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A BILL TO BE ENTITLED
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AN ACT
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relating to certain benefits payable by the public retirement |
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systems for police and fire fighters in certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 6.14(e-3) and (e-4), Article 6243a-1, |
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Revised Statutes, are amended to read as follows: |
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(e-3) The board may by rule allow any person receiving an |
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annuity from the annuitization of a DROP account under this section |
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[a DROP participant who has terminated active service and who is |
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eligible for a retirement pension] to: |
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(1) assign the distribution from the person's |
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[participant's] annuitized DROP account to a third party provided |
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the pension system receives a favorable private letter ruling from |
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the Internal Revenue Service ruling that such an assignment will |
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not negatively impact the pension system's qualified plan status; |
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and |
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(2) subject to Subsection (e-4) of this section, in |
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the event of a financial hardship that was not reasonably |
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foreseeable obtain a lump-sum distribution from the person's |
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[participant's] DROP account resulting in a corresponding |
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reduction in the total number or in the amount of annuity payments. |
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(e-4) The board shall adopt rules necessary to implement |
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Subsection (e-3)(2) of this section, including rules regarding what |
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constitutes a financial hardship for purposes of that subdivision. |
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In adopting the rules, the board shall provide flexibility to |
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persons receiving an annuity from the annuitization of a DROP |
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account [members]. |
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SECTION 2. This Act takes effect September 1, 2021. |