Bill Text: TX SB1490 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the administration of and benefits payable by the Teacher Retirement System of Texas.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-03-18 - Referred to State Affairs [SB1490 Detail]
Download: Texas-2013-SB1490-Introduced.html
83R10616 SGA-F | ||
By: Duncan | S.B. No. 1490 |
|
||
|
||
relating to the administration of and benefits payable by the | ||
Teacher Retirement System of Texas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 551.130(e) and (j), Government Code, | ||
are amended to read as follows: | ||
(e) The location where a quorum is physically present must | ||
be open to the public during the open portions of a telephone | ||
conference call meeting. The open portions of the meeting must be | ||
audible to the public at the location where the quorum is present | ||
and be recorded [ |
||
recording shall be made available to the public. | ||
(j) A person who is not a member of the board may [ |
||
at the meeting from a remote location by telephone conference | ||
call[ |
||
SECTION 2. The heading to Section 824.1012, Government | ||
Code, is amended to read as follows: | ||
Sec. 824.1012. POST-RETIREMENT CHANGE IN RETIREMENT | ||
PAYMENT PLAN [ |
||
RETIREMENT BENEFIT OPTIONS. | ||
SECTION 3. Sections 824.1012(a) and (b), Government Code, | ||
are amended to read as follows: | ||
(a) As an exception to Section 824.101(c), a retiree who | ||
selected an optional service retirement annuity under Section | ||
824.204(c)(1), (c)(2), or (c)(5) or an optional disability | ||
retirement annuity under Section 824.308(c)(1), (c)(2), or (c)(5) | ||
and who has received at least one payment under the plan selected | ||
may change the optional annuity selection made by the retiree to a | ||
standard service or disability retirement annuity as provided for | ||
in this section. If the beneficiary is the spouse or former spouse | ||
of the retiree, the beneficiary must sign a notarized consent to the | ||
change, or [ |
||
|
||
divorce proceeding involving the retiree and beneficiary must | ||
approve or order the change [ |
||
the divorce decree or acceptance of a property settlement [ |
||
|
||
|
||
change in plan selection [ |
||
retirement system receives it. | ||
(b) A change [ |
||
cancels the optional annuity selection made by the retiree, | ||
effective with the beginning of payments of the annuity as | ||
recomputed under this subsection. The retiree is entitled to | ||
receive payments of a standard service or disability retirement | ||
annuity, as applicable, reduced for early retirement, if | ||
applicable, beginning with the payment for the month after the | ||
month in which the retirement system receives the notice of change | ||
[ |
||
also cancels the designation of beneficiary with respect to the | ||
optional annuity benefit but does not cancel a designation with | ||
respect to any other benefit payable by the retirement system on the | ||
death of the retiree. | ||
SECTION 4. Section 824.1013(b), Government Code, is amended | ||
to read as follows: | ||
(b) If the beneficiary designated at the time of the | ||
retiree's retirement is the spouse [ |
||
retiree at the time of the designation: | ||
(1) the spouse [ |
||
notarized consent to the change; [ |
||
(2) if the parties divorce after the designation, the | ||
former spouse who was designated beneficiary must give written, | ||
notarized consent to the change; or | ||
(3) a court with jurisdiction over the marriage must | ||
have ordered the change. | ||
SECTION 5. Sections 825.002(c), (e), and (e-1), Government | ||
Code, are amended to read as follows: | ||
(c) The governor shall appoint two members of the board from | ||
a slate of three members of the retirement system who are currently | ||
employed by a public school district, charter school, or regional | ||
education service center and who have been nominated in accordance | ||
with Subsection (f) by the members of the retirement system whose | ||
most recent credited service was performed for a public school | ||
district, charter school, or regional education service center. | ||
The two members hold office for staggered terms. | ||
(e) The governor shall appoint one member of the board from | ||
a slate of three persons who have been nominated in accordance with | ||
Subsection (f) by the following groups collectively: | ||
(1) members of the retirement system whose most recent | ||
credited service was performed for an institution of higher | ||
education; | ||
(2) members of the retirement system whose most recent | ||
credited service was performed for a public school district, | ||
charter school, or regional education service center; and | ||
(3) persons who have retired and are receiving | ||
benefits from the retirement system. | ||
(e-1) A person may be nominated for appointment to the board | ||
under Subsection (e) if the person is: | ||
(1) a member of the retirement system who is currently | ||
employed by an institution of higher education; | ||
(2) a member of the retirement system who is currently | ||
