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AN ACT
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relating to the powers and duties of and benefits available under |
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the Employees Retirement System of Texas and to a chronic disease |
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prevention and wellness pilot program administered by the system |
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and the Department of State Health Services for department |
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employees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 615.045, Government Code, is amended by |
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amending Subsection (a) and adding Subsections (b-1) and (d) to |
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read as follows: |
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(a) Records of individuals listed by Section 615.003 and of |
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survivors eligible for benefits under this chapter that are in the |
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custody of the Employees Retirement System of Texas, [or] an |
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administering firm as defined by Section 1551.003, Insurance Code, |
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a carrier as defined by Section 1551.007, Insurance Code, or |
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another governmental agency acting with or on behalf of the |
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retirement system are confidential and not subject to public |
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disclosure, and the retirement system, administering firm, |
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carrier, or governmental agency is not required to accept or comply |
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with a request for a record or information about a record or to seek |
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an opinion from the attorney general, because the records are |
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exempt from the [public information] provisions of Chapter 552, |
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except as otherwise provided by this section. |
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(b-1) A record released or received by the retirement system |
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under this section may be transmitted electronically, including |
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through the use of an electronic signature or certification in a |
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form acceptable to the retirement system. An unintentional |
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disclosure to, or unauthorized access by, a third party related to |
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the transmission or receipt of information under this section is |
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not a violation by the retirement system of any law, including a law |
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or rule relating to the protection of confidential information. |
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(d) The retirement system has sole discretion in |
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determining whether a record is subject to this section. For |
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purposes of this section, a record includes any identifying |
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information about any person, living or deceased, who is or was: |
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(1) an individual listed in Section 615.003; or |
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(2) a survivor, heir, or beneficiary of an individual |
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listed in Section 615.003. |
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SECTION 2. Subchapter A, Chapter 811, Government Code, is |
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amended by adding Sections 811.010 and 811.011 to read as follows: |
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Sec. 811.010. VENUE. Subject to and without waiving the |
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retirement system's sovereign immunity or the official immunity of |
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the trustees, officers, and employees of the retirement system, the |
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venue for any action by or against the retirement system, the |
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trustees, officers, or employees of the retirement system, or an |
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administering firm, carrier, or other governmental agency acting in |
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cooperation with or on behalf of the retirement system is in Travis |
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County. |
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Sec. 811.011. STATUTE OF LIMITATIONS. Subject to and |
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without waiving the retirement system's sovereign immunity or the |
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official immunity of the trustees, officers, and employees of the |
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retirement system, unless specifically provided otherwise by |
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another statute, the statute of limitations for a claim against the |
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retirement system or a trustee, officer, or employee of the |
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retirement system is two years. |
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SECTION 3. Section 812.101, Government Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) For a law enforcement or custodial officer, the |
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withdrawal of accumulated contributions under Subsection (a) |
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includes all of the officer's contributions made under Section |
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815.402(h). |
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SECTION 4. Section 812.201(c), Government Code, is amended |
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to read as follows: |
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(c) A person who is retired from the elected class of |
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membership and who again holds a position included in that class may |
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elect to become a member again by filing notice with the retirement |
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system. Except as provided by Section 812.203(c) [812.203(e)], |
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when benefit payments are resumed, the retirement system shall |
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recompute the annuity selected at the time of the person's original |
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retirement to include the additional service established during |
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membership under this subsection. |
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SECTION 5. Subchapter C, Chapter 812, Government Code, is |
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amended by adding Section 812.205 to read as follows: |
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Sec. 812.205. WAITING PERIOD. A member who retires from the |
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employee class on or after May 31, 2009, may not return to work in a |
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position included in the employee class of membership before the |
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90th day after the date of the retiree's original retirement. |
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SECTION 6. Subchapter C, Chapter 812, Government Code, is |
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amended by adding Section 812.206 to read as follows: |
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Sec. 812.206. RETURN TO WORK SURCHARGE. (a) This section |
