H.B. No. 2559
AN ACT
relating to the powers and duties of and benefits available under
the Employees Retirement System of Texas and to a chronic disease
prevention and wellness pilot program administered by the system
and the Department of State Health Services for department
employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 615.045, Government Code, is amended by
amending Subsection (a) and adding Subsections (b-1) and (d) to
read as follows:
(a) Records of individuals listed by Section 615.003 and of
survivors eligible for benefits under this chapter that are in the
custody of the Employees Retirement System of Texas, [or] an
administering firm as defined by Section 1551.003, Insurance Code,
a carrier as defined by Section 1551.007, Insurance Code, or
another governmental agency acting with or on behalf of the
retirement system are confidential and not subject to public
disclosure, and the retirement system, administering firm,
carrier, or governmental agency is not required to accept or comply
with a request for a record or information about a record or to seek
an opinion from the attorney general, because the records are
exempt from the [public information] provisions of Chapter 552,
except as otherwise provided by this section.
(b-1) A record released or received by the retirement system
under this section may be transmitted electronically, including
through the use of an electronic signature or certification in a
form acceptable to the retirement system. An unintentional
disclosure to, or unauthorized access by, a third party related to
the transmission or receipt of information under this section is
not a violation by the retirement system of any law, including a law
or rule relating to the protection of confidential information.
(d) The retirement system has sole discretion in
determining whether a record is subject to this section. For
purposes of this section, a record includes any identifying
information about any person, living or deceased, who is or was:
(1) an individual listed in Section 615.003; or
(2) a survivor, heir, or beneficiary of an individual
listed in Section 615.003.
SECTION 2. Subchapter A, Chapter 811, Government Code, is
amended by adding Sections 811.010 and 811.011 to read as follows:
Sec. 811.010. VENUE. Subject to and without waiving the
retirement system's sovereign immunity or the official immunity of
the trustees, officers, and employees of the retirement system, the
venue for any action by or against the retirement system, the
trustees, officers, or employees of the retirement system, or an
administering firm, carrier, or other governmental agency acting in
cooperation with or on behalf of the retirement system is in Travis
County.
Sec. 811.011. STATUTE OF LIMITATIONS. Subject to and
without waiving the retirement system's sovereign immunity or the
official immunity of the trustees, officers, and employees of the
retirement system, unless specifically provided otherwise by
another statute, the statute of limitations for a claim against the
retirement system or a trustee, officer, or employee of the
retirement system is two years.
SECTION 3. Section 812.101, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) For a law enforcement or custodial officer, the
withdrawal of accumulated contributions under Subsection (a)
includes all of the officer's contributions made under Section
815.402(h).
SECTION 4. Section 812.201(c), Government Code, is amended
to read as follows:
(c) A person who is retired from the elected class of
membership and who again holds a position included in that class may
elect to become a member again by filing notice with the retirement
system. Except as provided by Section 812.203(c) [812.203(e)],
when benefit payments are resumed, the retirement system shall
recompute the annuity selected at the time of the person's original
retirement to include the additional service established during
membership under this subsection.
SECTION 5. Subchapter C, Chapter 812, Government Code, is
amended by adding Section 812.205 to read as follows:
Sec. 812.205. WAITING PERIOD. A member who retires from the
employee class on or after May 31, 2009, may not return to work in a
position included in the employee class of membership before the
90th day after the date of the retiree's original retirement.
SECTION 6. Subchapter C, Chapter 812, Government Code, is
amended by adding Section 812.206 to read as follows:
Sec. 812.206. RETURN TO WORK SURCHARGE. (a) This section
applies only to a person who, on or after September 1, 2009:
(1) retires from the employee class; and
(2) is rehired as a retiree into a position that would
otherwise include membership in the employee class.
(b) For each month that a department or agency of this state
employs a person described by Subsection (a), the department or
agency shall remit to the retirement system an amount equal to the
amount of the state contribution that the department or agency
would remit for an active member employed in the person's position.
