Texas 2019 - 86th Regular

Texas House Bill HB4076 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: King of Hemphill H.B. No. 4076
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to benefits administered by the Teacher Retirement System
7	7	of Texas.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	ARTICLE 1. TEACHER RETIREMENT SYSTEM COST-OF-LIVING ADJUSTMENT
10	10	SECTION 1.01. Subchapter H, Chapter 824, Government Code,
11	11	is amended by adding Section 824.703 to read as follows:
12	12	Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT. (a)
13	13	Notwithstanding Section 824.702 and subject to Section 821.006, the
14	14	retirement system shall make a one-time cost-of-living adjustment
15	15	payable to annuitants receiving a monthly death or retirement
16	16	benefit annuity, as provided by this section.
17	17	(b) Subject to Subsections (c) and (d), to be eligible for
18	18	the adjustment, a person must be, on the effective date of the
19	19	adjustment and disregarding any forfeiture of benefits under
20	20	Section 824.601, an annuitant eligible to receive:
21	21	(1) a standard service or disability retirement
22	22	annuity payment;
23	23	(2) an optional service or disability retirement
24	24	annuity payment as either a retiree or beneficiary;
25	25	(3) an annuity payment under Section 824.402(a)(3) or
26	26	(4);
27	27	(4) an annuity payment under Section 824.502; or
28	28	(5) an alternate payee annuity payment under Section
29	29	804.005.
30	30	(c) If the annuitant:
31	31	(1) is a retiree or is a beneficiary under an optional
32	32	retirement payment plan, to be eligible for the adjustment under
33	33	this section:
34	34	(A) the annuitant must be living on the effective
35	35	date of the adjustment; and
36	36	(B) the effective date of the retirement of the
37	37	member of the retirement system must have been on or before August
38	38	31, 2019;
39	39	(2) is a beneficiary under Section 824.402(a)(3) or
40	40	(4) or 824.502, to be eligible for the adjustment:
41	41	(A) the annuitant must be living on the effective
42	42	date of the adjustment; and
43	43	(B) the date of death of the member of the
44	44	retirement system must have been on or before August 31, 2019; or
45	45	(3) is an alternate payee under Section 804.005, the
46	46	annuitant is eligible for the adjustment only if the effective date
47	47	of the election to receive the annuity payment was on or before
48	48	August 31, 2019.
49	49	(d) An adjustment made under this section does not apply to
50	50	payments under:
51	51	(1) Section 824.203(d), relating to retirees who
52	52	receive a standard service retirement annuity in an amount fixed by
53	53	statute;
54	54	(2) Section 824.304(a), relating to disability
55	55	retirees with less than 10 years of service credit;
56	56	(3) Section 824.304(b)(2), relating to disability
57	57	retirees who receive a disability annuity in an amount fixed by
58	58	statute;
59	59	(4) Section 824.404(a), relating to active member
60	60	survivor beneficiaries who receive a survivor annuity in an amount
61	61	fixed by statute;
62	62	(5) Section 824.501(a), relating to retiree survivor
63	63	beneficiaries who receive a survivor annuity in an amount fixed by
64	64	statute; or
65	65	(6) Section 824.804(b), relating to participants in
66	66	the deferred retirement option plan with regard to payments from
67	67	their deferred retirement option plan accounts.
68	68	(e) An adjustment under this section:
69	69	(1) must be made beginning with an annuity payable for
70	70	the month of December 2019; and
71	71	(2) is limited to an amount equal to 20 percent of the
72	72	monthly benefit subject to the increase.
73	73	(f) The board of trustees shall determine the eligibility
74	74	for and the amount of any adjustment in monthly annuities in
75	75	accordance with this section.
76	76	ARTICLE 2. TRANSFERRING COVERAGE PROVIDED TO ACTIVE EDUCATION
77	77	EMPLOYEES FROM TEXAS SCHOOL EMPLOYEES UNIFORM GROUP HEALTH COVERAGE
78	78	ACT TO TEXAS EMPLOYEES GROUP BENEFITS ACT
79	79	SECTION 2.01. Section 1551.004(b), Insurance Code, is
80	80	amended to read as follows:
81	81	(b) In this section, "child" includes:
82	82	(1) a natural child, adopted child, stepchild, foster
83	83	child, or child in the possession of a participant who is designated
84	84	as managing conservator of the child under an irrevocable or
85	85	unrevoked affidavit of relinquishment under Chapter 161, Family
86	86	Code; or
87	87	(2) a child who is related by blood or marriage and was
88	88	claimed as a dependent on the federal income tax return of an
89	89	individual who is eligible to participate in the group benefits
90	90	program under Section 1551.101 or 1551.102 or as an education
91	91	employee under Subchapter D-1 for the calendar year preceding the
92	92	plan year in which the child is first enrolled as a dependent under
93	93	Subchapter D, and for each subsequent year in which the child is
94	94	enrolled as a dependent.
