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A BILL TO BE ENTITLED
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AN ACT
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relating to contributions to, benefits from, membership in, and the |
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administration of systems and programs administered by the Teacher |
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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 22.004(b) and (d), Education Code, are |
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amended to read as follows: |
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(b) A district that does not participate in the program |
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described by Subsection (a) shall make available to its employees, |
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including employees whose coverage under the group program |
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established under Chapter 1575, Insurance Code, has been suspended, |
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group health coverage provided by a risk pool established by one or |
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more school districts under Chapter 172, Local Government Code, or |
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under a policy of insurance or group contract issued by an insurer, |
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a company subject to Chapter 842, Insurance Code, or a health |
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maintenance organization under Chapter 843, Insurance Code. The |
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coverage must meet the substantive coverage requirements of Chapter |
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1251, Subchapter A, Chapter 1364, and Subchapter A, Chapter 1366, |
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Insurance Code, and any other law applicable to group health |
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insurance policies or contracts issued in this state. The coverage |
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must include major medical treatment but may exclude experimental |
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procedures. In this subsection, "major medical treatment" means a |
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medical, surgical, or diagnostic procedure for illness or |
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injury. The coverage may include managed care or preventive care |
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and must be comparable to the basic health coverage provided under |
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Chapter 1551, Insurance Code. The [board of trustees of the Teacher
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Retirement System of Texas shall adopt rules to determine whether a
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school district's group health coverage is comparable to the basic
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health coverage specified by this subsection. The rules must
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provide for consideration of the] following factors shall be |
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considered [concerning the district's coverage] in determining |
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whether a school [the] district's coverage is comparable to the |
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basic health coverage specified by this subsection: |
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(1) the deductible amount for service provided inside |
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and outside of the network; |
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(2) the coinsurance percentages for service provided |
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inside and outside of the network; |
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(3) the maximum amount of coinsurance payments a |
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covered person is required to pay; |
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(4) the amount of the copayment for an office visit; |
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(5) the schedule of benefits and the scope of |
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coverage; |
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(6) the lifetime maximum benefit amount; and |
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(7) verification that the coverage is issued by a |
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provider licensed to do business in this state by the Texas |
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Department of Insurance or is provided by a risk pool authorized |
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under Chapter 172, Local Government Code, or that a district is |
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capable of covering the assumed liabilities in the case of coverage |
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provided through district self-insurance. |
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(d) Each district [shall report the district's compliance
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with this section to the executive director of the Teacher
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Retirement System of Texas not later than March 1 of each
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even-numbered year in the manner required by the board of trustees
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of the Teacher Retirement System of Texas.
For a district] that |
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does not participate in the program described by Subsection (a) |
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shall prepare a report addressing the district's compliance with |
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this section. The [, the] report must be available for review, |
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together with the policy or contract for the group health coverage |
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plan, at the central administrative office of each campus in the |
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district and be posted on the district's Internet website if the |
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district maintains a website, must be based on the district group |
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health coverage plan in effect during the current plan year, and |
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must include: |
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(1) appropriate documentation of: |
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(A) the district's contract for group health |
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coverage with a provider licensed to do business in this state by |
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the Texas Department of Insurance or a risk pool authorized under |
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Chapter 172, Local Government Code; or |
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(B) a resolution of the board of trustees of the |
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district authorizing a self-insurance plan for district employees |
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and of the district's review of district ability to cover the |
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liability assumed; |
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(2) the schedule of benefits; |
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(3) the premium rate sheet, including the amount paid |
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by the district and employee; |
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(4) the number of employees covered by the health |
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coverage plan offered by the district; and |
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(5) information concerning the ease of completing the |
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report[, as required by the executive director of the Teacher
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Retirement System of Texas; and
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[(6)
any other information considered appropriate by
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the executive director of the Teacher Retirement System of Texas]. |
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SECTION 2. Section 22.101(2), Education Code, is amended to |
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read as follows: |
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(2) "Employee" means an individual who: |
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(A) is employed by one of the following employers |
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in a position eligible for membership in [active, contributing
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member of] the Teacher Retirement System of Texas based solely on |
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that employment [who]: |
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(i) [(A) is employed by] a school district; |
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[,] |
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(ii) another [other] educational district |
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whose employees are members of the Teacher Retirement System of |
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Texas; [,] |
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(iii) a participating charter school; [,] |
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or |
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(iv) a regional education service center; |
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(B) [is not a retiree eligible for coverage under
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the program established under Chapter 1575, Insurance Code;
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[(C)] is not eligible for coverage authorized [by
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a group insurance program] under Chapter 1551, 1575, or 1601, |
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Insurance Code; and |
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(C) [(D)] is not [an individual] performing |
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[personal services] for the employer [a district, other educational
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district that is a member of the Teacher Retirement System of Texas,
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participating charter school, or regional education service
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center] as an independent contractor services that are used to |
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establish eligibility for health care supplementation under this |
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subchapter. |
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SECTION 3. Section 42.260(c), Education Code, is amended to |
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read as follows: |
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(c) Notwithstanding any other provision of this code, a |
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school district or participating charter school may use the |
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following amount of funds only to pay contributions under a group |
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health coverage plan for district or school employees: |
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(1) an amount equal to 75 percent of the amount |
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certified for the district or school under Subsection (b); or |
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(2) if the following amount is less than the amount |
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specified by Subdivision (1), the sum of: |
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(A) the amount determined by multiplying the |
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amount of $900 or the amount specified in the General |
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Appropriations Act for that year for purposes of the state |
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contribution under Section 1579.251 [9, Article 3.50-7], Insurance |
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Code, by the number of district or school employees who participate |
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in a group health coverage plan provided by or through the district |
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or school; and |
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(B) the difference between the amount necessary |
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for the district or school to comply with Section 1581.052 [Section
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3, Article 3.50-9], Insurance Code, for the school year and the |
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amount the district or school is required to use to provide health |
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coverage under Section 1581.051, Insurance Code, [2 of that
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article] for that year. |
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SECTION 4. Sections 821.001(4) and (6), Government Code, |
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are amended to read as follows: |
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(4) "Annual compensation" means the compensation to a |
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member of the retirement system for service during a 12-month |
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period determined by the retirement system [school year] that is |
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reportable and subject to contributions as provided by Section |
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822.201. |
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(6) "Employee" means a person who is employed, as |
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determined by the retirement system, on other than a temporary |
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basis by a single [an] employer for at least one-half time at a |
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regular rate of pay comparable to that of other persons employed in |
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similar positions. |
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SECTION 5. Section 822.001, Government Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) Membership in the retirement system may only be |
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established through employment with a single employer on at least a |
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half-time basis. |
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SECTION 6. Section 822.003(c), Government Code, is amended |
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to read as follows: |
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(c) A person does not terminate membership under Subsection |
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(a)(4) if the person: |
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(1) is performing military service creditable in the |
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retirement system; |
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(2) is on leave of absence from employment in a public |
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school; [or] |
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(3) is earning service credit in another retirement |
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system covered by Chapter 803 or 805; or |
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(4) is employed by an employer covered by the |
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retirement system and is not eligible for membership in the |
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retirement system because the person is employed on less than a |
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half-time basis. |
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SECTION 7. Section 822.005(c), Government Code, is amended |
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to read as follows: |
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(c) A person is not entitled to withdraw contributions if |
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the person [who] is employed, has applied for employment, or has |
