Texas 2023 - 88th Regular

Texas Senate Bill SB1245 Compare Versions

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1	1	S.B. No. 1245
2	2
3	3
4	4	AN ACT
5	5	relating to contributions to, benefits from, and the administration
6	6	of the Judicial Retirement System of Texas Plan Two.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 803.202, Government Code, is amended by
9	9	adding Subsection (d) to read as follows:
10	10	(d) A member of the Judicial Retirement System of Texas Plan
11	11	Two who is subject to Chapter 840A is eligible to participate in the
12	12	program provided by this chapter.
13	13	SECTION 2. Section 804.003, Government Code, is amended by
14	14	amending Subsections (j) and (k) and adding Subsection (k-2) to
15	15	read as follows:
16	16	(j) Except as provided by Subsection (k-2), if [If] a
17	17	domestic relations order is determined to be a qualified domestic
18	18	relations order, then the public retirement system (or applicable
19	19	carrier, if under the optional retirement program) shall pay the
20	20	segregated amounts without interest to the person or persons
21	21	entitled thereto and shall thereafter pay benefits pursuant to the
22	22	order.
23	23	(k) Except as provided by Subsection (k-2), if [If] a
24	24	domestic relations order is determined not to be a qualified
25	25	domestic relations order or if within 18 months of the date a
26	26	domestic relations order is received by the public retirement
27	27	system (or applicable carrier, if under the optional retirement
28	28	program) the issue as to whether such order is a qualified domestic
29	29	relations order is not resolved, then the public retirement system
30	30	(or applicable carrier, if under the optional retirement program)
31	31	shall pay the segregated amounts without interest and shall
32	32	thereafter pay benefits to the person or persons who would have been
33	33	entitled to such amounts if there had been no order. This
34	34	subsection shall not be construed to limit or otherwise affect any
35	35	liability, responsibility, or duty of a party with respect to any
36	36	other party to the action out of which the order arose.
37	37	(k-2) Payment of segregated amounts by a public retirement
38	38	system, or applicable carrier if under the optional retirement
39	39	program, under Subsections (j) and (k) related to a benefit payable
40	40	with respect to a member or retiree subject to Chapter 840A must
41	41	include annual interest provided by Section 840A.103 and gain
42	42	sharing interest provided by Section 840A.104.
43	43	SECTION 3. Section 836.001, Government Code, is amended by
44	44	adding Subdivision (3-a) and amending Subdivision (9) to read as
45	45	follows:
46	46	(3-a) "Cash balance group member" means a member
47	47	subject to Chapter 840A.
48	48	(9) "Service credit" means the amount of membership
49	49	and, if applicable, military[,] and equivalent membership service
50	50	ascribed by the retirement system to a person and for which the
51	51	person has made required contributions.
52	52	SECTION 4. Section 837.102(a), Government Code, is amended
53	53	to read as follows:
54	54	(a) A retiree who resumes service as a judicial officer
55	55	other than by [appointment or] assignment described in Section
56	56	837.101 may not rejoin or receive credit in the retirement system
57	57	for the resumed service, unless an election is made as provided by
58	58	Section 837.103.
59	59	SECTION 5. Subchapter B, Chapter 837, Government Code, is
60	60	amended by adding Section 837.103 to read as follows:
61	61	Sec. 837.103. RESUMPTION OF FULL-TIME JUDICIAL SERVICE BY
62	62	CERTAIN RETIREES; OPTIONAL ELECTION TO REJOIN SYSTEM. (a) This
63	63	section does not apply to a retiree receiving a cash balance annuity
64	64	under Chapter 840A.
65	65	(b) Notwithstanding Sections 837.001(c) and 837.002(2) and
66	66	subject to Subsection (d), a retiree described by Section
67	67	837.102(a) may elect to rejoin the retirement system as a member and
68	68	receive service credit in the system for resuming service as a
69	69	judicial officer if, before taking the oath of office, the retiree
70	70	has been separated from judicial service for at least six full
71	71	consecutive months. The retiree shall provide notice of the
72	72	election to the system in the manner prescribed by the system.
