Bill Text: TX HB4076 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to benefits administered by the Teacher Retirement System of Texas.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2019-03-21 - Referred to Pensions, Investments & Financial Services [HB4076 Detail]
Download: Texas-2019-HB4076-Introduced.html
| By: King of Hemphill | H.B. No. 4076 | |
|
|
||
|
|
||
| relating to benefits administered by the Teacher Retirement System | ||
| of Texas. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| ARTICLE 1. TEACHER RETIREMENT SYSTEM COST-OF-LIVING ADJUSTMENT | ||
| SECTION 1.01. Subchapter H, Chapter 824, Government Code, | ||
| is amended by adding Section 824.703 to read as follows: | ||
| Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT. (a) | ||
| Notwithstanding Section 824.702 and subject to Section 821.006, the | ||
| retirement system shall make a one-time cost-of-living adjustment | ||
| payable to annuitants receiving a monthly death or retirement | ||
| benefit annuity, as provided by this section. | ||
| (b) Subject to Subsections (c) and (d), to be eligible for | ||
| the adjustment, a person must be, on the effective date of the | ||
| adjustment and disregarding any forfeiture of benefits under | ||
| Section 824.601, an annuitant eligible to receive: | ||
| (1) a standard service or disability retirement | ||
| annuity payment; | ||
| (2) an optional service or disability retirement | ||
| annuity payment as either a retiree or beneficiary; | ||
| (3) an annuity payment under Section 824.402(a)(3) or | ||
| (4); | ||
| (4) an annuity payment under Section 824.502; or | ||
| (5) an alternate payee annuity payment under Section | ||
| 804.005. | ||
| (c) If the annuitant: | ||
| (1) is a retiree or is a beneficiary under an optional | ||
| retirement payment plan, to be eligible for the adjustment under | ||
| this section: | ||
| (A) the annuitant must be living on the effective | ||
| date of the adjustment; and | ||
| (B) the effective date of the retirement of the | ||
| member of the retirement system must have been on or before August | ||
| 31, 2019; | ||
| (2) is a beneficiary under Section 824.402(a)(3) or | ||
| (4) or 824.502, to be eligible for the adjustment: | ||
| (A) the annuitant must be living on the effective | ||
| date of the adjustment; and | ||
| (B) the date of death of the member of the | ||
| retirement system must have been on or before August 31, 2019; or | ||
| (3) is an alternate payee under Section 804.005, the | ||
| annuitant is eligible for the adjustment only if the effective date | ||
| of the election to receive the annuity payment was on or before | ||
| August 31, 2019. | ||
| (d) An adjustment made under this section does not apply to | ||
| payments under: | ||
| (1) Section 824.203(d), relating to retirees who | ||
| receive a standard service retirement annuity in an amount fixed by | ||
| statute; | ||
| (2) Section 824.304(a), relating to disability | ||
| retirees with less than 10 years of service credit; | ||
| (3) Section 824.304(b)(2), relating to disability | ||
| retirees who receive a disability annuity in an amount fixed by | ||
| statute; | ||
| (4) Section 824.404(a), relating to active member | ||
| survivor beneficiaries who receive a survivor annuity in an amount | ||
| fixed by statute; | ||
| (5) Section 824.501(a), relating to retiree survivor | ||
| beneficiaries who receive a survivor annuity in an amount fixed by | ||
| statute; or | ||
| (6) Section 824.804(b), relating to participants in | ||
| the deferred retirement option plan with regard to payments from | ||
| their deferred retirement option plan accounts. | ||
| (e) An adjustment under this section: | ||
| (1) must be made beginning with an annuity payable for | ||
| the month of December 2019; and | ||
| (2) is limited to an amount equal to 20 percent of the | ||
| monthly benefit subject to the increase. | ||
| (f) The board of trustees shall determine the eligibility | ||
| for and the amount of any adjustment in monthly annuities in | ||