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applies only to a person who, on or after September 1, 2009: |
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(1) retires from the employee class; and |
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(2) is rehired as a retiree into a position that would |
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otherwise include membership in the employee class. |
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(b) For each month that a department or agency of this state |
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employs a person described by Subsection (a), the department or |
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agency shall remit to the retirement system an amount equal to the |
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amount of the state contribution that the department or agency |
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would remit for an active member employed in the person's position. |
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The amount remitted shall be deposited as provided by Section |
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815.309. |
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SECTION 7. Section 813.509, Government Code, is amended by |
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amending Subsections (d) and (e) and adding Subsection (k) to read |
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as follows: |
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(d) An individual who was a [A] member or employee on August |
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31, 2009, and who holds a position included in the employee class |
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may use sick leave creditable under this section to satisfy service |
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requirements for retirement under Section 814.104 or 814.107 if the |
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sick leave attributed to the eligibility requirements remains |
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otherwise unused on the last day of employment. |
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(e) A death benefit beneficiary [designee] under Section |
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814.302 may use the deceased member's sick leave credit under this |
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section to qualify for making a death benefit plan selection under |
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Section 814.302 if the decedent was a member or employee on August |
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31, 2009. |
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(k) A member who was not a member on the date hired and was |
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hired on or after September 1, 2009, or a death benefit beneficiary |
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of that member may use sick leave creditable under this section only |
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for purposes of calculating the member's or beneficiary's annuity. |
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SECTION 8. Section 813.511, Government Code, is amended by |
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amending Subsections (d) and (e) and adding Subsection (j) to read |
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as follows: |
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(d) An individual who was a [A] member or employee on August |
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31, 2009, and who holds a position included in the employee class |
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may use annual leave creditable under this section to satisfy |
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service requirements for retirement under Section 814.104 or |
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814.107 if the annual leave attributed to the eligibility |
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requirements remains otherwise unused on the last day of |
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employment. |
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(e) A death benefit beneficiary [designee] under Section |
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814.302 may use the deceased member's annual leave credit under |
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this section to qualify for making a death benefit plan selection |
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under Section 814.302 if the decedent was a member or employee on |
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August 31, 2009. |
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(j) A member who was not a member on the date hired and was |
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hired on or after September 1, 2009, or a death benefit beneficiary |
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of that member may use annual leave creditable under this section |
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only for purposes of calculating the member's or beneficiary's |
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annuity. |
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SECTION 9. Section 814.008(a), Government Code, is amended |
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to read as follows: |
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(a) A retiree receiving an optional service or disability |
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retirement annuity approved by the board of trustees or described |
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by Section 814.108(c)(1), [or] (c)(2), or (c)(5) may change the |
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designated beneficiary as provided by this section for the benefits |
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payable after the retiree's death. |
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SECTION 10. Subchapter A, Chapter 814, Government Code, is |
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amended by adding Section 814.012 to read as follows: |
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Sec. 814.012. DISPOSITION OF UNCLAIMED BENEFICIARY |
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BENEFITS. If, as of the fourth anniversary of the death of a member |
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or annuitant, the retirement system has not paid benefits and a |
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claim for benefits is not pending with the retirement system based |
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on the death of the member or annuitant, the accumulated |
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contributions of the deceased member or the balance of the reserve |
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for the deceased annuitant reverts to the benefit of the retirement |
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system. The retirement system shall transfer funds reverted under |
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this section to the state accumulation account. |
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SECTION 11. Section 814.104, Government Code, is amended by |
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amending Subsection (a) and adding Subsection (d) to read as |
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follows: |
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(a) Except as provided by Subsection (d) of this section, |
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Section 814.102, or by rule adopted under Section 813.304(d) or |
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803.202(a)(2), a member who has service credit in the retirement |
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system is eligible to retire and receive a service retirement |
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annuity if the member: |
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(1) is at least 60 years old and has at least 5 years of |
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service credit in the employee class; or |
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(2) has at least 5 years of service credit in the |
