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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. SECTION 821.001(6), Government Code, is amended |
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to read as follows: |
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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 [an] one employer for at least one-half time at a regular |
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rate of pay comparable to that of other persons employed in similar |
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positions. |
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SECTION 2. Section 822.001, Government Code, is amended by |
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adding Subsection (g) to read as follows: |
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(g) Eligibility for membership in the retirement system |
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must be established through employment with a single employer. |
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SECTION 3. Section 822.201(b)(11), Government Code, is |
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amended to read as follows: |
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(11) to the extent required by Sections 3401(h) and |
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414(u)(12[2]), Internal Revenue Code of 1986, differential wage |
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payments received by an individual from an employer on or after |
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January 1, 2009, while the individual is performing qualified |
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military service as defined by Section 414(u), Internal Revenue |
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Code of 1986. |
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SECTION 4. Section 823.006, Government Code, is amended to |
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read as follows: |
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Notwithstanding any other provision of this subtitle, the |
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retirement system shall [may] limit the purchase of service credit |
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to the extent required by applicable limits on the amount of annual |
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contributions a participant may make to a qualified plan under |
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Sections 401(a) and 415(c), Internal Revenue Code of 1986. |
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SECTION 5. Section 823.401, Government Code, is amended by |
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amending Subsection (f) to read as follows: |
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(f) The amount of service credit a member may establish |
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under this section may not exceed the lesser of the number of years |
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of membership service credit the member has in the retirement |
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system for actual service in public schools or 15 years; provided, |
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however, that if any service credit established by a member under |
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this section is considered nonqualified service credit, the amount |
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of nonqualified service credit a member may establish may not |
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exceed 5 years. |
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SECTION 6. Section 824.1012, Government Code, is amended by |
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amending Subsection (a) 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. If the beneficiary of the optional annuity was [is] |
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the spouse [or former spouse] of the retiree[,] when the retiree |
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designated the spouse as beneficiary of the optional annuity, to |
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change from the optional annuity to a standard retirement annuity, |
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the spouse or former spouse who was designated the beneficiary of |
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the optional annuity must sign a notarized consent to the change, or |
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a court with jurisdiction over the marriage of [a divorce
|
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proceeding involving] the retiree and beneficiary must approve or |
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order the change [in the divorce decree or acceptance of a property
|
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settlement]. The change in plan selection takes effect when the |
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retirement system receives the request to change retirement |
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plan,[it] provided the signed consent form or court order are |
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subsequently received. |
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SECTION 7. Section 824.1013, Government Code, is amended by |
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amending Subsections (b) and (c-1) 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 |
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designation: |
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(1) the spouse must give written, notarized consent to |
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the change; |
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(2) if the parties divorce 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) a court with jurisdiction over the marriage must |
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approve or [have] order[ed] the change. |
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(c) A beneficiary designated under this section is entitled |
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on the retiree's death to receive monthly payments of the survivor's |
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portion of the retiree's optional retirement annuity for the |
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shorter of: |
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(1) the remainder of the life expectancy of the |
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beneficiary designated as of the effective date of the retiree's |
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retirement; or |
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(2) the remainder of the new beneficiary's life. |
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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 |
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life if the beneficiary designated at the time of the retiree's |
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retirement is a trust and the beneficiary designated under this |
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section is the sole beneficiary of that trust or the beneficiary |
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designated at the time of the retiree's retirement was an |
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individual who is the sole beneficiary of a trust that is designated |
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under this section to receive the survivor's portion of the |
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retiree's optional retirement annuity. |
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SECTION 8. Section 825.004, Government Code, is amended by |
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adding Subsection (c) to read as follows: |
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(a) Members of the board of trustees hold office for terms |
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of six years. |
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(b) A vacancy in the office of a trustee shall be filled for |
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the unexpired term in the same manner that the office was previously |
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filled. |
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(c) A trustee appointed under Section 825.002(c) or (e) who |
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at the time of appointment to a position on the board of trustees is |
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currently employed by a public school district, a charter school, |
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regional education service center or an institution of higher |
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education is not disqualified from filling the remaining term of |
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office based solely on the trustee's subsequent retirement and |
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receipt of benefits from the retirement system provided there is at |
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least one trustee on the board that is an active, contributing |
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member of TRS. |
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SECTION 9. Section 825.115, Government Code, is amended by |
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adding Subsection (f) to read as follows: |
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(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 its |
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committees at a summit, conference, convention, workshop, or other |
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event held for educational purposes and not for the purpose of |
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deliberating, voting, or taking action on a specific matter of |
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public business or public policy over which the board of trustees or |
|
a committee of the board has supervision or control. This |
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subsection does not apply to a regular, special or emergency |
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meeting of the board of trustees scheduled or called pursuant to the |
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board's bylaws. |
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SECTION 10. Section 825.208(b), Government Code, is amended |
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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; Subchapter A, Chapter 661; and Subchapter |
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K, Chapter 659, to the extent the board of trustees determines an |
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exemption is necessary for the performance of fiduciary duties. |
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SECTION 11. Section 825.212, Government Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) Notwithstanding any other law, all personal financial |
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disclosures made by employees of the retirement system under this |
|
section or a rule or policy adopted under this section are |
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confidential and excepted from the requirements of Section 552.021. |
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SECTION 12. Section 825.3011(b), Government Code, is |
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amended to read as follows: (b) Chapter 551 does not require the |
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board of trustees to confer with one or more employees, |
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consultants, or legal counsel of the retirement system or with a |
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third party, including representatives of an issuer of restricted |
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securities or a private investment fund, in an open meeting if the |
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only purpose of the conference is to receive information from or |
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question the employees, consultants, or legal counsel of the |
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retirement system or the third party relating to: |
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(1) [an]investment transactions or [a]potential |
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investment transactions [by the board of trustees in a private
|
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investment fund]; if, before conducting the closed meeting, a |
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majority of the trustees in an open meeting vote that deliberating |
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or conferring in an open meeting would have a detrimental effect on |
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the position of the retirement system in negotiations with third |
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parties or put the retirement system at a competitive disadvantage |
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in the market; or |
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(2) the purchase, holding, or disposal of restricted |
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securities or a private investment fund's investment in restricted |
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securities if, under Section 552.143, the information discussed |
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would be confidential and excepted from the requirements of Section |
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552.021 if the information was included in the records of a |
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governmental body. |
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SECTION 13. Section 825.306, Government Code, is amended to |
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read as follows: |
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The assets of the retirement system shall be maintained and |
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reported in a manner that reflects the source of the funds or the |
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purpose for which the funds are held and in accordance with |
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Governmental Accounting Standards Board guidance or its successor |
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in determining governmental generally accepted accounting |
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principles. Financial accounting and the appropriate sub-ledgers |
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necessary to support reporting based on generally accepted |
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accounting principles, comply with relevant tax laws and fulfill |
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the fiduciary responsibilities of the trust shall be utilized. In |
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the alternative, the assets may be credited, according to the |
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purpose for which they are held, to one of the following accounts: |
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(1) member savings account; |
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(2) state contribution account; |
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(3) retired reserve account; |
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(4) interest account; |
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(5) expense account; or |
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(6) deferred retirement option account. |
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Other laws notwithstanding, a requirement to deposit in or transfer |
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money or assets from one of the accounts identified in this section |
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shall be satisfied by maintaining and reporting the assets in |
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accordance with this section. |
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SECTION 14. Section 825.403(h), Government Code, is amended |
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to read as follows: |
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(h) If deductions were previously required but not paid, the |
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retirement system may not provide benefits based on the service or |
|
compensation unless the deposits required by this section have been |
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fully paid. If due to an error, an employer does not report all |
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service rendered and/or compensation paid as required in this |
|
section and the error regards service rendered and/or compensation |
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paid in the current school year, the error may be corrected by |
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submitting a corrected report and the contributions on the |
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unreported service or compensation as directed by the retirement |
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system and any interest due under Section 825.408 from the month the |
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service or compensation should have been reported to the retirement |
|
system until the month it is paid. If due to an error, an employer |
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does not report all service rendered and/or compensation paid as |
|
required in this section and the error regards service rendered |
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and/or compensation paid in the immediately preceding school year, |
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the error may be corrected if the following requirements are met: |
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(1) the person for whom contributions were due is |
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currently employed by the employer and compensation for the current |
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year remains due to the employee; |
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(2) the employer requests a waiver of the reporting |
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requirements under Section 825.408 (a), Government Code and the |
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request is granted by the retirement system; |
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(3) the employer submits member contributions on the |
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unreported amounts pursuant to Section 825.409, Government Code, |
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from any remaining compensation due and any employer contributions |
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due on the compensation are paid by the employer; |
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(4) the employer pays the interest required by Section |
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825.408, Government Code and corrects the records for the report |
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months in which the compensation was paid as directed by the |
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retirement system; and |
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(5) the error is corrected by the end of the school |
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year following the school year in which the service was rendered |
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and/or the compensation was paid. Upon receipt of the member and |
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employer contributions and the corrected report(s), the service |
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credit and/or compensation credit will be credited to the member. |
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In no event may service or compensation credit be established in |
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this manner for service rendered or compensation received in a |
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school year prior to the immediately preceding school year. If the |
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service was rendered or the compensation paid in a school year prior |
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to the immediately preceding school year, the person's employer at |
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the time the unreported service was rendered or compensation was |
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paid must verify the service or compensation as required by |
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Subsection (j) and the person must submit the verification to the |
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retirement system not later than five years after the end of the |
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school year in which the service was rendered or compensation was |
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paid. To establish the service or compensation credit, the person |
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must deposit with the retirement system the member contributions |
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that were due on the compensation plus two percent per year from the |
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year in which the service was rendered or the compensation was paid |
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and the employer must pay 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 less the member contributions and interest paid |
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by the member under this subsection. The board of trustees shall: |
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(1) prescribe terms for payments under this |
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subsection; and |
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(2) credit the person for prior service to which the |
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person is entitled under this subtitle. |
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SECTION 15. Section 825.408, Government Code, is amended by |
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amending Subsection (a) and adding Subsection (c) to read as |
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follows: |
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(a) Except as provided in Subsection (c) of this section, |
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a[A]n 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
|
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undocumented] amounts at an annual rate [compounded monthly]and |
|
shall pay a late fee for each day after the date required in this |
|
subsection that the documentation of the deposits is not filed. The |
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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. The late fee for the unfiled |
|
documentation is an amount set by the retirement system. 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. |
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(c) An employer that fails to report all service or |
|
compensation as required in Section 825.403 and fails or is unable |
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to correct the error in the school year the service was rendered or |
|
the compensation was paid or in the school year immediately |
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following the school year in which the service was rendered or the |
|
compensation was paid must verify the service at the request of the |
|
member as required in Section 825.403 and upon receipt by the |
|
retirement system of the required amounts from the member, must |
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submit 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, as |
|
determined by the retirement system less the member contributions |
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and interest paid by the member. |
|
SECTION 16. Section 825.4092(c), Government Code, is |
|
amended to read as follows: |
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(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 |
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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 all [the retiree's]retirees' and enrolled dependents' |
|
participation in the group program[, as determined by the
|
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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 17. 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
|
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retirement system refunds payments pursuant to this subsection, the
|
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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
|
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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 18. Section 825.505, Government Code, is amended to |
|
read as follows: |
|
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 19. 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, Section 752.051, Estates Code[Chapter
|
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XII, Section 490, Texas Probate Code]. |
|
SECTION 20. Section 825.509(b-1)(3), 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: |
|
(3) for distributions occurring on or after January 1, |
|
2007, to a qualified plan described by Section 401(a), Internal |
|
Revenue Code of 1986 provided the plan 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; or |
|
SECTION 21. 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 22. 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 23. Section 22.004(b) and (d), Education Code, are |
|
amended to read as follows: |
|
(b) A district that does not participate in the program |
|
described by Subsection (a) shall make available to its employees |
|
group health coverage provided by a risk pool established by one or |
|
more school districts under Chapter 172, Local Government Code, or |
|
under a policy of insurance or group contract issued by an insurer, |
|
a company subject to Chapter 842, Insurance Code, or a health |
|
maintenance organization under Chapter 843, Insurance Code. The |
|
coverage must meet the substantive coverage requirements of Chapter |
|
1251, Subchapter A, Chapter 1364, and Subchapter A, Chapter 1366, |
|
Insurance Code, and any other law applicable to group health |
|
insurance policies or contracts issued in this state. The coverage |
|
must include major medical treatment but may exclude experimental |
|
procedures. In this subsection, "major medical treatment" means a |
|
medical, surgical, or diagnostic procedure for illness or injury. |
|
The coverage may include managed care or preventive care and must be |
|
comparable to the basic health coverage provided under Chapter |
|
1551, Insurance Code. [The board of trustees of the Teacher
|
|
Retirement System of Texas shall adopt rules to determine whether a
|
|
school district's group health coverage is comparable to the basic
|
|
health coverage specified by this subsection. The rules must
|
|
provide for consideration of the following factors concerning the
|
|
district's coverage] The following factors shall be considered in |
|
determining whether [the]a school district's coverage is |
|
comparable to the basic health coverage specified by this |
|
subsection: |
|
(1) the deductible amount for service provided inside |
|
and outside of the network; |
|
(2) the coinsurance percentages for service provided |
|
inside and outside of the network; |
|
(3) the maximum amount of coinsurance payments a |
|
covered person is required to pay; |
|
(4) the amount of the copayment for an office visit; |
|
(5) the schedule of benefits and the scope of |
|
coverage; |
|
(6) the lifetime maximum benefit amount; and |
|
(7) verification that the coverage is issued by a |
|
provider licensed to do business in this state by the Texas |
|
Department of Insurance or is provided by a risk pool authorized |
|
under Chapter 172, Local Government Code, or that a district is |
|
capable of covering the assumed liabilities in the case of coverage |
|
provided through district self-insurance. |
|
(d) [Each district shall report the district's compliance
|
|
with this section to the executive director of the Teacher
|
|
Retirement System of Texas not later than March 1 of each
|
|
even-numbered year in the manner required by the board of trustees
|
|
of the Teacher Retirement System of Texas.] [For a]Each district |
|
that does not participate in the program described by Subsection |
|
(a)[,] shall prepare a report addressing the district's compliance |
|
with this section. The[the] report must be available for review, |
|
together with the policy or contract for the group health coverage |
|
plan, at the central administrative office of each campus in the |
|
district and be posted on the district's Internet website if the |
|
district maintains a website, must be based on the district group |
|
health coverage plan in effect during the current plan year, and |
|
must include: |
|
(1) appropriate documentation of: |
|
(A) the district's contract for group health |
|
coverage with a provider licensed to do business in this state by |
|
the Texas Department of Insurance or a risk pool authorized under |
|
Chapter 172, Local Government Code; or |
|
(B) a resolution of the board of trustees of the |
|
district authorizing a self-insurance plan for district employees |
|
and of the district's review of district ability to cover the |
|
liability assumed; |
|
(2) the schedule of benefits; |
|
(3) the premium rate sheet, including the amount paid |
|
by the district and employee; |
|
(4) the number of employees covered by the health |
|
coverage plan offered by the district; and |
|
(5) information concerning the ease of completing the |
|
report[, as required by the executive director of the Teacher
|
|
Retirement System of Texas; and
|
|
(6)
any other information considered appropriate by
|
|
the executive director of the Teacher Retirement System of Texas]. |
|
SECTION 24. The heading to Chapter 1575, Insurance Code, is |
|
amended to read as follows: |
|
CHAPTER 1575. TEXAS PUBLIC SCHOOL RETIRED EMPLOYEES GROUP BENEFITS |
|
PROGRAM |
|
SECTION 25. Section 1575.002, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1575.002. GENERAL DEFINITIONS. In this chapter: |
|
(1) "Active employee" means a contributing member of |
|
the Teacher Retirement System of Texas who: |
|
(A) is employed by a public school; and |
|
(B) is not entitled to coverage under a plan |
|
provided under Chapter 1551 or 1601. |
|
(2) "Carrier" means an insurance company or hospital |
|
service corporation authorized by the department under this code or |
|
another insurance law of this state to provide any of the insurance |
|
coverages, benefits, or services provided by this chapter. |
|
(3) "Fund" means the retired school employees group |
|
insurance fund. |
|
(4) "Group program" means the Texas Public School |
|
Retired Employees Group Benefits [Insurance] Program authorized by |
|
this chapter. |
|
SECTION 26. 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 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 [that the reported]a retiree is |
|
required to pay for the retiree and any enrolled dependents to |
|
participate in the group program and the [full]cost of all [the
|
|
retiree's]retirees' 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 required payment 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 27. Section 1575.207(a) and (b), Insurance Code are |
|
amended to read as follows: |
|
(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) [On request, t]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 28. Subchapter A, Chapter 1579, Insurance Code, is |
|
amended by adding Section 1579.0031 to read as follows: |
|
Sec. 1579.0031. DEFINITION OF RETIREE. In this chapter, |
|
"retiree" means an individual who is enrolled in a plan provided by |
|
Chapter 1575, becomes employed by a participating entity, becomes |
|
eligible for health benefit coverage offered under this chapter, |
|
and, as a consequence of this employment and eligibility, has his or |
|
her coverage suspended under a plan provided by Chapter 1575. |
|
SECTION 29. The heading to Subchapter E, Chapter 1579, |
|
Insurance Code, is amended to read as follows: |
|
SUBCHAPTER E. PARTICIPATION BY EMPLOYEES AND RETIREES |
|
SECTION 30. Section 1579.201, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1579.201. DEFINITION. In this subchapter, "full-time |
|
employee," [and] "part-time employee," "full-time retiree" and |
|
"part-time retiree" have the meanings assigned by rules adopted by |
|
the trustee. |
|
SECTION 31. Section 1579.202, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1579.202. ELIGIBLE EMPLOYEES AND RETIREES. (a) Except |
|
as provided by Section 1579.204, participation in the program is |
|
limited to employees of participating entities who are full-time |
|
employees and who are [to] part-time employees, and is limited to |
|
retirees of participating entities who are [participating members
|
|
in the Teacher Retirement System of Texas] full-time retirees and |
|
who are part-time retirees. |
|
(b) An employee or retiree 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 or retiree: |
|
(1) specifically waives coverage under this chapter; |
|
(2) selects a higher tier coverage plan; or |
|
(3) is expelled from the program. |
|
SECTION 32. Section 1579.203, Insurance Code, is amended by |
|
amending Subsections (a), (b), and (c) to read as follows: |
|
(a) A participating employee or retiree may select coverage |
|
in any coverage plan offered by the trustee. |
|
(b) The employee or retiree is not required to continue |
|
participation in the coverage plan initially selected and may |
|
select a higher or lower tier coverage plan than the plan initially |
|
selected by the employee or retiree in the manner provided by rules |
|
adopted by the trustee. |
|
(c) If the combined contributions received from the state |
|
and the employing participating entity under Subchapter F exceed |
|
the cost of a coverage plan selected by the employee or retiree, the |
|
employee or retiree may use the excess amount of contributions to |
|
obtain coverage under a higher tier coverage plan or to pay all or |
|
part of the cost of coverage for the employee's or retiree's |
|
dependents. |
|
SECTION 33. Section 1579.204, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1579.204. [CERTAIN] PART-TIME EMPLOYEES AND PART-TIME |
|
RETIREES. Notwithstanding any other section of this chapter, a [A] |
|
part-time employee of a participating entity and a part-time |
|
retiree employed by a participating entity are [who is not a
|
|
participating member in the Teacher Retirement System of Texas is] |
|
eligible to participate in the program only if the part-time |
|
employee or the part-time retiree pays all of the premiums and other |
|
costs associated with the health coverage plan selected for [by] |
|
the employee and the employee's dependents or selected for the |
|
retiree and the retiree's dependents. |
|
SECTION 34. Section 1579.205, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1579.205. PAYMENT BY PARTICIPATING ENTITY. |
|
Notwithstanding Section 1579.204, a participating entity may pay |
|
any portion of what otherwise would be the full-time employee, |
|
part-time employee, full-time retiree or part-time retiree share of |
|
premiums and other costs associated with the coverage selected by |
|
the employee or retiree. |
|
SECTION 35. Section 1579.251, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 1579.251. STATE ASSISTANCE. (a) The state shall |
|
assist employees and retirees of participating school districts and |
|
charter schools in the purchase of group health coverage under this |
|
chapter by providing for each covered employee and retiree the |
|
amount of $900 each state fiscal year or a greater amount as |
|
provided by the General Appropriations Act. The state contribution |
|
shall be distributed through the school finance formulas under |
|
Chapters 41 and 42, Education Code, and used by school districts and |
|
charter schools as provided by Section 42.260, Education Code. |
|
(b) The state shall assist employees and retirees of |
|
participating regional education service centers and educational |
|
districts described by Section 1579.002(5)(B) in the purchase of |
|
group health coverage under this chapter by providing to the |
|
employing service center or educational district, for each covered |
|
employee and retiree, the amount of $900 each state fiscal year or a |
|
greater amount as provided by the General Appropriations Act. |
|
SECTION 36. Section 1579.255(a), Insurance Code is amended |
|
to read as follows: |
|
(a) A participating entity that does not remit to the |
|
trustee all contributions required by this subchapter before the |
|
sixteenth [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) [On request, t]The trustee may grant a waiver of the |
|
deadline imposed by this section [based on a participating entity's
|
|
financial or technological resources]. |
|
SECTION 37. Section 1579.106(c), Insurance Code, is |
|
repealed. |
|
SECTION 38. This Act takes effect September 1, 2015. |