| accordance with this section. | ||
| ARTICLE 2. TRANSFERRING COVERAGE PROVIDED TO ACTIVE EDUCATION | ||
| EMPLOYEES FROM TEXAS SCHOOL EMPLOYEES UNIFORM GROUP HEALTH COVERAGE | ||
| ACT TO TEXAS EMPLOYEES GROUP BENEFITS ACT | ||
| SECTION 2.01. 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, 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 or as an education | ||
| employee under Subchapter D-1 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 2.02. Section 1551.151, Insurance Code, is amended | ||
| to read as follows: | ||
| Sec. 1551.151. ENTITLEMENT TO COVERAGE. An individual who | ||
| is eligible to participate in the group benefits program under | ||
| Section 1551.101, 1551.102, [ |
||
| to secure for a dependent of the individual any group coverages | ||
| provided under this chapter, as determined by the board of trustees | ||
| and subject to the exceptions provided by this subchapter. | ||
| SECTION 2.03. Chapter 1551, Insurance Code, is amended by | ||
| adding Subchapter D-1 to read as follows: | ||
| SUBCHAPTER D-1. COVERAGE AND PARTICIPATION OF EDUCATION EMPLOYEES | ||
| Sec. 1551.161. DEFINITIONS. In this subchapter: | ||
| (1) "Charter school" means an open-enrollment charter | ||
| school established under Subchapter D, Chapter 12, Education Code. | ||
| (2) "Education employee" means a participating member | ||
| of the Teacher Retirement System of Texas who is employed by a | ||
| participating education entity and who is not receiving coverage | ||
| from a program under Chapter 1575 or 1601. The term does not | ||
| include an individual performing personal services as an | ||
| independent contractor. | ||
| (3) "Full-time education employee" and "part-time | ||
| education employee" have the meanings assigned by rules adopted by | ||
| the board of trustees. | ||
| (4) "Participating education entity" means an entity | ||
| that elects or is required to participate under this subchapter in | ||
| the group benefits program established under this chapter. The | ||
| term includes: | ||
| (A) a school district; | ||
| (B) another educational district whose employees | ||
| are members of the Teacher Retirement System of Texas; | ||
| (C) a regional education service center; and | ||
| (D) a charter school that meets the requirements | ||
| of Section 1551.166. | ||
| (5) "Regional education service center" means a | ||
| regional education service center established under Chapter 8, | ||
| Education Code. | ||
| Sec. 1551.162. REFERENCES TO COVERAGE PLAN. A reference in | ||
| this code to a "primary care coverage plan" or "health benefit plan" | ||
| under former Chapter 1579 means a basic coverage plan provided to | ||
| eligible education employees under this subchapter. | ||
| SECTION 2.04. Sections 1579.151, 1579.152, 1579.153, and | ||
| 1579.154, Insurance Code, are transferred to Subchapter D-1, | ||
| Insurance Code, as added by this Act, redesignated as Sections | ||
| 1551.163, 1551.164, 1551.165, and 1551.166, Insurance Code, and | ||
| amended to read as follows: | ||
| Sec. 1551.163 [ |
||
| DISTRICTS WITH 500 OR FEWER EDUCATION EMPLOYEES. (a) Each school | ||
| district with 500 or fewer education employees and each regional | ||
| education service center is required to participate in the group | ||
| benefits program. | ||
| (b) Notwithstanding Subsection (a), a school district | ||
| otherwise subject to Subsection (a) that, on January 1, 2001, was | ||
| individually self-funded for the provision of health coverage to | ||
| its education employees may elect not to participate in the group | ||
| benefits program. | ||
| (c) An educational district described by Section | ||
| 1551.161(4)(B) [ |
||
| or fewer education employees may elect not to participate in the | ||
| group benefits program. | ||
| Sec. 1551.164 [ |
||
| DISTRICTS. A [ |
||
| more than 500 education employees may elect to participate in the | ||
| group benefits program. A school district that elects to | ||
