82R7426 TJS-F
By: Duncan S.B. No. 1667
A BILL TO BE ENTITLED
AN ACT
relating to the administration of and benefits payable by the
Teacher Retirement System of Texas and to certain domestic
relations orders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 411.081(i), Government Code, as amended
by Chapters 183 (H.B. 1830), 780 (S.B. 1056), 816 (S.B. 1599), and
1027 (H.B. 4343), Acts of the 81st Legislature, Regular Session,
2009, is reenacted and amended to read as follows:
(i) A criminal justice agency may disclose criminal history
record information that is the subject of an order of nondisclosure
under Subsection (d) to the following noncriminal justice agencies
or entities only:
(1) the State Board for Educator Certification;
(2) a school district, charter school, private school,
regional education service center, commercial transportation
company, or education shared service arrangement;
(3) the Texas Medical Board;
(4) the Texas School for the Blind and Visually
Impaired;
(5) the Board of Law Examiners;
(6) the State Bar of Texas;
(7) a district court regarding a petition for name
change under Subchapter B, Chapter 45, Family Code;
(8) the Texas School for the Deaf;
(9) the Department of Family and Protective Services;
(10) the Texas Youth Commission;
(11) the Department of Assistive and Rehabilitative
Services;
(12) the Department of State Health Services, a local
mental health service, a local mental retardation authority, or a
community center providing services to persons with mental illness
or retardation;
(13) the Texas Private Security Board;
(14) a municipal or volunteer fire department;
(15) the Texas Board of Nursing;
(16) a safe house providing shelter to children in
harmful situations;
(17) a public or nonprofit hospital or hospital
district;
(18) the Texas Juvenile Probation Commission;
(19) the securities commissioner, the banking
commissioner, the savings and mortgage lending commissioner, or the
credit union commissioner;
(20) the Texas State Board of Public Accountancy;
(21) the Texas Department of Licensing and Regulation;
(22) the Health and Human Services Commission;
(23) the Department of Aging and Disability Services;
(24) the Texas Education Agency; [and]
(25) the Guardianship Certification Board; [and]
(26) a county clerk's office in relation to a
proceeding for the appointment of a guardian under Chapter XIII,
Texas Probate Code;
(27) [(25)] the Department of Information Resources
but only regarding an employee, applicant for employment,
contractor, subcontractor, intern, or volunteer who provides
network security services under Chapter 2059 to:
(A) the Department of Information Resources; or
(B) a contractor or subcontractor of the
Department of Information Resources;
(28) [(25)] the Court Reporters Certification Board;
[and]
(29) [(25)] the Texas Department of Insurance; and
(30) the Teacher Retirement System of Texas.
SECTION 2. Subchapter F, Chapter 411, Government Code, is
amended by adding Section 411.0971 to read as follows:
Sec. 411.0971. ACCESS TO CRIMINAL HISTORY RECORD
INFORMATION: TEACHER RETIREMENT SYSTEM OF TEXAS. (a) The Teacher
Retirement System of Texas is entitled to obtain from the
department, the Federal Bureau of Investigation Criminal Justice
Information Services Division, or another law enforcement agency
criminal history record information maintained by the department,
division, or agency that relates to a person who:
(1) is an employee or an applicant for employment with
the retirement system;
(2) is a consultant, contract employee, independent
contractor, intern, or volunteer for the retirement system or an
applicant to serve in one of those positions;
(3) proposes to enter into a contract with or has a
contract with the retirement system to perform services for or
supply goods to the retirement system; or
(4) is an employee or subcontractor, or an applicant
to be an employee or subcontractor, of a contractor that provides
services to the retirement system.
(b) Criminal history record information obtained by the
Teacher Retirement System of Texas under Subsection (a) may not be
released or disclosed to any person except:
(1) on court order;
(2) with the consent of the person who is the subject
of the criminal history record information; or
(3) to a federal agency as required by federal law or
executive order.
(c) The Teacher Retirement System of Texas shall destroy
criminal history record information obtained under this section
after the information is used for the purposes authorized by this
section.
(d) The Teacher Retirement System of Texas may provide a
copy of the criminal history record information obtained from the
department, the Federal Bureau of Investigation Criminal Justice
Information Services Division, or other law enforcement agency to
the individual who is the subject of the information.
(e) The failure or refusal of an employee or applicant to
provide the following on request constitutes good cause for
dismissal or refusal to hire:
(1) a complete set of fingerprints;
(2) a true and complete name; or
(3) other information necessary for a law enforcement
entity to obtain criminal history record information.
SECTION 3. Subchapter F, Chapter 551, Government Code, is
amended by adding Section 551.130 to read as follows:
Sec. 551.130. BOARD OF TRUSTEES OF TEACHER RETIREMENT
SYSTEM OF TEXAS; TELEPHONE CONFERENCE CALL. (a) In this section,
"board" means the board of trustees of the Teacher Retirement
System of Texas.
(b) Except as provided by this section, this chapter does
not prohibit the board from holding an open or closed meeting by
telephone conference call.
(c) A meeting held by telephone conference call by the board
may be held only if a quorum of the board is physically present at a
single location that is open to the public during any open portion
of the meeting.
(d) The telephone conference call meeting is subject to the
notice requirements applicable to other meetings.
(e) The notice of the telephone conference call meeting must
specify as the location of the meeting the location where the quorum
of the board of trustees will be physically present.
(f) Each part of the telephone conference call meeting that
is open to the public must be audible to the public at the location
specified in the notice of the meeting and shall be tape-recorded at
that location. The tape recording shall be made available to the
public.
(g) The meeting location specified in the notice must
provide two-way communication during the entire telephone
conference call, and the identification of each party to the
telephone conference must be clearly stated before the party
speaks.
(h) A board member who participates in a board meeting by
telephone conference call and who is not physically present at the
location of the meeting is not considered absent from the meeting
for any purpose, including for purposes of Section 825.010(a).
(i) This section does not authorize a person who is not a
board member to speak at a meeting from a remote location by
telephone conference call, except as provided by Section 551.129.
SECTION 4. Subchapter C, Chapter 552, Government Code, is
amended by adding Section 552.153 to read as follows:
Sec. 552.153. EXCEPTION: NAME OF APPLICANT FOR EXECUTIVE
DIRECTOR, CHIEF INVESTMENT OFFICER, OR CHIEF AUDIT EXECUTIVE OF
TEACHER RETIREMENT SYSTEM OF TEXAS. The name of an applicant for
the position of executive director, chief investment officer, or
chief audit executive of the Teacher Retirement System of Texas is
excepted from the requirements of Section 552.021, except that the
board of trustees of the Teacher Retirement System of Texas must
give public notice of the names of three finalists being considered
for one of those positions at least 21 days before the date of the
meeting at which the final action or vote is to be taken on choosing
a finalist for employment.
SECTION 5. Section 804.003, Government Code, is amended by
amending Subsections (f) and (g) and adding Subsection (p) to read
as follows:
(f) A domestic relations order is a qualified domestic
relations order only if such order:
(1) clearly specifies the:
(A) name[, social security number,] and last
known mailing address[, if any,] of:
(i) the member or retiree; and
(ii) [the name, social security number, and
mailing address of] each alternate payee covered by the order; and
(B) social security number, or an express
authorization for the parties to use an alternate method acceptable
to the public retirement system to verify the social security
number, of the member or retiree and each alternate payee covered by
the order;
(2) clearly specifies the amount or percentage of the
member's or retiree's benefits to be paid by a public retirement
system to each such alternate payee or the manner in which such
amount or percentage is to be determined;
(3) clearly specifies the number of payments or the
period to which such order applies;
(4) clearly specifies that such order applies to a
designated public retirement system;
(5) does not require the public retirement system to
provide any type or form of benefit or any option not otherwise
provided under the plan;
(6) does not require the public retirement system to
provide increased benefits determined on the basis of actuarial
value;
(7) does not require the payment of benefits to an
alternate payee which are required to be paid to another alternate
payee under another order previously determined to be a qualified
domestic relations order; and
(8) does not require the payment of benefits to an
alternate payee before the retirement of a member, the distribution
of a withdrawal of contributions to a member, or other distribution
to a member required by law.
(g) A public retirement system may reject a domestic
relations order as a qualified domestic relations order unless the
order:
(1) provides for a proportional reduction of the
amount awarded to an alternate payee in the event of the retirement
of the member before normal retirement age;
(2) does not purport to require the designation of a
particular person as the recipient of benefits in the event of a
member's or annuitant's death;
(3) does not purport to require the selection of a
particular benefit payment plan or option;
(4) provides clearly for each possible benefit
distribution under plan provisions;
(5) does not require any action on the part of the
retirement system contrary to its governing statutes or plan
provision other than the direct payment of the benefit awarded to an
alternate payee;
(6) does not make the award of an interest contingent
on any condition other than those conditions resulting in the
liability of a retirement system for payments under its plan
provisions;
(7) does not purport to award any future benefit
increases that are provided or required by the legislature; [and]
(8) provides for a proportional reduction of the
amount awarded to an alternate payee in the event that benefits
available to the retiree or member are reduced by law; and
(9) if required by the retirement system, conforms to
a model order adopted by the retirement system.
(p) A public retirement system may assess administrative
fees on a party who is subject to a domestic relations order for the
review of the order under this subchapter and, as applicable, for
the administration of payments under an order that is determined to
be qualified. In addition to other methods of collecting fees that
a retirement system may establish, the retirement system may deduct
fees from payments made under the order.
SECTION 6. Section 821.008, Government Code, is amended to
read as follows:
Sec. 821.008. PURPOSE OF RETIREMENT SYSTEM. (a) The
purpose of the retirement system is to invest and protect funds of
the retirement system and to deliver the benefits provided by
statute, not to advocate or influence legislative action or
inaction or to advocate higher benefits.
(b) This section does not prohibit comments by an employee
of the retirement system on federal laws, regulations, or other
official actions or proposed actions affecting or potentially
affecting the retirement system that are made in accordance with
policies adopted by the board.
SECTION 7. Section 823.002, Government Code, is amended by
adding Subsection (b) to read as follows:
(b) A member shall notify the retirement system in writing
of membership service that has not been properly credited by the
retirement system on an annual statement. The member must provide
verification and make deposits as required by the retirement system
before the service may be credited. A member must notify the
retirement system of the service in writing on or before the last
day of the fifth school year after the end of the school year in
which the service was rendered for the service to be credited.
SECTION 8. Subchapter A, Chapter 824, Government Code, is
amended by adding Section 824.008 to read as follows:
Sec. 824.008. DEDUCTIONS FROM AMOUNTS PAYABLE BY THE
RETIREMENT SYSTEM. (a) Notwithstanding Section 821.005, the
retirement system may deduct the amount of a person's indebtedness
to the retirement system from an amount payable by the retirement
system to the person or the person's estate and the distributees of
the estate.
(b) If the retirement system makes a payment to a
participant who is deceased and the payment is not payable, the
retirement system may deduct the amount of the payment from any
amount payable by the retirement system to a person who received the
payment or to that person's estate and distributees of the estate.
SECTION 9. Section 824.1013, Government Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1) Notwithstanding Subsection (c), a beneficiary
designated under this section is entitled on the retiree's death to
receive monthly payments of the survivor's portion of the retiree's
optional retirement annuity for the remainder of the beneficiary's
life if the beneficiary designated at the time of the retiree's
retirement is a trust and the beneficiary designated under this
section is the sole beneficiary of that trust.
SECTION 10. Section 824.103(a), Government Code, is amended
to read as follows:
(a) Benefits payable on the death of a member or annuitant,
except an optional retirement annuity under Section 824.204(c)(1),
(c)(2), or (c)(5), are payable, and rights to elect survivor
benefits, if applicable, are available, to one of the classes of
persons described in Subsection (b), if:
(1) the member or annuitant fails to designate a
beneficiary before death;
(2) a designated beneficiary does not survive the
member or annuitant; [or]
(3) a designated beneficiary, under Section 824.004,
waives claims to benefits payable on the death of the member or
annuitant;
(4) a beneficiary designation is revoked under Section
824.101(g); or
(5) a person is not eligible to receive a benefit under
Section 824.105.
SECTION 11. Section 824.105, Government Code, is amended by
amending Subsections (a), (c), and (d) and adding Subsection (f) to
read as follows:
(a) A benefit payable on the death of a member or annuitant
may not be paid to a person who has been convicted of causing that
death or who is otherwise ineligible under Subsection (f) but
instead is payable to a person who would be entitled to the benefit
had the convicted or otherwise ineligible person predeceased the
decedent.
