87R21742 KFF-D
By: Davis H.B. No. 3375
Substitute the following for H.B. No. 3375:
By: Perez C.S.H.B. No. 3375
A BILL TO BE ENTITLED
AN ACT
relating to certain benefits payable by the public retirement
systems for police and fire fighters in certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 6.14(e-3) and (e-4), Article 6243a-1,
Revised Statutes, are amended to read as follows:
(e-3) The board may by rule allow any person receiving an
annuity from the annuitization of a DROP account under this section
[a DROP participant who has terminated active service and who is
eligible for a retirement pension] to:
(1) assign the distribution from the person's
[participant's] annuitized DROP account to a third party provided
the pension system receives a favorable private letter ruling from
the Internal Revenue Service ruling that such an assignment will
not negatively impact the pension system's qualified plan status;
and
(2) subject to Subsection (e-4) of this section, in
the event of a financial hardship that was not reasonably
foreseeable obtain a lump-sum distribution from the person's
[participant's] DROP account resulting in a corresponding
reduction in the total number or in the amount of annuity payments.
(e-4) The board shall adopt rules necessary to implement
Subsection (e-3)(2) of this section, including rules regarding what
constitutes a financial hardship for purposes of that subdivision.
In adopting the rules, the board shall provide flexibility to
persons receiving an annuity from the annuitization of a DROP
account [members].
SECTION 2. This Act takes effect September 1, 2021.