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employee class and the sum of the member's age and amount of service |
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credit in the employee class, including months of age and credit, |
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equals or exceeds the number 80. |
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(d) Except as provided by Section 814.102 or by rule adopted |
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under Section 813.304(d) or 803.202(a)(2), a member who was not a |
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member on the date hired, was hired on or after September 1, 2009, |
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and has service credit in the retirement system is eligible to |
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retire and receive a service retirement annuity if the member: |
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(1) is at least 65 years old and has at least 10 years |
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of service credit in the employee class; or |
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(2) has at least 5 years of service credit in the |
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employee class and the sum of the member's age and amount of service |
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credit in the employee class, including months of age and credit, |
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equals or exceeds the number 80. |
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SECTION 12. Section 814.105, Government Code, is amended by |
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adding Subsections (c) and (d) to read as follows: |
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(c) The standard service retirement annuity for service |
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credited in the employee class of membership for a member who was |
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not a member on the date hired, was hired on or after September 1, |
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2009, and is eligible to retire is an amount computed as the |
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member's average monthly compensation for service in that class for |
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the 48 highest months of compensation multiplied by 2.3 percent for |
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each year of service credit in that class. |
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(d) The standard service retirement annuity computed under |
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Subsection (c) is reduced by five percent for each year the member |
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retires before the member reaches age 60, with a maximum possible |
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reduction of 25 percent. |
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SECTION 13. Sections 814.107(c) and (d), Government Code, |
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are amended to read as follows: |
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(c) The standard combined service retirement annuity that |
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is payable under this section is based on retirement on or after the |
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attainment of the normal retirement age, which for purposes of this |
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section is the earlier of either the age of 50 or the age at which |
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the sum of the member's age and amount of service credit in the |
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employee class equals the number 80. A law enforcement or custodial |
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officer who retires before attaining the normal retirement age is |
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entitled only to an annuity that is actuarially reduced from the |
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annuity available at the normal retirement age to the law |
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enforcement or custodial officer whose service credit annuity |
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amount is based on [available at] the sum of the member's age and |
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amount of law enforcement or custodial officer service credit and |
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employee class service credit, and is not entitled to have the |
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annuity recalculated at normal retirement age. The standard or |
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reduced annuity is payable from the trust fund established by |
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Section 815.310 and the law enforcement and custodial officer |
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supplemental retirement fund in a ratio determined by the |
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retirement system. |
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(d) A member who retires under this section retires |
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simultaneously from the employee class of membership. [Benefits for
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service in the employee class of membership become payable from the
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trust fund established by Section 815.310 at the normal retirement
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age under the computation provided by Section 814.105.] Optional |
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retirement annuities provided by Section 814.108 are available to a |
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member eligible to receive a service retirement annuity under this |
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section, but the same optional plan and beneficiary [designee] must |
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be selected for the portion of the annuity payable from the law |
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enforcement and custodial officer supplemental retirement fund and |
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the portion payable from the trust fund established by Section |
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815.310. |
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SECTION 14. Subchapter B, Chapter 814, Government Code, is |
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amended by adding Section 814.1075 to read as follows: |
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Sec. 814.1075. ADJUSTED BENEFITS FOR CERTAIN PEACE |
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OFFICERS. (a) This section applies only to a person hired on or |
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after September 1, 2009, who was not a member on the date hired. |
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(b) A member who has at least 20 years of service credit as a |
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law enforcement or custodial officer is eligible to retire |
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regardless of age and receive a standard service retirement annuity |
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as provided by this section. |
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(c) The standard service retirement annuity payable for at |
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least 20 years of service credit as a law enforcement or custodial |
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officer is an amount computed on the basis of the member's average |
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monthly compensation for the 48 highest months of compensation in |
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the employee class multiplied by the sum of the percentage factor |
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used in the computation of a standard service retirement annuity |
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under Section 814.105(c) plus 0.5 percent. |
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(d) The standard combined service retirement annuity that |
