AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Nearly two decades ago, the legislature created the deferred retirement option plan for members of the Teacher Retirement System of Texas. Interested parties note that the members opting in to the plan were required to sign an irrevocable agreement. However, as the parties further note, the legislature later created temporary revocation periods. These parties note that there are still over 100 active members who participate in the plan but are still working. H.B. 1937 seeks to provide those members with another opportunity to revoke their participation in the program.
H.B. 1937 amends current law relating to procedures and eligibility for terminating participation in the Teacher Retirement System of Texas deferred retirement option plan.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 824.805, Government Code, by amending Subsection (b) and adding Subsections (c) and (d), as follows:
(b) Requires the Teacher Retirement System of Texas (TRS) to make account transfers and change records for a member who revokes the member's decision to participate in the plan under this subsection as if the member had never participated in the plan.
(c) Authorizes a member or beneficiary described by Subsection (d) to, on or before December 31, 2015, revoke the member's decision to participate in the plan on a form prescribed by and received by the retirement system not later than that date. Authorizes the retirement system to make account transfers and change records for a member whose decision to participate in the plan is revoked under this subsection, as if the member had never participated in the plan.
(d) Provides that Subsection (c) applies only to a member whose approved period of participation in the plan has expired and who has not retired on or before December 31, 2015, or a beneficiary of a member whose approved period of participation in the plan has expired and who has not retired before death if the beneficiary is eligible to receive both a distribution of benefits payable on the death of the member and the distributions from the plan, and the member dies on or after September 1, 2015.
SECTION 2. Effective date: September 1, 2015.