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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing certain retired public school employees to |
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participate in the state employee group benefits program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1551.003, Insurance Code, is amended by |
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adding Subdivision (11-a) to read as follows: |
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(11-a) "Retiree" has the meaning assigned by Section |
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1575.004. |
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SECTION 2. Subchapter C, Chapter 1551, Insurance Code, is |
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amended by adding Section 1551.1023 to read as follows: |
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Sec. 1551.1023. PARTICIPATION ELIGIBILITY: PUBLIC SCHOOL |
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RETIREES. (a) Notwithstanding any other law, an individual who is |
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eligible to participate in the group program under Chapter 1575 as a |
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retiree is eligible to participate in the group benefits program |
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under this chapter and is entitled to the same benefits as an |
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annuitant eligible to participate in the group benefits program |
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under Section 1551.102. |
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(b) A retiree may elect to disenroll from the group program |
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under Chapter 1575, if applicable, and enroll in the group benefits |
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program under this chapter during an open enrollment period or any |
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other period set by the board of trustees by rule. |
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SECTION 3. Section 1551.151, Insurance Code, is amended to |
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read as follows: |
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Sec. 1551.151. ENTITLEMENT TO COVERAGE. An individual who |
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is eligible to participate in the group benefits program under |
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Section 1551.101, 1551.102, [or] 1551.1022, or 1551.1023 is |
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entitled to secure for a dependent of the individual any group |
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coverages provided under this chapter, as determined by the board |
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of trustees and subject to the exceptions provided by this |
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subchapter. |
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SECTION 4. Sections 1551.155(a) and (c), Insurance Code, |
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are amended to read as follows: |
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(a) A surviving spouse of an individual who is eligible to |
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participate in the group benefits program under Section 1551.101 or |
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1551.102 and who is entitled to monthly benefits paid by a |
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retirement system named in this chapter or a surviving spouse of an |
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individual who is eligible to participate in the group benefits |
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program under Section 1551.1023 may, following the death of the |
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individual, elect to retain: |
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(1) the spouse's authorized coverages; and |
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(2) authorized coverages for any dependent of the |
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spouse. |
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(c) A person who is the surviving spouse of an individual |
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described by Subsection (a) may secure group health coverage |
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without evidence of the person's insurability if the individual was |
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eligible to participate in the group benefits program under Section |
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1551.101, [or] 1551.102, or 1551.1023 but was not participating at |
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the time of the individual's death. |
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SECTION 5. Sections 1551.156(a), (c), and (d), Insurance |
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Code, are amended to read as follows: |
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(a) A surviving dependent of an annuitant who was receiving |
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monthly benefits paid by a retirement system named in this chapter |
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or a surviving dependent of a retiree who is eligible to participate |
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in the group benefits program under Section 1551.1023 may, |
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following the death of the annuitant or retiree if there is not a |
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surviving spouse, elect to retain any coverage previously secured |
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by the annuitant or retiree until the dependent becomes ineligible |
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for coverage for a reason other than the death of the member of the |
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group. |
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(c) A dependent who elects to retain coverage under this |
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section and who is entitled to monthly benefits from a retirement |
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system [named in this chapter] based on the service of the deceased |
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annuitant or retiree must direct the retirement system to deduct |
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required contributions for the coverage from the monthly benefits |
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paid the surviving dependent by the retirement system. |
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(d) A person who is a surviving dependent of an annuitant or |
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retiree may secure group health coverage after the death of the |
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annuitant or retiree without evidence of the person's insurability |
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if the annuitant or retiree was eligible to participate in the group |
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benefits program of a retirement system [named in this chapter] but |
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was not participating at the time of the individual's death. |
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SECTION 6. Subchapter G, Chapter 1551, Insurance Code, is |
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amended by adding Section 1551.3051 to read as follows: |
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Sec. 1551.3051. COST OF RETIREE COVERAGE. If the cost of |
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the basic coverage and other coverages, if any, for an individual |
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eligible to participate in the group benefits program under Section |
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1551.1023 exceeds the amount of contributions from the Teacher |
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Retirement System of Texas allocated to fund coverages, the state |
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shall deduct from the retirement benefits of the participant an |
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amount sufficient to pay the cost of the coverages. |
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SECTION 7. Section 1551.310, Insurance Code, is amended to |
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read as follows: |
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Sec. 1551.310. STATE CONTRIBUTION REQUIRED. (a) The state |
