is a retiree [of]: |
|
(i) of the employee class of membership of |
|
the Employees Retirement System of Texas; [or] |
|
(ii) of the Teacher Retirement System of |
|
Texas, the majority of whose service was credited in that system in |
|
a position with a state agency; |
|
(iii) receiving benefits under the defined |
|
contribution plan administered by the Employees Retirement System |
|
of Texas under Chapter 816; or |
|
(iv) receiving benefits under the defined |
|
contribution plan administered by the Teacher Retirement System of |
|
Texas under Chapter 826. |
|
SECTION 2.14. Section 62.1015(b), Health and Safety Code, |
|
is amended to read as follows: |
|
(b) A child of an employee of a charter school, school |
|
district, other educational district whose employees are members of |
|
the Teacher Retirement System of Texas or participants in the |
|
defined contribution plan administered by that system under Chapter |
|
826, Government Code, or regional education service center may be |
|
enrolled in health benefits coverage under the child health plan. A |
|
child enrolled in the child health plan under this section: |
|
(1) participates in the same manner as any other child |
|
enrolled in the child health plan; and |
|
(2) is subject to the same requirements and |
|
restrictions relating to income eligibility, continuous coverage, |
|
and enrollment, including applicable waiting periods, as any other |
|
child enrolled in the child health plan. |
|
SECTION 2.15. The heading to Section 132.007, Natural |
|
Resources Code, is amended to read as follows: |
|
Sec. 132.007. PARTICIPATION [MEMBERSHIP] IN EMPLOYEES |
|
RETIREMENT SYSTEM. |
|
SECTION 2.16. Section 17, Self-Directed Semi-Independent |
|
Agency Project Act (Article 8930, Revised Statutes), is amended to |
|
read as follows: |
|
Sec. 17. PARTICIPATION [MEMBERSHIP] IN EMPLOYEE RETIREMENT |
|
SYSTEM. Employees of the project agencies are members of the |
|
Employees Retirement System of Texas under Chapter 812, Government |
|
Code, or participants in the defined contribution plan administered |
|
by that system under Chapter 816, Government Code, as applicable, |
|
and transition to independent status shall have no effect on their |
|
membership or participation. |
|
ARTICLE 3. REPEAL AND TRANSITION PROVISIONS; EFFECTIVE DATE |
|
SECTION 3.01. Effective September 1, 2012, Sections |
|
812.003(c), (d), (e), and (f), Government Code, are repealed. |
|
SECTION 3.02. The Employees Retirement System of Texas |
|
shall offer participation in the defined contribution plan |
|
described by Chapter 816, Government Code, as added by this Act, |
|
beginning September 1, 2012. |
|
SECTION 3.03. The Teacher Retirement System of Texas shall |
|
offer participation in the defined contribution plan described by |
|
Chapter 826, Government Code, as added by this Act, beginning |
|
September 1, 2012. |
|
SECTION 3.04. The changes in law made by this Act requiring |
|
a person to participate in a defined contribution plan established |
|
under Chapter 816 or 826, Government Code, as added by this Act, do |
|
not apply to a person elected, appointed, or hired to the position |
|
requiring participation in the plan before the effective date of |
|
this Act. |
|
SECTION 3.05. This Act takes effect September 1, 2011. |