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received a promise of employment with an employer [, in a position] |
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covered by the retirement system. |
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SECTION 8. Section 822.201(b), Government Code, is amended |
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to read as follows: |
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(b) "Salary and wages" as used in Subsection (a) means: |
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(1) normal periodic payments of money for service the |
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right to which accrues on a regular basis in proportion to the |
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service performed; |
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(2) amounts by which the member's salary is reduced |
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under a salary reduction agreement authorized by Chapter 610; |
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(3) amounts that would otherwise qualify as salary and |
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wages under Subdivision (1) but are not received directly by the |
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member pursuant to a good faith, voluntary written salary reduction |
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agreement in order to finance payments to a deferred compensation |
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or tax sheltered annuity program specifically authorized by state |
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law or to finance benefit options under a cafeteria plan qualifying |
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under Section 125 of the Internal Revenue Code of 1986, if: |
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(A) the program or benefit options are made |
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available to all employees of the employer; and |
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(B) the benefit options in the cafeteria plan are |
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limited to one or more options that provide deferred compensation, |
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group health and disability insurance, group term life insurance, |
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dependent care assistance programs, or group legal services plans; |
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(4) performance pay awarded to an employee by a school |
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district as part of a total compensation plan approved by the board |
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of trustees of the district and meeting the requirements of |
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Subsection (e); |
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(5) the benefit replacement pay a person earns under |
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Subchapter H, Chapter 659, except as provided by Subsection (c); |
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(6) stipends paid to teachers in accordance with |
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Section 21.410, 21.411, 21.412, or 21.413, Education Code; |
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(7) amounts by which the member's salary is reduced or |
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that are deducted from the member's salary as authorized by |
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Subchapter J, Chapter 659; |
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(8) a merit salary increase made under Section 51.962, |
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Education Code; |
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(9) amounts received under the relevant parts of the |
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educator excellence awards program under Subchapter O, Chapter 21, |
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Education Code, or a mentoring program under Section 21.458, |
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Education Code, that authorize compensation for service; |
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(10) salary amounts designated as health care |
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supplementation by an employee under Subchapter D, Chapter 22, |
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Education Code; and |
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(11) to the extent required by Sections 3401(h) and |
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414(u)(12) [414(u)(2)], Internal Revenue Code of 1986, |
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differential wage payments received by an individual from an |
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employer on or after January 1, 2009, while the individual is |
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performing qualified military service as defined by Section 414(u), |
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Internal Revenue Code of 1986. |
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SECTION 9. Section 823.006, Government Code, is amended to |
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read as follows: |
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Sec. 823.006. LIMITS ON ANNUAL CONTRIBUTIONS FOR PURCHASE |
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OF SERVICE CREDIT. Notwithstanding any other provision of this |
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subtitle, the retirement system shall [may] limit the purchase of |
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service credit to the extent required by applicable limits on the |
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amount of annual contributions a participant may make to a |
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qualified plan under Sections 401(a) and 415(c), Internal Revenue |
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Code of 1986. |
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SECTION 10. Section 823.401, Government Code, is amended by |
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amending Subsection (f) and adding Subsection (f-1) to read as |
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follows: |
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(f) Except as provided by Subsection (f-1), the [The] amount |
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of service credit a member may establish under this section may not |
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exceed the lesser of the number of years of membership service |
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credit the member has in the retirement system for actual service in |
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public schools or 15 years. |
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(f-1) A member may not purchase more than five years of |
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service credit under this section for service credit considered |
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nonqualified service credit under Section 415(n)(3), Internal |
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Revenue Code of 1986. |
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SECTION 11. Sections 824.007(a) and (b), Government Code, |
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are amended to read as follows: |
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(a) In this section, "program administrator" means the |
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person who administers: |
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(1) the uniform program under Section 1601.102, |
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Insurance Code; or |
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(2) the group program under Chapter 1575, Insurance |
|
Code. |
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(b) An individual eligible to participate in the uniform |
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program under Section 1601.102, Insurance Code, or the group |
|
program under Chapter 1575, Insurance Code, may authorize the |
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retirement system to deduct the amount of the contribution and any |
|
other qualified health insurance premium from the individual's |
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regular monthly service or disability retirement annuity payment if |
|
the individual is: |
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(1) eligible to receive a monthly annuity from the |
|
retirement system greater than the amount of the authorized |
|
deduction; and |
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(2) eligible under Section 402(l), Internal Revenue |
|
Code of 1986, or a similar law, to elect to exclude from annual |
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gross income up to $3,000 of distributions from an eligible |
|
retirement plan used for qualified health insurance premiums. |
|
SECTION 12. Section 824.1012(a), Government Code, is |
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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 |
|
in this section. If the beneficiary of the optional annuity was |
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[is] the spouse [or former spouse] of the retiree when the retiree |
|
designated the spouse as beneficiary of the optional annuity, to |
|
change from the optional annuity to a standard retirement annuity |
|
under this subsection, the spouse or former spouse, as applicable, |
|
who was designated [,] the beneficiary of the optional annuity must |
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sign a notarized consent to the change[,] or a court with |
|
jurisdiction over the marriage of [in a divorce proceeding
|
|
involving] the retiree and beneficiary must approve or order the |
|
change [in the divorce decree or acceptance of a property
|
|
settlement]. The change in plan selection takes effect when the |
|
retirement system receives the request to change the plan, provided |
|
the signed consent form or court order, as applicable, is |
|
subsequently received by the retirement system [it]. |
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SECTION 13. Sections 824.1013(b) and (c-1), Government |
|
Code, are amended to read as 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 of the retiree at the time of the |
|
designation: |
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(1) the spouse must give written, notarized consent to |
|
the change; |
|
(2) if the parties divorce after the designation, the |
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former spouse who was designated beneficiary must give written, |
|
notarized consent to the change; or |
|
(3) a court with jurisdiction over the marriage must |
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approve or order [have ordered] the change. |
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(c-1) Notwithstanding Subsection (c), a beneficiary |
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designated under this section is entitled on the retiree's death to |
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receive monthly payments of the survivor's portion of the retiree's |
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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: |
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(1) the sole beneficiary of that trust; or |
|
(2) an individual who at the time of the retiree's |
|
death is the sole beneficiary of that trust. |
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SECTION 14. Section 825.103, Government Code, is amended by |
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adding Subsection (h) to read as follows: |
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(h) The board of trustees may accept on behalf of the |
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retirement system gifts of money, services, or other property from |
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any public or private source. |
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SECTION 15. Section 825.115, Government Code, is amended by |
|
adding Subsection (f) to read as follows: |
|
(f) Notwithstanding any other law, Chapter 551 does not |
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apply to an assembly of the board of trustees or one of the board's |
|
committees while attending a summit, conference, convention, |
|
workshop, or other event held for educational purposes if the |
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assembly or committee does not deliberate, vote, or take action on a |
|
specific matter of public business or public policy over which the |
|
board of trustees or a committee of the board has supervision or |
|
control. This subsection does not apply to a regular, special, or |
|
emergency meeting of the board of trustees scheduled or called |
|
under the board's bylaws. |
|
SECTION 16. Section 825.208(b), Government Code, is amended |
|
to read as follows: |
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(b) The retirement system is exempt from Sections 651.002 |
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and 651.004, Chapter 660, [and] Subchapter K, Chapter 659, and |
|
Subchapter A, Chapter 661, to the extent the board of trustees |
|
determines an exemption is necessary for the performance of |
|
fiduciary duties. |
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SECTION 17. Section 825.212, Government Code, is amended by |
|
adding Subsection (d) to read as follows: |
|
(d) Notwithstanding any other law, all personal financial |
|
disclosures made by employees of the retirement system under this |
|
section, including a rule or policy adopted under this section, are |
|
confidential and excepted from the requirements of Section 552.021. |
|
SECTION 18. Section 825.3011(b), Government Code, is |
|
amended to read as follows: |
|
(b) Chapter 551 does not require the board of trustees to |
|
confer with one or more employees, consultants, or legal counsel of |
|
the retirement system or with a third party, including |
|
representatives of an issuer of restricted securities or a private |
|
investment fund, in an open meeting if the only purpose of the |
|
conference is to receive information from or question the |
|
employees, consultants, or legal counsel of the retirement system |
|
or the third party relating to: |
|
(1) [an] investment transactions or [a] potential |
|
investment transactions if, before conducting the closed meeting, a |
|
majority of [by] the board of trustees in an open meeting vote that |
|
deliberating or conferring in an open meeting would have a |
|
detrimental effect on the position of the retirement system in |
|
negotiations with third parties or put the retirement system at a |
|
competitive disadvantage in the market [in a private investment
|
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fund]; or |
|
(2) the purchase, holding, or disposal of restricted |
|
securities or a private investment fund's investment in restricted |
|
securities if, under Section 552.143, the information discussed |
|
would be confidential and excepted from the requirements of Section |
|
552.021 if the information was included in the records of a |
|
governmental body. |
|
SECTION 19. Section 825.306, Government Code, is amended to |
|
read as follows: |
|
Sec. 825.306. CREDITING SYSTEM ASSETS. (a) The assets of |
|
the retirement system shall be maintained and reported in a manner |
|
that reflects the source of the assets or the purpose for which the |
|
assets are held, using appropriate ledgers and subledgers, in |
|
accordance with generally accepted accounting principles |
|
prescribed by the Governmental Accounting Standards Board or its |
|
successor. In addition, the maintenance and reporting of the |
|
assets must be in compliance with applicable tax law and consistent |
|
with any fiduciary duty owed with respect to the trust. In the |
|
alternative, the assets may be credited, according to the purpose |
|
for which they are held, to one of the following accounts: |
|
(1) member savings account; |
|
(2) state contribution account; |
|
(3) retired reserve account; |
|
(4) interest account; |
|
(5) expense account; or |
|
(6) deferred retirement option account. |
|
(b) Notwithstanding any other law, a requirement to deposit |
|
in or transfer assets from one of the accounts described under |
|
Subsection (a) is satisfied by maintaining and reporting the assets |
|
in accordance with that subsection. |
|
SECTION 20. Section 825.312(a), Government Code, is amended |
|
to read as follows: |
|
(a) The retirement system shall deposit in the expense |
|
account: |
|
(1) money transferred from the interest account under |
|
Section 825.313(d); and |
|
(2) money received from the Texas Public School |
|
Retired Employees Group Benefits [Insurance] Program for service |
|
