BILL ANALYSIS

H.B. 1937

By: Darby

Pensions

Committee Report (Unamended)

BACKGROUND AND PURPOSE

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.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1937 amends the Government Code to authorize an applicable member of the Teacher Retirement System of Texas (TRS) or a beneficiary of such a member to revoke, on or before December 31, 2015, the member's decision to participate in the deferred retirement option plan on a form prescribed by and received by TRS not later than that date. The bill requires TRS to make account transfers and change records for a member whose decision to participate in the plan is revoked as if the member had never participated in the plan. The bill's provisions apply 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, and to 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 if the member dies on or after September 1, 2015.

EFFECTIVE DATE

September 1, 2015.