| 1 | 1 | | 81R15600 SGA-D |
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| 2 | 2 | | By: Truitt H.B. No. 3608 |
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| 3 | 3 | | Substitute the following for H.B. No. 3608: |
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| 4 | 4 | | By: Truitt C.S.H.B. No. 3608 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the deduction of qualified health insurance premiums |
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| 10 | 10 | | from annuities payable by the Teacher Retirement System of Texas to |
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| 11 | 11 | | certain retired public safety officers. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subchapter A, Chapter 824, Government Code, is |
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| 14 | 14 | | amended by adding Section 824.007 to read as follows: |
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| 15 | 15 | | Sec. 824.007. DEDUCTIONS FROM SERVICE OR DISABILITY |
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| 16 | 16 | | RETIREMENT ANNUITY. (a) In this section, "program administrator" |
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| 17 | 17 | | means the person who administers the uniform program under Section |
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| 18 | 18 | | 1601.102, Insurance Code. |
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| 19 | 19 | | (b) An individual eligible to participate in the uniform |
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| 20 | 20 | | program under Section 1601.102, Insurance Code, may authorize the |
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| 21 | 21 | | retirement system to deduct the amount of the contribution and any |
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| 22 | 22 | | other qualified health insurance premium from the individual's |
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| 23 | 23 | | regular monthly service or disability retirement annuity payment if |
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| 24 | 24 | | the individual is: |
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| 25 | 25 | | (1) eligible to receive a monthly annuity from the |
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| 26 | 26 | | retirement system greater than the amount of the authorized |
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| 27 | 27 | | deduction; and |
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| 28 | 28 | | (2) eligible under Section 402(l), Internal Revenue |
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| 29 | 29 | | Code of 1986, or a similar law, to elect to exclude from annual |
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| 30 | 30 | | gross income up to $3,000 of distributions from an eligible |
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| 31 | 31 | | retirement plan used for qualified health insurance premiums. |
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| 32 | 32 | | (c) An individual may authorize the deduction described by |
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| 33 | 33 | | Subsection (b) on a form provided by the program administrator. The |
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| 34 | 34 | | program administrator shall coordinate the implementation of an |
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| 35 | 35 | | authorization under Subsection (b) with the retirement system. |
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| 36 | 36 | | (d) After making the deductions, the retirement system |
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| 37 | 37 | | shall pay to the program administrator an aggregate amount for all |
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| 38 | 38 | | individuals who authorize annuity deductions under Subsection (b). |
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| 39 | 39 | | (e) If an individual no longer receives a monthly annuity |
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| 40 | 40 | | greater than the amount of the authorized deduction, the retirement |
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| 41 | 41 | | system: |
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| 42 | 42 | | (1) shall inform the program administrator; and |
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| 43 | 43 | | (2) is not required to make any deduction under this |
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| 44 | 44 | | section for the individual. |
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| 45 | 45 | | (f) The retirement system is not required to accept an |
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| 46 | 46 | | authorization for a deduction under this section if payment of |
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| 47 | 47 | | qualified health insurance premiums by deduction from a retirement |
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| 48 | 48 | | plan annuity is not required for an eligible retiree to elect the |
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| 49 | 49 | | gross income exclusion described by Subsection (b)(2). |
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| 50 | 50 | | SECTION 2. This Act takes effect September 1, 2009. |
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