73	73	(c) For a person who makes an election under this section,
74	74	on the resumption of annuity payments that have been suspended
75	75	under Section 837.102, the retirement system shall recompute the
76	76	annuity selected at the time of the person's original retirement to
77	77	include the person's additional service credit established during
78	78	membership under this section. If, at the time of the person's
79	79	original retirement, the person selected an optional retirement
80	80	annuity payable under Section 839.103(a)(3) or (4), the retirement
81	81	system shall reduce the number of months of payments by the number
82	82	of months for which the annuity was paid before the person resumed
83	83	service.
84	84	(d) A person may make an election under this section only
85	85	once.
86	86	(e) The retirement system shall implement this section only
87	87	if the system is considered actuarially sound. For purposes of this
88	88	subsection, the system is considered actuarially sound if, based on
89	89	an actuarial valuation of the system prepared under Section
90	90	840.204(d) on or after September 1, 2023, the amount of
91	91	contributions to the system are sufficient to cover the normal cost
92	92	of the system and to amortize the unfunded actuarial accrued
93	93	liability of the system within 30 years. Not later than the 30th
94	94	day after the date an actuarial valuation is prepared showing the
95	95	system is actuarially sound, the system shall implement this
96	96	section. On September 1, 2025:
97	97	(1) if this section is implemented, this subsection
98	98	expires; or
99	99	(2) if this section is not implemented, this section
100	100	expires.
101	101	SECTION 6. Section 838.001, Government Code, is amended to
102	102	read as follows:
103	103	Sec. 838.001. TYPES OF CREDITABLE SERVICE. The types of
104	104	service creditable in the retirement system are[:
105	105	[(1)] membership service and, as applicable:[;]
106	106	(1) [(2)] military service; and
107	107	(2) [(3)] equivalent membership service.
108	108	SECTION 7. Subchapter A, Chapter 838, Government Code, is
109	109	amended by adding Section 838.002 to read as follows:
110	110	Sec. 838.002. PROVISIONS INAPPLICABLE TO CASH BALANCE GROUP
111	111	MEMBERS. Sections 838.102, 838.103, 838.1035, 838.105, 838.106,
112	112	838.107, and 838.108 of this chapter do not apply to a cash balance
113	113	group member.
114	114	SECTION 8. Subchapter A, Chapter 839, Government Code, is
115	115	amended by adding Section 839.005 to read as follows:
116	116	Sec. 839.005. PROVISIONS INAPPLICABLE TO CASH BALANCE GROUP
117	117	MEMBERS. The following provisions of this chapter do not apply to a
118	118	cash balance group member:
119	119	(1) Section 839.002; and
120	120	(2) Subchapters B and E.
121	121	SECTION 9. Section 839.201(a), Government Code, is amended
122	122	to read as follows:
123	123	(a) A member, other than a member who is eligible to receive
124	124	a service retirement annuity under Section 839.101 or a cash
125	125	balance annuity under Section 840A.052, is eligible, regardless of
126	126	age, to retire from regular active service for disability and
127	127	receive a disability retirement annuity if the member has at least
128	128	seven years of service credit in the retirement system.
129	129	SECTION 10. Subchapter A, Chapter 840, Government Code, is
130	130	amended by adding Section 840.009 to read as follows:
131	131	Sec. 840.009. PROVISIONS INAPPLICABLE TO CASH BALANCE GROUP
132	132	MEMBERS. Sections 840.102(g) and (h), 840.1025, and 840.1027 of
133	133	this chapter do not apply to a cash balance group member.
134	134	SECTION 11. The heading to Section 840.102, Government
135	135	Code, is amended to read as follows:
136	136	Sec. 840.102. COLLECTION OF CERTAIN MEMBER CONTRIBUTIONS.
137	137	SECTION 12. Section 840.102(a), Government Code, is amended
138	138	to read as follows:
139	139	(a) Except as provided by Subsections (g) and (h), each
140	140	payroll period, a judicial officer who is a member of the retirement
141	141	system other than a cash balance group member is required to
142	142	contribute 9.5 percent of the officer's state compensation for
143	143	service rendered after September 1, 2019.
144	144	SECTION 13. Sections 840.105(a) and (c), Government Code,
145	145	are amended to read as follows:
146	146	(a) For all state compensation earned [after December 31,
147	147	1989,] by judicial officers who are members of the retirement
148	148	system, the state shall pick up the member contributions required
149	149	by Section 840.102 or 840A.101, as applicable. The state shall pay
150	150	the picked-up contributions to the retirement system from the same
151	151	source that is used in paying state compensation to the judicial
152	152	officer members. These payments are in lieu of contributions by the
153	153	members. The state shall pick up these contributions by a
154	154	corresponding reduction in the cash salaries of the members, by an
155	155	offset against a future salary increase, or by a combination of a
156	156	salary reduction and offset against a future salary increase.
157	157	Members do not have the option of choosing to receive the
158	158	contributed amounts directly instead of having them paid by the
159	159	state to the retirement system.
160	160	(c) Member contributions picked up as provided by
161	161	Subsection (a) shall be transmitted to the retirement system in the
162	162	manner required by Section 840.102. Member contributions picked up
163	163	by the state shall be credited to the members' individual accounts
164	164	and treated for all other purposes as if the amounts were a part of
165	165	the members' compensation and had been deducted as provided by
166	166	Section 840.102 or 840A.101, as applicable.
167	167	SECTION 14. Section 840.306(a), Government Code, is amended
168	168	to read as follows:
169	169	(a) Except as provided by Section 840A.103 or 840A.104,
170	170	interest [Interest] on money in a member's individual account in
171	171	the retirement system is earned monthly and is computed at the rate
172	172	of five percent a year on the mean balance of the member's account
173	173	for the fiscal year.
174	174	SECTION 15. Subchapter E, Chapter 840, Government Code, is
175	175	amended by adding Section 840.407 to read as follows:
176	176	Sec. 840.407. EXCESS BENEFIT ARRANGEMENT. (a) A separate,
177	177	nonqualified, unfunded excess benefit arrangement is created
178	178	outside the trust fund of the retirement system. This excess
179	179	benefit arrangement shall be administered as a governmental excess
180	180	benefit arrangement under Section 415(m) of the Internal Revenue
181	181	Code of 1986 (26 U.S.C. Section 415(m)). The purpose of the excess
182	182	benefit arrangement is to pay to annuitants of the retirement
183	183	system benefits otherwise payable by the retirement system that
184	184	exceed the limitations on benefits imposed by Section 415(b)(1)(A)
185	185	of the Internal Revenue Code of 1986 (26 U.S.C. Section
186	186	415(b)(1)(A)).
187	187	(b) The board of trustees is responsible for the
188	188	administration of this arrangement. Except as otherwise provided
189	189	by this section, the board has the same rights, duties, and
190	190	responsibilities concerning the excess benefit arrangement as it
191	191	has to the trust fund.
192	192	(c) Benefits under this section are exempt from execution to
193	193	the same extent as provided by Section 836.004, except that the
194	194	benefits are completely unassignable. Contributions to this
195	195	arrangement are not held in trust and may not be commingled with
196	196	other funds of the retirement system.
197	197	(d) An annuitant is entitled to a monthly benefit under this
198	198	section in an amount equal to the amount by which the benefit
199	199	otherwise payable by the retirement system has been reduced by the
200	200	limitation on benefits imposed by Section 415(b)(1)(A) of the
201	201	Internal Revenue Code of 1986 (26 U.S.C. Section 415(b)(1)(A)).
202	202	The benefit payable by this arrangement is payable at the times and
203	203	in the form that the benefit payable under the trust fund is paid.
204	204	(e) The benefit payable under this section shall be paid
205	205	from state contributions that otherwise would be made to the trust
206	206	fund under Section 840.103. In lieu of deposit in the state
207	207	accumulation account, an amount determined by the retirement system
208	208	to be necessary to pay benefits under this section shall be paid
209	209	monthly to the credit of a dedicated account in the general revenue
210	210	fund maintained only for the excess benefit arrangement. The
211	211	account may include amounts needed to pay reasonable and necessary
212	212	expenses of administering this arrangement. The monthly amount to
213	213	be paid to the credit of the account shall be transferred to the
214	214	account at least 15 days before the date of a monthly disbursement
215	215	under this section.
216	216	(f) The board of trustees may adopt rules governing the
217	217	excess benefit arrangement that are necessary for the efficient
218	218	administration of the arrangement in compliance with Section 415(m)
219	219	of the Internal Revenue Code of 1986 (26 U.S.C. Section 415(m)).
220	220	SECTION 16. Subtitle E, Title 8, Government Code, is
221	221	amended by adding Chapter 840A to read as follows:
222	222	CHAPTER 840A. CASH BALANCE BENEFIT
223	223	SUBCHAPTER A. GENERAL PROVISIONS
224	224	Sec. 840A.001. DEFINITION. In this chapter, "accumulated
225	225	account balance" means the total of amounts in a member's
226	226	individual account in the retirement system, including:
227	227	(1) amounts deducted from the compensation of the
228	228	member;
229	229	(2) other member deposits required to be placed in the
230	230	member's individual account; and
231	231	(3) interest credited to amounts in the member's
232	232	individual account, including interest and gain sharing interest
233	233	credited in accordance with Sections 840A.103 and 840A.104,
234	234	respectively.
235	235	Sec. 840A.002. APPLICABILITY. This chapter applies only to
236	236	a member who:
237	237	(1) took office on or after September 1, 2024; and
238	238	(2) was not a member on the date the member took
239	239	office.
240	240	Sec. 840A.003. CONFLICT OF LAW. To the extent of a conflict
241	241	between this chapter, including a rule adopted by the retirement
242	242	system under authority of this chapter, and any other law, this
243	243	chapter prevails.
244	244	Sec. 840A.004. RULES. The board of trustees may adopt rules
245	245	necessary to implement this chapter.
246	246	SUBCHAPTER B. CASH BALANCE BENEFITS
247	247	Sec. 840A.051. APPLICATION FOR CASH BALANCE BENEFIT.
248	248	(a) A member may apply for a cash balance annuity by filing an
249	249	application for retirement with the board of trustees.
250	250	(b) An application for a cash balance annuity may not be
251	251	made:
252	252	(1) after the date the member wishes to retire; or
253	253	(2) more than 90 days before the date the member wishes
254	254	to retire.
255	255	Sec. 840A.052. ELIGIBILITY FOR CASH BALANCE BENEFIT. A
256	256	member is eligible to retire and receive a cash balance annuity if
257	257	the member:
258	258	(1) is at least 60 years old and has at least eight
259	259	years of service credited in the retirement system; or
260	260	(2) is at least 50 years old and has at least 12 years
261	261	of service credited in the retirement system.
262	262	Sec. 840A.053. STANDARD CASH BALANCE BENEFITS FOR MEMBERS.
263	263	(a) The state match for the cash balance benefit is an amount
264	264	computed by multiplying the member's accumulated account balance by
265	265	150 percent.
266	266	(b) The retirement system shall compute a member's standard
267	267	cash balance annuity under this section by taking the sum of the
268	268	member's accumulated account balance and the state match computed
269	269	under Subsection (a) and annuitizing that amount over the life
270	270	expectancy of the member as of the effective date of the member's
271	271	retirement using mortality and other tables adopted by the board of
272	272	trustees for that purpose under Section 840.005.
273	273	Sec. 840A.054. OPTIONAL CASH BALANCE BENEFITS. (a)
274	274	Instead of the standard cash balance annuity payable under Section
275	275	840A.053, a retiring member may elect to receive an optional cash
276	276	balance annuity under this section.
277	277	(b) A person who selects an optional lifetime cash balance
278	278	annuity must designate, before the selection becomes effective, one
279	279	beneficiary to receive the annuity on the death of the person making
280	280	the selection. A person who selects an optional cash balance
281	281	annuity payable for a guaranteed period may designate, before or
282	282	after retirement, one or more beneficiaries to receive the annuity
283	283	on the death of the person making the selection.
284	284	(c) A person eligible to select an optional cash balance
285	285	annuity under this section may select an option which provides
286	286	that:
287	287	(1) after the retiree's death, the reduced annuity is
288	288	payable in the same amount throughout the life of the beneficiary
289	289	designated by the retiree before retirement;
290	290	(2) after the retiree's death, one-half of the reduced
291	291	annuity is payable throughout the life of the beneficiary
292	292	designated by the retiree before retirement;
293	293	(3) if the retiree dies before 60 monthly annuity
294	294	payments have been made, the remainder of the 60 payments are
295	295	payable to one or more beneficiaries or, if one does not exist, to
296	296	the retiree's estate;
297	297	(4) if the retiree dies before 120 monthly annuity
298	298	payments have been made, the remainder of the 120 payments are
299	299	payable to one or more beneficiaries or, if one does not exist, to
300	300	the retiree's estate; or
301	301	(5) after the retiree's death, three-fourths of the
302	302	reduced annuity is payable throughout the life of the beneficiary
303	303	designated by the retiree before retirement.
304	304	(d) If a beneficiary designated by a retiree under
305	305	Subsection (b) predeceases the retiree and the retiree has elected
306	306	an optional lifetime annuity, the reduced annuity shall be
307	307	increased to the standard cash balance annuity that the retiree
308	308	would have been entitled to receive if the retiree had not selected
309	309	the optional annuity. The standard cash balance annuity shall be
310	310	adjusted as appropriate for post-retirement increases in
311	311	retirement benefits authorized by law since the date of retirement.
312	312	(e) Any increase in an annuity under Subsection (d) begins
313	313	with the payment for the month following the month in which the
314	314	designated beneficiary dies, and the increased annuity is payable
315	315	to the retiree for the remainder of the retiree's life.
316	316	(f) The computation of an optional cash balance annuity must
317	317	be made without regard to the gender of the annuitant or designated
318	318	beneficiary.
319	319	(g) Except as provided by Section 840A.055, a person who
320	320	selected an optional cash balance annuity described by Subsection
321	321	(c)(1), (2), or (5) may not change or revoke a beneficiary
322	322	designation after the person's effective date of retirement.
323	323	(h) A beneficiary designation that names a former spouse as
324	324	a beneficiary for a guaranteed optional cash balance annuity
325	325	described by Subsection (c)(3) or (4) is invalid unless the
326	326	designation is made after the date of the divorce.
327	327	Sec. 840A.055. CHANGE IN OPTIONAL CASH BALANCE ANNUITY
328	328	SELECTION. (a) A person who retired and selected an optional cash
329	329	balance annuity described by Section 840A.054(c)(1), (2), or (5)
330	330	may change the optional annuity to a standard cash balance annuity
331	331	only if:
332	332	(1) pursuant to a divorce decree, a court orders the
333	333	change in the annuity to a standard cash balance annuity; or
334	334	(2) the retiree files with the retirement system a
335	335	request to change the annuity and, in connection with a divorce
336	336	between the retiree and the beneficiary designated by the retiree
337	337	under Section 840A.054(b), the beneficiary has executed a written,
338	338	notarized instrument that:
339	339	(A) releases the system from any claim to the
340	340	annuity by the beneficiary; and
341	341	(B) transfers all of the beneficiary's interest
342	342	in the annuity to the retiree.
343	343	(b) If a retiree files a request as provided by Subsection
344	344	(a), the retirement system shall recompute the annuity as a
345	345	standard cash balance annuity. The increase in the annuity under
346	346	this section begins with the monthly payment made to the retiree for
347	347	the month following the month in which a request is filed as
348	348	provided by Subsection (a).
349	349	Sec. 840A.056. PARTIAL LUMP-SUM CASH BALANCE OPTION. (a) A
350	350	member who is eligible for a cash balance annuity may select a
351	351	standard cash balance annuity under Section 840A.053 or an optional
352	352	cash balance annuity under Section 840A.054, together with a
353	353	partial lump-sum distribution.
354	354	(b) The amount of the lump-sum distribution under this
355	355	section may not exceed the sum of 36 months of a standard cash
356	356	balance annuity computed without regard to this section.
357	357	(c) The cash balance annuity selected by the member shall be
358	358	actuarially reduced to reflect the lump-sum option selected by the
359	359	member and shall be actuarially equivalent to a standard or
360	360	optional cash balance annuity, as applicable, without the partial
361	361	lump-sum distribution. The annuity and lump sum shall be computed
362	362	to result in no actuarial loss to the retirement system.
363	363	(d) The lump-sum distribution shall be made as a single
364	364	payment payable at the time that the first monthly annuity payment
365	365	is paid.
366	366	(e) The amount of the lump-sum distribution shall be
367	367	deducted from any amount otherwise payable under this chapter.
368	368	(f) The partial lump-sum option under this section may be
369	369	elected only once by a member and may not be elected by a retiree. A
370	370	member retiring under the proportionate retirement program under
371	371	Chapter 803 is not eligible for the partial lump-sum option.
372	372	(g) Before a retiring member selects a partial lump-sum
373	373	distribution under this section:
374	374	(1) the retirement system shall provide written notice
375	375	to the member of the amount by which the member's annuity will be
376	376	reduced because of the selection; and
377	377	(2) the member must acknowledge receipt of the notice
378	378	in writing.
379	379	(h) The board of trustees may adopt rules for the
380	380	implementation of this section and may authorize the option to be
381	381	used for a death benefit annuity. This section does not apply to a
382	382	disability retirement annuity.
383	383	Sec. 840A.057. DEATH AND DISABILITY BENEFITS. (a)
384	384	Notwithstanding any other law, a member subject to this chapter, a
385	385	retiree receiving a cash balance annuity under this chapter, or the
386	386	beneficiary of a member or retiree described by this subsection,
387	387	who qualifies for a death or survivor benefit annuity or a
388	388	disability retirement annuity under Chapter 839 is entitled to a
389	389	cash balance annuity under this subchapter instead of the annuity
390	390	otherwise provided under Chapter 839.
391	391	(b) The board of trustees may enter into contracts to
392	392	provide additional death and disability benefits under this
393	393	chapter.
394	394	SUBCHAPTER C. CONTRIBUTIONS AND INTEREST
395	395	Sec. 840A.101. COLLECTION OF MEMBER CONTRIBUTIONS. Each
396	396	payroll period, each department or agency of the state shall cause
397	397	to be deducted from the compensation of a member subject to this
398	398	chapter a contribution of six percent of the compensation of the
399	399	member.
400	400	Sec. 840A.102. STATE CONTRIBUTIONS FOR MILITARY SERVICE.
401	401	(a) The state shall contribute for military service established
402	402	under Section 838.1031 an amount in the same ratio to the member's
403	403	contribution for the service as the state's contribution bears to
404	404	the contribution for current service required of a member of the
405	405	retirement system who is subject to this chapter at the time the
406	406	service is established under this subchapter.
407	407	(b) The state's contribution under Subsection (a) shall be
408	408	paid from the fund from which the member receives compensation at
409	409	the time the service is established or, if the member does not hold
410	410	a position at the time the service is established, from the fund
411	411	from which the member received compensation when the member most
412	412	recently held a position.
413	413	Sec. 840A.103. ANNUAL INTEREST ADJUSTMENT. Each fiscal
414	414	year, the retirement system shall deposit for a member subject to
415	415	this chapter an amount equal to four percent of the member's
416	416	accumulated account balance deposited into the member's individual
417	417	account in the retirement system.
418	418	Sec. 840A.104. GAIN SHARING INTEREST ADJUSTMENT. (a) Each
419	419	fiscal year and subject to Subsection (b), the retirement system
420	420	shall compute the gain sharing interest rate by:
421	421	(1) determining the average return on the investment
422	422	of the system's cash and securities during the preceding five
423	423	fiscal years, expressed as a percentage rate;
424	424	(2) subtracting four percentage points from the
425	425	percentage rate determined under Subdivision (1); and
426	426	(3) multiplying the resulting difference under
427	427	Subdivision (2) by 50 percent.
428	428	(b) Subject to Subsection (c), each fiscal year, the
429	429	retirement system shall:
430	430	(1) in addition to the amount deposited under Section
431	431	840A.103, deposit into each member's individual account in the
432	432	retirement system an amount equal to the gain sharing interest rate
433	433	determined under Subsection (a) for the fiscal year multiplied by
434	434	the member's accumulated account balance as of the end of the
435	435	preceding fiscal year; and
436	436	(2) recalculate the annuity payment of a retiree or
437	437	annuitant under this chapter by:
438	438	(A) multiplying the annuity payment amount as of
439	439	the end of the preceding fiscal year by the gain sharing interest
440	440	rate determined under Subsection (a); or
441	441	(B) if the retiree or annuitant was not entitled
442	442	to an annuity payment as of the end of the preceding fiscal year,
443	443	multiplying the retiree's or annuitant's first annuity payment
444	444	amount by the gain sharing interest rate determined under
445	445	Subsection (a).
446	446	(c) The gain sharing interest rate applied under Subsection
447	447	(b) may not be less than zero or more than three percent.
448	448	(d) Subsection (b) applies only to a retiree or annuitant
449	449	who is receiving a cash balance annuity under Section 840A.053 or
450	450	840A.054, including an alternate payee under Section 804.005.
451	451	SECTION 17. Section 1551.102(b), Insurance Code, is amended
452	452	to read as follows:
453	453	(b) An individual is eligible to participate in the group
454	454	benefits program as provided by Subsection (a) if:
455	455	(1) the individual retires under the jurisdiction of
456	456	the Employees Retirement System of Texas; and
457	457	(2) the individual:
458	458	(A) receives or is eligible to receive an annuity
459	459	under Section 814.104(a)(2), Government Code, and has at least 10
460	460	years of eligible service credit;
461	461	(B) receives or is eligible to receive an annuity
462	462	under Chapter 803 or Section 814.104(a)(1), Government Code, has at
463	463	least 10 years of eligible service credit, and is at least 65 years
464	464	of age;
465	465	(C) receives or is eligible to receive an annuity
466	466	that is based on eligibility under Section 814.002, 814.102,
467	467	814.104(b), 814.107(a), 834.101, or 839.101 or Subchapter B,
468	468	Chapter 840A, Government Code; or
469	469	(D) receives or is eligible to receive an annuity
470	470	under Subchapter B, Chapter 820, Government Code, and has at least
471	471	10 years of eligible service credit.
472	472	SECTION 18. Section 1551.3196(c), Insurance Code, is
473	473	amended to read as follows:
474	474	(c) This section does not apply to an individual who:
475	475	(1) receives or is eligible to receive an annuity that
476	476	is based on eligibility under Section 814.002, 814.102, 834.101,
477	477	[or] 839.101, or 840A.052, Government Code; or
478	478	(2) is eligible to participate in the group benefits
479	479	program under:
480	480	(A) Section 1551.102(d) because of a disability;
481	481	or
482	482	(B) Section 1551.102(f).
483	483	SECTION 19. Section 837.103, Government Code, as added by
484	484	this Act, if implemented, applies to a retiree of the Judicial
485	485	Retirement System of Texas Plan Two who resumes service as a
486	486	judicial officer before, on, or after the date that section is
487	487	implemented.
488	488	SECTION 20. This Act takes effect immediately if it
489	489	receives a vote of two-thirds of all the members elected to each
490	490	house, as provided by Section 39, Article III, Texas Constitution.
491	491	If this Act does not receive the vote necessary for immediate
492	492	effect, this Act takes effect September 1, 2023.
493	493	______________________________ ______________________________
494	494	President of the Senate Speaker of the House
495	495	I hereby certify that S.B. No. 1245 passed the Senate on
496	496	April 12, 2023, by the following vote: Yeas 31, Nays 0; and that
497	497	the Senate concurred in House amendment on May 22, 2023, by the
498	498	following vote: Yeas 31, Nays 0.
499	499	______________________________
500	500	Secretary of the Senate
501	501	I hereby certify that S.B. No. 1245 passed the House, with
502	502	amendment, on May 18, 2023, by the following vote: Yeas 144,
503	503	Nays 1, one present not voting.
504	504	______________________________
505	505	Chief Clerk of the House
506	506	Approved:
507	507	______________________________
508	508	Date
509	509	______________________________
510	510	Governor