81R5072 TJS-D
By: Herrero H.B. No. 687
A BILL TO BE ENTITLED
AN ACT
relating to long-term funding of benefits for retired teachers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1575, Insurance Code, is amended by
adding Subchapter G-1 to read as follows:
SUBCHAPTER G-1. RETIREE HEALTH BENEFITS FUND
Sec. 1575.321. DEFINITION. In this subchapter, "retiree
health benefits fund" means the public school retiree health
benefits fund established under this subchapter.
Sec. 1575.322. ADMINISTRATION OF FUND. The trustee shall
administer the retiree health benefits fund.
Sec. 1575.323. PAYMENTS INTO FUND. (a) The following shall
be paid into the retiree health benefits fund:
(1) contributions from active employees, employers,
and the state as required by the General Appropriations Act;
(2) investment income; and
(3) other money required or authorized to be paid into
the fund.
(b) Contributions to the retiree health benefits fund are in
addition to other contributions made under this chapter and may be
collected in the same manner as other contributions are collected
under this chapter.
Sec. 1575.324. PAYMENTS FROM FUND. (a) Money in the
retiree health benefits fund may be transferred to the retired
school employees group insurance fund for use in accordance with
Subsection (b).
(b) Money in the retiree health benefits fund may be used
only to provide health benefits for a retiree who was born on or
after September 1, 1977. The legislature reserves the right to
specify additional retirees for whom payments may be made from the
fund.
(c) The retiree health benefits fund is held in trust for
the benefit of the retirees described by Subsection (b) and may not
be diverted.
Sec. 1575.325. INVESTMENT OF FUND. The trustee may invest
money in the retiree health benefits fund in the manner provided by
Subchapter D, Chapter 825, Government Code, for assets of the
Teacher Retirement System of Texas.
Sec. 1575.326. MANAGEMENT OF ASSETS. The trustee may
commingle, for investment purposes only, the assets of a fund
created under this subchapter with another fund created under this
chapter or any other trust fund administered by the trustee if the
trustee maintains and credits proportionate ownership records.
SECTION 2. This Act takes effect September 1, 2009.