95	95	SECTION 2.02. Section 1551.151, Insurance Code, is amended
96	96	to read as follows:
97	97	Sec. 1551.151. ENTITLEMENT TO COVERAGE. An individual who
98	98	is eligible to participate in the group benefits program under
99	99	Section 1551.101, 1551.102, [or] 1551.1022, or 1551.167 is entitled
100	100	to secure for a dependent of the individual any group coverages
101	101	provided under this chapter, as determined by the board of trustees
102	102	and subject to the exceptions provided by this subchapter.
103	103	SECTION 2.03. Chapter 1551, Insurance Code, is amended by
104	104	adding Subchapter D-1 to read as follows:
105	105	SUBCHAPTER D-1. COVERAGE AND PARTICIPATION OF EDUCATION EMPLOYEES
106	106	Sec. 1551.161. DEFINITIONS. In this subchapter:
107	107	(1) "Charter school" means an open-enrollment charter
108	108	school established under Subchapter D, Chapter 12, Education Code.
109	109	(2) "Education employee" means a participating member
110	110	of the Teacher Retirement System of Texas who is employed by a
111	111	participating education entity and who is not receiving coverage
112	112	from a program under Chapter 1575 or 1601. The term does not
113	113	include an individual performing personal services as an
114	114	independent contractor.
115	115	(3) "Full-time education employee" and "part-time
116	116	education employee" have the meanings assigned by rules adopted by
117	117	the board of trustees.
118	118	(4) "Participating education entity" means an entity
119	119	that elects or is required to participate under this subchapter in
120	120	the group benefits program established under this chapter. The
121	121	term includes:
122	122	(A) a school district;
123	123	(B) another educational district whose employees
124	124	are members of the Teacher Retirement System of Texas;
125	125	(C) a regional education service center; and
126	126	(D) a charter school that meets the requirements
127	127	of Section 1551.166.
128	128	(5) "Regional education service center" means a
129	129	regional education service center established under Chapter 8,
130	130	Education Code.
131	131	Sec. 1551.162. REFERENCES TO COVERAGE PLAN. A reference in
132	132	this code to a "primary care coverage plan" or "health benefit plan"
133	133	under former Chapter 1579 means a basic coverage plan provided to
134	134	eligible education employees under this subchapter.
135	135	SECTION 2.04. Sections 1579.151, 1579.152, 1579.153, and
136	136	1579.154, Insurance Code, are transferred to Subchapter D-1,
137	137	Insurance Code, as added by this Act, redesignated as Sections
138	138	1551.163, 1551.164, 1551.165, and 1551.166, Insurance Code, and
139	139	amended to read as follows:
140	140	Sec. 1551.163 [1579.151]. REQUIRED PARTICIPATION OF SCHOOL
141	141	DISTRICTS WITH 500 OR FEWER EDUCATION EMPLOYEES. (a) Each school
142	142	district with 500 or fewer education employees and each regional
143	143	education service center is required to participate in the group
144	144	benefits program.
145	145	(b) Notwithstanding Subsection (a), a school district
146	146	otherwise subject to Subsection (a) that, on January 1, 2001, was
147	147	individually self-funded for the provision of health coverage to
148	148	its education employees may elect not to participate in the group
149	149	benefits program.
150	150	(c) An educational district described by Section
151	151	1551.161(4)(B) [1579.002(5)(B)] that, on January 1, 2001, had 500
152	152	or fewer education employees may elect not to participate in the
153	153	group benefits program.
154	154	Sec. 1551.164 [1579.152]. PARTICIPATION OF OTHER SCHOOL
155	155	DISTRICTS. A [Effective September 1, 2005, a] school district with
156	156	more than 500 education employees may elect to participate in the
157	157	group benefits program. A school district that elects to
158	158	participate under this section shall apply for participation in the
159	159	manner prescribed by the board of trustees [trustee] by rule.
160	160	Sec. 1551.165 [1579.153]. PARTICIPATION BY CERTAIN RISK
161	161	POOLS. (a) In determining the number of education employees of a
162	162	school district for purposes of Sections 1551.163 [1579.151] and
163	163	1551.164 [1579.152], school districts that, on January 1, 2001,
164	164	were members of a risk pool established under the authority of
165	165	Chapter 172, Local Government Code, as provided by Section 22.004,
166	166	Education Code, are [may elect to be] treated as a single unit if an
167	167	appropriate election was made[. A school district shall elect
168	168	whether to be considered as a member of a risk pool under this
169	169	section] by notifying the Teacher Retirement System of Texas
170	170	[trustee] not later than September 1, 2001.
171	171	(b) A risk pool in existence on January 1, 2001, that, as of
172	172	that date, provided group health coverage to 500 or fewer school
173	173	district education employees may elect to participate in the group
174	174	benefits program.
175	175	(c) A school district with 500 or fewer education employees
176	176	that is a member of a risk pool described by Subsection (a) that
177	177	provides group health coverage to more than 500 school district
178	178	education employees is [must elect, not later than September 1,
179	179	2001, whether to be] treated as a school district with 500 or fewer
180	180	education employees or as part of a unit with more than 500
181	181	education employees in accordance with the election made by
182	182	notification to[. The school district must notify] the Teacher
183	183	Retirement System of Texas [trustee of the election, in the manner
184	184	prescribed by the trustee,] not later than September 1, 2001.
185	185	(d) For purposes of this section, participation in the group
186	186	benefits program by school districts covered by a risk pool is
187	187	limited to school districts covered by the risk pool as of January
188	188	1, 2001.
189	189	Sec. 1551.166 [1579.154]. PARTICIPATION BY CHARTER
190	190	SCHOOLS; ELIGIBILITY. (a) A charter school is eligible to
191	191	participate in the group benefits program if the school agrees:
192	192	(1) that all records of the school relating to
193	193	participation in the group benefits program are open to inspection
194	194	by the board of trustees [trustee], the administering firm, the
195	195	commissioner of education, or a designee of any of those entities;
196	196	and
197	197	(2) to have the school's accounts relating to
198	198	participation in the group benefits program annually audited by a
199	199	certified public accountant at the school's expense.
200	200	(b) A charter school must notify the board of trustees
201	201	[trustee] of the school's intent to participate in the group
202	202	benefits program in the manner and within the time required by rules
203	203	adopted by the board of trustees [trustee].
204	204	SECTION 2.05. Sections 1579.202, 1579.203, 1579.204, and
205	205	1579.205, Insurance Code, are transferred to Subchapter D-1,
206	206	Insurance Code, as added by this Act, redesignated as Sections
207	207	1551.167, 1551.168, 1551.169, and 1551.170, Insurance Code, and
208	208	amended to read as follows:
209	209	Sec. 1551.167 [1579.202]. ELIGIBLE EDUCATION EMPLOYEES.
210	210	(a) Except as provided by Section 1551.169 [1579.204],
211	211	participation under this subchapter in the group benefits program
212	212	is limited to education employees of participating education
213	213	entities who are full-time employees and to part-time employees who
214	214	are participating members in the Teacher Retirement System of
215	215	Texas.
216	216	(b) An education employee described by Subsection (a) who
217	217	applies for coverage during an open enrollment period prescribed by
218	218	the board of trustees [trustee] is automatically covered by the
219	219	basic [catastrophic care] coverage plan for employees unless the
220	220	employee:
221	221	(1) specifically waives coverage under this chapter;
222	222	or
223	223	(2) [selects a higher tier coverage plan; or
224	224	[(3)] is expelled from the program.
225	225	Sec. 1551.168 [1579.203]. SELECTION OF COVERAGE. (a) A
226	226	participating education employee may select coverage in any
227	227	coverage plan offered by the board of trustees [trustee].
228	228	(b) The education employee is not required to continue
229	229	participation in the coverage plan initially selected and may
230	230	select a different [higher or lower tier] coverage plan than the
231	231	plan initially selected by the employee in the manner provided by
232	232	rules adopted by the board of trustees [trustee].
233	233	(c) If the combined contributions received from the state
234	234	and the employing participating education entity under this
235	235	subchapter [Subchapter F] exceed the cost of a coverage plan
236	236	selected by the education employee, the employee may use the excess
237	237	amount of contributions to obtain optional coverages provided
238	238	[coverage] under this chapter [a higher tier coverage plan] or to
239	239	pay all or part of the cost of coverage for the employee's
240	240	dependents.
241	241	(d) A married couple, both of whom are eligible for coverage
242	242	under this subchapter under the group benefits program, may pool
243	243	the amount of contributions to which the couple are entitled under
244	244	this subchapter [the program] to obtain coverage for themselves and
245	245	dependent coverage.
246	246	Sec. 1551.169 [1579.204]. CERTAIN PART-TIME EDUCATION
247	247	EMPLOYEES. A part-time education employee of a participating
248	248	education entity who is not a participating member in the Teacher
249	249	Retirement System of Texas is eligible to participate in the
250	250	program only if the employee pays all of the premiums and other
251	251	costs associated with the health coverage plan selected by the
252	252	employee.
253	253	Sec. 1551.170 [1579.205]. PAYMENT BY PARTICIPATING
254	254	EDUCATION ENTITY. Notwithstanding Section 1551.169 [1579.204], a
255	255	participating education entity may pay any portion of what
256	256	otherwise would be the employee share of premiums and other costs
257	257	associated with the coverage selected by the education employee.
258	258	SECTION 2.06. Sections 1579.251, 1579.252, 1579.253,
259	259	1579.254, and 1579.255, Insurance Code, are transferred to
260	260	Subchapter D-1, Insurance Code, as added by this Act, redesignated
261	261	as Sections 1551.171, 1551.172, 1551.173, 1551.174, and 1551.175,
262	262	Insurance Code, and amended to read as follows:
263	263	Sec. 1551.171 [1579.251]. STATE ASSISTANCE. (a) The state
264	264	shall assist education employees of participating school districts
265	265	and charter schools in the purchase of group health coverage under
266	266	this chapter by providing for each covered education employee the
267	267	amount of $900 each state fiscal year or a greater amount as
268	268	provided by the General Appropriations Act. The state contribution
269	269	shall be distributed through the school finance formulas under
270	270	Chapters 41 and 42, Education Code, and used by school districts and
271	271	charter schools as provided by Section 42.260, Education Code.
272	272	(b) The state shall assist education employees of
273	273	participating regional education service centers and educational
274	274	districts described by Section 1551.161(4)(B) [1579.002(5)(B)] in
275	275	the purchase of group health coverage under this chapter by
276	276	providing to the employing service center or educational district,
277	277	for each covered education employee, the amount of $900 each state
278	278	fiscal year or a greater amount as provided by the General
279	279	Appropriations Act.
280	280	Sec. 1551.172 [1579.252]. CONTRIBUTION BY PARTICIPATING
281	281	EDUCATION ENTITIES. A participating education entity shall make
282	282	contributions for the program as provided by Chapter 1581.
283	283	Sec. 1551.173 [1579.253]. CONTRIBUTION BY EDUCATION
284	284	EMPLOYEE. (a) An education employee covered by the group benefits
285	285	program shall pay that portion of the cost of coverage selected by
286	286	the employee that exceeds the amount of the state contribution
287	287	under Section 1551.171 [1579.251] and the participating education
288	288	entity contribution under Section 1551.172 in the manner required
289	289	by the board of trustees [1579.252].
290	290	(b) The education employee may pay the employee's
291	291	contribution under this subsection from the amount distributed to
292	292	the employee under Subchapter D, Chapter 22, Education Code.
293	293	(c) Notwithstanding Subsection (a), a participating
294	294	education entity may pay any portion of what otherwise would be the
295	295	employee share of premiums and other costs associated with the
296	296	coverage selected by the education employee.
297	297	Sec. 1551.174 [1579.254]. CONTRIBUTIONS HELD IN TRUST FOR
298	298	FUND. A participating education entity:
299	299	(1) shall hold contributions required by this
300	300	subchapter in trust for the Texas school employees uniform group
301	301	coverage trust fund and its participants; and
302	302	(2) may not divert the contributions for any other
303	303	purpose.
304	304	Sec. 1551.175 [1579.255]. INTEREST ASSESSED ON LATE
305	305	PAYMENT OF CONTRIBUTIONS BY PARTICIPATING EDUCATION ENTITIES. (a)
306	306	A participating education entity that does not remit to the board of
307	307	trustees [trustee] all contributions required by this subchapter
308	308	before the seventh day after the last day of the month shall pay to
309	309	the Texas school employees uniform group coverage trust fund:
310	310	(1) the contributions; and
311	311	(2) interest on the unpaid amounts at the annual rate
312	312	of six percent compounded monthly.
313	313	(b) On request, the board of trustees [trustee] may grant a
314	314	waiver of the deadline imposed by this section based on a
315	315	participating education entity's financial or technological
316	316	resources.
317	317	SECTION 2.07. Section 1579.301, Insurance Code, is
318	318	transferred to Subchapter D-1, Insurance Code, as added by this
319	319	Act, and redesignated as Section 1551.176, Insurance Code, to read
320	320	as follows:
321	321	Sec. 1551.176 [1579.301]. FUND; ADMINISTRATION. The Texas
322	322	school employees uniform group coverage trust fund is a trust fund
323	323	with the comptroller.
324	324	SECTION 2.08. Sections 1579.302, 1579.303, and 1579.304,
325	325	Insurance Code, are transferred to Subchapter D-1, Insurance Code,
326	326	as added by this Act, redesignated as Sections 1551.177, 1551.178,
327	327	and 1551.179, Insurance Code, and amended to read as follows:
328	328	Sec. 1551.177 [1579.302]. COMPOSITION OF FUND. The Texas
329	329	school employees uniform group coverage trust fund is composed of:
330	330	(1) all contributions made to the fund under this
331	331	subchapter [chapter] from education employees, participating
332	332	education entities, and the state;
333	333	(2) contributions made by education employees or
334	334	participating education entities for optional coverages;
335	335	(3) investment income;
336	336	(4) any additional amounts appropriated by the
337	337	legislature for contingency reserves, administrative expenses, or
338	338	other expenses; and
339	339	(5) any other money required or authorized to be paid
340	340	into the fund.
341	341	Sec. 1551.178 [1579.303]. PAYMENTS FROM FUND. The board
342	342	of trustees [trustee] may use amounts in the Texas school employees
343	343	uniform group coverage trust fund only to provide group coverages
344	344	to eligible education employees under the group benefits program
345	345	[this chapter] and to pay the expenses of administering the group
346	346	benefits program for participating education entities.
347	347	Sec. 1551.179 [1579.304]. INVESTMENT OF FUND. The board of
348	348	trustees [trustee] may invest assets of the Texas school employees
349	349	uniform group coverage trust fund in the manner provided by Section
350	350	67(a)(3), Article XVI, Texas Constitution.
351	351	SECTION 2.09. Section 1501.009(b), Insurance Code, is
352	352	amended to read as follows:
353	353	(b) An independent school district that is participating in
354	354	the state employees [uniform] group benefits [coverage] program
355	355	established under Chapter 1551 [1579] may not participate in the
356	356	small employer market under this section for health insurance
357	357	coverage [and may not renew a health insurance contract obtained in
358	358	accordance with this section after the date on which the program of
359	359	coverages provided under Chapter 1579 is implemented]. This
360	360	subsection does not affect a contract for the provision of optional
361	361	coverages not included in a health benefit plan under this chapter.
362	362	SECTION 2.10. Section 1581.001(2), Insurance Code, is
363	363	amended to read as follows:
364	364	(2) "Participating charter school" means an
365	365	open-enrollment charter school established under Subchapter D,
366	366	Chapter 12, Education Code, that participates in the [uniform]
367	367	group benefits [coverage] program established under Chapter 1551
368	368	[1579].
369	369	SECTION 2.11. Sections 22.004(a), (c), (i), and (j),
370	370	Education Code, are amended to read as follows:
371	371	(a) A district shall participate in the state employees
372	372	[uniform] group benefits [coverage] program established under
373	373	Chapter 1551 [1579], Insurance Code, as provided by Subchapter D-1
374	374	[D] of that chapter.
375	375	(c) The cost of the coverage provided under the program
376	376	described by Subsection (a) shall be paid by the state, the
377	377	district, and the employees in the manner provided by Subchapter
378	378	D-1 [F], Chapter 1551 [1579], Insurance Code. The cost of coverage
379	379	provided under a plan adopted under Subsection (b) shall be shared
380	380	by the employees and the district using the contributions by the
381	381	state described by Subchapter D-1 [F], Chapter 1551 [1579],
382	382	Insurance Code, or Subchapter D.
