Bill Text: TX HB1439 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the payment of certain lump-sum benefits by the Employees Retirement System of Texas.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2021-03-05 - Referred to Pensions, Investments & Financial Services [HB1439 Detail]
Download: Texas-2021-HB1439-Introduced.html
| 87R3527 JCG-F | ||
| By: Gates | H.B. No. 1439 | |
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| relating to the payment of certain lump-sum benefits by the | ||
| Employees Retirement System of Texas. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 814.011, Government Code, is amended to | ||
| read as follows: | ||
| Sec. 814.011. LUMP-SUM PAYMENTS IN LIEU OF ANNUITIES. (a) | ||
| The retirement system may elect to make a lump-sum payment to a | ||
| retiree or beneficiary in lieu of annuity payments if: | ||
| (1) the actuarial present value of the annuity at the | ||
| time of retirement or death does not exceed $20,000; or | ||
| (2) at the time of the election: | ||
| (A) the retiree or beneficiary, as applicable, | ||
| agrees to payment in an amount that is less than the actuarial | ||
| present value of the annuity; and | ||
| (B) making the payment will result in a reduction | ||
| in the unfunded actuarial liabilities of the retirement system. | ||
| (b) Payment of a lump sum under this section does not affect | ||
| eligibility for any other program administered by the retirement | ||
| system. | ||
| SECTION 2. Section 814.1082, Government Code, is amended by | ||
| amending Subsections (b) and (c) and adding Subsection (c-1) to | ||
| read as follows: | ||
| (b) The amount of the lump-sum distribution under this | ||
| section may not exceed: | ||
| (1) the sum of 36 months of a standard service | ||
| retirement annuity computed without regard to this section; or | ||
| (2) another sum that the board of trustees determines | ||
| is appropriate and will result in a reduction in the unfunded | ||
| actuarial liabilities of the retirement system. | ||
| (c) If a member selects a lump-sum distribution described by | ||
| Subsection (b)(1), the [ |
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| the member shall be actuarially reduced to reflect the lump-sum | ||
| option selected by the member and shall be actuarially equivalent | ||
| to a standard or optional service retirement annuity, as | ||
| applicable, without the partial lump-sum distribution. The annuity | ||
| and lump sum shall be computed to result in no actuarial loss to the | ||
| retirement system. | ||
| (c-1) If a member selects a lump-sum distribution described | ||
| by Subsection (b)(2), the service retirement annuity selected by | ||
| the member shall be actuarially reduced by an amount that is: | ||
| (1) greater than the actuarial equivalent of the | ||
| lump-sum option selected by the member; and | ||
| (2) agreed to by the member after receiving written | ||
| notice under Subsection (g). | ||
| SECTION 3. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2021. | ||
