| 1 | 1 | | 81R5072 TJS-D |
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| 2 | 2 | | By: Herrero H.B. No. 687 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to long-term funding of benefits for retired teachers. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Chapter 1575, Insurance Code, is amended by |
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| 10 | 10 | | adding Subchapter G-1 to read as follows: |
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| 11 | 11 | | SUBCHAPTER G-1. RETIREE HEALTH BENEFITS FUND |
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| 12 | 12 | | Sec. 1575.321. DEFINITION. In this subchapter, "retiree |
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| 13 | 13 | | health benefits fund" means the public school retiree health |
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| 14 | 14 | | benefits fund established under this subchapter. |
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| 15 | 15 | | Sec. 1575.322. ADMINISTRATION OF FUND. The trustee shall |
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| 16 | 16 | | administer the retiree health benefits fund. |
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| 17 | 17 | | Sec. 1575.323. PAYMENTS INTO FUND. (a) The following shall |
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| 18 | 18 | | be paid into the retiree health benefits fund: |
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| 19 | 19 | | (1) contributions from active employees, employers, |
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| 20 | 20 | | and the state as required by the General Appropriations Act; |
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| 21 | 21 | | (2) investment income; and |
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| 22 | 22 | | (3) other money required or authorized to be paid into |
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| 23 | 23 | | the fund. |
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| 24 | 24 | | (b) Contributions to the retiree health benefits fund are in |
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| 25 | 25 | | addition to other contributions made under this chapter and may be |
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| 26 | 26 | | collected in the same manner as other contributions are collected |
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| 27 | 27 | | under this chapter. |
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| 28 | 28 | | Sec. 1575.324. PAYMENTS FROM FUND. (a) Money in the |
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| 29 | 29 | | retiree health benefits fund may be transferred to the retired |
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| 30 | 30 | | school employees group insurance fund for use in accordance with |
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| 31 | 31 | | Subsection (b). |
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| 32 | 32 | | (b) Money in the retiree health benefits fund may be used |
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| 33 | 33 | | only to provide health benefits for a retiree who was born on or |
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| 34 | 34 | | after September 1, 1977. The legislature reserves the right to |
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| 35 | 35 | | specify additional retirees for whom payments may be made from the |
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| 36 | 36 | | fund. |
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| 37 | 37 | | (c) The retiree health benefits fund is held in trust for |
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| 38 | 38 | | the benefit of the retirees described by Subsection (b) and may not |
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| 39 | 39 | | be diverted. |
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| 40 | 40 | | Sec. 1575.325. INVESTMENT OF FUND. The trustee may invest |
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| 41 | 41 | | money in the retiree health benefits fund in the manner provided by |
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| 42 | 42 | | Subchapter D, Chapter 825, Government Code, for assets of the |
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| 43 | 43 | | Teacher Retirement System of Texas. |
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| 44 | 44 | | Sec. 1575.326. MANAGEMENT OF ASSETS. The trustee may |
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| 45 | 45 | | commingle, for investment purposes only, the assets of a fund |
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| 46 | 46 | | created under this subchapter with another fund created under this |
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| 47 | 47 | | chapter or any other trust fund administered by the trustee if the |
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| 48 | 48 | | trustee maintains and credits proportionate ownership records. |
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| 49 | 49 | | SECTION 2. This Act takes effect September 1, 2009. |
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