employed by a public school district, charter school, or regional | ||
education service center; or | ||
(3) a former member of the retirement system who has | ||
retired and is receiving benefits from the system. | ||
SECTION 6. Section 825.103, Government Code, is amended by | ||
adding Subsection (h) to read as follows: | ||
(h) The board of trustees may accept on behalf of the | ||
retirement system gifts of money, services, or other property from | ||
any public or private source. | ||
SECTION 7. Section 825.115, Government Code, is amended by | ||
adding Subsections (d) and (e) to read as follows: | ||
(d) The board of trustees or its audit committee may conduct | ||
a closed meeting in accordance with Subchapter E, Chapter 551, with | ||
the retirement system's internal or external auditors to discuss: | ||
(1) governance, risk management or internal control | ||
weaknesses, known or suspected compliance violations or fraud, | ||
status of regulatory reviews or investigations, or identification | ||
of potential fraud risk areas and audits for the annual internal | ||
audit plan; or | ||
(2) the auditors' ability to perform duties in | ||
accordance with the Internal Audit Charter, relevant auditing | ||
standards, and Chapter 2102. | ||
(e) The board of trustees may conduct a closed meeting in | ||
accordance with Subchapter E, Chapter 551, to deliberate or confer | ||
with one or more employees, consultants, or legal counsel of the | ||
retirement system or a third party regarding a procurement to be | ||
awarded by the board of trustees if, before conducting the closed | ||
meeting, a majority of the trustees in an open meeting vote that | ||
deliberating or conferring in an open meeting would have a | ||
detrimental effect on the position of the retirement system in | ||
negotiations with a third person. The board of trustees is required | ||
to vote or take final action on the procurement in an open meeting. | ||
SECTION 8. Section 825.204, Government Code, is amended by | ||
adding Subsection (d) to read as follows: | ||
(d) The medical board is not subject to subpoena regarding | ||
findings it makes in assisting the executive director or board of | ||
trustees under this section, and its members may not be held liable | ||
for any opinions, conclusions, or recommendations made under this | ||
section. | ||
SECTION 9. Sections 825.212(a), (b), and (c), Government | ||
Code, are amended to read as follows: | ||
(a) The [ |
||
|
||
|
||
requirements, applicable to: | ||
(1) trustees; | ||
(2) [ |
||
employees; and | ||
(3) any contractors or any categories of contractors | ||
that the board of trustees determines provide: | ||
(A) advice or opinion [ |
||
|
||
significant decision or action by or on behalf of the retirement | ||
system; or | ||
(B) significant services to the retirement | ||
system that relate to the administration and operation of the | ||
retirement system. | ||
(b) In any code of ethics adopted under this section, [ |
||
|
||
|
||
of trustees may: | ||
(1) impose enhanced[ |
||
disclosure requirements on employees that [ |
||
|
||
significant fiduciary authority; | ||
(2) impose disclosure requirements on contractors for | ||
expenditures on behalf of retirement system trustees or employees | ||
in amounts equal to or greater than a minimum amount considered | ||
material by the board of trustees; or | ||
(3) address topics related to ethical conduct, | ||
including prohibited conduct, conflicts of interest, waivers of | ||
conflicts of interest, remedies for conflicts of interest, and | ||
sanctions. [ |
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
(c) This section preempts the common law of conflicts of | ||
interest as applied to trustees, employees, and contracts of [ |
||
|
||
|
||
|
||
the retirement system [ |
||
|
||
SECTION 10. Section 825.312(b), Government Code, is amended | ||
to read as follows: | ||
(b) The retirement system shall pay from the account all | ||
administrative expenses of the retirement system [ |
||
|
||
required to perform the fiduciary duties of the board. | ||
SECTION 11. The heading to Section 825.313, Government | ||
Code, is amended to read as follows: | ||
Sec. 825.313. TRANSFERS FROM INTEREST [ |
||
|
||
SECTION 12. Section 825.313(d), Government Code, is amended | ||
to read as follows: | ||
(d) The board of trustees, by resolution recorded in its | ||
minutes, may transfer from the interest account to the expense | ||
account an amount necessary to cover the expenses of the retirement | ||
system for the fiscal year [ |
||
|
||
required to perform the fiduciary duties of the board[ |
||
|
||
|
||
|
||
SECTION 13. Section 825.314, Government Code, is amended to | ||
read as follows: | ||
Sec. 825.314. USE [ |
||
[ |
||
system shall use all assets contributed by the state[ |
||
|
||
benefits authorized by this subtitle. | ||
[ |
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
SECTION 14. The heading to Section 825.404, Government | ||
Code, is amended to read as follows: | ||
Sec. 825.404. COLLECTION OF STATE CONTRIBUTIONS [ |