performed for the program by the retirement system. |
|
SECTION 21. Section 825.403, Government Code, is amended by |
|
amending Subsections (h) and (j) and adding Subsections (h-1), |
|
(h-2), (h-3), and (h-4) to read as follows: |
|
(h) Subject to Subsections (h-1), (h-2), (h-3), and (h-4), |
|
if [If] deductions were previously required but not paid, the |
|
retirement system may not provide benefits based on the service or |
|
compensation unless the deposits required by this section have been |
|
fully paid. |
|
(h-1) If, due to an error, an employer does not report to the |
|
retirement system all service rendered or compensation paid as |
|
required by this section and the error relates to service rendered |
|
or compensation paid in: |
|
(1) the current school year, the error may be |
|
corrected by submitting to the retirement system in the manner |
|
prescribed by the retirement system: |
|
(A) a corrected report; and |
|
(B) contributions on the unreported service or |
|
compensation, plus interest at the rate provided under Section |
|
825.408, computed from the report month the service or compensation |
|
should have been reported to the retirement system to the date the |
|
contributions related to that service or compensation are submitted |
|
to the retirement system; or |
|
(2) the preceding school year, the error may be |
|
corrected if the following requirements are met: |
|
(A) the person for whom contributions are due is |
|
employed by the employer and the employer owes the person |
|
compensation payable in the current year; |
|
(B) the employer requests from the retirement |
|
system a waiver of the documentation requirements under Section |
|
825.408(a) and the request is granted by the retirement system; |
|
(C) the employer, in the manner prescribed by the |
|
retirement system: |
|
(i) submits to the retirement system member |
|
contributions on the unreported service or compensation in the |
|
manner provided by Section 825.409 by making the corresponding |
|
reduction in the compensation owed to the person; |
|
(ii) submits to the retirement system any |
|
employer contributions due on the compensation; |
|
(iii) pays the interest on the |
|
contributions described by Subparagraphs (i) and (ii) at the rate |
|
provided by Section 825.408; and |
|
(iv) corrects the records relating to the |
|
report months in which the service or compensation are at issue; and |
|
(D) the error is corrected in accordance with |
|
this subsection not later than the final day of the school year |
|
following the school year in which the service or compensation at |
|
issue was rendered or paid, as applicable. |
|
(h-2) On receipt of the member and employer contributions |
|
and the corrected reports under Subsection (h-1), the retirement |
|
system shall credit the service or compensation, as applicable, to |
|
the person. |
|
(h-3) The retirement system may not credit service or |
|
compensation to a person in the manner provided by Subsections |
|
(h-1) and (h-2) for service rendered or compensation received by |
|
the person in any school year before the preceding school year. If |
|
service is rendered or compensation paid by a person in a school |
|
year before the preceding school year, the [The] person's employer |
|
at the time the unreported service was rendered or compensation was |
|
paid must verify the service or compensation as required by |
|
Subsection (j) and the person must submit the verification to the |
|
retirement system not later than five years after the end of the |
|
school year in which the service was rendered or compensation was |
|
paid. To establish the service or compensation credit, the person |
|
must deposit with the retirement system the actuarial present |
|
value, at the time of deposit, of the additional standard |
|
retirement annuity benefits that would be attributable to the |
|
purchase of service or compensation credit under this section, |
|
based on rates and tables recommended by the retirement system's |
|
actuary and adopted by the board of trustees. |
|
(h-4) The board of trustees shall: |
|
(1) prescribe terms for payments under Subsections |
|
(h-1), (h-2), and (h-3) [this subsection]; and |
|
(2) credit the person for prior service and |
|
compensation to which the person is entitled under this subtitle. |
|
(j) Except as otherwise provided by this section, if [If] |
|
deductions were previously required but not paid, proof of service |
|
satisfactory to the retirement system must be made before service |
|
credit is granted or payment for the credit is required. Proof of |
|
service is sufficient if the person's employer documents that the |
|
employer has records made at or near the time of service that |
|
establish the amount of time worked and salary earned. An |
|
affidavit based on memory without written records made at or near |
|
the time of service is not sufficient documentation for the |
|
establishment of service credit. The retirement system may audit |
|
records used for documentation under this subsection. A person who |
|
does not obtain proof of service as required by this section may not |
|
establish the service or compensation credit. |
|
SECTION 22. Section 825.408(a), Government Code, is amended |
|
to read as follows: |
|
(a) An employer 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 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 prescribed by this |
|
subsection and a late fee in an amount determined by the retirement |
|
system, which may include an amount for each day the documentation |
|
is submitted after the deadline imposed by this subsection |
|
[compounded monthly]. The rate of interest is the rate established |
|
under Section 825.313(b)(1), plus two percent. Interest required |
|
under this subsection [section] is creditable to the interest |
|
account. The [On request, the] retirement system may grant a waiver |
|
of the deadline imposed by this subsection based on an employer's |
|
financial or technological resources. |
|
SECTION 23. Section 825.4092(c), Government Code, is |
|
amended to read as follows: |
|
(c) Except as provided by Subsection (e), each payroll |
|
period, for each retiree who is enrolled in the Texas Public School |
|
Employees Group Insurance Program under Chapter 1575, Insurance |
|
Code, the employer who reports the employment of a retiree shall |
|
contribute to the trust fund established under that chapter an |
|
amount established by the retirement system. In determining the |
|
amount to be contributed by the employer under this subsection, the |
|
retirement system shall consider [any difference between] the |
|
amount a [the] retiree is required to pay for the retiree and any |
|
enrolled dependents to participate in the group program and the |
|
[full] cost of the retiree's and enrolled dependents' participation |
|
in the group program[, as determined by the retirement system]. If |
|
more than one employer reports the retiree to the retirement system |
|
during a month, the amount of the required payment shall be prorated |
|
among the employers. |
|
SECTION 24. Section 825.410(a), Government Code, is amended |
|
to read as follows: |
|
(a) Payments to establish special service credit as |
|
authorized under this subtitle, other than service credit that may |
|
only be determined and paid for at the time of retirement such as |
|
unused leave as authorized by Section 823.403, may be made in a lump |
|
sum by a monthly payroll deduction in an amount not less than |
|
one-twelfth of the contribution required to establish at least one |
|
year of service credit, or in equal monthly installments over a |
|
period not to exceed the lesser of the number of years of credit to |
|
be purchased or 60 months. Installment and payroll deduction |
|
payments are due on the first day of each calendar month in the |
|
payment period. If an installment or payroll deduction payment is |
|
not made in full within 60 days after the due date, the retirement |
|
system may refund all installment or payroll deduction payments |
|
less fees paid on the lump sum due when installment or payroll |
|
deduction payments began. Partial payment of an installment or |
|
payroll deduction payment may be treated as nonpayment. A check |
|
returned for insufficient funds or a closed account shall be |
|
treated as nonpayment. When two or more consecutive monthly |
|
payments have a returned check, a refund may be made. [If the
|
|
retirement system refunds payments pursuant to this subsection, the
|
|
member is not permitted to use the installment method of payment or
|
|
the payroll deduction method, as applicable, for the same service
|
|
for three years after the date of the refund.
A member who requests
|
|
and receives a refund of installment or payroll deduction payments
|
|
also is not permitted to use the same method of payment for the same
|
|
service for three years after the date of the refund.] |
|
SECTION 25. Section 825.504, Government Code, is amended by |
|
amending Subsection (c) and adding Subsection (d) to read as |
|
follows: |
|
(c) Each reporting district shall cooperate with the |
|
retirement system in ascertaining: |
|
(1) a member's eligibility for membership in the |
|
retirement system; |
|
(2) a member's annual earnings, employment status, and |
|
hours and days worked during any year; and |
|
(3) any other information the retirement system |
|
requires from the employer to administer the retirement system's |
|
benefit plan. |
|
(d) The board of trustees by rule may prescribe the form of |
|
and procedures for filing certifications required by this section. |
|
SECTION 26. Section 825.505, Government Code, is amended to |
|
read as follows: |
|
Sec. 825.505. AUDITS. For the purpose of determining the |
|
propriety of employer reports, including demographic data, and |
|
contributions or credits, the records of an employer concerning the |
|
employment and compensation of all its personnel are subject to |
|
audit and examination, in the offices of the employer during |
|
regular working hours, by representatives of the retirement system |
|
designated to conduct the audit and examination. |
|
SECTION 27. Section 825.508(b), Government Code, is amended |
|
to read as follows: |
|
(b) The system must honor a power of attorney executed in |
|
accordance with Chapter 752, Estates [Chapter XII, Section 490,
|
|
Texas Probate] Code. |
|
SECTION 28. Section 825.509(b-1), Government Code, is |
|
amended to read as follows: |
|
(b-1) Notwithstanding Subsection (b)(3), with respect to a |
|
distribution made on or after January 1, 2002, an otherwise |
|
eligible portion of a rollover distribution that consists of |
|
after-tax employee contributions not includable in gross income is |
|
an eligible rollover distribution for purposes of this section. The |
|
eligible portion may be transferred only: |
|
(1) to an individual retirement account or annuity |
|
described by Section 408(a) or (b), Internal Revenue Code of 1986; |
|
(2) to a qualified plan described by Section 403(a), |
|
Internal Revenue Code of 1986; |
|
(3) for distributions occurring on or after January 1, |
|
2007, to a qualified plan described by Section 401(a), Internal |
|
Revenue Code of 1986, if the plan separately accounts for: |
|
(A) the amounts transferred and the earnings on |
|
amounts transferred; and |
|
(B) the portion of the distribution that is |
|
includable in gross income and the portion of the distribution that |
|
is not includable in gross income; or |
|
(4) to an annuity contract described by Section |
|
403(b), Internal Revenue Code of 1986, that agrees to separately |
|
account for amounts transferred and earnings on amounts |
|
transferred, including for the portion of the distribution that is |
|
includable in gross income and the portion of the distribution that |
|
is not includable in gross income. |
|
SECTION 29. Section 825.515(a), Government Code, is amended |
|
to read as follows: |
|
(a) At least annually, the retirement system shall acquire |
|
and maintain records identifying members and specifying the types |
|
of positions they hold as members. Employers shall provide to the |
|
retirement system information specifying the type of position held |
|
by each member as Administrative/Professional, Teacher/Full-Time |
|
Librarian, Support, Bus Driver, Food Service Worker, or Peace |
|
Officer. Employers shall also provide to the retirement system the |
|
work e-mail address for each member. For each member identified as |
|
a Peace Officer, the records must specify whether the member is an |
|
employee of an institution of higher education or of a public school |
|
that is not an institution of higher education. An employer shall |
|
provide the information required by this section in the form and |
|
manner specified by the retirement system. |
|
SECTION 30. Section 830.201(h), Government Code, is amended |
|
to read as follows: |
|
(h) Before November 2 of each even-numbered year, the Texas |
|
Higher Education Coordinating Board [board of trustees], in |
|
coordination with the Legislative Budget Board, shall certify to |
|
the comptroller for review and adoption an estimate of the amount |
|
necessary to pay the state's contributions to the retirement system |
|
for the following biennium. For qualifying employees under |
|
Subsection (g)(1), the Texas Higher Education Coordinating Board |
|
[board of trustees] shall include only the amount payable by the |
|
state under Subsection (g)(1) in determining the amount to be |
|
certified. |
|
SECTION 31. The heading to Chapter 1575, Insurance Code, is |
|
amended to read as follows: |
|
CHAPTER 1575. TEXAS PUBLIC SCHOOL RETIRED EMPLOYEES GROUP BENEFITS |
|
PROGRAM |
|
SECTION 32. Section 1575.002(4), Insurance Code, is amended |
|
to read as follows: |
|
(4) "Group program" means the Texas Public School |
|
Retired Employees Group Benefits [Insurance] Program authorized by |
|
this chapter. |
|
SECTION 33. Section 1575.004(a), Insurance Code, is amended |
|
to read as follows: |
|
(a) In this chapter, "retiree" means: |
|
(1) an individual not eligible, at the time of the |
|
individual's retirement, for coverage under a plan provided under |
|
Chapter 1551 or 1601 who: |
|
(A) has taken a service retirement under the |
|
Teacher Retirement System of Texas after September 1, 2005, with at |
|
least 10 years of service credit in the system, which may include up |
|
to five years of military service credit, but which may not include |
|
any other service credit purchased for equivalent or special |
|
service credit, and either: |
|
(i) the sum of the retiree's age and years |
|
of service credit in the retirement system equals or exceeds 80 at |
|
the time of retirement, regardless of whether the retiree had a |
|
reduction in the retirement annuity for early age; or |
|
(ii) the retiree has 30 or more years of |
|
service credit in the retirement system at the time of retirement; |
|
(B) has taken a service retirement under the |
|
Teacher Retirement System of Texas after September 1, 2004, but on |
|
or before August 31, 2005, and on September 1, 2005, either: |
|
(i) meets the requirements for eligibility |
|
for the group program for coverage as a retiree as those |
|
requirements existed on August 31, 2004; |
|
(ii) meets the requirements of Paragraph |
|
(A); or |
|
(iii) is enrolled in the group program and |
|
was enrolled in the group program on August 31, 2005; or |
|
(C) has taken a service retirement under the |
|
Teacher Retirement System of Texas on or before August 31, 2004, and |
|
who is enrolled in the group program on August 31, 2005; |
|
(2) an individual who: |
|
(A) has taken a disability retirement under the |
|
Teacher Retirement System of Texas; and |
|
(B) is entitled to receive monthly benefits from |
|
the Teacher Retirement System of Texas; or |
|
(3) an individual who: |
|
(A) has taken a disability retirement under the |
|
Teacher Retirement System of Texas; |
|
(B) has at least 10 years of service credit in the |
|
Teacher Retirement System of Texas on the date of disability |
|
retirement, as determined under Section 824.304, Government Code; |
|
and |
|
(C) is not entitled to receive monthly benefits |
|
from the Teacher Retirement System of Texas because those benefits |
|
have been suspended in accordance with Section 824.310, Government |
|
Code. |
|
SECTION 34. Section 1575.153, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1575.153. BASIC COVERAGE. A retiree who applies for |
|
coverage during an enrollment period may not be denied coverage in a |
|
basic plan provided under this chapter unless: |
|
(1) the retiree's coverage is suspended under Section |
|
1575.165; or |
|
(2) the trustee finds under Subchapter K that the |
|
retiree defrauded or attempted to defraud the group program. |
|
SECTION 35. Section 1575.155(a), Insurance Code, is amended |
|
to read as follows: |
|
(a) Subject to Section 1575.165, a [A] retiree |
|
participating in the group program is entitled to secure for the |
|
retiree's dependents group coverage provided for the retiree under |
|
this chapter, as determined by the trustee. |
|
SECTION 36. Section 1575.158(a), Insurance Code, is amended |
|
to read as follows: |
|
(a) Subject to Sections [Section] 1575.1581 and 1575.165, |
|
the trustee may, in addition to providing a basic plan, contract for |
|
and make available an optional group health benefit plan for |
|
retirees, dependents, surviving spouses, or surviving dependent |
|
children. |
|
SECTION 37. Subchapter D, Chapter 1575, Insurance Code, is |
|
amended by adding Section 1575.165 to read as follows: |
|
Sec. 1575.165. SUSPENSION AND REACTIVATION OF COVERAGE |
|
UNDER THE GROUP PROGRAM. (a) Coverage under the group program for a |
|
retiree and the retiree's dependents shall be suspended during any |
|
period the retiree is: |
|
(1) eligible for and elects health benefit coverage |
|
under a plan provided under Chapter 1551 or 1601; or |
|
(2) employed by a public school and is, as a result of |
|
that employment, eligible for health benefit coverage offered by |
|
the public school. |
|
(b) During the period a retiree's coverage under the group |
|
program is suspended under this section, the retiree and the |
|
retiree's dependents shall remain enrolled in the group program. |
|
(c) A retiree and the retiree's eligible dependents whose |
|
coverage under the group program is suspended under this section |
|
shall be reactivated at the time the retiree: |
|
(1) ceases to be covered under a plan provided under |
|
Chapter 1551 or 1601, if the retiree is subject to Subsection |
|
(a)(1); or |
|
(2) terminates employment with or ceases to be |
|
eligible for health benefit coverage offered by a public school, if |
|
the retiree is subject to Subsection (a)(2). |
|
(d) The trustee shall adopt rules necessary to implement |
|
this section. |
|
SECTION 38. Section 1575.204(b), Insurance Code, is amended |
|
to read as follows: |
|
(b) Each state fiscal year, each employer who reports to the |
|
retirement system under Section 824.6022, Government Code, the |
|
employment of a retiree who is enrolled in and receiving coverage |
|
under the group program shall contribute to the fund an amount |
|
established by the trustee. In determining the amount to be |
|
contributed by the employer under this subsection, the trustee |
|
shall consider the [difference, if any, between the contribution] |
|
amount a [that the reported] retiree is required to pay for the |
|
retiree and any enrolled dependents to participate in the group |
|
program and the [full] cost of all retirees' [the retiree's] and |
|
enrolled dependents' participation in the group program [, as
|
|
determined by the trustee]. If more than one employer reports the |
|
retiree to the retirement system during a month, the amount of the |
|
contribution required by this subsection shall be prorated among |
|
the employers. The amounts required to be paid under this |
|
subsection are not required to be paid by a reporting employer for a |
|
retiree who retired from the retirement system before September 1, |
|
2005. |
|
SECTION 39. Section 1575.207, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1575.207. INTEREST ASSESSED ON LATE PAYMENT OF |
|
DEPOSITS BY EMPLOYING PUBLIC SCHOOLS. (a) An employing public |
|
school that does not remit to the trustee all contributions |
|
required by this subchapter before the seventh day after the last |
|
day of the month shall pay to the fund: |
|
(1) the contributions; and |
|
(2) interest on the unpaid amounts at the annual rate |
|
of six percent [compounded monthly]. |
|
(b) The [On request, the] trustee may grant a waiver of the |
|
deadline imposed by this section [based on an employing public
|
|
school's financial or technological resources]. |
|
SECTION 40. Section 1579.003, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1579.003. DEFINITION OF EMPLOYEE. In this chapter, |
|
"employee" means an individual [a participating member of the
|
|
Teacher Retirement System of Texas] who is regularly employed by a |
|
participating entity for an average of at least 10 hours per week |
|
and who is not receiving coverage from a program under Chapter 1551, |
