81R9245 SGA-F
By: Truitt H.B. No. 2559
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of the Employees Retirement
System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 659.102(c), Government Code, is amended
to read as follows:
(c) The supplemental optional benefits program may include:
(1) a group coverage plan for permanent life
insurance, catastrophic illness insurance, or disability
insurance;
(2) [,] prepaid legal services; [,] or
(3) a qualified transportation benefit.
SECTION 2. Subchapter A, Chapter 811, Government Code, is
amended by adding Section 811.010 to read as follows:
Sec. 811.010. TRAVIS COUNTY VENUE; TWO-YEAR LIMITATION.
Subject to and without waiving the retirement system's sovereign
immunity from suit or liability or the official immunity from
liability of the trustees, officers, and employees of the
retirement system under Section 811.007, for any action by or
against the retirement system, the trustees, officers, or employees
of the retirement system, or an administrator, carrier, or other
governmental agency acting in cooperation with or on behalf of the
retirement system:
(1) venue is in Travis County; and
(2) the statute of limitations is two years unless
otherwise specifically provided by law.
SECTION 3. Section 814.008(a), Government Code, is amended
to read as follows:
(a) A retiree receiving an optional service or disability
retirement annuity approved by the board of trustees or described
by Section 814.108(c)(1), [or] (c)(2), or (c)(5) may change the
designated beneficiary as provided by this section for the benefits
payable after the retiree's death.
SECTION 4. Subchapter A, Chapter 814, Government Code, is
amended by adding Section 814.012 to read as follows:
Sec. 814.012. DISPOSITION OF UNCLAIMED BENEFICIARY
BENEFITS. If, as of the fourth anniversary of the death of a member
or annuitant, the retirement system has not paid benefits and a
claim for benefits is not pending with the retirement system based
on the death of the member or annuitant, the accumulated
contributions of the deceased member or the balance of the reserve
for the deceased annuitant reverts to the benefit of the retirement
system. The retirement system shall transfer funds reverted under
this section to the state contribution account.
SECTION 5. Sections 814.108(c), (g), and (h), Government
Code, are amended to read as follows:
(c) An eligible person may select [any optional retirement
annuity approved by the board of trustees, or may select] one of the
following options, which provides [provide] that:
(1) after the retiree's death, the reduced annuity is
payable in the same amount throughout the life of the person
designated by the retiree before retirement;
(2) after the retiree's death, one-half of the reduced
annuity is payable throughout the life of the person designated by
the retiree before retirement;
(3) if the retiree dies before 60 monthly annuity
payments have been made, the remainder of the 60 payments are
payable to one or more designees or, if one does not exist, to the
retiree's estate; [or]
(4) if the retiree dies before 120 monthly annuity
payments have been made, the remainder of the 120 payments are
payable to one or more designees or, if one does not exist, to the
retiree's estate; or
(5) after the retiree's death, three-fourths of the
reduced annuity is payable throughout the life of the person
designated by the retiree before retirement.
(g) Except as provided by Section 814.008 or 814.1081, a
person who selected an optional service retirement annuity approved
by the board of trustees or an optional service retirement annuity
described by Subsection (c)(1), [or] (c)(2), or (c)(5) may not
change or revoke a beneficiary designation after the person's
effective date of retirement.
(h) A beneficiary designation that names a former spouse as
beneficiary for a guaranteed optional annuity described by
Subsection (c)(3) or (c)(4) is invalid unless the designation is
made after the date of the divorce.
SECTION 6. Section 814.1081(a), Government Code, is amended
to read as follows:
(a) A person who retired and selected an optional service
retirement annuity [approved by the board of trustees or an
optional service retirement annuity] described by Section
814.108(c)(1), [or] (c)(2), or (c)(5) may change the optional
annuity selection to the selection of a standard service retirement
annuity by filing with the retirement system a request to change the
annuity selection, if the retiree designated a person as
beneficiary who:
(1) was not at the time of designation and is not
currently the retiree's spouse or child; or
(2) has executed since the designation a transfer and
release, approved by a court of competent jurisdiction pursuant to
a divorce decree, of the beneficiary's interest in the annuity and
is not currently the retiree's spouse or child.
SECTION 7. Section 814.202, Government Code, is amended by
adding Subsection (g) to read as follows:
(g) A member otherwise eligible to receive a disability
retirement annuity may not receive the annuity if the member is:
(1) still earning a salary or wage from the employment
for which the member is claiming disability; or
(2) on leave without pay from the employment for which
the member is claiming disability.
SECTION 8. Section 814.203, Government Code, is amended to
read as follows:
Sec. 814.203. CERTIFICATION OF DISABILITY. (a) As soon as
practicable after an application for disability retirement is
filed, the medical board shall evaluate the medical and other
pertinent information regarding the member's application. If the
medical board finds that the member is mentally or physically
incapacitated for the further performance of duty, as supported by
substantial, objective, medical evidence, and that the incapacity
is likely to be permanent, the medical board shall issue a
certification of disability and submit it to the executive
director. A certification under this section is admissible in a
contested case under Section 815.511 without proving the medical
board as experts.
(b) For purposes of this subchapter, a member is
incapacitated for the further performance of duty if the member has
demonstrably sought and been denied workplace accommodation of the
disability in accordance with applicable law, and the member is
physically or mentally unable to continue to hold the position
occupied or to hold any other position offering comparable pay. The
employee's education, training, and experience must be considered
when making a determination of incapacity under this subchapter.
(c) For the purposes of this section, "comparable pay" means
80 percent or more of the member's final state employment base pay
before deductions for taxes or deferred compensation under state
and federal law, including any longevity or hazardous duty pay, but
excluding the monetary value of any insurance or retirement
benefits. Comparable pay may be adjusted by the retirement system
to account for adjustments in state pay rates.
SECTION 9. Subchapter C, Chapter 815, Government Code, is
amended by adding Section 815.214 to read as follows:
Sec. 815.214. SUBPOENA. Notwithstanding any other law, the
executive director or the executive director's designee may issue a
subpoena that conforms to Rule 176, Texas Rules of Civil Procedure,
including a preappeal investigative subpoena or any subpoena
otherwise authorized by the Texas Rules of Civil Procedure, that
the executive director or designee determines necessary to protect
the interests of a program or system administered by the retirement
system.
SECTION 10. Section 815.307, Government Code, as amended by
Chapters 1103 (H.B. 2240) and 1111 (H.B. 2359), Acts of the 78th
Legislature, Regular Session, 2003, is reenacted to read as
follows:
Sec. 815.307. DUTY OF CARE. The assets of the retirement
system shall be invested and reinvested without distinction as to
their source in accordance with Section 67, Article XVI, Texas
Constitution. A determination of whether the board of trustees has
exercised prudence with respect to an investment decision must be
made taking into consideration the investment of all assets of the
trust or all assets of the collective investment vehicle, as
applicable, over which the board has management and control, rather
than considering the prudence of a single investment of the trust or
the collective investment vehicle, as applicable.
SECTION 11. Section 815.512, Government Code, is amended to
read as follows:
Sec. 815.512. PROTECTION FROM DOUBLE OR MULTIPLE LIABILITY.
(a) The executive director may cause an action for interpleader [a
suit] concerning a claim to be filed on behalf of the retirement
system in a district court in Travis County to protect the system
from double or multiple liability if the executive director
determines that a claim may expose the retirement system to such
liability.
(b) A person may not pursue a counterclaim or other cause of
action against the retirement system or its trustees, officers,
employees, carriers, or administering firms in connection with the
transactions and occurrences related to the interpleader action.
(c) A person who files suit against the retirement system or
its trustees, officers, employees, carriers, or administering
firms is liable for the costs and attorney's fees incurred in
violation of Subsection (b).
SECTION 12. Subchapter F, Chapter 815, Government Code, is
amended by adding Section 815.515 to read as follows:
Sec. 815.515. DISPOSITION OF UNCLAIMED CONTRIBUTIONS OF
FORMER MEMBERS. (a) Subject to Chapters 803 and 805, if the
retirement system has not received a demand for a refund of the
accumulated contributions of a member in accordance with Subchapter
B, Chapter 812, before the seventh anniversary of the member's last
day of service, the retirement system may refund the accumulated
contributions to the member or the member's heirs. If the member or
the member's heirs cannot be found, the member's accumulated
contributions revert to the retirement system.
(b) The retirement system shall credit any amounts that
revert to the retirement system under Subsection (a) to the state
contribution account.
(c) The board of trustees may adopt rules to implement and
administer this section.
SECTION 13. Section 837.003, Government Code, is amended by
adding Subsection (e) to read as follows:
(e) At the time a service retirement, disability
retirement, or death benefit annuity becomes payable, the
retirement system shall refund any contributions, interest, or
membership fees used to establish service credit that is not used in
computing the amount of the annuity.
SECTION 14. Section 838.106, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) For the purpose of Subsection (a)(1), the term of a
member leaving judicial office ends December 31 regardless of the
date on which the member's successor takes the oath of office.
SECTION 15. Section 839.103(a), Government Code, is amended
to read as follows:
(a) Instead of a service retirement annuity payable under
Section 839.102, a retiring member may elect to receive [an
optional service retirement annuity provided by the board of
trustees or] one of the following optional service retirement
annuities, actuarially reduced to an actuarially equivalent value
and consisting of:
(1) an annuity payable during the retiring member's
life and continuing after death in the same amount, throughout the
life of one person designated by the retiring member before
retirement;
(2) an annuity payable during the retiring member's
life and continuing after death in an amount equal to one-half of
the amount payable during the retiring member's life, throughout
the life of one person designated by the retiring member before
retirement;
(3) an annuity payable for the greater of the rest of
the retiring member's life or 60 months; [or]
(4) an annuity payable for the greater of the rest of
the retiring member's life or 120 months; or
(5) an annuity payable during the retiring member's
life and continuing after death in an amount equal to three-fourths
of the amount payable during the retiring member's life, throughout
the life of one person designated by the retiring member before
retirement.
SECTION 16. Section 840.303, Government Code, as amended by
Chapters 1103 (H.B. 2240) and 1111 (H.B. 2359), Acts of the 78th
Legislature, Regular Session, 2003, is reenacted to read as
follows:
Sec. 840.303. DUTY OF CARE. The assets of the retirement
system shall be invested and reinvested without distinction as to
their source in accordance with Section 67, Article XVI, Texas
Constitution. A determination of whether the board of trustees has
exercised prudence with respect to an investment decision must be
made taking into consideration the investment of all assets of the
trust or all assets of the collective investment vehicle, as
applicable, over which the board has management and control, rather
than considering the prudence of a single investment of the trust or
the collective investment vehicle, as applicable.
SECTION 17. Section 1551.102(d), Insurance Code, is amended
to read as follows:
(d) An individual is eligible to participate in the group
benefits program as provided by Subsection (a) if [the individual]:
(1) the individual retires under the optional
retirement program established by Chapter 830, Government Code;
(2) the individual has [, with] at least 10 years of
eligible service credit; [and]
(3) the individual actively [(2)] receives [or is
eligible to receive] an annuity under that program; and
(4) the individual:
(A) is at least 65 years of age, or would have
been eligible to retire and receive a service or disability
retirement annuity from the Teacher Retirement System of Texas or
the Employees Retirement System of Texas in an amount such that the
sum of the person's age and amount of service credit, including
months of age and credit, equals or exceeds the number 80 or would
have been eligible to retire and receive a disability retirement
annuity from the Teacher Retirement System of Texas or the
Employees Retirement System of Texas, if the individual had not
elected to participate in the optional retirement program; or
(B) is disabled as determined by the Employees
Retirement System of Texas based on at least 10 years of eligible
service credit.
SECTION 18. Section 1551.155, Insurance Code, is amended by
adding Subsections (c) and (d) to read as follows:
(c) A person who is the surviving spouse of an individual
may secure group health coverage without evidence of the person's
insurability if the individual was eligible to participate in the
group benefits program under Section 1551.101 or 1551.102 but was
not participating at the time of the individual's death.
(d) A surviving spouse seeking group coverage under
Subsection (c):
(1) must apply for the coverage not later than the 30th
day after the date on which the individual who was eligible to
participate in the group benefits program dies; and
(2) shall pay for the coverage at the group rate as
provided by Subsection (b).
SECTION 19. The heading to Section 1551.156, Insurance
Code, is amended to read as follows:
Sec. 1551.156. COVERAGE OPTIONS FOR SURVIVING DEPENDENT
[WHEN THERE IS NO SURVIVING SPOUSE].