The amount remitted shall be deposited as provided by Section
815.309.
SECTION 7. Section 813.509, Government Code, is amended by
amending Subsections (d) and (e) and adding Subsection (k) to read
as follows:
(d) An individual who was a [A] member or employee on August
31, 2009, and who holds a position included in the employee class
may use sick leave creditable under this section to satisfy service
requirements for retirement under Section 814.104 or 814.107 if the
sick leave attributed to the eligibility requirements remains
otherwise unused on the last day of employment.
(e) A death benefit beneficiary [designee] under Section
814.302 may use the deceased member's sick leave credit under this
section to qualify for making a death benefit plan selection under
Section 814.302 if the decedent was a member or employee on August
31, 2009.
(k) A member who was not a member on the date hired and was
hired on or after September 1, 2009, or a death benefit beneficiary
of that member may use sick leave creditable under this section only
for purposes of calculating the member's or beneficiary's annuity.
SECTION 8. Section 813.511, Government Code, is amended by
amending Subsections (d) and (e) and adding Subsection (j) to read
as follows:
(d) An individual who was a [A] member or employee on August
31, 2009, and who holds a position included in the employee class
may use annual leave creditable under this section to satisfy
service requirements for retirement under Section 814.104 or
814.107 if the annual leave attributed to the eligibility
requirements remains otherwise unused on the last day of
employment.
(e) A death benefit beneficiary [designee] under Section
814.302 may use the deceased member's annual leave credit under
this section to qualify for making a death benefit plan selection
under Section 814.302 if the decedent was a member or employee on
August 31, 2009.
(j) A member who was not a member on the date hired and was
hired on or after September 1, 2009, or a death benefit beneficiary
of that member may use annual leave creditable under this section
only for purposes of calculating the member's or beneficiary's
annuity.
SECTION 9. 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 10. 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 accumulation account.
SECTION 11. Section 814.104, Government Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) Except as provided by Subsection (d) of this section,
Section 814.102, or by rule adopted under Section 813.304(d) or
803.202(a)(2), a member who has service credit in the retirement
system is eligible to retire and receive a service retirement
annuity if the member:
(1) is at least 60 years old and has at least 5 years of
service credit in the employee class; or
(2) has at least 5 years of service credit in the
employee class and the sum of the member's age and amount of service
credit in the employee class, including months of age and credit,
equals or exceeds the number 80.
(d) Except as provided by Section 814.102 or by rule adopted
under Section 813.304(d) or 803.202(a)(2), a member who was not a
member on the date hired, was hired on or after September 1, 2009,
and has service credit in the retirement system is eligible to
retire and receive a service retirement annuity if the member:
(1) is at least 65 years old and has at least 10 years
of service credit in the employee class; or
(2) has at least 5 years of service credit in the
employee class and the sum of the member's age and amount of service
credit in the employee class, including months of age and credit,
equals or exceeds the number 80.
SECTION 12. Section 814.105, Government Code, is amended by
adding Subsections (c) and (d) to read as follows:
(c) The standard service retirement annuity for service
credited in the employee class of membership for a member who was
not a member on the date hired, was hired on or after September 1,
2009, and is eligible to retire is an amount computed as the
member's average monthly compensation for service in that class for
the 48 highest months of compensation multiplied by 2.3 percent for
each year of service credit in that class.
(d) The standard service retirement annuity computed under
Subsection (c) is reduced by five percent for each year the member
retires before the member reaches age 60, with a maximum possible
reduction of 25 percent.
SECTION 13. Sections 814.107(c) and (d), Government Code,
are amended to read as follows:
(c) The standard combined service retirement annuity that
is payable under this section is based on retirement on or after the
attainment of the normal retirement age, which for purposes of this
section is the earlier of either the age of 50 or the age at which
the sum of the member's age and amount of service credit in the
employee class equals the number 80. A law enforcement or custodial
officer who retires before attaining the normal retirement age is
entitled only to an annuity that is actuarially reduced from the
annuity available at the normal retirement age to the law
enforcement or custodial officer whose service credit annuity
amount is based on [available at] the sum of the member's age and
amount of law enforcement or custodial officer service credit and
employee class service credit, and is not entitled to have the
annuity recalculated at normal retirement age. The standard or
reduced annuity is payable from the trust fund established by
Section 815.310 and the law enforcement and custodial officer
supplemental retirement fund in a ratio determined by the
retirement system.