383	383	(i) Notwithstanding any other provision of this section, a
384	384	district participating in the state employees [uniform] group
385	385	benefits [coverage] program established under Chapter 1551 [1579],
386	386	Insurance Code, may not make group health coverage available to its
387	387	employees under this section after the date on which the program of
388	388	coverages provided under Chapter 1551 [1579], Insurance Code, is
389	389	implemented.
390	390	(j) This section does not preclude a district that is
391	391	participating in the state employees [uniform] group benefits
392	392	[coverage] program established under Chapter 1551 [1579],
393	393	Insurance Code, from entering into contracts to provide optional
394	394	insurance coverages for the employees of the district.
395	395	SECTION 2.12. Section 22.101(3), Education Code, is amended
396	396	to read as follows:
397	397	(3) "Participating charter school" means an
398	398	open-enrollment charter school established under Subchapter D,
399	399	Chapter 12, that participates in the group benefits program
400	400	established under Chapter 1551 [1579], Insurance Code.
401	401	SECTION 2.13. Sections 42.260(a) and (c), Education Code,
402	402	are amended to read as follows:
403	403	(a) In this section, "participating charter school" means
404	404	an open-enrollment charter school that participates in the state
405	405	employees [uniform] group benefits [coverage] program established
406	406	under Chapter 1551 [1579], Insurance Code.
407	407	(c) Notwithstanding any other provision of this code, a
408	408	school district or participating charter school may use the sum of
409	409	the following amounts of funds only to pay contributions under a
410	410	group health coverage plan for district or school employees:
411	411	(1) the amount determined by multiplying the amount of
412	412	$900 or the amount specified in the General Appropriations Act for
413	413	that year for purposes of the state contribution under Section
414	414	1551.171 [1579.251], Insurance Code, by the number of district or
415	415	school employees who participate in a group health coverage plan
416	416	provided by or through the district or school; and
417	417	(2) the difference between the amount necessary for
418	418	the district or school to comply with Section 1581.052, Insurance
419	419	Code, for the school year and the amount the district or school is
420	420	required to use to provide health coverage under Section 1581.051,
421	421	Insurance Code, for that year.
422	422	SECTION 2.14. The following provisions of the Insurance
423	423	Code are repealed:
424	424	(1) Subchapters A, B, and C, Chapter 1579;
425	425	(2) the headings to Subchapters D and E, Chapter 1579;
426	426	(3) Section 1579.201; and
427	427	(4) the headings to Subchapters F and G, Chapter 1579.
428	428	SECTION 2.15. (a) In this section, "program" means the
429	429	uniform group coverage program under Chapter 1579, Insurance Code,
430	430	as it existed before amendment by this Act.
431	431	(b) Effective September 1, 2020:
432	432	(1) all functions and activities of the Teacher
433	433	Retirement System of Texas under Chapter 1579, Insurance Code,
434	434	before that date are transferred to the Employees Retirement System
435	435	of Texas;
436	436	(2) all rules, fees, policies, procedures, decisions,
437	437	and forms of the Teacher Retirement System of Texas related to the
438	438	program become applicable rules, fees, policies, procedures,
439	439	decisions, and forms of the Employees Retirement System of Texas
440	440	until changed by the board of trustees of that system;
441	441	(3) a complaint, investigation, contested case, or
442	442	other proceeding related to the program that is pending on
443	443	September 1, 2020, is transferred without change in status to the
444	444	Employees Retirement System of Texas;
445	445	(4) the management of the Texas school employees
446	446	uniform group coverage trust fund and all other money, contracts,
447	447	property, and obligations related to the program are transferred to
448	448	the Employees Retirement System of Texas; and
449	449	(5) the unexpended and unobligated balance of any
450	450	money appropriated by the legislature for the program for the
451	451	purpose of administering the program is transferred to the
452	452	Employees Retirement System of Texas.
453	453	(c) The Teacher Retirement System of Texas shall provide to
454	454	the Employees Retirement System of Texas the records and other
455	455	information necessary for the Employees Retirement System of Texas
456	456	to implement its duties under this Act.
457	457	SECTION 2.16. The changes in law made by this article apply
458	458	only to group coverage provided under Chapter 1551, Insurance Code,
459	459	or Chapter 1579, Insurance Code, for a plan year beginning on or
460	460	after September 1, 2020. A plan year that begins before that date is
461	461	governed by the law as it existed immediately before the effective
462	462	date of this Act, and that law is continued in effect for that
463	463	purpose.
