Bill Text: TX HB1882 | 2013-2014 | 83rd Legislature | Comm Sub
Bill Title: 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.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced - Dead) 2013-05-09 - Postponed [HB1882 Detail]
Download: Texas-2013-HB1882-Comm_Sub.html
83R24832 T | |||
By: Callegari, et al. | H.B. No. 1882 | ||
Substitute the following for H.B. No. 1882: | |||
By: Branch | C.S.H.B. No. 1882 |
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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. Section 411.1402(a), 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. Section 661.091(a), 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 [ |
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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. Section 812.003(b), 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. Section 813.202(c), 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. Section 813.302(b), 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 [ |
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(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. Section 813.509(k), Government Code, is amended | ||
to read as follows: | ||
(k) A member [ |
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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. Sections 813.511(a) and (j), 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 [ |
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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. Sections 814.105(a) and (d), Government Code, | ||
are amended to read as follows: | ||
(a) The [ |
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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 | ||
[ |
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each year of service credit in that class. | ||
(d) The standard service retirement annuity computed under | ||
this section [ |
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year the member retires before the member reaches age 62 [ |
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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 [ |
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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 [ |
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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 [ |
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to an annuity that is actuarially reduced from the annuity | ||
available at the [ |
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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. Section 814.1081(a), 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 [ |
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system a request to change the annuity selection, if the retiree | ||
designated a person as beneficiary who: | ||
(A) [ |
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is not currently the retiree's spouse or dependent child; or | ||
(B) is not currently the retiree's spouse or | ||
dependent child and [ |
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written, notarized instrument that releases the retirement system | ||
from any claim to the annuity by the beneficiary and that transfers | ||
all [ |
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interest in the annuity to the retiree [ |
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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. Section 815.311(b), 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 [ |
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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. Section 815.402(a), 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) 6.5 percent of the compensation if the member is | ||
not a member of the legislature, provided that: | ||
(A) 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 | ||
(B) if the state contribution to the retirement | ||
system is computed using a percentage greater than 6.5 percent, the | ||
member's contribution is computed using a percentage equal to the | ||
percentage used to compute the state contribution, except that the | ||
member contribution may not exceed seven percent; or | ||
(2) eight percent of the compensation if the member is | ||
a member of the legislature. | ||
SECTION 16. 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[ |
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SECTION 17. Section 838.103(b), 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 [ |
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(3) has been released from military duty under | ||
conditions not dishonorable. | ||
SECTION 18. Sections 838.106(a) and (c), 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[ |
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retirement system[ |
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(c) For the purpose of Subsection (a) [ |
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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 19. Sections 1551.003(9) and (11), 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 [ |
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a week. | ||
(11) "Part-time employee" means an employee | ||
designated by the employer as working less than 30 [ |
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week. For purposes of this chapter, an individual described by | ||
Section 1551.101(e)(2) is considered a part-time employee. | ||
SECTION 20. Section 1551.004(b), Insurance Code, is amended | ||
to read as follows: | ||
(b) In this section, "child" includes: | ||
(1) a natural child, adopted child, stepchild, [ |
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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 21. Sections 1551.1055(a) and (b), 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 [ |
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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 [ |
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date the individual retires. | ||
SECTION 22. Section 1551.158(a), 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 [ |
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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 23. 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 24. (a) The following provisions of the Government | ||
Code are repealed: | ||
(1) effective September 1, 2013: | ||
(A) Section 76.006(i); | ||
(B) Section 606.030(f); and | ||
(C) Section 840.401; and | ||
(2) effective September 1, 2014: | ||
(A) Sections 813.509(d) and (e); | ||
(B) Sections 813.511(d) and (e); | ||
(C) Section 814.105(c); and | ||
(D) Section 814.1075. | ||
(b) Effective September 1, 2013, Section 1551.321, | ||
Insurance Code, is repealed. | ||
SECTION 25. (a) The changes in law made by this Act to | ||
Sections 813.509, 813.511, and 814.105, Government Code, do not | ||
apply to, and the former law is continued in effect for, a person | ||
who retires as a member of the Employees Retirement System of Texas | ||
on or after September 1, 2014, and who meets one or more of the | ||
following requirements on or before August 31, 2014: | ||
(1) the person has attained 50 years of age; | ||
(2) the sum of the person's age and amount of service | ||
credit in the retirement system equals 70 or greater; or | ||
(3) the person has at least 20 years of service credit | ||
in the retirement system. | ||
(b) The changes in law made by this Act to Section 814.107, | ||
Government Code, do not apply to, and the former law is continued in | ||
effect for, a person who retires as a member of the Employees | ||
Retirement System of Texas on or after September 1, 2014, and who | ||
meets one or more of the following requirements on or before August | ||
31, 2014: | ||
(1) the person has attained 45 years of age; or | ||
(2) the person has at least 15 years of service credit | ||
in the retirement system. | ||
(c) Only service actually credited in the Employees | ||
Retirement System of Texas, the Teacher Retirement System of Texas, | ||
or a retirement system participating in the proportionate | ||
retirement program under Chapter 803, Government Code, or service | ||
performed as a participant in the optional retirement program under | ||
Chapter 830, Government Code, on or before August 31, 2014, may be | ||
used to determine eligibility under this section. | ||
SECTION 26. 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 27. Section 1551.3196, Insurance Code, as added by | ||
this Act, applies only to an individual who does not have 10 years | ||
of eligible service credit on September 1, 2014. An individual who | ||
has at least 10 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 28. (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) Section 1551.3196, Insurance Code, as added by this Act, | ||
takes effect September 1, 2014. | ||
(d) The changes in law made by this Act to the following | ||
sections take effect September 1, 2014: | ||
(1) Section 661.091, Government Code; | ||
(2) Section 813.509, Government Code; | ||
(3) Section 813.511, Government Code; | ||
(4) Section 814.105, Government Code; | ||
(5) Section 814.107, Government Code; and | ||
(6) Section 1551.1055, Insurance Code. |