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is payable under this section is based on retirement at either the |
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age of 55 or the age at which the sum of the member's age and amount |
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of service credit in the employee class equals or exceeds the number |
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80. The annuity of a law enforcement or custodial officer who |
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retires before reaching the age of 55 under any eligibility |
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criteria is actuarially reduced by five percent for each year the |
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member retires before the member reaches age 55, with a maximum |
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possible reduction of 25 percent. |
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(e) An annuity payable under this section: |
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(1) is payable from the trust fund established by |
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Section 815.310 and from the law enforcement and custodial officer |
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supplemental retirement fund in a ratio determined by the |
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retirement system; and |
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(2) is based on the service credit available to the law |
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enforcement or custodial officer at the time of retirement and the |
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sum of the member's age and amount of law enforcement or custodial |
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officer service credit and employee class service credit. |
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(f) A member who retires under this section retires |
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simultaneously from the employee class of membership. Optional |
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retirement annuities provided by Section 814.108 are available to a |
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member eligible to receive a service retirement annuity under this |
|
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section, but the same optional plan and beneficiary must be |
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selected for the portion of the annuity payable from the law |
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enforcement and custodial officer supplemental retirement fund and |
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the portion payable from the trust fund established by Section |
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815.310. |
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(g) The amount payable from the law enforcement and |
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custodial officer supplemental retirement fund is reducible by the |
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amount paid from the trust fund established by Section 815.310 for |
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service as a law enforcement or custodial officer. The total |
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combined amount of an annuity under this section may not be less |
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than the authorized benefit under Subsection (c) subtracted by any |
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amount necessary because of the selection of an optional annuity, |
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because of retirement before the age of 55, or as provided by |
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Subsection (h). |
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(h) The standard combined service retirement annuity |
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payable for at least 20 years of service credit as a law enforcement |
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or custodial officer may not exceed 100 percent of the average |
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compensation computed under Subsection (c). |
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(i) For purposes of this section, service as a law |
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enforcement or custodial officer is creditable as provided by rule |
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of the board of trustees or on a month-to-month basis, whichever is |
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greater. |
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SECTION 15. Sections 814.108(c), (g), and (h), Government |
|
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Code, are amended to read as follows: |
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(c) An eligible person may select [any optional retirement
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annuity approved by the board of trustees, or may select] one of the |
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following options, which provides [provide] that: |
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(1) after the retiree's death, the reduced annuity is |
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payable in the same amount throughout the life of the person |
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designated by the retiree before retirement; |
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(2) after the retiree's death, one-half of the reduced |
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annuity is payable throughout the life of the person designated by |
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the retiree before retirement; |
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(3) if the retiree dies before 60 monthly annuity |
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payments have been made, the remainder of the 60 payments are |
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payable to one or more beneficiaries [designees] or, if one does not |
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exist, to the retiree's estate; [or] |
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(4) if the retiree dies before 120 monthly annuity |
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payments have been made, the remainder of the 120 payments are |
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payable to one or more beneficiaries [designees] or, if one does not |
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exist, to the retiree's estate; or |
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(5) after the retiree's death, three-fourths of the |
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reduced annuity is payable throughout the life of the person |
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designated by the retiree before retirement. |
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(g) Except as provided by Section 814.008 or 814.1081, a |
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person who selected an optional service retirement annuity approved |
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by the board of trustees or an optional service retirement annuity |
|
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described by Subsection (c)(1), [or] (c)(2), or (c)(5) may not |
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change or revoke a beneficiary designation after the person's |
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effective date of retirement. |
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(h) A beneficiary designation that names a former spouse as |
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beneficiary for a guaranteed optional annuity described by |
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Subsection (c)(3) or (c)(4) is invalid unless the designation is |
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made after the date of the divorce. |
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SECTION 16. Section 814.1081(a), Government Code, is |
|
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amended to read as follows: |
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(a) A person who retired and selected an optional service |
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retirement annuity [approved by the board of trustees or an
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optional service retirement annuity] described by Section |
|
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814.108(c)(1), [or] (c)(2), or (c)(5) may change the optional |
|
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annuity selection to the selection of a standard service retirement |
|
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annuity by filing with the retirement system a request to change the |
|
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annuity selection, if the retiree designated a person as |
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beneficiary who: |
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(1) was not at the time of designation and is not |
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currently the retiree's spouse or dependent child; or |
|
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(2) has executed since the designation a transfer and |
|
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release, approved by a court of competent jurisdiction pursuant to |
|
|
a divorce decree, of the beneficiary's interest in the annuity and |
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is not currently the retiree's spouse or dependent child. |
|
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SECTION 17. Section 814.202, Government Code, is amended by |
|
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adding Subsection (g) to read as follows: |
|
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(g) A member otherwise eligible to receive a disability |
|
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retirement annuity may not receive the annuity if the member is: |
|
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(1) still earning a salary or wage from the employment |
|
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for which the member is claiming disability; or |
|
|
(2) on leave without pay from the employment for which |
|
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the member is claiming disability. |
|
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SECTION 18. Section 814.203, Government Code, is amended to |
|
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read as follows: |
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Sec. 814.203. CERTIFICATION OF DISABILITY. (a) As soon as |
|
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practicable after an application for disability retirement is |
|
|
filed, the medical board shall evaluate the medical and other |
|
|
pertinent information regarding the member's application. If the |
|
|
medical board finds that the member is mentally or physically |
|
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incapacitated for the further performance of duty, as supported by |
|
|
substantial, objective, medical evidence, and that the incapacity |
|
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is likely to be permanent, the medical board shall issue a |
|
|
certification of disability and submit it to the executive |
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director. A certification under this section is admissible in a |
|
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contested case under Section 815.511 without proving the medical |
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board as experts. |
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(b) For purposes of this subchapter, a member is |
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incapacitated for the further performance of duty if the member has |
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demonstrably sought and been denied workplace accommodation of the |
|
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disability in accordance with applicable law, and the member is |
|
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physically or mentally unable to continue to hold the position |
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occupied or to hold any other position offering comparable pay. The |
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employee's education, training, and experience must be considered |
|
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when making a determination of incapacity under this subchapter. |
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(c) For the purposes of this section, "comparable pay" means |
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80 percent or more of the member's final state employment base pay |
|
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before deductions for taxes or deferred compensation under state |
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and federal law, including any longevity or hazardous duty pay, but |
|
|
excluding the monetary value of any insurance or retirement |
|
|
benefits. Comparable pay may be adjusted by the retirement system |
|
|
to account for adjustments in state pay rates. |
|
|
SECTION 19. Subchapter C, Chapter 815, Government Code, is |
|
|
amended by adding Section 815.214 to read as follows: |
|
|
Sec. 815.214. SUBPOENA. Notwithstanding any other law, the |
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|
retirement system may issue a subpoena that conforms to Rule 176, |
|
|
Texas Rules of Civil Procedure, including a preappeal investigative |
|
|
subpoena or any subpoena otherwise authorized by the Texas Rules of |
|
|
Civil Procedure, that the retirement system determines necessary to |
|
|
protect the interests of a program or system administered by the |
|
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retirement system. |
|
|
SECTION 20. Section 815.301, Government Code, is amended by |
|
|
adding Subsections (g), (h), and (i) to read as follows: |
|
|
(g) In awarding contracts to private professional |
|
|
investment managers under Subsection (c) or otherwise acquiring |
|
|
private financial services, the board of trustees shall make a good |
|
|
faith effort to award contracts to or acquire services from |
|
|
qualified emerging fund managers. |
|
|
(h) For purposes of Subsection (g): |
|
|
(1) "Emerging fund manager" means a private |
|
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professional investment manager that manages assets of not more |
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than $2 billion. |
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|
(2) "Private financial services" includes pension |
|
|
fund management, consulting, investment advising, brokerage |
|
|
services, hedge fund management, private equity fund management, |
|
|
and real estate investment. |
|
|
(i) The retirement system shall report to the board of |
|
|
trustees on the methods and results of the system's efforts to hire |
|
|
emerging fund managers, including data disaggregated by race, |
|
|
ethnicity, gender, and fund size. |
|
|
SECTION 21. Section 815.307, Government Code, as amended by |
|
|
Chapters 1103 (H.B. 2240) and 1111 (H.B. 2359), Acts of the 78th |
|
|
Legislature, Regular Session, 2003, is reenacted to read as |
|
|
follows: |
|
|
Sec. 815.307. DUTY OF CARE. The assets of the retirement |
|
|
system shall be invested and reinvested without distinction as to |
|
|
their source in accordance with Section 67, Article XVI, Texas |
|
|
Constitution. A determination of whether the board of trustees has |
|
|
exercised prudence with respect to an investment decision must be |
|
|
made taking into consideration the investment of all assets of the |
|
|
trust or all assets of the collective investment vehicle, as |
|
|
applicable, over which the board has management and control, rather |
|
|
than considering the prudence of a single investment of the trust or |
|
|
the collective investment vehicle, as applicable. |
|
|
SECTION 22. Section 815.402, Government Code, is amended by |
|
|
amending Subsection (a) and adding Subsection (h) to read as |
|
|
follows: |
|
|
(a) Except as provided by Section 813.201, each payroll |
|
|
period, each department or agency of the state shall cause to be |
|
|
deducted from each member's compensation a contribution of: |
|
|
(1) 6.5 [six] percent of the compensation if the |
|
|
member is not a member of the legislature, provided that if the |
|
|
state contribution to the retirement system is computed using a |
|
|
percentage less than 6.5 percent, the member's contribution is |
|
|
computed using a percentage equal to the percentage used to compute |
|
|
the state contribution, which may not be less than six percent; or |
|
|
(2) eight percent of the compensation if the member is |
|
|
a member of the legislature. |
|
|
(h) In addition to the contribution under Subsection |
|
|
(a)(1), each department or agency of the state that employs a law |
|
|
enforcement or custodial officer shall deduct an additional 0.5 |
|
|
percent contribution from that member's compensation, to be |
|
|
deposited in the law enforcement and custodial officer supplemental |
|
|
retirement fund, provided that, if the state contribution to the |
|
|
law enforcement and custodial officer supplemental retirement fund |
|
|
is computed using a percentage less than 0.5 percent, the member's |
|
|
contribution is computed using a percentage equal to the percentage |
|
|
used to compute the state contribution. |
|
|
SECTION 23. Section 815.503, Government Code, is amended by |
|
|
amending Subsections (a) and (b) and adding Subsections (b-1) and |
|
|
(e) to read as follows: |
|
|
(a) Records of members, annuitants, retirees, |
|
|
beneficiaries, and alternate payees under retirement plans |
|
|
administered by the retirement system that are in the custody of the |
|
|
system or of an administering firm [administrator], carrier, or |
|
|
other governmental agency acting in cooperation with or on behalf |
|
|
of the retirement system are confidential and not subject to public |
|
|
disclosure, and the retirement system, administering firm, |
|
|
carrier, or governmental agency is not required to accept or comply |
|
|
with a request for a record or information about a record or to seek |
|
|
an opinion from the attorney general, because the records are |
|
|
exempt from the [public access] provisions of Chapter 552, except |
|
|
as otherwise provided by this section. |
|
|
(b) Records may be released to a member, annuitant, retiree, |
|
|
beneficiary, or alternate payee or to an authorized attorney, |
|
|
family member, or representative acting on behalf of the member, |
|
|
annuitant, retiree, beneficiary, or alternate payee. The |
|
|
retirement system may release the records to an administering firm |
|
|
[administrator], carrier, or agent or attorney acting on behalf of |
|
|
the retirement system, to another governmental entity having a |
|
|
legitimate need for the information to perform the purposes of the |
|
|
retirement system, or to a party in response to a subpoena issued |
|
|
under applicable law. |
|
|
(b-1) A record released or received by the retirement system |
|
|
under this section may be transmitted electronically, including |
|
|
through the use of an electronic signature or certification in a |
|
|
form acceptable to the retirement system. An unintentional |
|
|
disclosure to, or unauthorized access by, a third party related to |
|
|
the transmission or receipt of information under this section is |
|
|
not a violation by the retirement system of any law, including a law |
|
|
or rule relating to the protection of confidential information. |
|
|
(e) The retirement system has sole discretion in |
|
|
determining if a record is subject to this section. For purposes of |
|
|
this section, a record includes any identifying information about a |
|
|
person, living or deceased, who is or was a member, annuitant, |
|
|
retiree, beneficiary, or alternate payee, under any retirement plan |
|
|
or program administered by the retirement system. |
|
|
SECTION 24. Section 815.512, Government Code, is amended to |
|
|
read as follows: |
|
|
Sec. 815.512. PROTECTION FROM DOUBLE OR MULTIPLE LIABILITY. |
|
|
(a) The executive director may cause an action for interpleader [a
|
|
|
suit] concerning a claim to be filed on behalf of the retirement |
|
|
system in a district court in Travis County to protect the system |
|
|
from double or multiple liability if the executive director |
|
|
determines that a claim may expose the retirement system to such |
|
|
liability. |
|
|
(b) A person may not pursue a counterclaim or other cause of |
|
|
action against the retirement system, a trustee, officer, or |
|
|
employee of the retirement system, or a carrier or administering |
|
|
firm for the retirement system in connection with a transaction or |
|
|
occurrence related to the interpleader action. |
|
|
(c) A person who violates Subsection (b) is liable for the |
|
|
costs and attorney's fees incurred by the retirement system, a |
|
|
trustee, officer, or employee of the retirement system, or a |
|
|
carrier or administering firm for the retirement system as a result |
|
|
of the violation. |
|
|
SECTION 25. Subchapter F, Chapter 815, Government Code, is |
|
|
amended by adding Section 815.515 to read as follows: |
|
|
Sec. 815.515. DISPOSITION OF UNCLAIMED CONTRIBUTIONS OF |
|
|
FORMER MEMBERS. (a) Subject to Chapters 803 and 805, if the |
|
|
retirement system has not received a request for a refund of the |
|
|
accumulated contributions of a member in accordance with Subchapter |
|
|
B, Chapter 812, before the seventh anniversary of the member's last |
|
|
day of service, the retirement system may refund the accumulated |
|
|
contributions to the member or the member's heirs. If the member or |
|
|
the member's heirs cannot be found, the member's accumulated |
|
|
contributions revert to the retirement system. |
|
|
(b) The retirement system shall credit any amounts that |
|
|
revert to the retirement system under Subsection (a) to the state |
|
|
accumulation account. |
|
|
(c) The board of trustees may adopt rules to implement and |
|
|
administer this section. |
|
|
SECTION 26. Section 837.003, Government Code, is amended by |
|
|
adding Subsection (e) to read as follows: |
|
|
(e) At the time a service retirement, disability |
|
|
retirement, or death benefit annuity becomes payable, the |
|
|
retirement system shall refund any contributions, interest, or |
|
|
membership fees used to establish service credit that is not used in |
|
|
computing the amount of the annuity. |
|
|
SECTION 27. Section 838.106, Government Code, is amended by |
|
|
adding Subsection (c) to read as follows: |
|
|
(c) For the purpose of Subsection (a)(1), the term of a |
|
|
member leaving judicial office ends not later than December 31 |
|
|
regardless of the date on which the member's successor takes the |
|
|
oath of office. |
|
|
SECTION 28. Section 839.103(a), Government Code, is amended |
|
|
to read as follows: |
|
|
(a) Instead of a service retirement annuity payable under |
|
|
Section 839.102, a retiring member may elect to receive [an
|
|
|
optional service retirement annuity provided by the board of
|
|
|
trustees or] one of the following optional service retirement |
|
|
annuities, actuarially reduced to an actuarially equivalent value |
|
|
and consisting of: |
|
|
(1) an annuity payable during the retiring member's |
|
|
life and continuing after death in the same amount, throughout the |
|
|
life of one person designated by the retiring member before |
|
|
retirement; |
|
|
(2) an annuity payable during the retiring member's |
|
|
life and continuing after death in an amount equal to one-half of |
|
|
the amount payable during the retiring member's life, throughout |
|
|
the life of one person designated by the retiring member before |
|
|
retirement; |
|
|
(3) an annuity payable for the greater of the rest of |
|
|
the retiring member's life or 60 months; [or] |
|
|
(4) an annuity payable for the greater of the rest of |
|
|
the retiring member's life or 120 months; or |
|
|
(5) an annuity payable during the retiring member's |
|
|
life and continuing after death in an amount equal to three-fourths |
|
|
of the amount payable during the retiring member's life, throughout |
|
|
the life of one person designated by the retiring member before |
|
|
retirement. |
|
|
SECTION 29. Section 840.303, Government Code, as amended by |
|
|
Chapters 1103 (H.B. 2240) and 1111 (H.B. 2359), Acts of the 78th |
|
|
Legislature, Regular Session, 2003, is reenacted to read as |
|
|
follows: |
|
|
Sec. 840.303. DUTY OF CARE. The assets of the retirement |
|
|
system shall be invested and reinvested without distinction as to |
|
|
their source in accordance with Section 67, Article XVI, Texas |
|
|
Constitution. A determination of whether the board of trustees has |
|
|
exercised prudence with respect to an investment decision must be |
|
|
made taking into consideration the investment of all assets of the |
|
|
trust or all assets of the collective investment vehicle, as |
|
|
applicable, over which the board has management and control, rather |
|
|
than considering the prudence of a single investment of the trust or |
|
|
the collective investment vehicle, as applicable. |
|
|
SECTION 30. Section 840.402, Government Code, is amended to |
|
|
read as follows: |
|
|
Sec. 840.402. RETIREMENT SYSTEM RECORDS. Records of |
|
|
members, annuitants, retirees, beneficiaries, and alternate payees |
|
|
of the retirement system are confidential and are not subject to |
|
|
public disclosure and are exempt from the provisions of Chapter |
|
|
552. Records maintained as confidential under this section may be |
|
|
released or received in the manner provided by Section 815.503. |
|
|
SECTION 31. Section 1551.003, Insurance Code, is amended by |
|
|
adding Subdivision (10-a) to read as follows: |
|
|
(10-a) "Participant" means an eligible individual who |
|
|
participates in the group benefits program. |
|
|
SECTION 32. Section 1551.004, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 1551.004. DEFINITION OF DEPENDENT. (a) In this |
|
|
chapter, "dependent" with respect to an individual eligible to |
|
|
participate in the group benefits program under Section 1551.101 or |
|
|
1551.102 means the individual's: |
|
|
(1) spouse; |
|
|
(2) unmarried child younger than 25 years of age; |
|
|
(3) child of any age who the board of trustees |
|
|
determines lives with or has the child's care provided by the |
|
|
individual on a regular basis if: |
|
|
(A) the child is mentally retarded or physically |
|
|
incapacitated to the extent that the child is dependent on the |
|
|
individual for care or support, as determined by the board of |
|
|
trustees; |
|
|
(B) the child's coverage under this chapter has |
|
|
not lapsed; and |
|
|
(C) the child is at least 25 years old and was |
|
|
enrolled as a participant in the health benefits coverage under the |
|
|
group benefits program on the date of the child's 25th birthday; |
|
|
[and] |
|
|
(4) child of any age who is unmarried, for purposes of |
|
|
health benefit coverage under this chapter, on expiration of the |
|
|
child's continuation coverage under the Consolidated Omnibus |
|
|
Budget Reconciliation Act of 1985 (Pub. L. No. 99-272) and its |
|
|
subsequent amendments; and |
|
|
(5) ward, as that term is defined by Section 601, Texas |
|
|
Probate Code. |
|
|
(b) In this section, "child" includes: |
|
|
(1) a natural child, [an] adopted child, [and a] |
|
|
stepchild, or foster child; [,] or |
|
|
(2) a [other] child who is related by blood or marriage |
|
|
and was claimed as a dependent on the federal income tax return of |
|
|
[is in a parent-child relationship with] an individual who is |
|
|
eligible to participate in the group benefits program under Section |
|
|
1551.101 or 1551.102 for the calendar year preceding the plan year |
|
|
in which the child is first enrolled as a dependent under Subchapter |
|
|
D, and for each subsequent year in which the child is enrolled as a |
|
|
dependent. |
|
|
(c) The requirement in Subsection (b)(2) that a child must |
|
|
be claimed as a dependent on a federal income tax return in the |
|
|
calendar year preceding the child's enrollment does not apply if: |
|
|
(1) the child is born in the year in which the child is |
|
|
first enrolled; or |
|
|
(2) the participant can demonstrate good cause for not |
|
|
claiming the child as a dependent in the preceding calendar year. |
|
|
SECTION 33. Section 1551.063, Insurance Code, is amended by |
|
|
amending Subsections (a) and (c) and adding Subsections (d-1) and |
|
|
(f) to read as follows: |
|
|
(a) The records of a participant in the group benefits |
|
|
program in the custody of the Employees Retirement System of Texas |
|
|
[board of trustees], or of an administering firm, [administrator
|
|
|
or] carrier, or another governmental entity acting on behalf of the |
|
|
retirement system [board], are confidential and not subject to |
|
|
disclosure, and the retirement system, administering firm, |
|
|
carrier, or governmental entity [board] is not required to accept |
|
|
or comply with a request for a record or information about a record |
|
|
or to seek an opinion from the attorney general, because the records |
|
|
are exempt from the [public access] provisions of Chapter 552, |
|
|
Government Code, except as provided by this section. |
|
|
(c) To accomplish the purposes of this chapter, the board of |
|
|
trustees may release the records to: |
|
|
(1) an administering firm [administrator], carrier, |
|
|
agent, or attorney acting on behalf of the board; |
|
|
(2) another governmental entity having a legitimate |
|
|
need for the information to perform a function of the board of |
|
|
trustees; |
|
|
(3) an authorized medical provider of the participant; |
|
|
or |
|
|
(4) a party in response to a subpoena issued under |
|
|
applicable law. |
|
|
(d-1) A record released or received by the Employees |
|
|
Retirement System of Texas under this section may be transmitted |
|
|
electronically, including through the use of an electronic |
|
|
signature or certification in a form acceptable to the retirement |
|
|
system. An unintentional disclosure to, or unauthorized access by, |
|
|
a third party related to the transmission or receipt of information |
|
|
under this section is not a violation by the retirement system of |
|
|
any law, including a law or rule relating to the protection of |
|
|
confidential information. |
|
|
(f) The Employees Retirement System of Texas has sole |
|
|
discretion in determining if a record is subject to this section. |
|
|
For purposes of this section, a record includes any identifying |
|
|
information about a person, living or deceased, who is or was an |
|
|
employee, annuitant, dependent, or participant in the group |
|
|
benefits program. |
|
|
SECTION 34. Section 1551.102(d), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(d) An individual is eligible to participate in the group |
|
|
benefits program as provided by Subsection (a) if [the individual]: |
|
|
(1) the individual retires under the optional |
|
|
retirement program established by Chapter 830, Government Code; |
|
|
(2) the individual has [, with] at least 10 years of |
|
|
eligible service credit; and |
|
|
(3) [(2)
receives or is eligible to receive an
|
|
|
annuity under that program and] the individual: |
|
|
(A) is at least 65 years of age, or would have |
|
|
been eligible to retire and receive a service or disability |
|
|
retirement annuity from the Teacher Retirement System of Texas or |
|
|
the Employees Retirement System of Texas in an amount such that the |
|
|
sum of the person's age and amount of service credit, including |
|
|
months of age and credit, equals or exceeds the number 80 or would |
|
|
have been eligible to retire and receive a disability retirement |
|
|
annuity from the Teacher Retirement System of Texas or the |
|
|
Employees Retirement System of Texas, if the individual had not |
|
|
elected to participate in the optional retirement program, and is |
|
|
eligible to receive an annuity or periodic distribution of funds |
|
|
from an account under the optional retirement program; or |
|
|
(B) is disabled as determined by the Employees |
|
|
Retirement System of Texas based on at least 10 years of eligible |
|
|
service credit, and is receiving an annuity or periodic |
|
|
distribution of funds from an account under the optional retirement |
|
|
program. |
|
|
SECTION 35. Section 1551.155, Insurance Code, is amended by |
|
|
adding Subsections (c) and (d) to read as follows: |
|
|
(c) A person who is the surviving spouse of an individual |
|
|
described by Subsection (a) may secure group health coverage |
|
|
without evidence of the person's insurability if the individual was |
|
|
eligible to participate in the group benefits program under Section |
|
|
1551.101 or 1551.102 but was not participating at the time of the |
|
|
individual's death. |
|
|
(d) A surviving spouse seeking group coverage under |
|
|
Subsection (c): |
|
|
(1) must apply for the coverage not later than the 30th |
|
|
day after the date on which the individual who was eligible to |
|
|
participate in the group benefits program dies; and |
|
|
(2) shall pay for the coverage at the group rate as |
|
|
provided by Subsection (b). |
|
|
SECTION 36. The heading to Section 1551.156, Insurance |
|
|
Code, is amended to read as follows: |
|
|
Sec. 1551.156. COVERAGE OPTIONS FOR SURVIVING DEPENDENT |
|
|
[WHEN THERE IS NO SURVIVING SPOUSE]. |
|
|
SECTION 37. Section 1551.156, Insurance Code, is amended by |
|
|
adding Subsections (d) and (e) to read as follows: |
|
|
(d) A person who is a surviving dependent of an annuitant |
|
|
may secure group health coverage after the death of the annuitant |
|
|
without evidence of the person's insurability if the annuitant was |
|
|
eligible to participate in the group benefits program of a |
|
|
retirement system named in this chapter but was not participating |
|
|
at the time of the individual's death. |
|
|
(e) A surviving dependent seeking group coverage under |
|
|
Subsection (d): |
|
|
(1) must apply for the coverage not later than the 30th |
|
|
day after the date on which the individual who was eligible to |
|
|
participate in the group benefits program dies; and |
|
|
(2) shall pay for the coverage at the group rate as |
|
|
provided by Subsection (b). |
|
|
SECTION 38. Section 1551.354, Insurance Code, is amended by |
|
|
amending Subsection (b) and adding Subsections (c) and (d) to read |
|
|
as follows: |
|
|
(b) The executive director may cause the filing of an action |
|
|
for interpleader [a suit] concerning the claim in a district court |
|
|
in Travis County on behalf of the Employees Retirement System of |
|
|
Texas to protect the group coverage plan from double or multiple |
|
|
liability. |
|
|
(c) A person may not pursue a counterclaim or other cause of |
|
|
action against the Employees Retirement System of Texas, a trustee, |
|
|
officer, or employee of the retirement system, or a carrier or |
|
|
administering firm for the retirement system in connection with a |
|
|
transaction or occurrence related to the interpleader action. |
|
|
(d) A person who violates Subsection (c) is liable for the |
|
|
costs and attorney's fees incurred by the Employees Retirement |
|
|
System of Texas, a trustee, officer, or employee of the retirement |
|
|
system, or a carrier or administering firm for the retirement |
|
|
system as a result of the violation. |
|
|
SECTION 39. Subchapter H, Chapter 1551, Insurance Code, is |
|
|
amended by adding Section 1551.362 to read as follows: |
|
|
Sec. 1551.362. SUBPOENA. Notwithstanding any other law, |
|
|
the Employees Retirement System of Texas may issue a subpoena that |
|
|
conforms to Rule 176, Texas Rules of Civil Procedure, including a |
|
|
preappeal investigative subpoena or any subpoena otherwise |
|
|
authorized by the Texas Rules of Civil Procedure, that the |
|
|
retirement system determines necessary to protect the interests of |
|
|
a program or system administered by the retirement system. |
|
|
SECTION 40. Section 1551.401, Insurance Code, is amended by |
|
|
adding Subsection (g) to read as follows: |
|
|
(g) Except as provided by Section 1551.259(d), the |
|
|
retirement system may deposit to the credit of the fund any |
|
|
unclaimed money on a finding that a good faith effort has been made |
|
|
to locate the person entitled to the money. |
|
|
SECTION 41. The following laws are repealed: |
|
|
(1) Section 833.1035(c), Government Code; |
|
|
(2) Section 833.104, Government Code; |
|
|
(3) Section 835.1015(c), Government Code; |
|
|
(4) Section 838.1035(c), Government Code; |
|
|
(5) Section 838.104, Government Code; |
|
|
(6) Section 840.1025(c), Government Code; |
|
|
(7) Section 840.1027(c), Government Code; |
|
|
(8) Section 1551.218(c), Insurance Code; and |
|
|
(9) Section 1551.221, Insurance Code. |
|
|
SECTION 42. Under Section 67, Article XVI, Texas |
|
|
Constitution, the Employees Retirement System of Texas may |
|
|
distribute a supplemental annuity payment on behalf of the State of |
|
|
Texas using money appropriated from the general revenue fund to the |
|
|
retirement system by an Act of the 81st Legislature, Regular |
|
|
Session, 2009, that is enacted and becomes law. |
|
|
SECTION 43. Sections 811.010 and 811.011, Government Code, |
|
|
as added by this Act, and Sections 815.512, Government Code, and |
|
|
1551.354, Insurance Code, as amended by this Act, apply only to an |
|
|
action filed by or against the Employees Retirement System of |
|
|
Texas, the trustees, officers, or employees of the retirement |
|
|
system, or an administering firm, carrier, or other governmental |
|
|
agency acting in cooperation with or on behalf of the retirement |
|
|
system on or after the effective date of this Act. An action filed |
|
|
before the effective date of this Act is governed by the law in |
|
|
effect when the action was filed, and that law is continued in |
|
|
effect for that purpose. |
|
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SECTION 44. Section 837.003(e), Government Code, as added |
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by this Act, applies only to a service retirement, disability |
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retirement, or death benefit annuity that becomes payable by the |
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Judicial Retirement System of Texas Plan Two on or after the |
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effective date of this Act. A service retirement, disability |
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retirement, or death benefit annuity that becomes payable by the |
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|
Judicial Retirement System of Texas Plan Two before the effective |
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|
date of this Act is governed by the law in effect on the date the |
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annuity becomes payable, and that law is continued in effect for |
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that purpose. |
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SECTION 45. Section 1551.004, Insurance Code, as amended by |
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this Act, applies only to an individual claimed as a dependent for a |
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plan year beginning on or after September 1, 2010. An individual |
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|
claimed as a dependent for a plan year that began before September |
|
|
1, 2010, is governed by the law in effect when the individual was |
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|
claimed as a dependent, and that law is continued in effect for that |
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purpose. |
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SECTION 46. DEPARTMENT OF STATE HEALTH SERVICES: STATE |
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EMPLOYEE PILOT PROGRAM. The Department of State Health Services |
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and the Employees Retirement System of Texas may enter into an |
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|
interagency contract to establish a state employee pilot program |
|
|
consistent with federal guidelines for chronic disease prevention |
|
|
and wellness initiatives. To support the pilot program the |
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|
Department of State Health Services may use funds received from the |
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|
American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5) |
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or other such federal funds available to the Department of State |
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Health Services. |
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SECTION 47. This Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2559 was passed by the House on May |
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11, 2009, by the following vote: Yeas 141, Nays 0, 2 present, not |
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voting; that the House concurred in Senate amendments to H.B. No. |
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2559 on May 29, 2009, by the following vote: Yeas 100, Nays 43, 2 |
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present, not voting; and that the House adopted H.C.R. No. 292 |
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authorizing certain corrections in H.B. No. 2559 on June 1, 2009, by |
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the following vote: Yeas 141, Nays 0, 1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2559 was passed by the Senate, with |
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amendments, on May 26, 2009, by the following vote: Yeas 26, Nays |
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5; and that the Senate adopted H.C.R. No. 292 authorizing certain |
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corrections in H.B. No. 2559 on June 1, 2009, by the following |
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vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |