Honorable Joan Huffman, Chair, Senate Committee on State Affairs
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB2974 by Flynn (Relating to the systems and programs administered by the Teacher Retirement System of Texas. ), Committee Report 2nd House, Substituted
The bill would create a joint interim committee to study and propose reforms to the two healthcare plans (TRS-Care and TRS-ActiveCare) administered by the Teacher Retirement System of Texas (TRS).
The bill would amend the Government Code to make certain clarifying and technical changes to provisions applicable to TRS. The bill would amend the definitions of "annual compensation" and "employee" for purposes of TRS membership and service credit. Changes to the definition of annual compensation would apply only to TRS members retiring or dying on or after the effective date of the bill. Eligibility for membership and for contribution withdrawals would be clarified to conform to IRS requirements. Also, out-of-state service credit purchases would be limited to five years to satisfy IRS requirements.
The TRS board of trustees would be authorized to attend events without public notice if there is no deliberating, voting, or taking action on TRS business at the event. Additionally, the bill would make certain changes relating to the health benefit surcharge in return-to-work cases.
The bill would take effect on September 1, 2015.
The proposed bill, if enacted, would not have an actuarial effect on TRS because it does not propose to change the benefit structure, funding or obligations of the system.