By: Flynn, et al. (Senate Sponsor - Huffman) H.B. No. 2974
(In the Senate - Received from the House May 13, 2015;
May 13, 2015, read first time and referred to Committee on State
Affairs; May 22, 2015, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 9, Nays 0;
May 22, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 2974 By: Huffman
A BILL TO BE ENTITLED
AN ACT
relating to the systems and programs administered by the Teacher
Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 821.001(4) and (6), Government Code,
are amended to read as follows:
(4) "Annual compensation" means the compensation to a
member of the retirement system for service during a 12-month
period determined by the retirement system [school year] that is
reportable and subject to contributions as provided by Section
822.201.
(6) "Employee" means a person who is employed, as
determined by the retirement system, on other than a temporary
basis by a single [an] employer for at least one-half time at a
regular rate of pay comparable to that of other persons employed in
similar positions.
SECTION 2. Section 822.001, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) Membership in the retirement system may only be
established through employment with a single employer on at least a
half-time basis.
SECTION 3. Section 822.003(c), Government Code, is amended
to read as follows:
(c) A person does not terminate membership under Subsection
(a)(4) if the person:
(1) is performing military service creditable in the
retirement system;
(2) is on leave of absence from employment in a public
school; [or]
(3) is earning service credit in another retirement
system covered by Chapter 803 or 805; or
(4) is employed by an employer covered by the
retirement system and is not eligible for membership in the
retirement system because the person is employed on less than a
half-time basis.
SECTION 4. Section 822.005(c), Government Code, is amended
to read as follows:
(c) A person is not entitled to withdraw contributions if
the person [who] is employed, has applied for employment, or has
received a promise of employment with an employer [, in a position]
covered by the retirement system.
SECTION 5. Section 823.401, Government Code, is amended by
amending Subsection (f) and adding Subsection (f-1) to read as
follows:
(f) Except as provided by Subsection (f-1), the [The] amount
of service credit a member may establish under this section may not
exceed the lesser of the number of years of membership service
credit the member has in the retirement system for actual service in
public schools or 15 years.
(f-1) A member may not purchase more than five years of
service credit under this section for service credit considered
nonqualified service credit under Section 415(n)(3), Internal
Revenue Code of 1986.
SECTION 6. Section 825.115, Government Code, is amended by
adding Subsection (f) to read as follows:
(f) Notwithstanding any other law, Chapter 551 does not
apply to an assembly of the board of trustees or one of the board's
committees while attending a summit, conference, convention,
workshop, or other event held for educational purposes if the
assembly or committee does not deliberate, vote, or take action on a
specific matter of public business or public policy over which the
board of trustees or a committee of the board has supervision or
control. This subsection does not apply to a regular, special, or
emergency meeting of the board of trustees scheduled or called
under the board's bylaws.
SECTION 7. Section 825.4092(c), Government Code, is amended
to read as follows:
(c) Except as provided by Subsection (e), each payroll
period, for each retiree who is enrolled in the Texas Public School
Employees Group Insurance Program under Chapter 1575, Insurance
Code, the employer who reports the employment of a retiree shall
contribute to the trust fund established under that chapter an
amount established by the retirement system. In determining the
amount to be contributed by the employer under this subsection, the
retirement system shall consider [any difference between] the
amount a [the] retiree is required to pay for the retiree and any
enrolled dependents to participate in the group program and the
[full] cost of the retiree's and enrolled dependents' participation
in the group program[, as determined by the retirement system]. If
more than one employer reports the retiree to the retirement system
during a month, the amount of the required payment shall be prorated
among the employers.
SECTION 8. Section 1575.204(b), Insurance Code, is amended
to read as follows:
(b) Each state fiscal year, each employer who reports to the
retirement system under Section 824.6022, Government Code, the
employment of a retiree who is enrolled in and receiving coverage
under the group program shall contribute to the fund an amount
established by the trustee. In determining the amount to be
contributed by the employer under this subsection, the trustee
shall consider the [difference, if any, between the contribution]
amount a [that the reported] retiree is required to pay for the
retiree and any enrolled dependents to participate in the group
program and the [full] cost of all retirees' [the retiree's] and
enrolled dependents' participation in the group program [, as
determined by the trustee]. If more than one employer reports the
retiree to the retirement system during a month, the amount of the
contribution required by this subsection shall be prorated among
the employers. The amounts required to be paid under this
subsection are not required to be paid by a reporting employer for a
retiree who retired from the retirement system before September 1,
2005.
SECTION 9. (a) A joint interim committee is created to
study and review the health benefit plans, including TRS-Care and
TRS-ActiveCare, operated under Chapters 1575 and 1579, Insurance
Code, and propose reforms to address issues described by Subsection
(f) of this section.
(b) The joint interim committee shall be composed of three
senators appointed by the lieutenant governor and three members of
the house of representatives appointed by the speaker of the house
of representatives.
(c) The lieutenant governor and speaker of the house of
representatives shall each designate a co-chair from among the
joint interim committee members.
(d) The joint interim committee shall convene at the joint
call of the co-chairs.
(e) The joint interim committee has all other powers and
duties provided to a special or select committee by the rules of the
senate and house of representatives, by Subchapter B, Chapter 301,
Government Code, and by policies of the senate and house committees
on administration.
(f) The joint interim committee created by this section
shall study the health benefit plans, including TRS-Care and
TRS-ActiveCare, operated under Chapters 1575 and 1579, Insurance
Code, to examine and assess the following issues:
(1) the financial soundness of the plans;
(2) the cost and affordability of plan coverage to
persons eligible for coverage under the plans; and
(3) the sufficiency of access to physicians and health
care providers under the plans.
(g) Not later than January 15, 2017, the joint interim
committee created by this section shall report the committee's
findings and recommendations to the lieutenant governor, the
speaker of the house of representatives, and the governor. The
joint interim committee shall include in its recommendations
specific statutory and regulatory changes that appear necessary
from the results of the committee's study under Subsection (f) of
this section.
(h) Not later than the 60th day after the effective date of
this Act, the lieutenant governor and speaker of the house of
representatives shall appoint the members of the joint interim
committee created under this section.
(i) The joint interim committee created by this section is
abolished and this section expires January 20, 2017.
SECTION 10. Section 821.001(4), Government Code, as amended
by this Act, applies only to a member of the Teacher Retirement
System of Texas who retires or dies on or after the effective date
of this Act.
SECTION 11. Section 825.4092(c), Government Code, as
amended by this Act, applies to a retiree of the Teacher Retirement
System of Texas regardless of whether the person retired from
employment before, on, or after the effective date of this Act.
SECTION 12. This Act takes effect September 1, 2015.
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