| participate under this section shall apply for participation in the | ||
| manner prescribed by the board of trustees [ |
||
| Sec. 1551.165 [ |
||
| POOLS. (a) In determining the number of education employees of a | ||
| school district for purposes of Sections 1551.163 [ |
||
| 1551.164 [ |
||
| were members of a risk pool established under the authority of | ||
| Chapter 172, Local Government Code, as provided by Section 22.004, | ||
| Education Code, are [ |
||
| appropriate election was made[ |
||
|
|
||
|
|
||
| [ |
||
| (b) A risk pool in existence on January 1, 2001, that, as of | ||
| that date, provided group health coverage to 500 or fewer school | ||
| district education employees may elect to participate in the group | ||
| benefits program. | ||
| (c) A school district with 500 or fewer education employees | ||
| that is a member of a risk pool described by Subsection (a) that | ||
| provides group health coverage to more than 500 school district | ||
| education employees is [ |
||
|
|
||
| education employees or as part of a unit with more than 500 | ||
| education employees in accordance with the election made by | ||
| notification to[ |
||
| Retirement System of Texas [ |
||
|
|
||
| (d) For purposes of this section, participation in the group | ||
| benefits program by school districts covered by a risk pool is | ||
| limited to school districts covered by the risk pool as of January | ||
| 1, 2001. | ||
| Sec. 1551.166 [ |
||
| SCHOOLS; ELIGIBILITY. (a) A charter school is eligible to | ||
| participate in the group benefits program if the school agrees: | ||
| (1) that all records of the school relating to | ||
| participation in the group benefits program are open to inspection | ||
| by the board of trustees [ |
||
| commissioner of education, or a designee of any of those entities; | ||
| and | ||
| (2) to have the school's accounts relating to | ||
| participation in the group benefits program annually audited by a | ||
| certified public accountant at the school's expense. | ||
| (b) A charter school must notify the board of trustees | ||
| [ |
||
| benefits program in the manner and within the time required by rules | ||
| adopted by the board of trustees [ |
||
| SECTION 2.05. Sections 1579.202, 1579.203, 1579.204, and | ||
| 1579.205, Insurance Code, are transferred to Subchapter D-1, | ||
| Insurance Code, as added by this Act, redesignated as Sections | ||
| 1551.167, 1551.168, 1551.169, and 1551.170, Insurance Code, and | ||
| amended to read as follows: | ||
| Sec. 1551.167 [ |
||
| (a) Except as provided by Section 1551.169 [ |
||
| participation under this subchapter in the group benefits program | ||
| is limited to education employees of participating education | ||
| entities who are full-time employees and to part-time employees who | ||
| are participating members in the Teacher Retirement System of | ||
| Texas. | ||
| (b) An education employee described by Subsection (a) who | ||
| applies for coverage during an open enrollment period prescribed by | ||
| the board of trustees [ |
||
| basic [ |
||
| employee: | ||
| (1) specifically waives coverage under this chapter; | ||
| or | ||
| (2) [ |
||
| [ |
||
| Sec. 1551.168 [ |
||
| participating education employee may select coverage in any | ||
| coverage plan offered by the board of trustees [ |
||
| (b) The education employee is not required to continue | ||
| participation in the coverage plan initially selected and may | ||
| select a different [ |
||
| plan initially selected by the employee in the manner provided by | ||
| rules adopted by the board of trustees [ |
||
| (c) If the combined contributions received from the state | ||
| and the employing participating education entity under this | ||
| subchapter [ |
||
| selected by the education employee, the employee may use the excess | ||
| amount of contributions to obtain optional coverages provided | ||
| [ |
||
| pay all or part of the cost of coverage for the employee's | ||
| dependents. | ||
| (d) A married couple, both of whom are eligible for coverage | ||
