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A BILL TO BE ENTITLED
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AN ACT
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relating to establishing a joint interim committee to study the |
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cost-effectiveness and feasibility of implementing a pension |
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revenue enhancement plan for the Teacher Retirement System of |
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Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. INTERIM COMMITTEE; STUDY. (a) The joint interim |
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committee on a pension revenue enhancement plan for the Teacher |
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Retirement System of Texas is established to study and review the |
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cost-effectiveness and feasibility of implementing a pension |
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revenue enhancement plan to create an additional source of funding |
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for the Teacher Retirement System of Texas. |
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(b) The study must consider: |
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(1) a pension revenue enhancement plan under which: |
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(A) a life insurance policy is purchased for |
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certain members and annuitants of the Teacher Retirement System of |
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Texas enrolled in the plan; and |
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(B) the proceeds of the policy are issued to the |
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retirement system and the member's or annuitant's designated |
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beneficiary; |
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(2) methods for financing the pension revenue |
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enhancement plan, including by: |
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(A) obtaining a loan from a third-party lender to |
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pay the life insurance policy premiums; and |
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(B) establishing a trust fund to retain the |
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collected proceeds; |
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(3) eligibility criteria for members and annuitants of |
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the retirement system to enroll in the plan; and |
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(4) the process for selecting and appointing, |
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including eligibility criteria, persons and entities necessary to |
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administer and implement the plan, including members of a board of |
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trustees to administer the plan, a person to act as trustee of the |
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trust fund, a plan manager, a life insurance company, and a premium |
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finance company. |
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(c) The joint interim committee is composed of the members |
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of the pensions, investments, and financial services committee of |
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the house of representatives and the members of the senate |
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committee on state affairs. |
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(d) The chair of the pensions, investments, and financial |
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services committee of the house of representatives and the chair of |
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the senate committee on state affairs shall serve as co-chairs of |
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the joint interim committee. |
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(e) The joint interim committee shall convene at the call of |
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the co-chairs. |
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(f) The joint interim committee has all other powers and |
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duties provided to a special or select committee by the rules of the |
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senate and house of representatives, by Subchapter B, Chapter 301, |
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Government Code, and by policies of the senate and house committees |
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on administration. |
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(g) Not later than December 31, 2020, the joint interim |
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committee shall report the committee's findings and |
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recommendations to the legislature. |
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SECTION 2. ABOLITION OF COMMITTEE. The committee is |
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abolished and this Act expires January 1, 2021. |
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SECTION 3. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2019. |