SECTION 20. Section 1551.156, Insurance Code, is amended by
adding Subsections (d) and (e) to read as follows:
(d) A person who is a surviving dependent of an annuitant
may secure group health coverage after the death of the annuitant
without evidence of the person's insurability if the annuitant was
eligible to participate in the group benefits program of a
retirement system named in this chapter but was not participating
at the time of the individual's death.
(e) A surviving dependent seeking group coverage under
Subsection (d):
(1) must apply for the coverage not later than the 30th
day after the date on which the individual who was eligible to
participate in the group benefits program dies; and
(2) shall pay for the coverage at the group rate as
provided by Subsection (b).
SECTION 21. Section 1551.354, Insurance Code, is amended by
amending Subsection (b) and adding Subsections (c) and (d) to read
as follows:
(b) The executive director may cause the filing of an action
for interpleader [a suit] concerning the claim in a district court
in Travis County on behalf of the Employees Retirement System of
Texas to protect the group coverage plan from double or multiple
liability.
(c) A person may not pursue a counterclaim or other cause of
action against the retirement system or its trustees, officers,
employees, carriers, or administering firms in connection with the
transactions and occurrences related to the interpleader action.
(d) A person who files suit against the retirement system or
its trustees, officers, employees, carriers, or administering
firms is liable for the costs and attorney's fees incurred in
violation of Subsection (c).
SECTION 22. Subchapter H, Chapter 1551, Insurance Code, is
amended by adding Section 1551.362 to read as follows:
Sec. 1551.362. SUBPOENA. Notwithstanding any other law,
the executive director or the executive director's designee may
issue a subpoena that conforms to Rule 176, Texas Rules of Civil
Procedure, including a preappeal investigative subpoena or any
subpoena otherwise authorized by the Texas Rules of Civil
Procedure, that the executive director or designee determines
necessary to protect the interests of a program or system
administered by the retirement system.
SECTION 23. Section 1551.401, Insurance Code, is amended by
adding Subsection (g) to read as follows:
(g) Except as provided by Section 1551.259(d), the
retirement system may deposit to the credit of the fund any
unclaimed money on a finding that a good faith effort has been made
to locate the person entitled to the money.
SECTION 24. The following laws are repealed:
(1) Section 812.006, Government Code;
(2) Section 833.1035(c), Government Code;
(3) Section 833.104, Government Code;
(4) Section 835.1015(c), Government Code;
(5) Section 838.1035(c), Government Code;
(6) Section 838.104, Government Code;
(7) Section 840.1025(c), Government Code;
(8) Section 840.1027(c), Government Code; and
(9) Section 1551.221, Insurance Code.
SECTION 25. Sections 811.010 and 815.214, Government Code,
and Section 1551.362, Insurance Code, as added by this Act, and
Sections 815.512, Government Code, and 1551.354, Insurance Code, as
amended by this Act, apply only to an action filed by or against the
Employees Retirement System of Texas, the trustees, officers, or
employees of the retirement system, or an administrator, carrier,
or other governmental agency acting in cooperation with or on
behalf of the retirement system on or after the effective date of
this Act. An action filed before the effective date of this Act is
governed by the law in effect when the action was filed, and that
law is continued in effect for that purpose.
SECTION 26. Section 814.203(b), Government Code, as added
by this Act, applies only to an application for disability
retirement filed with the Employees Retirement System of Texas on
or after the effective date of this Act. An application filed
before the effective date of this Act is subject to the law in
effect on the date the application was filed, and that law is
continued in effect for that purpose.
SECTION 27. Section 837.003(e), Government Code, as added
by this Act, applies only to a service retirement, disability
retirement, or death benefit annuity that becomes payable by the
Judicial Retirement System of Texas Plan Two on or after the
effective date of this Act. A service retirement, disability
retirement, or death benefit annuity that becomes payable by the
Judicial Retirement System of Texas Plan Two before the effective
date of this Act is governed by the law in effect on the date the
annuity becomes payable, and that law is continued in effect for
that purpose.
SECTION 28. Section 838.106(c), Government Code, as added
by this Act, applies only to the establishment of service credit by
a member of the Judicial Retirement System of Texas Plan Two who
leaves office on or after the effective date of this Act. The
establishment of service credit of a member of the Judicial
Retirement System of Texas Plan Two who leaves office before the
effective date of this Act is governed by the law in effect when the
member leaves office, and that law is continued in effect for that
purpose.
SECTION 29. This Act takes effect September 1, 2009.