(c) The retirement system shall reduce any annuity computed
in part on the age of the convicted or otherwise ineligible person
to a lump sum equal to the present value of the remainder of the
annuity. The reduced amount is payable to a person entitled as
provided by this section to receive the benefit.
(d) The retirement system is not required to pay benefits
under this section unless it receives actual notice of the
conviction or other ground of ineligibility of a beneficiary.
However, the retirement system may delay payment of a benefit
payable on the death of a member or annuitant pending the results of
a criminal investigation and of legal proceedings relating to the
cause of death.
(f) A person is ineligible to receive a benefit payable on
the death of a member or annuitant if the person is:
(1) found not guilty by reason of insanity under
Chapter 46C, Code of Criminal Procedure, of causing the death of the
member or annuitant; or
(2) the subject of an indictment, information,
complaint, or other charging instrument alleging that the person
caused the death of the member or annuitant, and the person is
determined to be incompetent to stand trial under Chapter 46B, Code
of Criminal Procedure.
SECTION 12. Sections 824.202(a-1) and (b-1), Government
Code, are amended to read as follows:
(a-1) This subsection applies only to a person who becomes a
member of the retirement system on or after September 1, 2007
[2006]. A member subject to this subsection is eligible to retire
and receive a standard service retirement annuity if:
(1) the member is at least 65 years old and has at
least five years of service credit in the retirement system; or
(2) the member is at least 60 years old and has at
least five years of service credit in the retirement system and the
sum of the member's age and amount of service credit in the
retirement system equals the number 80.
(b-1) This subsection applies only to a person who becomes a
member of the retirement system on or after September 1, 2007
[2006]. If a member subject to this subsection is at least 55 years
old and has at least five years of service credit in the retirement
system, but does not meet the requirements under Subsection (d-1),
the member is eligible to retire and receive a service retirement
annuity reduced from the standard service retirement annuity
available under Subsection (a-1)(1), to a percentage derived from
the following table:
Age at date of 55 56 57 58 59 60 61 62 63 64 65 Age at date of 55 56 57 58 59 60 61 62 63 64 65
Age at date of 55 56 57 58 59 60 61 62 63 64 65
retirement retirement
retirement
Percentage of 47% 51% 55% 59% 63% 67% 73% 80% 87% 93% 100% Percentage of 47% 51% 55% 59% 63% 67% 73% 80% 87% 93% 100%
Percentage of 47% 51% 55% 59% 63% 67% 73% 80% 87% 93% 100%
standard annuity standard annuity
standard annuity
receivable receivable
receivable
SECTION 13. Section 824.405, Government Code, is amended to
read as follows:
Sec. 824.405. TABLES FOR DETERMINATION OF DEATH BENEFIT
ANNUITY. For the purpose of computing a death benefit annuity under
Section 824.402(a)(4) or Section 824.403, the board of trustees
shall extend the tables[:
[(1)] in Section 824.202 [824.202(b) or (b-1), as
applicable,] to ages earlier than indicated in the tables [55
years] by actuarially reducing the benefit available under the
applicable table [at the age of 55 years] to the actuarial
equivalent at the attained age of the member [beneficiary; and
[(2) in Section 824.202(b) or (d-1), as applicable, to
ages earlier than the earliest retirement age by actuarially
reducing the benefit available at the earliest retirement age to
the actuarial equivalent at the attained age of the beneficiary].
SECTION 14. Section 825.002, Government Code, is amended by
amending Subsections (f) and (g) and adding Subsection (h) to read
as follows:
(f) Persons considered for nomination under Subsection (c),
(d), or (e) must have been nominated [by written ballot] at an
election conducted under rules adopted by the board of trustees.
(g) To provide for the nomination of persons for appointment
under Subsection (d), the board shall send to each retiree of the
retirement system:
(1) notice of the deadline for filing as a candidate
for nomination;
(2) information on procedures to follow in filing as a
candidate; and
(3) instructions on how to request a paper ballot or
vote in another manner established by the board, including by
telephone or other electronic means [a written ballot].
(h) If only two persons are nominated under Subsection (c),
(d), or (e), the governor shall appoint a member of the board to the
applicable trustee position from the slate of two nominated
persons. If only one person is nominated under Subsection (c), (d),
or (e), the governor shall appoint that person to the applicable
trustee position. If no member or retiree is nominated for a
position under Subsection (c), (d), or (e), the governor shall
appoint to the applicable trustee position a person who otherwise
meets the qualifications required for the position.
SECTION 15. Section 825.206(c), Government Code, is amended
to read as follows:
(c) The board of trustees annually shall evaluate the
performance of the actuary during the previous year. At least once
every four [three] years, the board shall redesignate its actuary
after advertising for and reviewing proposals from providers of
actuarial services.
SECTION 16. Section 825.215, Government Code, is amended to
read as follows:
Sec. 825.215. ADVOCACY PROHIBITED. (a) An employee of the
retirement system may not advocate increased benefits or engage in
activities to advocate or influence legislative action or inaction.
Advocacy or activity of this nature is grounds for dismissal of an
employee.
(b) This section does not prohibit comments by an employee
of the retirement system on federal laws, regulations, or other
official actions or proposed actions affecting or potentially
affecting the retirement system that are made in accordance with
policies adopted by the board.
SECTION 17. Section 825.315, Government Code, is amended to
read as follows:
Sec. 825.315. PROHIBITED USE OF ASSETS. (a) Assets of the
retirement system may not be used to advocate or influence the
outcome of an election or the passage or defeat of any legislative
measure. This prohibition may not be construed to prevent any
trustee or employee from furnishing information in the hands of the
trustee or employee that is not considered confidential under law
to a member or committee of the legislature, to any other state
officer or employee, or to any private citizen, at the request of
the person or entity to whom the information is furnished. This
prohibition does not apply to the incidental use of retirement
system facilities by groups of members or retirees or by officers or
employees of state agencies.
(b) This section does not prohibit the use of system assets
by an employee of the retirement system to comment on federal laws,
regulations, or other official actions or proposed actions
affecting or potentially affecting the retirement system that are
made in accordance with policies adopted by the board.
SECTION 18. Section 825.408, Government Code, is amended to
read as follows:
Sec. 825.408. INTEREST ON CONTRIBUTIONS AND FEES; DEPOSITS
IN TRUST. (a) An employer [employing district] that fails to
remit, before the seventh day after the last day of a month, all
member and employer deposits and documentation of the deposits
required by this subchapter to be remitted by the employer
[district] for the month shall pay to the retirement system, in
addition to the deposits, interest on the unpaid or undocumented
amounts at an annual rate compounded monthly. The rate of interest
is the rate established under Section 825.313(b)(1), plus two
percent. Interest required under this section is creditable to the
interest account. On request, the retirement system may grant a
waiver of the deadline imposed by this subsection based on an
employer's [a district's] financial or technological resources.
(b) An employer [employing district] and its trustees or
other governing body hold amounts due to the retirement system
under this subtitle in trust for the retirement system and its
members and may not divert the amounts to any other purpose.
SECTION 19. A member of the Teacher Retirement System of
Texas who seeks credit under Section 823.002(b), Government Code,
as added by this Act, for service rendered before September 1, 2011,
but not properly credited to a member's annual statement, must
notify the retirement system not later than the date specified in
Section 823.002(b), Government Code, as added by this Act, or
August 31, 2016, whichever is later.
SECTION 20. (a) The change in law made by this Act to
Section 804.003, Government Code, applies only to a qualified
domestic relations order entered on or after the effective date of
this Act. A qualified domestic relations order entered before the
effective date of this Act is governed by the law in effect
immediately before that date, and that law is continued in effect
for that purpose.
(b) The changes in law made by this Act to Section 824.105,
Government Code, apply only to the death of a member or annuitant
that is caused by conduct that occurs on or after the effective date
of this Act. The death of a member or annuitant that is caused by
conduct that occurs before the effective date of this Act is
governed by the law in effect immediately before that date, and the
former law is continued in effect for that purpose.
(c) The change in law made by this Act to Section 825.002,
Government Code, applies only to a vacancy on the board of trustees
of the Teacher Retirement System of Texas for a term that expires on
or after the effective date of this Act. A vacancy for a term that
expires before the effective date of this Act is governed by the law
in effect immediately before that date, and that law is continued in
effect for that purpose.
SECTION 21. This Act takes effect September 1, 2011.
Age at date of 55 56 57 58 59 60 61 62 63 64 65
retirement
Percentage of 47% 51% 55% 59% 63% 67% 73% 80% 87% 93% 100%
standard annuity
receivable