|
|
|
|
AN ACT
|
|
relating to the powers and duties of and contributions to and |
|
benefits from the systems and programs administered by the |
|
Employees Retirement System of Texas. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Subsection (a), Section 411.1402, Government |
|
Code, is amended to read as follows: |
|
(a) The Employees Retirement System of Texas is entitled to |
|
obtain from the department, the Federal Bureau of Investigation |
|
Criminal Justice Information Services Division, or another law |
|
enforcement agency criminal history record information maintained |
|
by the department, division, or agency that relates to a person who |
|
is: |
|
(1) an applicant for employment with, or who is or has |
|
been employed by, the retirement system; |
|
(2) a consultant, contract employee, independent |
|
contractor, intern, or volunteer for the retirement system or an |
|
applicant to serve in one of those positions; or |
|
(3) a candidate for appointment or election to the |
|
board of trustees of the retirement system or an advisory committee |
|
to that board. |
|
SECTION 2. Subsection (a), Section 661.091, Government |
|
Code, is amended to read as follows: |
|
(a) A contributing member of the Employees Retirement |
|
System of Texas who retires is entitled to a lump-sum payment [be
|
|
paid in a lump sum], from funds of the agency or department from |
|
which the member retires, for the member's accrued vacation time as |
|
of the date of retirement, unless the member opts to receive for |
|
that accrued vacation time service credit under Section 813.511(a). |
|
SECTION 3. Section 811.007, Government Code, is amended to |
|
read as follows: |
|
Sec. 811.007. IMMUNITY FROM LIABILITY. The board of |
|
trustees, executive director, members of an advisory committee |
|
appointed by the board of trustees, and employees of the retirement |
|
system are not liable for any action taken or omission made or |
|
suffered by them in good faith in the performance of any duty in |
|
connection with any program or system administered by the |
|
retirement system. |
|
SECTION 4. Subsection (b), Section 812.003, Government |
|
Code, is amended to read as follows: |
|
(b) An office or employment that is included in the coverage |
|
of the Teacher Retirement System of Texas, the Judicial Retirement |
|
System of Texas Plan One, or the Judicial Retirement System of Texas |
|
Plan Two or, except as provided by Section 9.01, Chapter 238 |
|
(S.B. 378), Acts of the 73rd Legislature, Regular Session, 1993, is |
|
with a university system or institution of higher education, as |
|
defined by Section 61.003, Education Code, is not a position with a |
|
department, commission, board, agency, or institution of the state |
|
for purposes of this subtitle. |
|
SECTION 5. Subsection (c), Section 813.202, Government |
|
Code, is amended to read as follows: |
|
(c) The state shall contribute for service established |
|
under this section an amount in the same ratio to the member's |
|
contribution and interest paid under Subsection (b) for the service |
|
as the state's contribution bears to the contribution for current |
|
service required of a member of the employee class at the time the |
|
service is established under this section. The state's |
|
contribution and interest must be paid from the fund or account from |
|
which the member receives compensation at the time the service is |
|
established or, if the member does not hold a position at the time |
|
the service is established, from the fund or account from which the |
|
member received compensation when the member most recently held a |
|
position. |
|
SECTION 6. Subsection (b), Section 813.302, Government |
|
Code, is amended to read as follows: |
|
(b) A member eligible to establish military service credit |
|
is one who: |
|
(1) does not receive and is not eligible to receive |
|
federal retirement payments based on 20 years or more of active |
|
federal military duty [or its equivalent]; |
|
(2) has been released from military duty under |
|
conditions not dishonorable; and |
|
(3) has credit in the retirement system for membership |
|
service performed after the member's date of release from active |
|
military duty. |
|
SECTION 7. Subsection (k), Section 813.509, Government |
|
Code, is amended to read as follows: |
|
(k) A member [who was not a member on the date hired and was
|
|
hired on or after September 1, 2009,] or a death benefit beneficiary |
|
of that member may use sick leave creditable under this section only |
|
for purposes of calculating the member's or beneficiary's annuity. |
|
SECTION 8. Subsections (a) and (j), Section 813.511, |
|
Government Code, are amended to read as follows: |
|
(a) A member who holds a position included in the employee |
|
class of membership during the month that includes the effective |
|
date of the member's retirement and who retires based on service or |
|
a disability is entitled to service credit in the retirement system |
|
for the member's annual leave that has accumulated and is unused on |
|
the last day of employment, unless the member opts to receive for |
|
that accumulated leave a lump-sum payment under Section 661.091. |
|
(j) A member [who was not a member on the date hired and was
|
|
hired on or after September 1, 2009,] or a death benefit beneficiary |
|
of that member may use annual leave creditable under this section |
|
only for purposes of calculating the member's or beneficiary's |
|
annuity. |
|
SECTION 9. Subsections (a) and (d), Section 814.105, |
|
Government Code, are amended to read as follows: |
|
(a) The [Except as otherwise provided by this section, the] |
|
standard service retirement annuity for service credited in the |
|
employee class of membership is an amount computed as the member's |
|
average monthly compensation for service in that class for the 60 |
|
[36] highest months of compensation multiplied by 2.3 percent for |
|
each year of service credit in that class. |
|
(d) The standard service retirement annuity computed under |
|
this section [Subsection (c)] is reduced by five percent for each |
|
year the member retires before the member reaches age 62 [60, with a
|
|
maximum possible reduction of 25 percent]. |
|
SECTION 10. Section 814.107, Government Code, is amended by |
|
amending Subsections (b) and (c) and adding Subsection (c-1) to |
|
read as follows: |
|
(b) The standard service retirement annuity payable for at |
|
least 20 years of service credit as a law enforcement or custodial |
|
officer is an amount computed on the basis of the member's average |
|
monthly compensation for the 60 [36] highest months of compensation |
|
in the employee class, times the sum of the percentage factor used |
|
in the computation of a standard service retirement annuity under |
|
Section 814.105 plus .5 percent. |
|
(c) The standard combined service retirement annuity that |
|
is payable under this section is based on retirement on or after the |
|
attainment of the normal retirement age, which for purposes of this |
|
section is the earlier of either the age of 57 [50] or the age at |
|
which the sum of the member's age and amount of service credit in |
|
the employee class equals the number 80. The annuity of a law |
|
enforcement or custodial officer who retires before reaching the |
|
age of 57 under any eligibility criteria is actuarially reduced by |
|
five percent for each year of difference between the member's age at |
|
retirement and 57. The actuarial reduction described by this |
|
section is in addition to any other actuarial reduction required by |
|
law. |
|
(c-1) A law enforcement or custodial officer who retires |
|
before attaining the [normal retirement] age of 50 is entitled only |
|
to an annuity that is actuarially reduced from the annuity |
|
available at the [normal retirement] age of 50 to the law |
|
enforcement or custodial officer whose service credit annuity |
|
amount is based on the sum of the member's age and amount of law |
|
enforcement or custodial officer service credit and employee class |
|
service credit, and is not entitled to have the annuity |
|
recalculated at normal retirement age. The standard or reduced |
|
annuity under this section is payable from the trust fund |
|
established by Section 815.310 and the law enforcement and |
|
custodial officer supplemental retirement fund in a ratio |
|
determined by the retirement system. |
|
SECTION 11. Subsection (a), Section 814.1081, Government |
|
Code, is amended to read as follows: |
|
(a) A person who retired and selected an optional service |
|
retirement annuity described by Section 814.108(c)(1), (c)(2), or |
|
(c)(5) may change the optional annuity selection to the selection |
|
of a standard service retirement annuity if: |
|
(1) pursuant to a divorce decree, a court orders the |
|
change in the annuity selection to a standard service retirement |
|
annuity; or |
|
(2) the retiree files [by filing] with the retirement |
|
system a request to change the annuity selection, if the retiree |
|
designated a person as beneficiary who: |
|
(A) [(1)] was not at the time of designation and |
|
is not currently the retiree's spouse or dependent child; or |
|
(B) is not currently the retiree's spouse or |
|
dependent child and [(2)] has executed since the designation a |
|
written, notarized instrument that releases the retirement system |
|
from any claim to the annuity by the beneficiary and that transfers |
|
all [transfer and release, approved by a court of competent
|
|
jurisdiction pursuant to a divorce decree,] of the beneficiary's |
|
interest in the annuity to the retiree [and is not currently the
|
|
retiree's spouse or dependent child]. |
|
SECTION 12. Subchapter G, Chapter 814, Government Code, is |
|
amended by adding Section 814.604 to read as follows: |
|
Sec. 814.604. COST-OF-LIVING ADJUSTMENT. (a) The |
|
retirement system shall grant a one-time cost-of-living adjustment |
|
as provided by Subsections (b) and (c) on a finding by the board of |
|
trustees that, as determined by an actuarial valuation: |
|
(1) the amortization period for the unfunded actuarial |
|
liabilities of the retirement system does not exceed 30 years by one |
|
or more years; and |
|
(2) as a result of paying the adjustment, the time |
|
required to amortize the unfunded actuarial liabilities of the |
|
retirement system would not be increased to a period that exceeds 30 |
|
years by one or more years. |
|
(b) The retirement system shall pay the cost-of-living |
|
adjustment under this section to a retiree who has been retired for |
|
20 years or more on the date the board of trustees makes the finding |
|
in Subsection (a), or to a beneficiary of the retiree, as an |
|
increase to a monthly service retirement benefit, disability |
|
retirement benefit, or death benefit, as applicable, paid under |
|
this chapter for service credited in the employee class. |
|
(c) A cost-of-living adjustment under this section is |
|
limited to the lesser of: |
|
(1) an amount equal to three percent of the monthly |
|
benefit subject to the increase; or |
|
(2) $100 a month. |
|
SECTION 13. Subsection (b), Section 815.311, Government |
|
Code, is amended to read as follows: |
|
(b) Interest on money in an individual account in the |
|
employees saving account is earned monthly and is computed at the |
|
rate of two [five] percent a year on the mean balance of the |
|
member's account for the fiscal year. |
|
SECTION 14. Section 815.317, Government Code, is amended by |
|
adding Subsection (d) to read as follows: |
|
(d) Member contributions to the fund deducted under Section |
|
815.402(h): |
|
(1) earn interest at the same rate as money in an |
|
individual account in the employees saving account under Section |
|
815.311; and |
|
(2) are subject to the same computations and |
|
limitations that apply to member contributions under Section |
|
815.311. |
|
SECTION 15. Subsection (a), Section 815.402, Government |
|
Code, is amended 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) 6.6 [6.5] percent of the compensation if the |
|
member is not a member of the legislature, for service rendered |
|
after August 31, 2013, and before September 1, 2014; |
|
(2) 6.9 percent of the compensation if the member is |
|
not a member of the legislature, for service rendered after August |
|
31, 2014, and before September 1, 2015; |
|
(3) 7.2 percent of the compensation if the member is |
|
not a member of the legislature, for service rendered after August |
|
31, 2015, and before September 1, 2016; |
|
(4) 7.5 percent of the compensation if the member is |
|
not a member of the legislature, for service rendered after August |
|
31, 2016; |
|
(5) for service rendered on or after September 1, |
|
2017, the lesser of: |
|
(A) 7.5 percent of the member's annual |
|
compensation; or |
|
(B) a percentage of the member's annual |
|
compensation equal to 7.5 percent reduced by one-tenth of one |
|
percent for each one-tenth of one percent that the state |
|
contribution rate for the fiscal year to which the service relates |
|
is less than the state contribution rate established for the 2015 |
|
fiscal year [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 |
|
(6) [(2)] eight percent of the compensation if the |
|
member is a member of the legislature. |
|
SECTION 16. Subchapter E, Chapter 815, Government Code, is |
|
amended by adding Section 815.4035 to read as follows: |
|
Sec. 815.4035. COLLECTION OF STATE RETIREMENT |
|
CONTRIBUTION. (a) Except as provided by Section 813.201, the |
|
board of trustees shall assess each employer whose employees are |
|
members of the retirement system a state retirement contribution in |
|
an amount equal to 0.5 percent of the employer's total payroll, as |
|
determined by the General Appropriations Act. |
|
(b) The board of trustees shall deposit the state retirement |
|
contribution to the credit of the trust fund established by Section |
|
815.310 to be used for the purposes specified by Section 815.103. |
|
SECTION 17. Section 837.002, Government Code, is amended to |
|
read as follows: |
|
Sec. 837.002. TERMINATION OF MEMBERSHIP. A person's |
|
membership in the retirement system is terminated by: |
|
(1) death of the person; |
|
(2) retirement based on service credited in the |
|
retirement system; or |
|
(3) withdrawal of all of the person's accumulated |
|
contributions[; or
|
|
[(4) transfer of the person's accumulated contributions
|
|
under Section 840.401(f)]. |
|
SECTION 18. Subsection (b), Section 838.103, Government |
|
Code, is amended to read as follows: |
|
(b) A member eligible to establish military service credit |
|
is one who: |
|
(1) has at least eight years of service credit in the |
|
retirement system; |
|
(2) does not receive and is not eligible to receive |
|
federal retirement payments based on 20 years or more of active |
|
federal military duty [or its equivalent]; and |
|
(3) has been released from military duty under |
|
conditions not dishonorable. |
|
SECTION 19. Subsections (a) and (c), Section 838.106, |
|
Government Code, are amended to read as follows: |
|
(a) A member may establish service credit in the retirement |
|
system for any calendar year during which the member[:
|
|
[(1)] held an office included in the membership of the |
|
retirement system[; or
|
|
[(2) was eligible to take the oath for an office
|
|
included in the membership of the retirement system]. |
|
(c) For the purpose of Subsection (a) [(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 20. Subsection (a), Section 840.102, Government |
|
Code, is amended to read as follows: |
|
(a) Except as provided by Subsections (g) and (h), each |
|
payroll period, a judicial officer who is a member of the retirement |
|
system is required to contribute: |
|
(1) 6.6 [six] percent of the officer's state |
|
compensation for service rendered after August 31, 2013, and before |
|
September 1, 2014; |
|
(2) 6.9 percent of the officer's state compensation |
|
for service rendered after August 31, 2014, and before September 1, |
|
2015; |
|
(3) 7.2 percent of the officer's state compensation |
|
for service rendered after August 31, 2015, and before September 1, |
|
2016; |
|
(4) 7.5 percent of the officer's state compensation |
|
for service rendered after August 31, 2016; or |
|
(5) for service rendered on or after September 1, |
|
2017, the lesser of: |
|
(A) 7.5 percent of the officer's state |
|
compensation; or |
|
(B) a percentage of the officer's state |
|
compensation equal to 7.5 percent reduced by one-tenth of one |
|
percent for each one-tenth of one percent that the state |
|
contribution rate for the fiscal year to which the service relates |
|
is less than the state contribution rate established for the 2015 |
|
fiscal year [the period to the retirement system]. |
|
SECTION 21. Subdivisions (9) and (11), Section 1551.003, |
|
Insurance Code, are amended to read as follows: |
|
(9) "Full-time employee" means an employee designated |
|
as a full-time employee under Section 1551.319(c) or (d) or an |
|
employee designated by the employer as working 30 [40] or more hours |
|
a week. |
|
(11) "Part-time employee" means an employee |
|
designated by the employer as working less than 30 [40] hours a |
|
week. For purposes of this chapter, an individual described by |
|
Section 1551.101(e)(2) is considered a part-time employee. |
|
SECTION 22. Subsection (b), Section 1551.004, Insurance |
|
Code, is amended to read as follows: |
|
(b) In this section, "child" includes: |
|
(1) a natural child, adopted child, stepchild, [or] |
|
foster child, or child in the possession of a participant who is |
|
designated as managing conservator of the child under an |
|
irrevocable or unrevoked affidavit of relinquishment under Chapter |
|
161, Family Code; or |
|
(2) a child who is related by blood or marriage and was |
|
claimed as a dependent on the federal income tax return of 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. |
|
SECTION 23. Subsections (a) and (b), Section 1551.1055, |
|
Insurance Code, are amended to read as follows: |
|
(a) Except as provided by Subsection (c) or (d), eligibility |
|
under Section 1551.101 begins not later than [on the first day of
|
|
the calendar month that begins after] the 90th day after the date |
|
the employee performs services for a state agency or is qualified |
|
for and begins to hold elected or appointed office. |
|
(b) Except as provided by Subsection (c), eligibility under |
|
Section 1551.102, for an individual who does not retire at the end |
|
of the last month for which the individual is on the payroll of a |
|
state agency before retirement, begins not later than [on the first
|
|
day of the calendar month that begins after] the 90th day after the |
|
date the individual retires. |
|
SECTION 24. Subsection (a), Section 1551.158, Insurance |
|
Code, is amended to read as follows: |
|
(a) A dependent child who is unmarried and whose coverage |
|
under this chapter ends when the child becomes 26 [25] years of age |
|
may, on expiration of continuation coverage under the Consolidated |
|
Omnibus Budget Reconciliation Act of 1985 (Pub. L. No. 99-272), |
|
reinstate health benefit plan coverage under this chapter if the |
|
child, or the child's participating parent, pays the full cost of |
|
the health benefit plan coverage. |
|
SECTION 25. Subchapter G, Chapter 1551, Insurance Code, is |
|
amended by adding Section 1551.3196 to read as follows: |
|
Sec. 1551.3196. AMOUNT OF CONTRIBUTION FOR CERTAIN |
|
ANNUITANTS. (a) An annuitant receives the benefits of a state |
|
contribution for coverage under this chapter based on the |
|
annuitant's eligible service credit, as follows: |
|
(1) for an annuitant with 20 years or more of eligible |
|
service credit, a full state contribution; |
|
(2) for an annuitant with at least 15 years but less |
|
than 20 years of eligible service credit, 75 percent of a full state |
|
contribution; and |
|
(3) for an annuitant with less than 15 years of |
|
eligible service credit, 50 percent of a full state contribution. |
|
(b) An annuitant receiving a reduced state contribution |
|
under Subsection (a) shall have any state contribution for |
|
dependent coverage reduced in an amount proportional to the |
|
reduction under Subsection (a). |
|
(c) This section does not apply to an individual who: |
|
(1) receives or is eligible to receive an annuity that |
|
is based on eligibility under Section 814.002, 814.102, 834.101, or |
|
839.101, Government Code; or |
|
(2) is eligible to participate in the group benefits |
|
program under: |
|
(A) Section 1551.102(d) because of a disability; |
|
or |
|
(B) Section 1551.102(f). |
|
SECTION 26. (a) The following provisions of the Government |
|
Code are repealed: |
|
(1) Subsection (i), Section 76.006; |
|
(2) Subsection (f), Section 606.030; |
|
(3) Subsections (d) and (e), Section 813.509; |
|
(4) Subsections (d) and (e), Section 813.511; |
|
(5) Subsection (c), Section 814.105; |
|
(6) Section 814.1075; and |
|
(7) Section 840.401. |
|
(b) Section 1551.321, Insurance Code, is repealed. |
|
SECTION 27. The changes in law made by this Act to Sections |
|
661.091, 813.509, 813.511, 814.105, and 814.107, Government Code, |
|
apply only to a person who is hired on or after September 1, 2013, to |
|
work in a position that requires membership in the Employees |
|
Retirement System of Texas. A person hired before September 1, |
|
2013, to work in a position that requires membership in the |
|
Employees Retirement System of Texas is subject to those laws as |
|
they existed immediately before that date, and the former law is |
|
continued in effect for that purpose. |
|
SECTION 28. Section 815.311, Government Code, as amended by |
|
this Act, applies only to interest accrued on or after January 1, |
|
2014. Interest accrued before that date is governed by the law in |
|
effect on the date the interest was accrued, and that law is |
|
continued in effect for that purpose. |
|
SECTION 29. Section 1551.3196, Insurance Code, as added by |
|
this Act, applies only to an individual who does not have five years |
|
of eligible service credit on September 1, 2014. An individual who |
|
has at least five years of eligible service credit, or is |
|
participating in the group benefits program as a retiree, on that |
|
date is governed by the law in effect on August 31, 2014, and the |
|
former law is continued in effect for that purpose. |
|
SECTION 30. (a) Notwithstanding any other law, for the |
|
2014-2015 state fiscal biennium, it is the intent of the |
|
legislature that all state retirement assets and liabilities |
|
attributable to members and retirees of the law enforcement and |
|
custodial officer supplemental retirement fund be measured and |
|
accounted for in aggregate and separately from the retirement |
|
assets and liabilities attributable to members and retirees in any |
|
other retirement plan for purposes of determining an actuarially |
|
required contribution or making any other actuarial calculation. |
|
(b) For purposes of Section 811.006, Government Code, the |
|
law enforcement and custodial officer supplemental retirement fund |
|
shall be considered a part of the retirement system, as that term is |
|
defined by Subdivision (15), Section 811.001, Government Code, and |
|
shall be subject to all other provisions of Subtitle B, Title 8, |
|
Government Code, that do not directly conflict with Subsection (a) |
|
of this section. |
|
(c) The board of trustees of the Employees Retirement System |
|
of Texas may adopt rules necessary to implement or administer this |
|
section. |
|
SECTION 31. The Employees Retirement System of Texas shall |
|
conduct an interim study on the feasibility of adding custodial |
|
officers employed by the Texas Juvenile Justice Department to the |
|
class of employees eligible to participate in the law enforcement |
|
and custodial officer supplemental retirement fund as custodial |
|
officers. Not later than September 1, 2014, the retirement system |
|
shall report the findings of the study to the governor, the |
|
lieutenant governor, the speaker of the house of representatives, |
|
and each senate and house committee that has jurisdiction over the |
|
retirement system. |
|
SECTION 32. Subsection (a), Section 840.102, Government |
|
Code, as amended by this Act, takes effect September 1, 2013. |
|
SECTION 33. (a) Except as provided by Subsections (b), |
|
(c), and (d) of this section, this Act takes effect September 1, |
|
2013. |
|
(b) Section 815.311, Government Code, as amended by this |
|
Act, takes effect January 1, 2014. |
|
(c) The changes in law made by this Act to Section |
|
1551.1055, Insurance Code, take effect September 1, 2014. |
|
(d) Section 1551.3196, Insurance Code, as added by this Act, |
|
takes effect September 1, 2014. |
|
|
|
|
|
|
|
|
______________________________ |
______________________________ |
|
President of the Senate |
Speaker of the House |
|
|
I hereby certify that S.B. No. 1459 passed the Senate on |
|
May 13, 2013, by the following vote: Yeas 31, Nays 0. |
|
|
|
|
______________________________ |
|
Secretary of the Senate |
|
|
I hereby certify that S.B. No. 1459 passed the House on |
|
May 21, 2013, by the following vote: Yeas 147, Nays 0, two |
|
present not voting. |
|
|
|
|
______________________________ |
|
Chief Clerk of the House |
|
|
|
|
|
Approved: |
|
|
|
______________________________ |
|
Date |
|
|
|
|
|
______________________________ |
|
Governor |