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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of and benefits payable by 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. Sections 824.1012(a) and (b), Government Code, |
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are amended to read as follows: |
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(a) As an exception to Section 824.101(c), a retiree who |
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selected an optional service retirement annuity under Section |
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824.204(c)(1), (c)(2), or (c)(5) or an optional disability |
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retirement annuity under Section 824.308(c)(1), (c)(2), or (c)(5) |
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and who has received at least one payment under the plan selected |
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may change the optional annuity selection made by the retiree to a |
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standard service or disability retirement annuity as provided for |
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in this section [revoke the designation of the beneficiary to
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receive the annuity on the death of the retiree]. If the |
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beneficiary is the spouse or former spouse of the retiree, the |
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beneficiary must sign a notarized consent to the change, or [, if] a |
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court in a divorce proceeding involving the retiree and beneficiary |
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must approve [approves] or order [orders] the change [revocation] |
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in the divorce decree or acceptance of a property settlement [or if
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the beneficiary is the spouse, or a former spouse, or an adult child
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of the retiree and signs a notarized consent to the revocation]. |
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The change in plan selection [revocation] takes effect when the |
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retirement system receives it. |
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(b) A change [revocation] described by Subsection (a) |
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cancels the optional annuity selection made by the retiree, |
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effective with the beginning of payments of the annuity as |
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recomputed under this subsection. The retiree is entitled to |
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receive payments of a standard service or disability retirement |
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annuity, as applicable, reduced for early retirement, if |
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applicable, beginning with the payment for the month after the |
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month in which the retirement system receives the notice of change |
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[revocation] and ending on the death of the retiree. The change |
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also cancels the designation of beneficiary with respect to the |
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optional annuity benefit but does not cancel a designation with |
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respect to any other benefit payable by the retirement system on the |
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death of the retiree. |
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SECTION 2. Section 824.1013(b) is amended to read as |
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follows: |
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(b) If the beneficiary designated at the time of the |
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retiree's retirement is the spouse [or former spouse] of the |
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retiree at the time of the designation: |
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(1) the spouse [or former spouse] must give written, |
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notarized consent to the change; |
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(2) if the parties divorced after the designation, the |
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former spouse who was designated beneficiary must give written, |
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notarized consent to the change; or |
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(3) [(2)] a court with jurisdiction over the marriage |
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must have ordered the change. |
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SECTION 3. Section 1575.003(1), Insurance Code, is amended |
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to read as follows: |
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(1) "Dependent" means: |
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(A) the spouse of a retiree; |
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(B) a [an unmarried] child of a retiree or |
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deceased active member if the child is younger than 26 [25] years of |
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age, including: |
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(i) an adopted child or child who is |
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lawfully placed for legal adoption; |
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(ii) a foster child, stepchild, or other |
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child who is in a regular parent-child relationship; or |
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(iii) a [recognized] natural child; |
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(C) a retiree's [recognized] natural child, |
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adopted child, foster child, stepchild, or other child who is in a |
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regular parent-child relationship and who lives with or has his or |
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her care provided by the retiree or surviving spouse on a regular |
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basis regardless of the child's age, if the child has a mental |
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disability or is physically incapacitated to an extent that the |
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child is dependent on the retiree or surviving spouse for care or |
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support, as determined by the trustee; or |
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(D) a deceased active member's [recognized] |
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natural child, adopted child, foster child, stepchild, or other |
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child who is in a regular parent-child relationship, without regard |
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to the age of the child, if, while the active member was alive, the |
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child: |
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(i) lived with or had the child's care |
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provided by the active member on a regular basis; and |
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(ii) had a mental disability or was |
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physically incapacitated to an extent that the child was dependent |
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on the active member or surviving spouse for care or support, as |
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determined by the trustee. |
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SECTION 4. Section 1579.004, Insurance Code, is amended to |
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read as follows: |
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Sec. 1579.004. DEFINITION OF DEPENDENT. In this chapter, |
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"dependent" means: |
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(1) a spouse of a full-time employee or part-time |
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employee; |
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(2) a [an unmarried] child of a full-time or part-time |
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employee if the child is younger than 26 [25] years of age, |
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including: |
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(A) an adopted child or child who is lawfully |
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placed for adoption; |
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(B) a foster child, stepchild, or other child who |
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is in a regular parent-child relationship; and |
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(C) a [recognized] natural child; |
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(3) a full-time or part-time employee's [recognized] |
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natural child, adopted child, foster child, stepchild, or other |
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child who is in a regular parent-child relationship and who lives |
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with or has his or her care provided by the employee or the |
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surviving spouse on a regular basis, regardless of the child's age, |
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if the child has a mental disability or is physically incapacitated |
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to an extent that the child is dependent on the employee or |
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surviving spouse for care or support, as determined by the board of |
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trustees; and |
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(4) notwithstanding any other provision of this code, |
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any other dependent of a full-time or part-time employee specified |
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by rules adopted by the board of trustees. |
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SECTION 5. This Act takes effect September 1, 2013. |