|
1575, or 1601. The term does not include an individual performing |
|
personal services as an independent contractor. |
|
SECTION 41. Section 1579.004, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1579.004. DEFINITION OF DEPENDENT. In this chapter, |
|
"dependent" means: |
|
(1) a spouse of an [a full-time employee or part-time] |
|
employee; |
|
(2) a child of an [a full-time or part-time] employee |
|
if the child is younger than 26 years of age, including: |
|
(A) an adopted child or child who is lawfully |
|
placed for adoption; |
|
(B) a foster child, stepchild, or other child who |
|
is in a regular parent-child relationship; and |
|
(C) a natural child; |
|
(3) an [a full-time or part-time] employee's natural |
|
child, adopted child, foster child, stepchild, or other child who |
|
is in a regular parent-child relationship and who lives with or has |
|
his or her care provided by the employee or the surviving spouse on |
|
a regular basis, regardless of the child's age, if the child has a |
|
mental disability or is physically incapacitated to an extent that |
|
the child is dependent on the employee or surviving spouse for care |
|
or support, as determined by the board of trustees; and |
|
(4) notwithstanding any other provision of this code, |
|
any other dependent of an [a full-time or part-time] employee |
|
specified by rules adopted by the board of trustees. |
|
SECTION 42. Section 1579.006(a), Insurance Code, is amended |
|
to read as follows: |
|
(a) The following are exempt from execution, attachment, |
|
garnishment, or any other process: |
|
(1) benefit payments, including optional benefit |
|
payments; |
|
(2) contributions of [active] employees, the state, |
|
and a participating entity, and any other contributions; |
|
(3) any rights, benefits, or payments accruing to any |
|
person under this chapter; and |
|
(4) any money in the Texas school employees uniform |
|
group coverage trust fund. |
|
SECTION 43. Section 1579.202, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1579.202. ELIGIBLE EMPLOYEES. (a) Except as provided |
|
by Section 1579.204, participation in the program is limited to |
|
employees of participating entities who are full-time or [employees
|
|
and to] part-time employees [who are participating members in the
|
|
Teacher Retirement System of Texas]. |
|
(b) An employee described by Subsection (a) who applies for |
|
coverage during an open enrollment period prescribed by the trustee |
|
is automatically covered by the catastrophic care coverage plan |
|
unless the employee: |
|
(1) [specifically waives coverage under this chapter;
|
|
[(2)] selects a higher tier coverage plan; or |
|
(2) [(3)] is expelled from the program. |
|
SECTION 44. Section 1579.204, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1579.204. [CERTAIN] PART-TIME EMPLOYEES. |
|
Notwithstanding any other provision of this chapter, a [A] |
|
part-time employee of a participating entity [who is not a
|
|
participating member in the Teacher Retirement System of Texas] is |
|
eligible to participate in the program only if the employee pays all |
|
of the premiums and other costs associated with the health coverage |
|
plan selected for [by] the employee and the employee's dependents. |
|
SECTION 45. Section 1579.255, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1579.255. INTEREST ASSESSED ON LATE PAYMENT OF |
|
CONTRIBUTIONS BY PARTICIPATING ENTITIES. (a) A participating |
|
entity that does not remit to the trustee all contributions |
|
required by this subchapter before the 16th [seventh] day [after
|
|
the last day] of the month shall pay to the Texas school employees |
|
uniform group coverage trust fund: |
|
(1) the contributions; and |
|
(2) interest on the unpaid amounts at the annual rate |
|
of six percent [compounded monthly]. |
|
(b) The [On request, the] trustee may grant a waiver of the |
|
deadline imposed by this section [based on a participating entity's
|
|
financial or technological resources]. |
|
SECTION 46. Section 1581.001(1), Insurance Code, is amended |
|
to read as follows: |
|
(1) "Participating employee" means an employee of a |
|
school district, other educational district whose employees are |
|
members of the Teacher Retirement System of Texas, participating |
|
charter school, or regional education service center who |
|
participates in a group health coverage plan provided by or through |
|
the district, school, or service center, including an employee |
|
whose coverage under the group program established under Chapter |
|
1575 has been suspended. |
|
SECTION 47. Subchapter B, Chapter 1581, Insurance Code, is |
|
amended by adding Section 1581.055 to read as follows: |
|
Sec. 1581.055. REPORTING REQUIREMENT. Each school district |
|
and other educational district whose employees are members of the |
|
Teacher Retirement System of Texas, participating charter school, |
|
and regional education service center shall annually report to the |
|
Teacher Retirement System of Texas, under rules adopted by the |
|
retirement system, the monthly amount each contributes toward the |
|
payment of health coverage under this chapter. |
|
SECTION 48. The following provisions are repealed: |
|
(1) Section 825.404(b-1), Government Code; and |
|
(2) Section 1579.106(c), Insurance Code. |
|
SECTION 49. Section 821.001(4), Government Code, as amended |
|
by this Act, applies only to a member of the Teacher Retirement |
|
System of Texas who retires or dies on or after the effective date |
|
of this Act. |
|
SECTION 50. Section 825.4092(c), Government Code, as |
|
amended by this Act, applies to a retiree of the Teacher Retirement |
|
System of Texas regardless of whether the person retired from |
|
employment before, on, or after the effective date of this Act. |
|
SECTION 51. The changes in law made by this Act apply only |
|
to health benefit plans provided under Chapters 1575, 1579, and |
|
1581, Insurance Code, beginning with the first plan year that |
|
begins on or after September 1, 2015. A plan year that begins before |
|
September 1, 2015, is governed by the law as it existed immediately |
|
before that date and that law is continued in effect for that |
|
purpose. |
|
SECTION 52. This Act takes effect September 1, 2015. |