||
|
||
SECTION 15. Section 825.404(e), Government Code, is amended | ||
to read as follows: | ||
(e) All money appropriated by the state to the retirement | ||
system shall be paid to the state contribution account in equal | ||
monthly installments as provided by Section 403.093(c)[ |
||
|
||
|
||
|
||
SECTION 16. Section 825.410(b), Government Code, is amended | ||
to read as follows: | ||
(b) Service credit shall be established pursuant to the | ||
following provisions: | ||
(1) The retirement system shall credit a member's | ||
payments made under this section to a suspense account in the trust | ||
fund until the sum of the payments equals the amount required for | ||
one year of service credit, at which time the retirement system | ||
shall deposit the payments in the appropriate accounts in the trust | ||
fund and grant the applicable amount of service credit. No credit | ||
shall be established for service pursuant to Section 823.501 [ |
||
|
||
deduction or installment payments have been completed. | ||
(2) No credit shall be established for other service | ||
when the cost of establishing the service has been determined by | ||
using withdrawn service to be reinstated pursuant to Section | ||
823.501 [ |
||
|
||
deductions or installments for the withdrawn [ |
||
|
||
(3) All other service shall be credited when | ||
sufficient payroll deductions or installments have been completed | ||
to satisfy the cost requirements for a year of service. | ||
SECTION 17. Section 825.507, Government Code, is amended by | ||
amending Subsections (a), (b), (c), (f), and (g) and adding | ||
Subsection (h) to read as follows: | ||
(a) Records of a participant and information about the | ||
records of a participant that are in the custody of the retirement | ||
system or of an administrator, carrier, attorney, consultant, or | ||
governmental agency, including the comptroller, acting in | ||
cooperation with or on behalf of the retirement system are | ||
confidential and not subject to public disclosure [ |
||
|
||
|
||
|
||
section [ |
||
of Chapter 552, the retirement system or an administering firm, | ||
carrier, attorney, consultant, or governmental agency, including | ||
the comptroller, acting in cooperation with or on behalf of the | ||
retirement system, 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, except as otherwise provided by | ||
this section. | ||
(b) The retirement system may release records of a | ||
participant, or information about the records of a participant, | ||
including a participant to which Chapter 803 applies, to: | ||
(1) the participant or the participant's attorney or | ||
guardian or another person who the executive director determines is | ||
acting on behalf of the participant; | ||
(2) the executor or administrator of the deceased | ||
participant's estate, including information relating to the | ||
deceased participant's beneficiary, or if an executor or | ||
administrator of the deceased participant's estate has not been | ||
named, a person or entity who the executive director determines is | ||
acting in the interest of the deceased participant's estate, or an | ||
heir, legatee, or devisee of the deceased participant; | ||
(3) a spouse or former spouse of the participant if the | ||
executive director determines that the information is relevant to | ||
the spouse's or former spouse's interest in member accounts, | ||
benefits, or other amounts payable by the retirement system; | ||
(4) an administrator, carrier, consultant, attorney, | ||
or agent acting on behalf of the retirement system; | ||
(5) a governmental entity, an employer, or the | ||
designated agent of an employer, only to the extent the retirement | ||
system needs to share the information to perform the purposes of the | ||
retirement system, as determined by the executive director; | ||
(6) a person authorized by the participant in writing | ||
to receive the information; | ||
(7) a federal, state, or local criminal law | ||
enforcement agency that requests a record for a law enforcement | ||
purpose; | ||
(8) the attorney general to the extent necessary to | ||
enforce child support; or | ||
(9) a party in response to a subpoena issued under | ||
applicable law if the executive director determines that the | ||
participant will have a reasonable opportunity to contest the | ||
subpoena. | ||
(c) The records of a participant and information about the | ||
records remain confidential after release to a person as authorized | ||
by this section. This section does not prevent the retirement | ||
system or administering firm or carrier acting in cooperation with | ||
or on behalf of the retirement system from disclosing or confirming | ||
[ |
||
status or identity of a participant as a member, former member, | ||
retiree, deceased member or retiree, beneficiary, or alternate | ||
payee of the retirement system. | ||
(f) This section does not authorize the retirement system to | ||
compile or disclose a list of participants' names, addresses, | ||
including e-mail addresses, or social security numbers unless the | ||
executive director determines that a compilation or disclosure is | ||
necessary to administer the retirement system. | ||
(g) In this section, "participant" means a member, former | ||
member, retiree, annuitant, beneficiary, or alternate payee of the | ||
retirement system, or an employee or contractor of an employer | ||
covered by the retirement system for whom records were received by | ||
the retirement system for the purpose of administering the terms of | ||
the plan, including for audit or investigative purposes. | ||
(h) The retirement system has sole discretion in | ||
determining whether a record or information about a record is | ||
subject to this section. | ||
SECTION 18. Section 825.515(a), Government Code, is amended | ||
to read as follows: | ||
(a) At least annually, the retirement system shall acquire | ||
and maintain records identifying members and specifying the types | ||
of positions they hold as members. Employers shall provide to the | ||
retirement system information specifying the type of position held | ||
by each member [ |
||
Administrative/Professional, Teacher/Full-Time Librarian, | ||
Support, Bus Driver, or Peace Officer. Employers shall also | ||
provide to the retirement system the work e-mail address for each | ||
member. For each member identified as a Peace Officer, the records | ||
must specify whether the member is an employee of an institution of | ||
higher education or of a public school that is not an institution of | ||
higher education. An employer shall provide the information | ||
required by this section in the form and manner specified by the | ||
retirement system. | ||
SECTION 19. Section 1575.003(1), Insurance Code, is amended | ||
to read as follows: | ||
(1) "Dependent" means: | ||
(A) the spouse of a retiree; | ||
(B) a [ |
||
deceased active member if the child is younger than 26 [ |
||
age, including: | ||
(i) an adopted child or child who is | ||
lawfully placed for legal adoption; | ||
(ii) a foster child, stepchild, or other | ||
child who is in a regular parent-child relationship; or | ||
(iii) a [ |
||
(C) a retiree's [ |
||
adopted child, foster child, stepchild, or other child who is in a | ||
regular parent-child relationship and who lives with or has his or | ||
her care provided by the retiree or surviving spouse on a regular | ||
basis regardless of the child's age, if the child has a mental | ||
disability or is physically incapacitated to an extent that the | ||
child is dependent on the retiree or surviving spouse for care or | ||
support, as determined by the trustee; or | ||
(D) a deceased active member's [ |
||
natural child, adopted child, foster child, stepchild, or other | ||
child who is in a regular parent-child relationship, without regard | ||
to the age of the child, if, while the active member was alive, the | ||
child: | ||
(i) lived with or had the child's care | ||
provided by the active member on a regular basis; and | ||
(ii) had a mental disability or was | ||
physically incapacitated to an extent that the child was dependent | ||
on the active member or surviving spouse for care or support, as | ||
determined by the trustee. | ||
SECTION 20. Section 1575.205(c), Insurance Code, is amended | ||
to read as follows: | ||
(c) The trustee may spend a part of the money received for | ||
the group program to offset a part of the costs for optional | ||
coverage paid by retirees if [ |
||
|
||
solvent during the currently funded [ |
||
biennium. | ||
SECTION 21. Section 1579.004, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1579.004. DEFINITION OF DEPENDENT. In this chapter, | ||
"dependent" means: | ||
(1) a spouse of a full-time employee or part-time | ||
employee; | ||
(2) a [ |
||
employee if the child is younger than 26 [ |
||
including: | ||
(A) an adopted child or child who is lawfully | ||
placed for adoption; | ||
(B) a foster child, stepchild, or other child who | ||
is in a regular parent-child relationship; and | ||
(C) a [ |
||
(3) a full-time or part-time employee's [ |
||
natural child, adopted child, foster child, stepchild, or other | ||
child who is in a regular parent-child relationship and who lives | ||
with or has his or her care provided by the employee or the | ||
surviving spouse on a regular basis, regardless of the child's age, | ||
if the child has a mental disability or is physically incapacitated | ||
to an extent that the child is dependent on the employee or | ||
surviving spouse for care or support, as determined by the board of | ||
trustees; and | ||
(4) notwithstanding any other provision of this code, | ||
any other dependent of a full-time or part-time employee specified | ||
by rules adopted by the board of trustees. | ||
SECTION 22. The following laws are repealed: | ||
(1) Section 825.211, Government Code; | ||
(2) Sections 825.212(d), (e), (f), (g), and (h), | ||
Government Code; | ||
(3) Sections 825.402(b), (c), and (d), Government | ||
Code; | ||
(4) Section 825.404(d), Government Code; and | ||
(5) Section 825.411, Government Code. | ||
SECTION 23. This Act takes effect September 1, 2013. |