82R27767 TJS-F
By: Duncan S.B. No. 1671
(Truitt)
Substitute the following for S.B. No. 1671: No.
A BILL TO BE ENTITLED
AN ACT
relating to the Teacher Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (i), Section 411.081, 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: QUORUM PRESENT AT ONE LOCATION. (a) In this
section, "board" means the board of trustees of the Teacher
Retirement System of Texas.
(b) This chapter does not prohibit the board or a board
committee from holding an open or closed meeting by telephone
conference call.
(c) The board or a board committee may hold a meeting by
telephone conference call only if a quorum of the applicable board
or board committee is physically present at one location of the
meeting.
(d) A telephone conference call meeting is subject to the
notice requirements applicable to other meetings. The notice must
also specify:
(1) the location of the meeting where a quorum of the
board or board committee, as applicable, will be physically
present; and
(2) the intent to have a quorum present at that
location.
(e) The location where a quorum is physically present must
be open to the public during the open portions of a telephone
conference call meeting. The open portions of the meeting must be
audible to the public at the location where the quorum is present
and be tape-recorded at that location. The tape recording shall be
made available to the public.
(f) The location of the meeting shall provide two-way
communication during the entire telephone conference call meeting,
and the identification of each party to the telephone conference
call must be clearly stated before the party speaks.
(g) The authority provided by this section is in addition to
the authority provided by Section 551.125.
(h) A member of the board who participates in a board or
board committee meeting by telephone conference call but is not
physically present at the location of the meeting is not considered
to be absent from the meeting for any purpose. The vote of a member
of the board who participates in a board or board committee meeting
by telephone conference call is counted for the purpose of
determining the number of votes cast on a motion or other
proposition before the board or board committee.
(i) A member of the board may participate remotely by
telephone conference call instead of by being physically present at
the location of a board meeting for not more than one board meeting
per calendar year. A board member who participates remotely in any
portion of a board meeting by telephone conference call is
considered to have participated in the entire board meeting by
telephone conference call. For purposes of the limit provided by
this subsection, remote participation by telephone conference call
in a meeting of a board committee does not count as remote
participation by telephone conference call in a meeting of the
board, even if:
(1) a quorum of the full board attends the board
committee meeting; or
(2) notice of the board committee meeting is also
posted as notice of a board meeting.
(j) A person who is not a member of the board may not speak
at the 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. Subdivision (15), Section 821.001, Government
Code, is amended to read as follows:
(15) "School year" means[:
[(A)] a 12-month period beginning [approximately]
September 1 and ending [approximately] August 31 of the next
calendar year[; or
[(B) for a member whose contract or oral or
written work agreement begins after June 30 and continues after
August 31 of the same calendar year, a period not to include more
than 12 months beginning on the date the contract or agreement
begins].
SECTION 7. 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 8. Section 821.010(a), Government Code, is amended
to read as follows:
(a) Not later than June 1, 2016, and every fifth year
thereafter [of each year], the retirement system shall provide to
the comptroller, for the purpose of assisting the comptroller in
the identification of persons entitled to unclaimed property
reported to the comptroller, the name, address, social security
number, and date of birth of each member, retiree, and beneficiary
from the retirement system's records.
SECTION 9. 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 10. The heading to Section 823.304, Government
Code, is amended to read as follows:
Sec. 823.304. USERRA [REEMPLOYED VETERAN'S] CREDIT.
SECTION 11. Subsections (a), (c), and (d), Section 823.304,
Government Code, are amended to read as follows:
(a) A person eligible to establish USERRA [reemployed
veteran's] credit is one who qualifies under the Uniformed Services
Employment and [Veteran's] Reemployment Rights Act of 1994 (38
U.S.C. Section 4301[, 2021] et seq.), for the benefits of
reemployment in a position included within the membership of the
retirement system and who is entitled under that Act to additional
credit and benefits from the retirement system because of the
person's active duty in the armed forces of the United States.
(c) A person may establish credit under this section by
depositing with the retirement system for each year of service
claimed an amount equal to[:
[(1)] the member contributions to the retirement
system, as determined by the retirement system, that the person
would have made had the person continued to be employed in the
person's former position covered by the retirement system during
the entire period of active duty in the armed forces for which the
person is to receive retirement credit[; and
[(2) a fee of five percent, compounded annually, of
the required contribution from the date of the person's first
eligibility to establish the credit to the date of deposit].
(d) To the extent required by the Uniformed Services
Employment and [Veteran's] Reemployment Rights Act of 1994 (38
U.S.C. Section 4301 et seq.), and permitted by Sections 401(a) and
415 of the Internal Revenue Code of 1986 (26 U.S.C. Sections 401 and
415), the retirement system may:
(1) grant the person service credit for the period of
active duty in the armed forces as if the person had been employed
in a position eligible for membership and credit with the
retirement system if the person establishes credit by making the
required deposits, or, if the person has not made the required
deposits, consider the period of active duty for the purpose of
determining whether the person meets the length-of-service
eligibility requirements for retirement or other benefits
administered by the retirement system as if the person had
established the credit; and
(2) include in relevant benefit computations under
this subtitle the annual compensation, as determined by the
retirement system, that would have been otherwise received by the
person for service covered by the retirement system during any year
in which the person had active duty in the armed forces.
SECTION 12. Subsection (c), Section 823.401, Government
Code, is amended to read as follows:
(c) A member eligible to establish credit under this section
is one who has at least five years of service credit in the
retirement system for actual service in public schools, including
at least one year completed after the relevant out-of-state
service.
SECTION 13. Subsections (c), (d), and (e), Section 823.402,
Government Code, are amended to read as follows:
(c) A member eligible to establish credit under this section
is one who:
(1) has at least five years of service credited
[credit] in the retirement system before the developmental leave
occurs; [and]
(2) has, [is an employee of a public school] at the
time the required deposits for the credit are paid, at least one
year of membership service credit in the retirement system
following the developmental leave; and
(3) has at least five years of service credited in the
retirement system at the time the required deposits for the credit
are paid [is sought].
(d) On or before the date a member takes developmental
leave, the member must [shall] file with the retirement system a
notice of intent to take developmental leave, and the member's
employer must [shall] file with the retirement system a
certification that the leave meets the requirements of Subsection
(b). The notice of intent and the certification must be in the form
required by the retirement system. Leave is not creditable in the
retirement system if the member does not submit notice of intent and
obtain the certification required by this subsection.
(e) A member may establish credit under this section by
depositing with the retirement system for each year of
developmental leave certified the actuarial present value, at the
time of deposit, of the additional standard retirement annuity
benefits that would be attributable to the purchase of the service
credit under this section, based on rates and tables recommended by
the retirement system's actuary and adopted by the board of
trustees [claimed an amount equal to the sum of:
[(1) the rate of member contributions required during
the year of leave, times the member's annual rate of compensation
during the member's most recent year of creditable service that
preceded the year of leave; plus
[(2) the amount that the state would have contributed
had the member performed membership service during the year of
leave at the member's annual rate of compensation during the most
recent year of service that preceded the leave].
SECTION 14. Subsection (c), Section 823.501, Government
Code, is amended to read as follows:
(c) A member may reinstate canceled credit under this
section by depositing with the retirement system:
(1) the amount withdrawn or refunded; plus
(2) a reinstatement fee of eight [six] percent,
compounded annually, of the amount withdrawn or refunded from the
date of withdrawal or refund to the date of redeposit.
SECTION 15. 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 16. 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 17. Subsection (a), Section 824.103, 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 18. 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 19. Subsections (a-1) and (b-1), Section 824.202,
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 20. 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 21. Section 824.601, Government Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) Except as provided by Subsection (b-1) or Section
824.602, a retiree is not entitled to service or disability
retirement benefit payments, as applicable, for any month in which
the retiree is employed in any position by a Texas public
educational institution.
(b-1) Subsection (b) does not apply to a retiree under
Section 824.202 whose effective date of retirement is on or before
January 1, 2011.
SECTION 22. Subsection (a), Section 824.602, Government
Code, as amended by Chapters 674 (S.B. 132) and 1359 (S.B. 1691),
Acts of the 79th Legislature, Regular Session, 2005, is reenacted
and amended to read as follows:
(a) Subject to Section 825.506, the retirement system may
not, under Section 824.601, withhold a monthly benefit payment if
the retiree is employed in a Texas public educational institution:
(1) as a substitute only with pay not more than the
daily rate of substitute pay established by the employer and, if the
retiree is a disability retiree, the employment has not exceeded a
total of 90 days in the school year;
(2) in a position, other than as a substitute, on no
more than a one-half time basis for the month;
(3) in one or more positions on as much as a full-time
basis, if the retiree has been separated from service with all Texas
public educational institutions for at least 12 full consecutive
months [work occurs in not more than six months of a school year
that begins] after the retiree's effective date of retirement; or
(4) in a position, other than as a substitute, on no
more than a one-half time basis for no more than 90 days in the
school year, if the retiree is a disability retiree[;
[(5) in a position as a classroom teacher on as much as
a full-time basis, if the retiree has retired under Section
824.202(a) or (a-1), is certified under Subchapter B, Chapter 21,
Education Code, to teach the subjects assigned, is teaching in an
acute shortage area as determined by the board of trustees of a
school district as provided by Subsection (m), and has been
separated from service with all public schools for at least 12
months;
[(6) in a position as a principal, including as an
assistant principal, on as much as a full-time basis, if the retiree
has retired under Section 824.202(a) or (a-1) without reduction for
retirement at an early age, is certified under Subchapter B,
Chapter 21, Education Code, to serve as a principal, and has been
separated from service with all public schools for at least 12
months;
[(7) as a bus driver for a school district on as much
as a full-time basis, if the retiree has retired under Section
824.202(a) or (a-1), and the retiree's primary employment is as a
bus driver; or
[(8) as a faculty member, during the period beginning
with the 2005 fall semester and ending on the last day of the 2015
spring semester, in an undergraduate professional nursing program
or graduate professional nursing program, as defined by Section
54.221, Education Code, and if the retiree has been separated from
service with all public schools for at least 12 months].
SECTION 23. Subsection (g), Section 824.602, Government
Code, is amended to read as follows:
(g) The exceptions provided by Subsections (a)(2) and
(a)(3) do not apply to disability retirees. The retirement system
nevertheless may not withhold a monthly benefit payment under
Section 824.601 if:
(1) a disability retiree is employed in a Texas public
educational institution in a position, other than as a substitute,
for a period not to exceed three consecutive months [of the school
year];
(2) the work occurs in a period, designated by the
disability retiree, of no more than three consecutive months [of a
school year];
(3) the disability retiree executes on a form and at a
time prescribed by the retirement system a written election to have
this exception apply on a one-time trial basis in determining
whether benefits are to be suspended for the months of employment
after retirement and in determining whether a disability retiree is
no longer mentally or physically incapacitated for the performance
of duty; and
(4) the disability retiree has not previously elected
to avoid loss of monthly benefits [in a school year] under this
subsection.
SECTION 24. Section 824.603, Government Code, is amended to
read as follows:
Sec. 824.603. EXCLUSION FROM CREDIT. Employment of a
retiree described by Section 824.601(b-1) or 824.602(a) does not
entitle the [a] retiree to additional service credit, and the
retiree so employed is not required to make contributions to the
system from compensation for that employment.
SECTION 25. 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 26. Subsection (c), Section 825.206, 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 27. 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 28. 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 29. Subsections (h) and (j), Section 825.403,
Government Code, are amended to read as follows:
(h) If deductions were previously required but not paid, the
retirement system may not provide benefits based on the service or
compensation unless the deposits required by this section have been
fully paid. The person's employer at the time the unreported
service was rendered or compensation was paid must verify the
service or compensation as required by Subsection (j) and the
person must submit the verification to the retirement system not
later than five years after [member shall pay the amount of those
deductions plus a fee computed at a rate of five percent a year on
the unpaid amount from] the end of the school year in which the
service was rendered or compensation was paid. To establish the
service or compensation credit, the person must deposit with the
retirement system the actuarial present value, at the time of
deposit, of the additional standard retirement annuity benefits
that would be attributable to the purchase of service or
compensation credit under this section, based on rates and tables
recommended by the retirement system's actuary and adopted by the
board of trustees [deductions first became due or the end of the
1974-75 school year, whichever is later, to the date of payment].
The board of trustees shall:
(1) prescribe terms for payments under this
subsection; and
(2) credit the person [member] for prior service to
which the person [member] is entitled under this subtitle[; and
[(3) deposit the fee required by this subsection in
the state contribution account].
(j) If deductions were previously required [of a member] but
not paid, proof of service satisfactory to the retirement system
must be made before service credit is granted or payment for the
credit is required. Proof of service is sufficient if the person's
[member's] employer documents that the employer has records made at
or near the time of service that establish the amount of time worked
and salary earned. [A member may submit in lieu of employer
documentation internal revenue, social security, bank, or other
written records that were made at or near the time of service and
that establish the amount of time worked and salary earned.] An
affidavit based on memory without written records made at or near
the time of service is not sufficient documentation for the
establishment of service credit. The retirement system may audit
records used for documentation under this subsection. A person who
does not obtain proof of service as required by this section may not
establish the service or compensation credit.
SECTION 30. 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 31. Subsection (b), Section 825.507, Government
Code, is amended to read as follows:
(b) The retirement system may release records of a
participant, including a participant to which Chapter 803 applies,
to:
(1) the participant or the participant's attorney or
guardian or another person who the executive director determines is
acting on behalf of the participant;
(2) the executor or administrator of the deceased
participant's estate, including information relating to the
deceased participant's beneficiary, or if an executor or
administrator of the deceased participant's estate has not been
named, a person or entity who the executive director determines is
acting in the interest of the deceased participant's estate, or an
heir, legatee, or devisee of the deceased participant;
(3) a spouse or former spouse of the participant if the
executive director determines that the information is relevant to
the spouse's or former spouse's interest in member accounts,
benefits, or other amounts payable by the retirement system;
(4) an administrator, carrier, consultant, attorney,
or agent acting on behalf of the retirement system;
(5) a governmental entity, an employer, or the
designated agent of an employer, only to the extent the retirement
system needs to share the information to perform the purposes of the
retirement system, as determined by the executive director;
(6) a person authorized by the participant in writing
to receive the information;
(7) a federal, state, or local criminal law
enforcement agency that requests a record for a law enforcement
purpose;
(8) the attorney general to the extent necessary to
enforce child support; or
(9) a party in response to a subpoena issued under
applicable law if the executive director determines that the
participant will have a reasonable opportunity to contest the
subpoena.
SECTION 32. Subsection (a), Section 825.515, Government
Code, is amended to read as follows:
(a) At least annually, the retirement system shall acquire
and maintain records identifying members and the types of positions
they hold as members. The type of position shall be identified as
Administrative/Professional, Teacher/Full-Time Librarian,
Support, [or] Bus Driver, or Peace Officer. For each member
identified as a Peace Officer, the records must specify whether the
member is an employee of an institution of higher education or of a
public school that is not an institution of higher education. An
employer shall provide the information required by this section in
the form and manner specified by the retirement system.
SECTION 33. Subdivision (1), Section 1575.003, Insurance
Code, is amended to read as follows:
(1) "Dependent" means:
(A) the spouse of a retiree;
(B) an unmarried child of a retiree or deceased
active member if the child is younger than 25 years of age,
including:
(i) an adopted child;
(ii) a foster child, stepchild, or other
child who is in a regular parent-child relationship; or
(iii) a recognized natural child;
(C) a retiree's recognized natural child,
adopted child, foster child, stepchild, or other child who is in a
regular parent-child relationship and who lives with or has his or
her care provided by the retiree or surviving spouse on a regular
basis regardless of the child's age, if the child has a mental
disability [is mentally retarded] or is physically incapacitated to
an extent that the child is dependent on the retiree or surviving
spouse for care or support, as determined by the trustee; or
(D) a deceased active member's recognized
natural child, adopted child, foster child, stepchild, or other
child who is in a regular parent-child relationship, without regard
to the age of the child, if, while the active member was alive, the
child:
(i) lived with or had the child's care
provided by the active member on a regular basis; and
(ii) had a mental disability [was mentally
retarded] or was physically incapacitated to an extent that the
child was dependent on the active member or surviving spouse for
care or support, as determined by the trustee.
SECTION 34. Section 1575.206, Insurance Code, is amended to
read as follows:
Sec. 1575.206. CONTRIBUTIONS HELD IN TRUST FOR FUND. An
employing public school [district] and its governing body
[trustees]:
(1) hold contributions required by this subchapter in
trust for the fund and its participants; and
(2) may not divert the contributions for any other
purpose.
SECTION 35. Section 1575.207, Insurance Code, is amended to
read as follows:
Sec. 1575.207. INTEREST ASSESSED ON LATE PAYMENT OF
DEPOSITS BY EMPLOYING PUBLIC SCHOOLS [SCHOOL DISTRICTS]. (a) An
employing public school [district] that does not remit to the
trustee all contributions required by this subchapter before the
seventh day after the last day of the month shall pay to the fund:
(1) the contributions; and
(2) interest on the unpaid amounts at the annual rate
of six percent compounded monthly.
(b) On request, the trustee may grant a waiver of the
deadline imposed by this section based on an employing public
school's [district's] financial or technological resources.
SECTION 36. Section 1579.004, Insurance Code, is amended to
read as follows:
Sec. 1579.004. DEFINITION OF DEPENDENT. In this chapter,
"dependent" means:
(1) a spouse of a full-time employee or part-time
employee;
(2) an unmarried child of a full-time or part-time
employee if the child is younger than 25 years of age, including:
(A) an adopted child;
(B) a foster child, stepchild, or other child who
is in a regular parent-child relationship; and
(C) a recognized natural child;
(3) a full-time or part-time employee's recognized
natural child, adopted child, foster child, stepchild, or other
child who is in a regular parent-child relationship and who lives
with or has his or her care provided by the employee or the
surviving spouse on a regular basis, regardless of the child's age,
if the child has a mental disability [is mentally retarded] or is
physically incapacitated to an extent that the child is dependent
on the employee or surviving spouse for care or support, as
determined by the board of trustees; and
(4) notwithstanding any other provision of this code,
any other dependent of a full-time or part-time employee specified
by rules adopted by the board of trustees.
SECTION 37. Section 1601.004(a), Insurance Code, is amended
to read as follows:
(a) In this chapter, "dependent," with respect to an
individual eligible to participate in the uniform program under
Section 1601.101 or 1601.102, means the individual's:
(1) spouse;
(2) [unmarried] child younger than 26 [25] years of
age; and
(3) child of any age who the system determines lives
with or has the child's care provided by the individual on a regular
basis if the child has a mental disability [is mentally retarded] or
is physically incapacitated to the extent that the child is
dependent on the individual for care or support, as determined by
the system, and:
(A) if the child is at least 26 years of age, the
child's coverage under this chapter has not lapsed, and the child
was enrolled as a participant in the health benefits coverage under
the uniform program on the date of the child's 26th birthday; or
(B) as to a child of an individual eligible to
participate as an employee under Section 1601.101, if, at the time
of the individual's initial enrollment in health benefits coverage
under the uniform program, the child is at least 26 years of age and
is enrolled in comparable coverage, as determined by the system,
under the individual's previous health benefits coverage.
SECTION 38. Subchapter C, Chapter 1601, Insurance Code, is
amended by adding Section 1601.111 to read as follows:
Sec. 1601.111. PROGRAMS PROMOTING DISEASE PREVENTION,
WELLNESS, AND HEALTH. A system may establish premium discounts,
surcharges, rebates, or a revision in otherwise applicable
copayments, coinsurance, or deductibles, or any combination of
those incentives, for an individual who participates in
system-approved programs promoting disease prevention, wellness,
and health.
SECTION 39. Section 1601.201, Insurance Code, is amended by
adding Subsection (e) to read as follows:
(e) Subsection (c) does not prohibit a system from
contributing, from money not appropriated from the general revenue
fund, amounts in excess of the amount specified by that subsection
for an individual:
(1) who is a tenured faculty member; and
(2) with whom the system has entered into a phased
retirement agreement under which the individual works less than 40
hours a week for a specified period at the end of which the
individual will retire.
SECTION 40. Subchapter E, Chapter 1601, Insurance Code, is
amended by adding Section 1601.2041 to read as follows:
Sec. 1601.2041. EMPLOYEE DEDUCTION FOR AUTOMATIC COVERAGE.
Each individual automatically enrolled in the uniform program under
Section 1601.104 is considered to have authorized a deduction from
the participant's monthly compensation in an amount equal to the
difference between:
(1) the total cost for basic coverage; and
(2) the amount contributed by the system.
SECTION 41. (a) The following provisions of the Government
Code are repealed:
(1) Subsection (i), Section 823.401;
(2) Subsections (g) and (h), Section 823.402;
(3) Subsection (e), Section 823.501;
(4) Subsections (c), (d), (m), (p), and (q), Section
824.602; and
(5) Section 825.3021.
(b) Section 57, Chapter 1359 (S.B. 1691), Acts of the 79th
Legislature, Regular Session, 2005, is repealed.
SECTION 42. 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 the former law is continued in effect for that
purpose.
SECTION 43. Subdivision (15), Section 821.001, Government
Code, as amended by this Act, applies beginning with the 2012-2013
school year.
SECTION 44. A member of the Teacher Retirement System of
Texas who seeks credit under Subsection (b), Section 823.002,
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 Subsection (b), Section 823.002, Government Code,
as added by this Act, or August 31, 2016, whichever is later.
SECTION 45. Subsections (d) and (e), Section 823.401,
Government Code, as amended by Section 10, Chapter 1359 (S.B.
1691), Acts of the 79th Legislature, Regular Session, effective
September 1, 2005, apply to a person who was a member of the Teacher
Retirement System of Texas on December 31, 2005, and to
out-of-state service performed before January 1, 2006,
notwithstanding Section 57 of that Act.
SECTION 46. The changes in law made by this Act to Section
824.105, Government Code, apply only to the death of a member or
annuitant of the Teacher Retirement System of Texas 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.
SECTION 47. (a) A person who resumed employment after
retirement and whose benefit payments were suspended under Section
824.601, Government Code, as that section existed before amendment
by this Act, is entitled to the resumption of monthly benefit
payments if the person meets the requirements of Subsection (b-1),
Section 824.601, Government Code, as added by this Act, or Section
824.602, Government Code, as amended by this Act.
(b) The Teacher Retirement System of Texas shall resume
making monthly benefit payments to a person described by Subsection
(a) of this section on the first payment date occurring on or after
the effective date of this Act.
(c) A person who is entitled to the resumption of monthly
benefit payments under this section is not entitled to recover
benefit payments not made during the period the person's benefit
was suspended under Section 824.601, Government Code, as that
section existed before amendment by this Act.
SECTION 48. 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 the former
law is continued in effect for that purpose.
SECTION 49. For unreported service rendered or unreported
compensation paid before the effective date of this Act, the
verification required under Subsection (h), Section 825.403,
Government Code, as amended by this Act, must be received by the
Teacher Retirement System of Texas not later than August 31, 2016.
SECTION 50. (a) Notwithstanding the service credit cost
provisions of Section 45 of this Act and Subsection (e), Section
823.402, Subdivision (2), Subsection (c), Section 823.501, and
Subsection (h), Section 825.403, Government Code, as amended by
this Act, a person may establish service credit by paying the
deposits and fees required under Sections 823.402, 823.501, and
825.403, Government Code, and by Section 57, Chapter 1359 (S.B.
1691), Acts of the 79th Legislature, Regular Session, 2005, as
those sections existed before amendment or repeal by this Act, if:
(1) the person otherwise meets all eligibility
requirements under those sections as amended by this Act;
(2) the service for which credit is sought to be
established was rendered, or the compensation for which credit is
sought was paid, before the effective date of this Act; and
(3) the person makes payment for the service credit,
or enters into an installment agreement for payment, not later than
August 31, 2013.
(b) If a person has an installment agreement under
Subsection (a) of this section that is terminated after August 31,
2013, before the person has made all of the payments, the person may
establish credit only as provided by Sections 823.402, 823.501, and
825.403, Government Code, as amended by this Act, and by Section 45
of this Act.
SECTION 51. The change in law made by this Act to Subsection
(b), Section 825.507, Government Code, applies only to the release
of records by the Teacher Retirement System of Texas on or after the
effective date of this Act. The release of records 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.
SECTION 52. (a) Notwithstanding Subsection (a), Section
825.404, Government Code, for the state fiscal year ending August
31, 2012, the amount of the state contribution to the Teacher
Retirement System of Texas under that section may be less than the
amount contributed by members during that fiscal year.
(b) Notwithstanding Subsection (a), Section 1575.202,
Insurance Code, for the state fiscal year ending August 31, 2013,
the state may contribute an amount to the retired school employees
group insurance fund that is less than one percent of the salary of
each active employee.
SECTION 53. To the extent of any conflict, this Act prevails
over another Act of the 82nd Legislature, Regular Session, 2011,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 54. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, 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