(d) A member who retires under this section retires
simultaneously from the employee class of membership. [Benefits for
service in the employee class of membership become payable from the
trust fund established by Section 815.310 at the normal retirement
age under the computation provided by Section 814.105.] Optional
retirement annuities provided by Section 814.108 are available to a
member eligible to receive a service retirement annuity under this
section, but the same optional plan and beneficiary [designee] must
be selected for the portion of the annuity payable from the law
enforcement and custodial officer supplemental retirement fund and
the portion payable from the trust fund established by Section
815.310.
SECTION 14. Subchapter B, Chapter 814, Government Code, is
amended by adding Section 814.1075 to read as follows:
Sec. 814.1075. ADJUSTED BENEFITS FOR CERTAIN PEACE
OFFICERS. (a) This section applies only to a person hired on or
after September 1, 2009, who was not a member on the date hired.
(b) A member who has at least 20 years of service credit as a
law enforcement or custodial officer is eligible to retire
regardless of age and receive a standard service retirement annuity
as provided by this section.
(c) The standard service retirement annuity payable for at
least 20 years of service credit as a law enforcement or custodial
officer is an amount computed on the basis of the member's average
monthly compensation for the 48 highest months of compensation in
the employee class multiplied by the sum of the percentage factor
used in the computation of a standard service retirement annuity
under Section 814.105(c) plus 0.5 percent.
(d) The standard combined service retirement annuity that
is payable under this section is based on retirement at either the
age of 55 or the age at which the sum of the member's age and amount
of service credit in the employee class equals or exceeds the number
80. The annuity of a law enforcement or custodial officer who
retires before reaching the age of 55 under any eligibility
criteria is actuarially reduced by five percent for each year the
member retires before the member reaches age 55, with a maximum
possible reduction of 25 percent.
(e) An annuity payable under this section:
(1) is payable from the trust fund established by
Section 815.310 and from the law enforcement and custodial officer
supplemental retirement fund in a ratio determined by the
retirement system; and
(2) is based on the service credit available to the law
enforcement or custodial officer at the time of retirement and the
sum of the member's age and amount of law enforcement or custodial
officer service credit and employee class service credit.
(f) A member who retires under this section retires
simultaneously from the employee class of membership. Optional
retirement annuities provided by Section 814.108 are available to a
member eligible to receive a service retirement annuity under this
section, but the same optional plan and beneficiary must be
selected for the portion of the annuity payable from the law
enforcement and custodial officer supplemental retirement fund and
the portion payable from the trust fund established by Section
815.310.
(g) The amount payable from the law enforcement and
custodial officer supplemental retirement fund is reducible by the
amount paid from the trust fund established by Section 815.310 for
service as a law enforcement or custodial officer. The total
combined amount of an annuity under this section may not be less
than the authorized benefit under Subsection (c) subtracted by any
amount necessary because of the selection of an optional annuity,
because of retirement before the age of 55, or as provided by
Subsection (h).
(h) The standard combined service retirement annuity
payable for at least 20 years of service credit as a law enforcement
or custodial officer may not exceed 100 percent of the average
compensation computed under Subsection (c).
(i) For purposes of this section, service as a law
enforcement or custodial officer is creditable as provided by rule
of the board of trustees or on a month-to-month basis, whichever is
greater.
SECTION 15. 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 beneficiaries [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 beneficiaries [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 16. 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 dependent 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 dependent child.
SECTION 17. 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 18. 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 19. 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
retirement system 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 retirement system determines necessary to
protect the interests of a program or system administered by the
retirement system.