464	464	ARTICLE 3. TERMINATION OF TEXAS PUBLIC SCHOOL EMPLOYEES GROUP
465	465	INSURANCE PROGRAM FOR RETIREES
466	466	SECTION 3.01. Chapter 1575, Insurance Code, is amended by
467	467	adding Subchapters L and M to read as follows:
468	468	SUBCHAPTER L. TERMINATION OF GROUP PROGRAM
469	469	Sec. 1575.551. PROGRAM TERMINATION. Subject to Section
470	470	1575.552, effective September 1, 2019, the group program is
471	471	terminated.
472	472	Sec. 1575.552. COVERAGE ELIGIBILITY TERMINATES; PHASE-OUT
473	473	PERIOD. (a) An individual who is not a participant in the group
474	474	program on August 31, 2019, is not entitled to obtain coverage under
475	475	the group program after that date.
476	476	(b) An individual who is a participant in the group program
477	477	on August 31, 2019, and who is, on September 1, 2019, eligible to
478	478	participate in Medicare, is not entitled to continue coverage under
479	479	the group program after August 31, 2019.
480	480	(c) An individual who is a participant in the group program
481	481	on August 31, 2019, but who is not, on September 1, 2019, eligible
482	482	to participate in Medicare, may continue coverage under the group
483	483	program in accordance with this subchapter until the earlier of:
484	484	(1) the date the individual first becomes eligible to
485	485	participate in Medicare; or
486	486	(2) September 1, 2029.
487	487	Sec. 1575.553. AUTHORIZED COVERAGE. Notwithstanding
488	488	Section 1575.151, on and after September 1, 2019, the group program
489	489	may not offer coverage other than health benefit plan coverage.
490	490	Sec. 1575.554. EXCESS GROUP INSURANCE FUND MONEY. (a) Not
491	491	later than December 31, 2019, the trustee shall determine the
492	492	amount of money required to fund coverage for individuals under
493	493	Section 1575.552(c) for the 2019-2020 fiscal year and shall certify
494	494	that amount to the comptroller.
495	495	(b) As soon as practicable after January 1, 2020, the
496	496	trustee shall, notwithstanding Section 1575.206, pay to each
497	497	retiree participating in the group program on August 31, 2019, an
498	498	equal share of the amount by which the money in the group insurance
499	499	fund exceeds the amount of money determined under Subsection (a).
500	500	Sec. 1575.555. REDUCTION IN CONTRIBUTIONS. (a) Beginning
501	501	not later than June 1, 2020, the trustee shall annually determine
502	502	the amount of money required to fund coverage for individuals under
503	503	Section 1575.552(c) for the subsequent fiscal year. The trustee
504	504	shall certify that amount to the comptroller.
505	505	(b) The trustee, in consultation with the comptroller, may
506	506	annually adjust the amounts of contributions to be made under
507	507	Sections 1575.201, 1575.202, 1575.203, and 1575.204, to the extent
508	508	that the trustee determines that money otherwise to be contributed
509	509	under those sections for a fiscal year will exceed the amount
510	510	determined to be required for that fiscal year under Subsection
511	511	(a).
512	512	Sec. 1575.556. FINAL RECONCILIATION; TERMINATION OF FUND.
513	513	As soon as practicable after August 31, 2029, the trustee, in
514	514	consultation with the comptroller, shall determine any
515	515	unencumbered amount remaining in the group insurance fund. The
516	516	trustee shall pay that amount in equal shares to individuals
517	517	participating in the program on August 31, 2029.
518	518	Sec. 1575.557. GROUP PROGRAM AND GROUP INSURANCE FUND
519	519	ABOLISHED. Effective September 1, 2029, the group program and the
520	520	group insurance fund are abolished.
521	521	Sec. 1575.558. DUTIES OF THE TRUSTEE. (a) The trustee
522	522	shall implement a plan for the orderly termination of the group
523	523	program in accordance with this subchapter.
524	524	(b) The determinations made by the trustee under Sections
525	525	1575.554 and 1575.555 must be actuarially justified.
526	526	SUBCHAPTER M. EXPIRATION OF CHAPTER
527	527	Sec. 1575.601. EXPIRATION OF CHAPTER. This chapter expires
528	528	September 1, 2030.
529	529	ARTICLE 4.
530	530	EFFECTIVE DATE
531	531	SECTION 4.01. This Act takes effect September 1, 2019.