| under this subchapter under the group benefits program, may pool | ||
| the amount of contributions to which the couple are entitled under | ||
| this subchapter [ |
||
| dependent coverage. | ||
| Sec. 1551.169 [ |
||
| EMPLOYEES. A part-time education employee of a participating | ||
| education entity who is not a participating member in the Teacher | ||
| Retirement System of Texas is eligible to participate in the | ||
| program only if the employee pays all of the premiums and other | ||
| costs associated with the health coverage plan selected by the | ||
| employee. | ||
| Sec. 1551.170 [ |
||
| EDUCATION ENTITY. Notwithstanding Section 1551.169 [ |
||
| participating education entity may pay any portion of what | ||
| otherwise would be the employee share of premiums and other costs | ||
| associated with the coverage selected by the education employee. | ||
| SECTION 2.06. Sections 1579.251, 1579.252, 1579.253, | ||
| 1579.254, and 1579.255, Insurance Code, are transferred to | ||
| Subchapter D-1, Insurance Code, as added by this Act, redesignated | ||
| as Sections 1551.171, 1551.172, 1551.173, 1551.174, and 1551.175, | ||
| Insurance Code, and amended to read as follows: | ||
| Sec. 1551.171 [ |
||
| shall assist education employees of participating school districts | ||
| and charter schools in the purchase of group health coverage under | ||
| this chapter by providing for each covered education employee the | ||
| amount of $900 each state fiscal year or a greater amount as | ||
| provided by the General Appropriations Act. The state contribution | ||
| shall be distributed through the school finance formulas under | ||
| Chapters 41 and 42, Education Code, and used by school districts and | ||
| charter schools as provided by Section 42.260, Education Code. | ||
| (b) The state shall assist education employees of | ||
| participating regional education service centers and educational | ||
| districts described by Section 1551.161(4)(B) [ |
||
| the purchase of group health coverage under this chapter by | ||
| providing to the employing service center or educational district, | ||
| for each covered education employee, the amount of $900 each state | ||
| fiscal year or a greater amount as provided by the General | ||
| Appropriations Act. | ||
| Sec. 1551.172 [ |
||
| EDUCATION ENTITIES. A participating education entity shall make | ||
| contributions for the program as provided by Chapter 1581. | ||
| Sec. 1551.173 [ |
||
| EMPLOYEE. (a) An education employee covered by the group benefits | ||
| program shall pay that portion of the cost of coverage selected by | ||
| the employee that exceeds the amount of the state contribution | ||
| under Section 1551.171 [ |
||
| entity contribution under Section 1551.172 in the manner required | ||
| by the board of trustees [ |
||
| (b) The education employee may pay the employee's | ||
| contribution under this subsection from the amount distributed to | ||
| the employee under Subchapter D, Chapter 22, Education Code. | ||
| (c) Notwithstanding Subsection (a), a participating | ||
| education entity may pay any portion of what otherwise would be the | ||
| employee share of premiums and other costs associated with the | ||
| coverage selected by the education employee. | ||
| Sec. 1551.174 [ |
||
| FUND. A participating education entity: | ||
| (1) shall hold contributions required by this | ||
| subchapter in trust for the Texas school employees uniform group | ||
| coverage trust fund and its participants; and | ||
| (2) may not divert the contributions for any other | ||
| purpose. | ||
| Sec. 1551.175 [ |
||
| PAYMENT OF CONTRIBUTIONS BY PARTICIPATING EDUCATION ENTITIES. (a) | ||
| A participating education entity that does not remit to the board of | ||
| trustees [ |
||
| before the seventh day after the last day of the month shall pay to | ||
| the Texas school employees uniform group coverage trust fund: | ||
| (1) the contributions; and | ||
| (2) interest on the unpaid amounts at the annual rate | ||
| of six percent compounded monthly. | ||
| (b) On request, the board of trustees [ |
||
| waiver of the deadline imposed by this section based on a | ||
| participating education entity's financial or technological | ||
| resources. | ||
| SECTION 2.07. Section 1579.301, Insurance Code, is | ||
| transferred to Subchapter D-1, Insurance Code, as added by this | ||
| Act, and redesignated as Section 1551.176, Insurance Code, to read | ||
| as follows: | ||
| Sec. 1551.176 [ |
||
| school employees uniform group coverage trust fund is a trust fund | ||
| with the comptroller. | ||
| SECTION 2.08. Sections 1579.302, 1579.303, and 1579.304, | ||
| Insurance Code, are transferred to Subchapter D-1, Insurance Code, | ||
| as added by this Act, redesignated as Sections 1551.177, 1551.178, | ||
| and 1551.179, Insurance Code, and amended to read as follows: | ||
| Sec. 1551.177 [ |
||
| school employees uniform group coverage trust fund is composed of: | ||
| (1) all contributions made to the fund under this | ||
| subchapter [ |
||
| education entities, and the state; | ||
| (2) contributions made by education employees or | ||
| participating education entities for optional coverages; | ||
| (3) investment income; | ||
| (4) any additional amounts appropriated by the | ||
| legislature for contingency reserves, administrative expenses, or | ||
| other expenses; and | ||
| (5) any other money required or authorized to be paid | ||
| into the fund. | ||
| Sec. 1551.178 [ |
||
| of trustees [ |
||
| uniform group coverage trust fund only to provide group coverages | ||
| to eligible education employees under the group benefits program | ||
| [ |
||
| benefits program for participating education entities. | ||
| Sec. 1551.179 [ |
||
| trustees [ |
||
| uniform group coverage trust fund in the manner provided by Section | ||
| 67(a)(3), Article XVI, Texas Constitution. | ||
| SECTION 2.09. Section 1501.009(b), Insurance Code, is | ||
| amended to read as follows: | ||
| (b) An independent school district that is participating in | ||
| the state employees [ |
||
| established under Chapter 1551 [ |
||
| small employer market under this section for health insurance | ||
| coverage [ |
||
|
|
||
|
|
||
| subsection does not affect a contract for the provision of optional | ||
| coverages not included in a health benefit plan under this chapter. | ||
| SECTION 2.10. Section 1581.001(2), Insurance Code, is | ||
| amended to read as follows: | ||
| (2) "Participating charter school" means an | ||
| open-enrollment charter school established under Subchapter D, | ||
| Chapter 12, Education Code, that participates in the [ |
||
| group benefits [ |
||
| [ |
||
| SECTION 2.11. Sections 22.004(a), (c), (i), and (j), | ||
| Education Code, are amended to read as follows: | ||
| (a) A district shall participate in the state employees | ||
| [ |
||
| Chapter 1551 [ |
||
| [ |
||
| (c) The cost of the coverage provided under the program | ||
| described by Subsection (a) shall be paid by the state, the | ||
| district, and the employees in the manner provided by Subchapter | ||
| D-1 [ |
||
| provided under a plan adopted under Subsection (b) shall be shared | ||
| by the employees and the district using the contributions by the | ||
| state described by Subchapter D-1 [ |
||
| Insurance Code, or Subchapter D. | ||
| (i) Notwithstanding any other provision of this section, a | ||
| district participating in the state employees [ |
||
| benefits [ |
||
| Insurance Code, may not make group health coverage available to its | ||
| employees under this section after the date on which the program of | ||
| coverages provided under Chapter 1551 [ |
||
| implemented. | ||
| (j) This section does not preclude a district that is | ||
| participating in the state employees [ |
||
| [ |
||
| Insurance Code, from entering into contracts to provide optional | ||
| insurance coverages for the employees of the district. | ||
| SECTION 2.12. Section 22.101(3), Education Code, is amended | ||
| to read as follows: | ||
| (3) "Participating charter school" means an | ||
| open-enrollment charter school established under Subchapter D, | ||
| Chapter 12, that participates in the group benefits program | ||
| established under Chapter 1551 [ |
||
| SECTION 2.13. Sections 42.260(a) and (c), Education Code, | ||
| are amended to read as follows: | ||
| (a) In this section, "participating charter school" means | ||
| an open-enrollment charter school that participates in the state | ||
| employees [ |
||
| under Chapter 1551 [ |
||
| (c) Notwithstanding any other provision of this code, a | ||
| school district or participating charter school may use the sum of | ||
| the following amounts of funds only to pay contributions under a | ||
| group health coverage plan for district or school employees: | ||
| (1) the amount determined by multiplying the amount of | ||
| $900 or the amount specified in the General Appropriations Act for | ||
| that year for purposes of the state contribution under Section | ||
| 1551.171 [ |
||
| school employees who participate in a group health coverage plan | ||
| provided by or through the district or school; and | ||
| (2) the difference between the amount necessary for | ||
| the district or school to comply with Section 1581.052, Insurance | ||
| Code, for the school year and the amount the district or school is | ||
| required to use to provide health coverage under Section 1581.051, | ||
| Insurance Code, for that year. | ||
| SECTION 2.14. The following provisions of the Insurance | ||
| Code are repealed: | ||
| (1) Subchapters A, B, and C, Chapter 1579; | ||
| (2) the headings to Subchapters D and E, Chapter 1579; | ||
| (3) Section 1579.201; and | ||
| (4) the headings to Subchapters F and G, Chapter 1579. | ||
| SECTION 2.15. (a) In this section, "program" means the | ||
| uniform group coverage program under Chapter 1579, Insurance Code, | ||
| as it existed before amendment by this Act. | ||
| (b) Effective September 1, 2020: | ||
| (1) all functions and activities of the Teacher | ||
| Retirement System of Texas under Chapter 1579, Insurance Code, | ||
| before that date are transferred to the Employees Retirement System | ||
| of Texas; | ||
| (2) all rules, fees, policies, procedures, decisions, | ||
| and forms of the Teacher Retirement System of Texas related to the | ||
| program become applicable rules, fees, policies, procedures, | ||
| decisions, and forms of the Employees Retirement System of Texas | ||
| until changed by the board of trustees of that system; | ||
| (3) a complaint, investigation, contested case, or | ||
| other proceeding related to the program that is pending on | ||
| September 1, 2020, is transferred without change in status to the | ||
| Employees Retirement System of Texas; | ||
| (4) the management of the Texas school employees | ||
| uniform group coverage trust fund and all other money, contracts, | ||
| property, and obligations related to the program are transferred to | ||
| the Employees Retirement System of Texas; and | ||
| (5) the unexpended and unobligated balance of any | ||
| money appropriated by the legislature for the program for the | ||
| purpose of administering the program is transferred to the | ||
| Employees Retirement System of Texas. | ||
| (c) The Teacher Retirement System of Texas shall provide to | ||
| the Employees Retirement System of Texas the records and other | ||
| information necessary for the Employees Retirement System of Texas | ||
| to implement its duties under this Act. | ||
| SECTION 2.16. The changes in law made by this article apply | ||
| only to group coverage provided under Chapter 1551, Insurance Code, | ||
| or Chapter 1579, Insurance Code, for a plan year beginning on or | ||
| after September 1, 2020. A plan year that begins before that date is | ||
| governed by the law as it existed immediately before the effective | ||
| date of this Act, and that law is continued in effect for that | ||
| purpose. | ||
| ARTICLE 3. TERMINATION OF TEXAS PUBLIC SCHOOL EMPLOYEES GROUP | ||
| INSURANCE PROGRAM FOR RETIREES | ||
| SECTION 3.01. Chapter 1575, Insurance Code, is amended by | ||
| adding Subchapters L and M to read as follows: | ||
| SUBCHAPTER L. TERMINATION OF GROUP PROGRAM | ||
| Sec. 1575.551. PROGRAM TERMINATION. Subject to Section | ||
| 1575.552, effective September 1, 2019, the group program is | ||
| terminated. | ||
| Sec. 1575.552. COVERAGE ELIGIBILITY TERMINATES; PHASE-OUT | ||
| PERIOD. (a) An individual who is not a participant in the group | ||
| program on August 31, 2019, is not entitled to obtain coverage under | ||
| the group program after that date. | ||
| (b) An individual who is a participant in the group program | ||
| on August 31, 2019, and who is, on September 1, 2019, eligible to | ||
| participate in Medicare, is not entitled to continue coverage under | ||
| the group program after August 31, 2019. | ||
| (c) An individual who is a participant in the group program | ||
| on August 31, 2019, but who is not, on September 1, 2019, eligible | ||
| to participate in Medicare, may continue coverage under the group | ||
| program in accordance with this subchapter until the earlier of: | ||
| (1) the date the individual first becomes eligible to | ||
| participate in Medicare; or | ||
| (2) September 1, 2029. | ||
| Sec. 1575.553. AUTHORIZED COVERAGE. Notwithstanding | ||
| Section 1575.151, on and after September 1, 2019, the group program | ||
| may not offer coverage other than health benefit plan coverage. | ||
| Sec. 1575.554. EXCESS GROUP INSURANCE FUND MONEY. (a) Not | ||
| later than December 31, 2019, the trustee shall determine the | ||
| amount of money required to fund coverage for individuals under | ||
| Section 1575.552(c) for the 2019-2020 fiscal year and shall certify | ||
| that amount to the comptroller. | ||
| (b) As soon as practicable after January 1, 2020, the | ||
| trustee shall, notwithstanding Section 1575.206, pay to each | ||
| retiree participating in the group program on August 31, 2019, an | ||
| equal share of the amount by which the money in the group insurance | ||
| fund exceeds the amount of money determined under Subsection (a). | ||
| Sec. 1575.555. REDUCTION IN CONTRIBUTIONS. (a) Beginning | ||
| not later than June 1, 2020, the trustee shall annually determine | ||
| the amount of money required to fund coverage for individuals under | ||
| Section 1575.552(c) for the subsequent fiscal year. The trustee | ||
| shall certify that amount to the comptroller. | ||
| (b) The trustee, in consultation with the comptroller, may | ||
| annually adjust the amounts of contributions to be made under | ||
| Sections 1575.201, 1575.202, 1575.203, and 1575.204, to the extent | ||
| that the trustee determines that money otherwise to be contributed | ||
| under those sections for a fiscal year will exceed the amount | ||
| determined to be required for that fiscal year under Subsection | ||
| (a). | ||
| Sec. 1575.556. FINAL RECONCILIATION; TERMINATION OF FUND. | ||
| As soon as practicable after August 31, 2029, the trustee, in | ||
| consultation with the comptroller, shall determine any | ||
| unencumbered amount remaining in the group insurance fund. The | ||
| trustee shall pay that amount in equal shares to individuals | ||
| participating in the program on August 31, 2029. | ||
| Sec. 1575.557. GROUP PROGRAM AND GROUP INSURANCE FUND | ||
| ABOLISHED. Effective September 1, 2029, the group program and the | ||
| group insurance fund are abolished. | ||
| Sec. 1575.558. DUTIES OF THE TRUSTEE. (a) The trustee | ||
| shall implement a plan for the orderly termination of the group | ||
| program in accordance with this subchapter. | ||
| (b) The determinations made by the trustee under Sections | ||
| 1575.554 and 1575.555 must be actuarially justified. | ||
| SUBCHAPTER M. EXPIRATION OF CHAPTER | ||
| Sec. 1575.601. EXPIRATION OF CHAPTER. This chapter expires | ||
| September 1, 2030. | ||
| ARTICLE 4. | ||
| EFFECTIVE DATE | ||
| SECTION 4.01. This Act takes effect September 1, 2019. | ||