SECTION 20. Section 815.301, Government Code, is amended by
adding Subsections (g), (h), and (i) to read as follows:
(g) In awarding contracts to private professional
investment managers under Subsection (c) or otherwise acquiring
private financial services, the board of trustees shall make a good
faith effort to award contracts to or acquire services from
qualified emerging fund managers.
(h) For purposes of Subsection (g):
(1) "Emerging fund manager" means a private
professional investment manager that manages assets of not more
than $2 billion.
(2) "Private financial services" includes pension
fund management, consulting, investment advising, brokerage
services, hedge fund management, private equity fund management,
and real estate investment.
(i) The retirement system shall report to the board of
trustees on the methods and results of the system's efforts to hire
emerging fund managers, including data disaggregated by race,
ethnicity, gender, and fund size.
SECTION 21. 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 22. Section 815.402, Government Code, is amended by
amending Subsection (a) and adding Subsection (h) to read as
follows:
(a) Except as provided by Section 813.201, each payroll
period, each department or agency of the state shall cause to be
deducted from each member's compensation a contribution of:
(1) 6.5 [six] percent of the compensation if the
member is not a member of the legislature, provided that if the
state contribution to the retirement system is computed using a
percentage less than 6.5 percent, the member's contribution is
computed using a percentage equal to the percentage used to compute
the state contribution, which may not be less than six percent; or
(2) eight percent of the compensation if the member is
a member of the legislature.
(h) In addition to the contribution under Subsection
(a)(1), each department or agency of the state that employs a law
enforcement or custodial officer shall deduct an additional 0.5
percent contribution from that member's compensation, to be
deposited in the law enforcement and custodial officer supplemental
retirement fund, provided that, if the state contribution to the
law enforcement and custodial officer supplemental retirement fund
is computed using a percentage less than 0.5 percent, the member's
contribution is computed using a percentage equal to the percentage
used to compute the state contribution.
SECTION 23. Section 815.503, Government Code, is amended by
amending Subsections (a) and (b) and adding Subsections (b-1) and
(e) to read as follows:
(a) Records of members, annuitants, retirees,
beneficiaries, and alternate payees under retirement plans
administered by the retirement system that are in the custody of the
system or of an administering firm [administrator], carrier, or
other governmental agency acting in cooperation with or on behalf
of the retirement system are confidential and not subject to public
disclosure, and the retirement system, administering firm,
carrier, or governmental agency is not required to accept or comply
with a request for a record or information about a record or to seek
an opinion from the attorney general, because the records are
exempt from the [public access] provisions of Chapter 552, except
as otherwise provided by this section.
(b) Records may be released to a member, annuitant, retiree,
beneficiary, or alternate payee or to an authorized attorney,
family member, or representative acting on behalf of the member,
annuitant, retiree, beneficiary, or alternate payee. The
retirement system may release the records to an administering firm
[administrator], carrier, or agent or attorney acting on behalf of
the retirement system, to another governmental entity having a
legitimate need for the information to perform the purposes of the
retirement system, or to a party in response to a subpoena issued
under applicable law.
(b-1) A record released or received by the retirement system
under this section may be transmitted electronically, including
through the use of an electronic signature or certification in a
form acceptable to the retirement system. An unintentional
disclosure to, or unauthorized access by, a third party related to
the transmission or receipt of information under this section is
not a violation by the retirement system of any law, including a law
or rule relating to the protection of confidential information.
(e) The retirement system has sole discretion in
determining if a record is subject to this section. For purposes of
this section, a record includes any identifying information about a
person, living or deceased, who is or was a member, annuitant,
retiree, beneficiary, or alternate payee, under any retirement plan
or program administered by the retirement system.
SECTION 24. 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, a trustee, officer, or
employee of the retirement system, or a carrier or administering
firm for the retirement system in connection with a transaction or
occurrence related to the interpleader action.
(c) A person who violates Subsection (b) is liable for the
costs and attorney's fees incurred by the retirement system, a
trustee, officer, or employee of the retirement system, or a
carrier or administering firm for the retirement system as a result
of the violation.
SECTION 25. 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 request 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
accumulation account.
(c) The board of trustees may adopt rules to implement and
administer this section.
SECTION 26. 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 27. 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 not later than December 31
regardless of the date on which the member's successor takes the
oath of office.
SECTION 28. 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 29. 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 30. Section 840.402, Government Code, is amended to
read as follows:
Sec. 840.402. RETIREMENT SYSTEM RECORDS. Records of
members, annuitants, retirees, beneficiaries, and alternate payees
of the retirement system are confidential and are not subject to
public disclosure and are exempt from the provisions of Chapter
552. Records maintained as confidential under this section may be
released or received in the manner provided by Section 815.503.
SECTION 31. Section 1551.003, Insurance Code, is amended by
adding Subdivision (10-a) to read as follows:
(10-a) "Participant" means an eligible individual who
participates in the group benefits program.
SECTION 32. Section 1551.004, Insurance Code, is amended to
read as follows:
Sec. 1551.004. DEFINITION OF DEPENDENT. (a) In this
chapter, "dependent" with respect to an individual eligible to
participate in the group benefits program under Section 1551.101 or
1551.102 means the individual's:
(1) spouse;
(2) unmarried child younger than 25 years of age;
(3) child of any age who the board of trustees
determines lives with or has the child's care provided by the
individual on a regular basis if:
(A) the child is mentally retarded or physically
incapacitated to the extent that the child is dependent on the
individual for care or support, as determined by the board of
trustees;
(B) the child's coverage under this chapter has
not lapsed; and
(C) the child is at least 25 years old and was
enrolled as a participant in the health benefits coverage under the
group benefits program on the date of the child's 25th birthday;
[and]
(4) child of any age who is unmarried, for purposes of
health benefit coverage under this chapter, on expiration of the
child's continuation coverage under the Consolidated Omnibus
Budget Reconciliation Act of 1985 (Pub. L. No. 99-272) and its
subsequent amendments; and
(5) ward, as that term is defined by Section 601, Texas
Probate Code.
(b) In this section, "child" includes:
(1) a natural child, [an] adopted child, [and a]
stepchild, or foster child; [,] or
(2) a [other] child who is related by blood or marriage
and was claimed as a dependent on the federal income tax return of
[is in a parent-child relationship with] an individual who is
eligible to participate in the group benefits program under Section
1551.101 or 1551.102 for the calendar year preceding the plan year
in which the child is first enrolled as a dependent under Subchapter
D, and for each subsequent year in which the child is enrolled as a
dependent.
(c) The requirement in Subsection (b)(2) that a child must
be claimed as a dependent on a federal income tax return in the
calendar year preceding the child's enrollment does not apply if:
(1) the child is born in the year in which the child is
first enrolled; or
(2) the participant can demonstrate good cause for not
claiming the child as a dependent in the preceding calendar year.
SECTION 33. Section 1551.063, Insurance Code, is amended by
amending Subsections (a) and (c) and adding Subsections (d-1) and
(f) to read as follows:
(a) The records of a participant in the group benefits
program in the custody of the Employees Retirement System of Texas
[board of trustees], or of an administering firm, [administrator
or] carrier, or another governmental entity acting on behalf of the
retirement system [board], are confidential and not subject to
disclosure, and the retirement system, administering firm,
carrier, or governmental entity [board] is not required to accept
or comply with a request for a record or information about a record
or to seek an opinion from the attorney general, because the records
are exempt from the [public access] provisions of Chapter 552,
Government Code, except as provided by this section.
(c) To accomplish the purposes of this chapter, the board of
trustees may release the records to:
(1) an administering firm [administrator], carrier,
agent, or attorney acting on behalf of the board;
(2) another governmental entity having a legitimate
need for the information to perform a function of the board of
trustees;
(3) an authorized medical provider of the participant;
or
(4) a party in response to a subpoena issued under
applicable law.
(d-1) A record released or received by the Employees
Retirement System of Texas under this section may be transmitted
electronically, including through the use of an electronic
signature or certification in a form acceptable to the retirement
system. An unintentional disclosure to, or unauthorized access by,
a third party related to the transmission or receipt of information
under this section is not a violation by the retirement system of
any law, including a law or rule relating to the protection of
confidential information.
(f) The Employees Retirement System of Texas has sole
discretion in determining if a record is subject to this section.
For purposes of this section, a record includes any identifying
information about a person, living or deceased, who is or was an
employee, annuitant, dependent, or participant in the group
benefits program.
SECTION 34. 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) [(2) receives or is eligible to receive an
annuity under that program and] 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, and is
eligible to receive an annuity or periodic distribution of funds
from an account under 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, and is receiving an annuity or periodic
distribution of funds from an account under the optional retirement
program.
SECTION 35. 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
described by Subsection (a) 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 36. 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 37. 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 38. 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 Employees Retirement System of Texas, a trustee,
officer, or employee of the retirement system, or a carrier or
administering firm for the retirement system in connection with a
transaction or occurrence related to the interpleader action.
(d) A person who violates Subsection (c) is liable for the
costs and attorney's fees incurred by the Employees Retirement
System of Texas, a trustee, officer, or employee of the retirement
system, or a carrier or administering firm for the retirement
system as a result of the violation.
SECTION 39. 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 Employees Retirement System of Texas 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
retirement system determines necessary to protect the interests of
a program or system administered by the retirement system.
SECTION 40. 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 41. The following laws are repealed:
(1) Section 833.1035(c), Government Code;
(2) Section 833.104, Government Code;
(3) Section 835.1015(c), Government Code;
(4) Section 838.1035(c), Government Code;
(5) Section 838.104, Government Code;
(6) Section 840.1025(c), Government Code;
(7) Section 840.1027(c), Government Code;
(8) Section 1551.218(c), Insurance Code; and
(9) Section 1551.221, Insurance Code.
SECTION 42. Under Section 67, Article XVI, Texas
Constitution, the Employees Retirement System of Texas may
distribute a supplemental annuity payment on behalf of the State of
Texas using money appropriated from the general revenue fund to the
retirement system by an Act of the 81st Legislature, Regular
Session, 2009, that is enacted and becomes law.
SECTION 43. Sections 811.010 and 811.011, Government 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 administering firm, 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 44. 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 45. Section 1551.004, Insurance Code, as amended by
this Act, applies only to an individual claimed as a dependent for a
plan year beginning on or after September 1, 2010. An individual
claimed as a dependent for a plan year that began before September
1, 2010, is governed by the law in effect when the individual was
claimed as a dependent, and that law is continued in effect for that
purpose.
SECTION 46. DEPARTMENT OF STATE HEALTH SERVICES: STATE
EMPLOYEE PILOT PROGRAM. The Department of State Health Services
and the Employees Retirement System of Texas may enter into an
interagency contract to establish a state employee pilot program
consistent with federal guidelines for chronic disease prevention
and wellness initiatives. To support the pilot program the
Department of State Health Services may use funds received from the
American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5)
or other such federal funds available to the Department of State
Health Services.
SECTION 47. This Act takes effect September 1, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2559 was passed by the House on May
11, 2009, by the following vote: Yeas 141, Nays 0, 2 present, not
voting; that the House concurred in Senate amendments to H.B. No.
2559 on May 29, 2009, by the following vote: Yeas 100, Nays 43, 2
present, not voting; and that the House adopted H.C.R. No. 292
authorizing certain corrections in H.B. No. 2559 on June 1, 2009, by
the following vote: Yeas 141, Nays 0, 1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2559 was passed by the Senate, with
amendments, on May 26, 2009, by the following vote: Yeas 26, Nays
5; and that the Senate adopted H.C.R. No. 292 authorizing certain
corrections in H.B. No. 2559 on June 1, 2009, by the following
vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor