Texas 2013 - 83rd Regular

Texas House Bill HB1882 Compare Versions

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1	1	83R24832 T
2	2	By: Callegari, et al. H.B. No. 1882
3	3	Substitute the following for H.B. No. 1882:
4	4	By: Branch C.S.H.B. No. 1882
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the powers and duties of and contributions to and
10	10	benefits from the systems and programs administered by the
11	11	Employees Retirement System of Texas.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 411.1402(a), Government Code, is amended
14	14	to read as follows:
15	15	(a) The Employees Retirement System of Texas is entitled to
16	16	obtain from the department, the Federal Bureau of Investigation
17	17	Criminal Justice Information Services Division, or another law
18	18	enforcement agency criminal history record information maintained
19	19	by the department, division, or agency that relates to a person who
20	20	is:
21	21	(1) an applicant for employment with, or who is or has
22	22	been employed by, the retirement system;
23	23	(2) a consultant, contract employee, independent
24	24	contractor, intern, or volunteer for the retirement system or an
25	25	applicant to serve in one of those positions; or
26	26	(3) a candidate for appointment or election to the
27	27	board of trustees of the retirement system or an advisory committee
28	28	to that board.
29	29	SECTION 2. Section 661.091(a), Government Code, is amended
30	30	to read as follows:
31	31	(a) A contributing member of the Employees Retirement
32	32	System of Texas who retires is entitled to a lump-sum payment [be
33	33	paid in a lump sum], from funds of the agency or department from
34	34	which the member retires, for the member's accrued vacation time as
35	35	of the date of retirement, unless the member opts to receive for
36	36	that accrued vacation time service credit under Section 813.511(a).
37	37	SECTION 3. Section 811.007, Government Code, is amended to
38	38	read as follows:
39	39	Sec. 811.007. IMMUNITY FROM LIABILITY. The board of
40	40	trustees, executive director, members of an advisory committee
41	41	appointed by the board of trustees, and employees of the retirement
42	42	system are not liable for any action taken or omission made or
43	43	suffered by them in good faith in the performance of any duty in
44	44	connection with any program or system administered by the
45	45	retirement system.
46	46	SECTION 4. Section 812.003(b), Government Code, is amended
47	47	to read as follows:
48	48	(b) An office or employment that is included in the coverage
49	49	of the Teacher Retirement System of Texas, the Judicial Retirement
50	50	System of Texas Plan One, or the Judicial Retirement System of Texas
51	51	Plan Two or, except as provided by Section 9.01, Chapter 238
52	52	(S.B. 378), Acts of the 73rd Legislature, Regular Session, 1993, is
53	53	with a university system or institution of higher education, as
54	54	defined by Section 61.003, Education Code, is not a position with a
55	55	department, commission, board, agency, or institution of the state
56	56	for purposes of this subtitle.
57	57	SECTION 5. Section 813.202(c), Government Code, is amended
58	58	to read as follows:
59	59	(c) The state shall contribute for service established
60	60	under this section an amount in the same ratio to the member's
61	61	contribution and interest paid under Subsection (b) for the service
62	62	as the state's contribution bears to the contribution for current
63	63	service required of a member of the employee class at the time the
64	64	service is established under this section. The state's
65	65	contribution and interest must be paid from the fund or account from
66	66	which the member receives compensation at the time the service is
67	67	established or, if the member does not hold a position at the time
68	68	the service is established, from the fund or account from which the
69	69	member received compensation when the member most recently held a
70	70	position.
71	71	SECTION 6. Section 813.302(b), Government Code, is amended
72	72	to read as follows:
73	73	(b) A member eligible to establish military service credit
74	74	is one who:
75	75	(1) does not receive and is not eligible to receive
76	76	federal retirement payments based on 20 years or more of active
77	77	federal military duty [or its equivalent];
78	78	(2) has been released from military duty under
79	79	conditions not dishonorable; and
80	80	(3) has credit in the retirement system for membership
81	81	service performed after the member's date of release from active
82	82	military duty.
83	83	SECTION 7. Section 813.509(k), Government Code, is amended
84	84	to read as follows:
85	85	(k) A member [who was not a member on the date hired and was
86	86	hired on or after September 1, 2009,] or a death benefit beneficiary
87	87	of that member may use sick leave creditable under this section only
88	88	for purposes of calculating the member's or beneficiary's annuity.