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shall contribute to the cost of each participant's group coverages, |
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including dependents' group coverages, the amounts appropriated |
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for the coverages in the General Appropriations Act. |
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(b) The Teacher Retirement System of Texas shall transfer to |
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the board of trustees the amount of contributions under Section |
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1575.2011 for retirees who elect to participate in the group health |
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benefits plan under this chapter. Notwithstanding any other |
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provision of this subchapter, money transferred to the board of |
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trustees under this subsection and money paid under Section |
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1551.3051 is the only money that may be used to pay the cost of |
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retiree coverage. |
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SECTION 8. Section 1551.314, Insurance Code, is amended to |
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read as follows: |
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Sec. 1551.314. CERTAIN STATE CONTRIBUTIONS PROHIBITED. |
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Except as provided by Section 1551.310(b), a [A] state contribution |
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may not be: |
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(1) made for coverages under this chapter selected by |
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an individual who receives a state contribution for coverages under |
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a group benefits program provided by another state health plan or by |
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an institution of higher education, as defined by Section 61.003, |
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Education Code; or |
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(2) made for or used to pay a tobacco user premium |
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differential assessed under Section 1551.3075. |
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SECTION 9. Section 1575.004(a), Insurance Code, is amended |
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to read as follows: |
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(a) In this chapter, "retiree" means: |
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(1) an individual not eligible for coverage under a |
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plan provided under Section 1551.101, 1551.102, 1551.1021, or |
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1551.1022 [Chapter 1551] or Chapter 1601 who: |
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(A) has taken a service retirement under the |
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Teacher Retirement System of Texas after September 1, 2005, with at |
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least 10 years of service credit in the system, which may include up |
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to five years of military service credit, but which may not include |
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any other service credit purchased for equivalent or special |
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service credit, and either: |
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(i) the sum of the retiree's age and years |
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of service credit in the retirement system equals or exceeds 80 at |
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the time of retirement, regardless of whether the retiree had a |
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reduction in the retirement annuity for early age; or |
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(ii) the retiree has 30 or more years of |
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service credit in the retirement system at the time of retirement; |
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(B) has taken a service retirement under the |
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Teacher Retirement System of Texas after September 1, 2004, but on |
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or before August 31, 2005, and on September 1, 2005, either: |
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(i) meets the requirements for eligibility |
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for the group program for coverage as a retiree as those |
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requirements existed on August 31, 2004; |
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(ii) meets the requirements of Paragraph |
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(A); or |
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(iii) is enrolled in the group program and |
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was enrolled in the group program on August 31, 2005; or |
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(C) has taken a service retirement under the |
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Teacher Retirement System of Texas on or before August 31, 2004, and |
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who is enrolled in the group program on August 31, 2005; |
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(2) an individual who: |
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(A) has taken a disability retirement under the |
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Teacher Retirement System of Texas; and |
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(B) is entitled to receive monthly benefits from |
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the Teacher Retirement System of Texas; or |
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(3) an individual who: |
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(A) has taken a disability retirement under the |
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Teacher Retirement System of Texas; |
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(B) has at least 10 years of service credit in the |
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Teacher Retirement System of Texas on the date of disability |
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retirement, as determined under Section 824.304, Government Code; |
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and |
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(C) is not entitled to receive monthly benefits |
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from the Teacher Retirement System of Texas because those benefits |
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have been suspended in accordance with Section 824.310, Government |
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Code. |
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SECTION 10. Subchapter E, Chapter 1575, Insurance Code, is |
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amended by adding Section 1575.2011 to read as follows: |
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Sec. 1575.2011. TRANSFER OF CONTRIBUTIONS FOR CERTAIN |
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RETIRED PUBLIC SCHOOL EMPLOYEES. Notwithstanding Section |
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1575.206, the trustee shall transfer to the Employees Retirement |
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System of Texas contributions made under Section 1575.201 on behalf |
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of a retiree who elects to participate in the group benefits program |
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under Chapter 1551 and other amounts contributed under this |
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subchapter that would otherwise be allocable to the coverage for |
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the retiree in accordance with Section 1551.310. |
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SECTION 11. Not later than December 1, 2019, the board of |
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trustees of the Employees Retirement System of Texas shall adopt |
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rules necessary to implement the changes in law made by this Act. |
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SECTION 12. This Act takes effect September 1, 2019. |