82(R) HB 3354 - Introduced version

	82R7426 TJS-F

	By: Truitt	H.B. No. 3354

A BILL TO BE ENTITLED

AN ACT

relating to the administration of and benefits payable by the

Teacher Retirement System of Texas and to certain domestic

relations orders.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 411.081(i), Government Code, as amended

by Chapters 183 (H.B. 1830), 780 (S.B. 1056), 816 (S.B. 1599), and

1027 (H.B. 4343), Acts of the 81st Legislature, Regular Session,

2009, is reenacted and amended to read as follows:

(i) A criminal justice agency may disclose criminal history

record information that is the subject of an order of nondisclosure

under Subsection (d) to the following noncriminal justice agencies

or entities only:

(1) the State Board for Educator Certification;

(2) a school district, charter school, private school,

regional education service center, commercial transportation

company, or education shared service arrangement;

(3) the Texas Medical Board;

(4) the Texas School for the Blind and Visually

Impaired;

(5) the Board of Law Examiners;

(6) the State Bar of Texas;

(7) a district court regarding a petition for name

change under Subchapter B, Chapter 45, Family Code;

(8) the Texas School for the Deaf;

(9) the Department of Family and Protective Services;

(10) the Texas Youth Commission;

(11) the Department of Assistive and Rehabilitative

Services;

(12) the Department of State Health Services, a local

mental health service, a local mental retardation authority, or a

community center providing services to persons with mental illness

or retardation;

(13) the Texas Private Security Board;

(14) a municipal or volunteer fire department;

(15) the Texas Board of Nursing;

(16) a safe house providing shelter to children in

harmful situations;

(17) a public or nonprofit hospital or hospital

district;

(18) the Texas Juvenile Probation Commission;

(19) the securities commissioner, the banking

commissioner, the savings and mortgage lending commissioner, or the

credit union commissioner;

(20) the Texas State Board of Public Accountancy;

(21) the Texas Department of Licensing and Regulation;

(22) the Health and Human Services Commission;

(23) the Department of Aging and Disability Services;

(24) the Texas Education Agency; [~~and~~]

(25) the Guardianship Certification Board; [~~and~~]

(26) a county clerk's office in relation to a

proceeding for the appointment of a guardian under Chapter XIII,

Texas Probate Code;

(27) [~~(25)~~] the Department of Information Resources

but only regarding an employee, applicant for employment,

contractor, subcontractor, intern, or volunteer who provides

network security services under Chapter 2059 to:

(A) the Department of Information Resources; or

(B) a contractor or subcontractor of the

Department of Information Resources;

(28) [~~(25)~~] the Court Reporters Certification Board;

[~~and~~]

(29) [~~(25)~~] the Texas Department of Insurance; and

(30) the Teacher Retirement System of Texas.

SECTION 2. Subchapter F, Chapter 411, Government Code, is

amended by adding Section 411.0971 to read as follows:

Sec. 411.0971. ACCESS TO CRIMINAL HISTORY RECORD

INFORMATION: TEACHER RETIREMENT SYSTEM OF TEXAS. (a) The Teacher

Retirement System of Texas is entitled to obtain from the

department, the Federal Bureau of Investigation Criminal Justice

Information Services Division, or another law enforcement agency

criminal history record information maintained by the department,

division, or agency that relates to a person who:

(1) is an employee or an applicant for employment with

the retirement system;

(2) is a consultant, contract employee, independent

contractor, intern, or volunteer for the retirement system or an

applicant to serve in one of those positions;

(3) proposes to enter into a contract with or has a

contract with the retirement system to perform services for or

supply goods to the retirement system; or

(4) is an employee or subcontractor, or an applicant

to be an employee or subcontractor, of a contractor that provides

services to the retirement system.

(b) Criminal history record information obtained by the

Teacher Retirement System of Texas under Subsection (a) may not be

released or disclosed to any person except:

(1) on court order;

(2) with the consent of the person who is the subject

of the criminal history record information; or

(3) to a federal agency as required by federal law or

executive order.

criminal history record information obtained under this section

after the information is used for the purposes authorized by this

section.

(d) The Teacher Retirement System of Texas may provide a

copy of the criminal history record information obtained from the

department, the Federal Bureau of Investigation Criminal Justice

Information Services Division, or other law enforcement agency to

the individual who is the subject of the information.

(e) The failure or refusal of an employee or applicant to

provide the following on request constitutes good cause for

dismissal or refusal to hire:

(1) a complete set of fingerprints;

(2) a true and complete name; or

(3) other information necessary for a law enforcement

entity to obtain criminal history record information.

SECTION 3. Subchapter F, Chapter 551, Government Code, is

amended by adding Section 551.130 to read as follows:

Sec. 551.130. BOARD OF TRUSTEES OF TEACHER RETIREMENT

SYSTEM OF TEXAS; TELEPHONE CONFERENCE CALL. (a) In this section,

"board" means the board of trustees of the Teacher Retirement

System of Texas.

(b) Except as provided by this section, this chapter does

not prohibit the board from holding an open or closed meeting by

telephone conference call.

may be held only if a quorum of the board is physically present at a

single location that is open to the public during any open portion

of the meeting.

(d) The telephone conference call meeting is subject to the

notice requirements applicable to other meetings.

(e) The notice of the telephone conference call meeting must

specify as the location of the meeting the location where the quorum

of the board of trustees will be physically present.

(f) Each part of the telephone conference call meeting that

is open to the public must be audible to the public at the location

specified in the notice of the meeting and shall be tape-recorded at

that location. The tape recording shall be made available to the

public.

(g) The meeting location specified in the notice must

provide two-way communication during the entire telephone

conference call, and the identification of each party to the

telephone conference must be clearly stated before the party

speaks.

(h) A board member who participates in a board meeting by

telephone conference call and who is not physically present at the

location of the meeting is not considered absent from the meeting

for any purpose, including for purposes of Section 825.010(a).

(i) This section does not authorize a person who is not a

board member to speak at a meeting from a remote location by

telephone conference call, except as provided by Section 551.129.

SECTION 4. Subchapter C, Chapter 552, Government Code, is

amended by adding Section 552.153 to read as follows:

Sec. 552.153. EXCEPTION: NAME OF APPLICANT FOR EXECUTIVE

DIRECTOR, CHIEF INVESTMENT OFFICER, OR CHIEF AUDIT EXECUTIVE OF

TEACHER RETIREMENT SYSTEM OF TEXAS. The name of an applicant for

the position of executive director, chief investment officer, or

chief audit executive of the Teacher Retirement System of Texas is

excepted from the requirements of Section 552.021, except that the

board of trustees of the Teacher Retirement System of Texas must

give public notice of the names of three finalists being considered

for one of those positions at least 21 days before the date of the

meeting at which the final action or vote is to be taken on choosing

a finalist for employment.

SECTION 5. Section 804.003, Government Code, is amended by

amending Subsections (f) and (g) and adding Subsection (p) to read

as follows:

(f) A domestic relations order is a qualified domestic

relations order only if such order:

(1) clearly specifies the:

(A) name[~~, social security number,~~] and last

known mailing address[~~, if any,~~] of:

(i) the member or retiree; and

(ii) [~~the name, social security number, and~~

~~mailing address of~~] each alternate payee covered by the order; and

(B) social security number, or an express

authorization for the parties to use an alternate method acceptable

to the public retirement system to verify the social security

number, of the member or retiree and each alternate payee covered by

the order;

(2) clearly specifies the amount or percentage of the

member's or retiree's benefits to be paid by a public retirement

system to each such alternate payee or the manner in which such

amount or percentage is to be determined;

(3) clearly specifies the number of payments or the

period to which such order applies;

(4) clearly specifies that such order applies to a

designated public retirement system;

(5) does not require the public retirement system to

provide any type or form of benefit or any option not otherwise

provided under the plan;

(6) does not require the public retirement system to

provide increased benefits determined on the basis of actuarial

value;

(7) does not require the payment of benefits to an

alternate payee which are required to be paid to another alternate

payee under another order previously determined to be a qualified

domestic relations order; and

(8) does not require the payment of benefits to an

alternate payee before the retirement of a member, the distribution

of a withdrawal of contributions to a member, or other distribution

to a member required by law.

(g) A public retirement system may reject a domestic

relations order as a qualified domestic relations order unless the

order:

(1) provides for a proportional reduction of the

amount awarded to an alternate payee in the event of the retirement

of the member before normal retirement age;

(2) does not purport to require the designation of a

particular person as the recipient of benefits in the event of a

member's or annuitant's death;

(3) does not purport to require the selection of a

particular benefit payment plan or option;

(4) provides clearly for each possible benefit

distribution under plan provisions;

(5) does not require any action on the part of the

retirement system contrary to its governing statutes or plan

provision other than the direct payment of the benefit awarded to an

alternate payee;

(6) does not make the award of an interest contingent

on any condition other than those conditions resulting in the

liability of a retirement system for payments under its plan

provisions;

(7) does not purport to award any future benefit

increases that are provided or required by the legislature; [~~and~~]

(8) provides for a proportional reduction of the

amount awarded to an alternate payee in the event that benefits

available to the retiree or member are reduced by law; and

(9) if required by the retirement system, conforms to

a model order adopted by the retirement system.

(p) A public retirement system may assess administrative

fees on a party who is subject to a domestic relations order for the

review of the order under this subchapter and, as applicable, for

the administration of payments under an order that is determined to

be qualified. In addition to other methods of collecting fees that

a retirement system may establish, the retirement system may deduct

fees from payments made under the order.

SECTION 6. Section 821.008, Government Code, is amended to

read as follows:

Sec. 821.008. PURPOSE OF RETIREMENT SYSTEM. (a) The

purpose of the retirement system is to invest and protect funds of

the retirement system and to deliver the benefits provided by

statute, not to advocate or influence legislative action or

inaction or to advocate higher benefits.

(b) This section does not prohibit comments by an employee

of the retirement system on federal laws, regulations, or other

official actions or proposed actions affecting or potentially

affecting the retirement system that are made in accordance with

policies adopted by the board.

SECTION 7. Section 823.002, Government Code, is amended by

adding Subsection (b) to read as follows:

(b) A member shall notify the retirement system in writing

of membership service that has not been properly credited by the

retirement system on an annual statement. The member must provide

verification and make deposits as required by the retirement system

before the service may be credited. A member must notify the

retirement system of the service in writing on or before the last

day of the fifth school year after the end of the school year in

which the service was rendered for the service to be credited.

SECTION 8. Subchapter A, Chapter 824, Government Code, is

amended by adding Section 824.008 to read as follows:

Sec. 824.008. DEDUCTIONS FROM AMOUNTS PAYABLE BY THE

RETIREMENT SYSTEM. (a) Notwithstanding Section 821.005, the

retirement system may deduct the amount of a person's indebtedness

to the retirement system from an amount payable by the retirement

system to the person or the person's estate and the distributees of

the estate.

(b) If the retirement system makes a payment to a

participant who is deceased and the payment is not payable, the

retirement system may deduct the amount of the payment from any

amount payable by the retirement system to a person who received the

payment or to that person's estate and distributees of the estate.

SECTION 9. Section 824.1013, Government Code, is amended by

adding Subsection (c-1) to read as follows:

(c-1) Notwithstanding Subsection (c), a beneficiary

designated under this section is entitled on the retiree's death to

receive monthly payments of the survivor's portion of the retiree's

optional retirement annuity for the remainder of the beneficiary's

life if the beneficiary designated at the time of the retiree's

retirement is a trust and the beneficiary designated under this

section is the sole beneficiary of that trust.

SECTION 10. Section 824.103(a), Government Code, is amended

to read as follows:

(a) Benefits payable on the death of a member or annuitant,

except an optional retirement annuity under Section 824.204(c)(1),

(c)(2), or (c)(5), are payable, and rights to elect survivor

benefits, if applicable, are available, to one of the classes of

persons described in Subsection (b), if:

(1) the member or annuitant fails to designate a

beneficiary before death;

(2) a designated beneficiary does not survive the

member or annuitant; [or]

(3) a designated beneficiary, under Section 824.004,

waives claims to benefits payable on the death of the member or

annuitant;

(4) a beneficiary designation is revoked under Section

824.101(g); or

(5) a person is not eligible to receive a benefit under

Section 824.105.

SECTION 11. Section 824.105, Government Code, is amended by

amending Subsections (a), (c), and (d) and adding Subsection (f) to

read as follows:

(a) A benefit payable on the death of a member or annuitant

may not be paid to a person who has been convicted of causing that

death or who is otherwise ineligible under Subsection (f) but

instead is payable to a person who would be entitled to the benefit

had the convicted or otherwise ineligible person predeceased the

decedent.

in part on the age of the convicted or otherwise ineligible person

to a lump sum equal to the present value of the remainder of the

annuity. The reduced amount is payable to a person entitled as

provided by this section to receive the benefit.

(d) The retirement system is not required to pay benefits

under this section unless it receives actual notice of the

conviction or other ground of ineligibility of a beneficiary.

However, the retirement system may delay payment of a benefit

payable on the death of a member or annuitant pending the results of

a criminal investigation and of legal proceedings relating to the

cause of death.

(f) A person is ineligible to receive a benefit payable on

the death of a member or annuitant if the person is:

(1) found not guilty by reason of insanity under

Chapter 46C, Code of Criminal Procedure, of causing the death of the

member or annuitant; or

(2) the subject of an indictment, information,

complaint, or other charging instrument alleging that the person

caused the death of the member or annuitant, and the person is

determined to be incompetent to stand trial under Chapter 46B, Code

of Criminal Procedure.

SECTION 12. Sections 824.202(a-1) and (b-1), Government

Code, are amended to read as follows:

(a-1) This subsection applies only to a person who becomes a

member of the retirement system on or after September 1, 2007

[~~2006~~]. A member subject to this subsection is eligible to retire

and receive a standard service retirement annuity if:

(1) the member is at least 65 years old and has at

least five years of service credit in the retirement system; or

(2) the member is at least 60 years old and has at

least five years of service credit in the retirement system and the

sum of the member's age and amount of service credit in the

retirement system equals the number 80.

(b-1) This subsection applies only to a person who becomes a

member of the retirement system on or after September 1, 2007

[~~2006~~]. If a member subject to this subsection is at least 55 years

old and has at least five years of service credit in the retirement

system, but does not meet the requirements under Subsection (d-1),

the member is eligible to retire and receive a service retirement

annuity reduced from the standard service retirement annuity

available under Subsection (a-1)(1), to a percentage derived from

the following table:

Age at date of

retirement

Percentage of

47%

51%

55%

59%

63%

67%

73%

80%

87%

93%

100%

standard annuity

receivable

SECTION 13. Section 824.405, Government Code, is amended to

read as follows:

Sec. 824.405. TABLES FOR DETERMINATION OF DEATH BENEFIT

ANNUITY. For the purpose of computing a death benefit annuity under

Section 824.402(a)(4) or Section 824.403, the board of trustees

shall extend the tables[:

[~~(1)~~] in Section 824.202 [~~824.202(b) or (b-1), as~~

~~applicable,~~] to ages earlier than indicated in the tables [55

~~years~~] by actuarially reducing the benefit available under the

applicable table [~~at the age of 55 years~~] to the actuarial

equivalent at the attained age of the member [~~beneficiary; and~~

[~~(2)~~ ~~in Section 824.202(b) or (d-1), as applicable, to~~

~~ages earlier than the earliest retirement age by actuarially~~

~~reducing the benefit available at the earliest retirement age to~~

~~the actuarial equivalent at the attained age of the beneficiary~~].

SECTION 14. Section 825.002, Government Code, is amended by

amending Subsections (f) and (g) and adding Subsection (h) to read

as follows:

(f) Persons considered for nomination under Subsection (c),

(d), or (e) must have been nominated [~~by written ballot~~] at an

election conducted under rules adopted by the board of trustees.

(g) To provide for the nomination of persons for appointment

under Subsection (d), the board shall send to each retiree of the

retirement system:

(1) notice of the deadline for filing as a candidate

for nomination;

(2) information on procedures to follow in filing as a

candidate; and

(3) instructions on how to request a paper ballot or

vote in another manner established by the board, including by

telephone or other electronic means [~~a written ballot~~].

(h) If only two persons are nominated under Subsection (c),

(d), or (e), the governor shall appoint a member of the board to the

applicable trustee position from the slate of two nominated

persons. If only one person is nominated under Subsection (c), (d),

or (e), the governor shall appoint that person to the applicable

trustee position. If no member or retiree is nominated for a

position under Subsection (c), (d), or (e), the governor shall

appoint to the applicable trustee position a person who otherwise

meets the qualifications required for the position.

SECTION 15. Section 825.206(c), Government Code, is amended

to read as follows:

performance of the actuary during the previous year. At least once

every four [~~three~~] years, the board shall redesignate its actuary

after advertising for and reviewing proposals from providers of

actuarial services.

SECTION 16. Section 825.215, Government Code, is amended to

read as follows:

Sec. 825.215. ADVOCACY PROHIBITED. (a) An employee of the

retirement system may not advocate increased benefits or engage in

activities to advocate or influence legislative action or inaction.

Advocacy or activity of this nature is grounds for dismissal of an

employee.

(b) This section does not prohibit comments by an employee

of the retirement system on federal laws, regulations, or other

official actions or proposed actions affecting or potentially

affecting the retirement system that are made in accordance with

policies adopted by the board.

SECTION 17. Section 825.315, Government Code, is amended to

read as follows:

Sec. 825.315. PROHIBITED USE OF ASSETS. (a) Assets of the

retirement system may not be used to advocate or influence the

outcome of an election or the passage or defeat of any legislative

measure. This prohibition may not be construed to prevent any

trustee or employee from furnishing information in the hands of the

trustee or employee that is not considered confidential under law

to a member or committee of the legislature, to any other state

officer or employee, or to any private citizen, at the request of

the person or entity to whom the information is furnished. This

prohibition does not apply to the incidental use of retirement

system facilities by groups of members or retirees or by officers or

employees of state agencies.

(b) This section does not prohibit the use of system assets

by an employee of the retirement system to comment on federal laws,

regulations, or other official actions or proposed actions

affecting or potentially affecting the retirement system that are

made in accordance with policies adopted by the board.

SECTION 18. Section 825.408, Government Code, is amended to

read as follows:

Sec. 825.408. INTEREST ON CONTRIBUTIONS AND FEES; DEPOSITS

IN TRUST. (a) An employer [~~employing district~~] that fails to

remit, before the seventh day after the last day of a month, all

member and employer deposits and documentation of the deposits

required by this subchapter to be remitted by the employer

[~~district~~] for the month shall pay to the retirement system, in

addition to the deposits, interest on the unpaid or undocumented

amounts at an annual rate compounded monthly. The rate of interest

is the rate established under Section 825.313(b)(1), plus two

percent. Interest required under this section is creditable to the

interest account. On request, the retirement system may grant a

waiver of the deadline imposed by this subsection based on an

employer's [~~a district's~~] financial or technological resources.

(b) An employer [~~employing district~~] and its trustees or

other governing body hold amounts due to the retirement system

under this subtitle in trust for the retirement system and its

members and may not divert the amounts to any other purpose.

SECTION 19. A member of the Teacher Retirement System of

Texas who seeks credit under Section 823.002(b), Government Code,

as added by this Act, for service rendered before September 1, 2011,

but not properly credited to a member's annual statement, must

notify the retirement system not later than the date specified in

Section 823.002(b), Government Code, as added by this Act, or

August 31, 2016, whichever is later.

SECTION 20. (a) The change in law made by this Act to

Section 804.003, Government Code, applies only to a qualified

domestic relations order entered on or after the effective date of

this Act. A qualified domestic relations order entered before the

effective date of this Act is governed by the law in effect

immediately before that date, and that law is continued in effect

for that purpose.

(b) The changes in law made by this Act to Section 824.105,

Government Code, apply only to the death of a member or annuitant

that is caused by conduct that occurs on or after the effective date

of this Act. The death of a member or annuitant that is caused by

conduct that occurs before the effective date of this Act is

governed by the law in effect immediately before that date, and the

former law is continued in effect for that purpose.

Government Code, applies only to a vacancy on the board of trustees

of the Teacher Retirement System of Texas for a term that expires on

or after the effective date of this Act. A vacancy for a term that

expires before the effective date of this Act is governed by the law

in effect immediately before that date, and that law is continued in

effect for that purpose.

SECTION 21. This Act takes effect September 1, 2011.