89	89	SECTION 8. Sections 813.511(a) and (j), Government Code,
90	90	are amended to read as follows:
91	91	(a) A member who holds a position included in the employee
92	92	class of membership during the month that includes the effective
93	93	date of the member's retirement and who retires based on service or
94	94	a disability is entitled to service credit in the retirement system
95	95	for the member's annual leave that has accumulated and is unused on
96	96	the last day of employment, unless the member opts to receive for
97	97	that accumulated leave a lump-sum payment under Section 661.091.
98	98	(j) A member [who was not a member on the date hired and was
99	99	hired on or after September 1, 2009,] or a death benefit beneficiary
100	100	of that member may use annual leave creditable under this section
101	101	only for purposes of calculating the member's or beneficiary's
102	102	annuity.
103	103	SECTION 9. Sections 814.105(a) and (d), Government Code,
104	104	are amended to read as follows:
105	105	(a) The [Except as otherwise provided by this section, the]
106	106	standard service retirement annuity for service credited in the
107	107	employee class of membership is an amount computed as the member's
108	108	average monthly compensation for service in that class for the 60
109	109	[36] highest months of compensation multiplied by 2.3 percent for
110	110	each year of service credit in that class.
111	111	(d) The standard service retirement annuity computed under
112	112	this section [Subsection (c)] is reduced by five percent for each
113	113	year the member retires before the member reaches age 62 [60, with a
114	114	maximum possible reduction of 25 percent].
115	115	SECTION 10. Section 814.107, Government Code, is amended by
116	116	amending Subsections (b) and (c) and adding Subsection (c-1) to
117	117	read as follows:
118	118	(b) The standard service retirement annuity payable for at
119	119	least 20 years of service credit as a law enforcement or custodial
120	120	officer is an amount computed on the basis of the member's average
121	121	monthly compensation for the 60 [36] highest months of compensation
122	122	in the employee class, times the sum of the percentage factor used
123	123	in the computation of a standard service retirement annuity under
124	124	Section 814.105 plus .5 percent.
125	125	(c) The standard combined service retirement annuity that
126	126	is payable under this section is based on retirement on or after the
127	127	attainment of the normal retirement age, which for purposes of this
128	128	section is the earlier of either the age of 57 [50] or the age at
129	129	which the sum of the member's age and amount of service credit in
130	130	the employee class equals the number 80. The annuity of a law
131	131	enforcement or custodial officer who retires before reaching the
132	132	age of 57 under any eligibility criteria is actuarially reduced by
133	133	five percent for each year of difference between the member's age at
134	134	retirement and 57. The actuarial reduction described by this
135	135	section is in addition to any other actuarial reduction required by
136	136	law.
137	137	(c-1) A law enforcement or custodial officer who retires
138	138	before attaining the [normal retirement] age of 50 is entitled only
139	139	to an annuity that is actuarially reduced from the annuity
140	140	available at the [normal retirement] age of 50 to the law
141	141	enforcement or custodial officer whose service credit annuity
142	142	amount is based on the sum of the member's age and amount of law
143	143	enforcement or custodial officer service credit and employee class
144	144	service credit, and is not entitled to have the annuity
145	145	recalculated at normal retirement age. The standard or reduced
146	146	annuity under this section is payable from the trust fund
147	147	established by Section 815.310 and the law enforcement and
148	148	custodial officer supplemental retirement fund in a ratio
149	149	determined by the retirement system.
150	150	SECTION 11. Section 814.1081(a), Government Code, is
151	151	amended to read as follows:
152	152	(a) A person who retired and selected an optional service
153	153	retirement annuity described by Section 814.108(c)(1), (c)(2), or
154	154	(c)(5) may change the optional annuity selection to the selection
155	155	of a standard service retirement annuity if:
156	156	(1) pursuant to a divorce decree, a court orders the
157	157	change in the annuity selection to a standard service retirement
158	158	annuity; or
159	159	(2) the retiree files [by filing] with the retirement
160	160	system a request to change the annuity selection, if the retiree
161	161	designated a person as beneficiary who:
162	162	(A) [(1)] was not at the time of designation and
163	163	is not currently the retiree's spouse or dependent child; or
164	164	(B) is not currently the retiree's spouse or
165	165	dependent child and [(2)] has executed since the designation a
166	166	written, notarized instrument that releases the retirement system
167	167	from any claim to the annuity by the beneficiary and that transfers
168	168	all [transfer and release, approved by a court of competent
169	169	jurisdiction pursuant to a divorce decree,] of the beneficiary's
170	170	interest in the annuity to the retiree [and is not currently the
171	171	retiree's spouse or dependent child].
172	172	SECTION 12. Subchapter G, Chapter 814, Government Code, is
173	173	amended by adding Section 814.604 to read as follows:
174	174	Sec. 814.604. COST-OF-LIVING ADJUSTMENT. (a) The
175	175	retirement system shall grant a one-time cost-of-living adjustment
176	176	as provided by Subsections (b) and (c) on a finding by the board of
177	177	trustees that, as determined by an actuarial valuation:
178	178	(1) the amortization period for the unfunded actuarial
179	179	liabilities of the retirement system does not exceed 30 years by one
180	180	or more years; and
181	181	(2) as a result of paying the adjustment, the time
182	182	required to amortize the unfunded actuarial liabilities of the
183	183	retirement system would not be increased to a period that exceeds 30
184	184	years by one or more years.
185	185	(b) The retirement system shall pay the cost-of-living
186	186	adjustment under this section to a retiree who has been retired for
187	187	20 years or more on the date the board of trustees makes the finding
188	188	in Subsection (a), or to a beneficiary of the retiree, as an
189	189	increase to a monthly service retirement benefit, disability
190	190	retirement benefit, or death benefit, as applicable, paid under
191	191	this chapter for service credited in the employee class.
192	192	(c) A cost-of-living adjustment under this section is
193	193	limited to the lesser of:
194	194	(1) an amount equal to three percent of the monthly
195	195	benefit subject to the increase; or
196	196	(2) $100 a month.
197	197	SECTION 13. Section 815.311(b), Government Code, is amended
198	198	to read as follows:
199	199	(b) Interest on money in an individual account in the
200	200	employees saving account is earned monthly and is computed at the
201	201	rate of two [five] percent a year on the mean balance of the
202	202	member's account for the fiscal year.
203	203	SECTION 14. Section 815.317, Government Code, is amended by
204	204	adding Subsection (d) to read as follows:
205	205	(d) Member contributions to the fund deducted under Section
206	206	815.402(h):
207	207	(1) earn interest at the same rate as money in an
208	208	individual account in the employees saving account under Section
209	209	815.311; and
210	210	(2) are subject to the same computations and
211	211	limitations that apply to member contributions under Section
212	212	815.311.
213	213	SECTION 15. Section 815.402(a), Government Code, is amended
214	214	to read as follows:
215	215	(a) Except as provided by Section 813.201, each payroll
216	216	period, each department or agency of the state shall cause to be
217	217	deducted from each member's compensation a contribution of:
218	218	(1) 6.5 percent of the compensation if the member is
219	219	not a member of the legislature, provided that:
220	220	(A) if the state contribution to the retirement
221	221	system is computed using a percentage less than 6.5 percent, the
222	222	member's contribution is computed using a percentage equal to the
223	223	percentage used to compute the state contribution, which may not be
224	224	less than six percent; or
225	225	(B) if the state contribution to the retirement
226	226	system is computed using a percentage greater than 6.5 percent, the
227	227	member's contribution is computed using a percentage equal to the
228	228	percentage used to compute the state contribution, except that the
229	229	member contribution may not exceed seven percent; or
230	230	(2) eight percent of the compensation if the member is
231	231	a member of the legislature.
232	232	SECTION 16. Section 837.002, Government Code, is amended to
233	233	read as follows:
234	234	Sec. 837.002. TERMINATION OF MEMBERSHIP. A person's
235	235	membership in the retirement system is terminated by:
236	236	(1) death of the person;
237	237	(2) retirement based on service credited in the
238	238	retirement system; or
239	239	(3) withdrawal of all of the person's accumulated
240	240	contributions[; or
241	241	[(4) transfer of the person's accumulated contributions
242	242	under Section 840.401(f)].
243	243	SECTION 17. Section 838.103(b), Government Code, is amended
244	244	to read as follows:
245	245	(b) A member eligible to establish military service credit
246	246	is one who:
247	247	(1) has at least eight years of service credit in the
248	248	retirement system;
249	249	(2) does not receive and is not eligible to receive
250	250	federal retirement payments based on 20 years or more of active
251	251	federal military duty [or its equivalent]; and
252	252	(3) has been released from military duty under
253	253	conditions not dishonorable.
254	254	SECTION 18. Sections 838.106(a) and (c), Government Code,
255	255	are amended to read as follows:
256	256	(a) A member may establish service credit in the retirement
257	257	system for any calendar year during which the member[:
258	258	[(1)] held an office included in the membership of the
259	259	retirement system[; or
260	260	[(2) was eligible to take the oath for an office
261	261	included in the membership of the retirement system].
262	262	(c) For the purpose of Subsection (a) [(a)(1)], the term of
263	263	a member leaving judicial office ends not later than December 31
264	264	regardless of the date on which the member's successor takes the
265	265	oath of office.
266	266	SECTION 19. Sections 1551.003(9) and (11), Insurance Code,
267	267	are amended to read as follows:
268	268	(9) "Full-time employee" means an employee designated
269	269	as a full-time employee under Section 1551.319(c) or (d) or an
270	270	employee designated by the employer as working 30 [40] or more hours
271	271	a week.
272	272	(11) "Part-time employee" means an employee
273	273	designated by the employer as working less than 30 [40] hours a
274	274	week. For purposes of this chapter, an individual described by
275	275	Section 1551.101(e)(2) is considered a part-time employee.
276	276	SECTION 20. Section 1551.004(b), Insurance Code, is amended
277	277	to read as follows:
278	278	(b) In this section, "child" includes:
279	279	(1) a natural child, adopted child, stepchild, [or]
280	280	foster child, or child in the possession of a participant who is
281	281	designated as managing conservator of the child under an
282	282	irrevocable or unrevoked affidavit of relinquishment under Chapter
283	283	161, Family Code; or
284	284	(2) a child who is related by blood or marriage and was
285	285	claimed as a dependent on the federal income tax return of an
286	286	individual who is eligible to participate in the group benefits
287	287	program under Section 1551.101 or 1551.102 for the calendar year
288	288	preceding the plan year in which the child is first enrolled as a
289	289	dependent under Subchapter D, and for each subsequent year in which
290	290	the child is enrolled as a dependent.
291	291	SECTION 21. Sections 1551.1055(a) and (b), Insurance Code,
292	292	are amended to read as follows:
293	293	(a) Except as provided by Subsection (c) or (d), eligibility
294	294	under Section 1551.101 begins not later than [on the first day of
295	295	the calendar month that begins after] the 90th day after the date
296	296	the employee performs services for a state agency or is qualified
297	297	for and begins to hold elected or appointed office.
298	298	(b) Except as provided by Subsection (c), eligibility under
299	299	Section 1551.102, for an individual who does not retire at the end
300	300	of the last month for which the individual is on the payroll of a
301	301	state agency before retirement, begins not later than [on the first
302	302	day of the calendar month that begins after] the 90th day after the
303	303	date the individual retires.
304	304	SECTION 22. Section 1551.158(a), Insurance Code, is amended
305	305	to read as follows:
306	306	(a) A dependent child who is unmarried and whose coverage
307	307	under this chapter ends when the child becomes 26 [25] years of age
308	308	may, on expiration of continuation coverage under the Consolidated
309	309	Omnibus Budget Reconciliation Act of 1985 (Pub. L. No. 99-272),
310	310	reinstate health benefit plan coverage under this chapter if the
311	311	child, or the child's participating parent, pays the full cost of
312	312	the health benefit plan coverage.
313	313	SECTION 23. Subchapter G, Chapter 1551, Insurance Code, is
314	314	amended by adding Section 1551.3196 to read as follows:
315	315	Sec. 1551.3196. AMOUNT OF CONTRIBUTION FOR CERTAIN
316	316	ANNUITANTS. (a) An annuitant receives the benefits of a state
317	317	contribution for coverage under this chapter based on the
318	318	annuitant's eligible service credit, as follows:
319	319	(1) for an annuitant with 20 years or more of eligible
320	320	service credit, a full state contribution;
321	321	(2) for an annuitant with at least 15 years but less
322	322	than 20 years of eligible service credit, 75 percent of a full state
323	323	contribution; and
324	324	(3) for an annuitant with less than 15 years of
325	325	eligible service credit, 50 percent of a full state contribution.
326	326	(b) An annuitant receiving a reduced state contribution
327	327	under Subsection (a) shall have any state contribution for
328	328	dependent coverage reduced in an amount proportional to the
329	329	reduction under Subsection (a).
330	330	(c) This section does not apply to an individual who:
331	331	(1) receives or is eligible to receive an annuity that
332	332	is based on eligibility under Section 814.002, 814.102, 834.101, or
333	333	839.101, Government Code; or
334	334	(2) is eligible to participate in the group benefits
335	335	program under:
336	336	(A) Section 1551.102(d) because of a disability;
337	337	or
338	338	(B) Section 1551.102(f).
339	339	SECTION 24. (a) The following provisions of the Government
340	340	Code are repealed:
341	341	(1) effective September 1, 2013:
342	342	(A) Section 76.006(i);
343	343	(B) Section 606.030(f); and
344	344	(C) Section 840.401; and
345	345	(2) effective September 1, 2014:
346	346	(A) Sections 813.509(d) and (e);
347	347	(B) Sections 813.511(d) and (e);
348	348	(C) Section 814.105(c); and
349	349	(D) Section 814.1075.
350	350	(b) Effective September 1, 2013, Section 1551.321,
351	351	Insurance Code, is repealed.
352	352	SECTION 25. (a) The changes in law made by this Act to
353	353	Sections 813.509, 813.511, and 814.105, Government Code, do not
354	354	apply to, and the former law is continued in effect for, a person
355	355	who retires as a member of the Employees Retirement System of Texas
356	356	on or after September 1, 2014, and who meets one or more of the
357	357	following requirements on or before August 31, 2014:
358	358	(1) the person has attained 50 years of age;
359	359	(2) the sum of the person's age and amount of service
360	360	credit in the retirement system equals 70 or greater; or
361	361	(3) the person has at least 20 years of service credit
362	362	in the retirement system.
363	363	(b) The changes in law made by this Act to Section 814.107,
364	364	Government Code, do not apply to, and the former law is continued in
365	365	effect for, a person who retires as a member of the Employees
366	366	Retirement System of Texas on or after September 1, 2014, and who
367	367	meets one or more of the following requirements on or before August
368	368	31, 2014:
369	369	(1) the person has attained 45 years of age; or
370	370	(2) the person has at least 15 years of service credit
371	371	in the retirement system.
372	372	(c) Only service actually credited in the Employees
373	373	Retirement System of Texas, the Teacher Retirement System of Texas,
374	374	or a retirement system participating in the proportionate
375	375	retirement program under Chapter 803, Government Code, or service
376	376	performed as a participant in the optional retirement program under
377	377	Chapter 830, Government Code, on or before August 31, 2014, may be
378	378	used to determine eligibility under this section.
379	379	SECTION 26. Section 815.311, Government Code, as amended by
380	380	this Act, applies only to interest accrued on or after January 1,
381	381	2014. Interest accrued before that date is governed by the law in
382	382	effect on the date the interest was accrued, and that law is
383	383	continued in effect for that purpose.
384	384	SECTION 27. Section 1551.3196, Insurance Code, as added by
385	385	this Act, applies only to an individual who does not have 10 years
386	386	of eligible service credit on September 1, 2014. An individual who
387	387	has at least 10 years of eligible service credit, or is
388	388	participating in the group benefits program as a retiree, on that
389	389	date is governed by the law in effect on August 31, 2014, and the
390	390	former law is continued in effect for that purpose.
391	391	SECTION 28. (a) Except as provided by Subsections (b), (c),
392	392	and (d) of this section, this Act takes effect September 1, 2013.
393	393	(b) Section 815.311, Government Code, as amended by this
394	394	Act, takes effect January 1, 2014.
395	395	(c) Section 1551.3196, Insurance Code, as added by this Act,
396	396	takes effect September 1, 2014.
397	397	(d) The changes in law made by this Act to the following
398	398	sections take effect September 1, 2014:
399	399	(1) Section 661.091, Government Code;
400	400	(2) Section 813.509, Government Code;
401	401	(3) Section 813.511, Government Code;
402	402	(4) Section 814.105, Government Code;
403	403	(5) Section 814.107, Government Code; and
404	404	(6) Section 1551.1055, Insurance Code.