Bill Text: TX SB1939 | 2015-2016 | 84th Legislature | Comm Sub
Bill Title: Relating to contributions to, benefits from, membership in, and the administration of systems and programs administered by the Teacher Retirement System of Texas.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-05-06 - Not again placed on intent calendar [SB1939 Detail]
Download: Texas-2015-SB1939-Comm_Sub.html
By: Huffman | S.B. No. 1939 | |
(In the Senate - Filed March 13, 2015; March 25, 2015, read | ||
first time and referred to Committee on State Affairs; | ||
April 15, 2015, reported adversely, with favorable Committee | ||
Substitute by the following vote: Yeas 9, Nays 0; April 15, 2015, | ||
sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR S.B. No. 1939 | By: Huffman |
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relating to contributions to, benefits from, membership in, and the | ||
administration of systems and programs administered by the Teacher | ||
Retirement System of Texas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 22.004(b) and (d), Education Code, are | ||
amended to read as follows: | ||
(b) A district that does not participate in the program | ||
described by Subsection (a) shall make available to its employees, | ||
including employees whose coverage under the group program | ||
established under Chapter 1575, Insurance Code, has been suspended, | ||
group health coverage provided by a risk pool established by one or | ||
more school districts under Chapter 172, Local Government Code, or | ||
under a policy of insurance or group contract issued by an insurer, | ||
a company subject to Chapter 842, Insurance Code, or a health | ||
maintenance organization under Chapter 843, Insurance Code. The | ||
coverage must meet the substantive coverage requirements of Chapter | ||
1251, Subchapter A, Chapter 1364, and Subchapter A, Chapter 1366, | ||
Insurance Code, and any other law applicable to group health | ||
insurance policies or contracts issued in this state. The coverage | ||
must include major medical treatment but may exclude experimental | ||
procedures. In this subsection, "major medical treatment" means a | ||
medical, surgical, or diagnostic procedure for illness or injury. | ||
The coverage may include managed care or preventive care and must be | ||
comparable to the basic health coverage provided under Chapter | ||
1551, Insurance Code. In determining [ |
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whether a school district's group health coverage is comparable to | ||
the basic health coverage specified by this subsection, the | ||
district shall consider[ |
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(1) the deductible amount for service provided inside | ||
and outside of the network; | ||
(2) the coinsurance percentages for service provided | ||
inside and outside of the network; | ||
(3) the maximum amount of coinsurance payments a | ||
covered person is required to pay; | ||
(4) the amount of the copayment for an office visit; | ||
(5) the schedule of benefits and the scope of | ||
coverage; | ||
(6) the lifetime maximum benefit amount; and | ||
(7) verification that the coverage is issued by a | ||
provider licensed to do business in this state by the Texas | ||
Department of Insurance or is provided by a risk pool authorized | ||
under Chapter 172, Local Government Code, or that a district is | ||
capable of covering the assumed liabilities in the case of coverage | ||
provided through district self-insurance. | ||
(d) Each [ |
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does not participate in the program described by Subsection (a) | ||
shall prepare a report addressing the district's compliance with | ||
this section. The[ |
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together with the policy or contract for the group health coverage | ||
plan, at the central administrative office of each campus in the | ||
district and be posted on the district's Internet website if the | ||
district maintains a website, must be based on the district group | ||
health coverage plan in effect during the current plan year, and | ||
must include: | ||
(1) appropriate documentation of: | ||
(A) the district's contract for group health | ||
coverage with a provider licensed to do business in this state by | ||
the Texas Department of Insurance or a risk pool authorized under | ||
Chapter 172, Local Government Code; or | ||
(B) a resolution of the board of trustees of the | ||
district authorizing a self-insurance plan for district employees | ||
and of the district's review of district ability to cover the | ||
liability assumed; | ||
(2) the schedule of benefits; | ||
(3) the premium rate sheet, including the amount paid | ||
by the district and employee; | ||
(4) the number of employees covered by the health | ||
coverage plan offered by the district; and | ||
(5) information concerning the ease of completing the | ||
report[ |
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SECTION 2. Section 22.101(2), Education Code, is amended to | ||
read as follows: | ||
(2) "Employee" means an individual who: | ||
(A) is employed by one of the following employers | ||
in a position eligible for membership in [ |
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that employment [ |
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(i) [ |
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district;[ |
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(ii) another [ |
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whose employees are members of the Teacher Retirement System of | ||
Texas;[ |
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(iii) a participating charter school;[ |
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(iv) a regional education service center; | ||
(B) [ |
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[ |
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Insurance Code; and | ||
(C) [ |
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[ |
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establish eligibility for health care supplementation under this | ||
subchapter. | ||
SECTION 3. Section 42.260(c), Education Code, is amended to | ||
read as follows: | ||
(c) Notwithstanding any other provision of this code, a | ||
school district or participating charter school may use the | ||
following amount of funds only to pay contributions under a group | ||
health coverage plan for district or school employees: | ||
(1) an amount equal to 75 percent of the amount | ||
certified for the district or school under Subsection (b); or | ||
(2) if the following amount is less than the amount | ||
specified by Subdivision (1), the sum of: | ||
(A) 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 1579.251 [ |
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Code, by the number of district or school employees who participate | ||
in a group health coverage plan provided by or through the district | ||
or school; and | ||
(B) the difference between the amount necessary | ||
for the district or school to comply with Section 1581.052 [ |
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amount the district or school is required to use to provide health | ||
coverage under Section 1581.051, Insurance Code, [ |
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SECTION 4. Sections 821.001(4) and (6), Government Code, | ||
are amended to read as follows: | ||
(4) "Annual compensation" means the compensation to a | ||
member of the retirement system for service during a 12-month | ||
period determined by the retirement system [ |
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reportable and subject to contributions as provided by Section | ||
822.201. | ||
(6) "Employee" means a person who is employed, as | ||
determined by the retirement system, on other than a temporary | ||
basis by a single [ |
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regular rate of pay comparable to that of other persons employed in | ||
similar positions. | ||
SECTION 5. Section 822.001, Government Code, is amended by | ||
adding Subsection (c) to read as follows: | ||
(c) Membership in the retirement system may only be | ||
established through employment with a single employer on at least a | ||
half-time basis. | ||
SECTION 6. Section 822.003(c), Government Code, is amended | ||
to read as follows: | ||
(c) A person does not terminate membership under Subsection | ||
(a)(4) if the person: | ||
(1) is performing military service creditable in the | ||
retirement system; | ||
(2) is on leave of absence from employment in a public | ||
school; [ |
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(3) is earning service credit in another retirement | ||
system covered by Chapter 803 or 805; or | ||
(4) is employed by an employer covered by the | ||
retirement system and is not eligible for membership in the | ||
retirement system because the person is employed on less than a | ||
half-time basis. | ||
SECTION 7. Section 822.005(c), Government Code, is amended | ||
to read as follows: | ||
(c) A person is not entitled to withdraw contributions if | ||
the person [ |
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received a promise of employment with an employer[ |
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covered by the retirement system. | ||
SECTION 8. Section 822.201(b), Government Code, is amended | ||
to read as follows: | ||
(b) "Salary and wages" as used in Subsection (a) means: | ||
(1) normal periodic payments of money for service the | ||
right to which accrues on a regular basis in proportion to the | ||
service performed; | ||
(2) amounts by which the member's salary is reduced | ||
under a salary reduction agreement authorized by Chapter 610; | ||
(3) amounts that would otherwise qualify as salary and | ||
wages under Subdivision (1) but are not received directly by the | ||
member pursuant to a good faith, voluntary written salary reduction | ||
agreement in order to finance payments to a deferred compensation | ||
or tax sheltered annuity program specifically authorized by state | ||
law or to finance benefit options under a cafeteria plan qualifying | ||
under Section 125 of the Internal Revenue Code of 1986, if: | ||
(A) the program or benefit options are made | ||
available to all employees of the employer; and | ||
(B) the benefit options in the cafeteria plan are | ||
limited to one or more options that provide deferred compensation, | ||
group health and disability insurance, group term life insurance, | ||
dependent care assistance programs, or group legal services plans; | ||
(4) performance pay awarded to an employee by a school | ||
district as part of a total compensation plan approved by the board | ||
of trustees of the district and meeting the requirements of | ||
Subsection (e); | ||
(5) the benefit replacement pay a person earns under | ||
Subchapter H, Chapter 659, except as provided by Subsection (c); | ||
(6) stipends paid to teachers in accordance with | ||
Section 21.410, 21.411, 21.412, or 21.413, Education Code; | ||
(7) amounts by which the member's salary is reduced or | ||
that are deducted from the member's salary as authorized by | ||
Subchapter J, Chapter 659; | ||
(8) a merit salary increase made under Section 51.962, | ||
Education Code; | ||
(9) amounts received under the relevant parts of the | ||
educator excellence awards program under Subchapter O, Chapter 21, | ||
Education Code, or a mentoring program under Section 21.458, | ||
Education Code, that authorize compensation for service; | ||
(10) salary amounts designated as health care | ||
supplementation by an employee under Subchapter D, Chapter 22, | ||
Education Code; and | ||
(11) to the extent required by Sections 3401(h) and | ||
414(u)(12) [ |
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differential wage payments received by an individual from an | ||
employer on or after January 1, 2009, while the individual is | ||
performing qualified military service as defined by Section 414(u), | ||
Internal Revenue Code of 1986. | ||
SECTION 9. Section 823.006, Government Code, is amended to | ||
read as follows: | ||
Sec. 823.006. LIMITS ON ANNUAL CONTRIBUTIONS FOR PURCHASE | ||
OF SERVICE CREDIT. Notwithstanding any other provision of this | ||
subtitle, the retirement system shall [ |
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service credit to the extent required by applicable limits on the | ||
amount of annual contributions a participant may make to a | ||
qualified plan under Sections 401(a) and 415(c), Internal Revenue | ||
Code of 1986. | ||
SECTION 10. Section 823.401, Government Code, is amended by | ||
amending Subsection (f) and adding Subsection (f-1) to read as | ||
follows: | ||
(f) Except as provided by Subsection (f-1), the [ |
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of service credit a member may establish under this section may not | ||
exceed the lesser of the number of years of membership service | ||
credit the member has in the retirement system for actual service in | ||
public schools or 15 years. | ||
(f-1) A member may not purchase more than five years of | ||
service credit under this section for service credit considered | ||
nonqualified service credit under Section 415(n)(3)(C), Internal | ||
Revenue Code of 1986. | ||
SECTION 11. Sections 824.007(a) and (b), Government Code, | ||
are amended to read as follows: | ||
(a) In this section, "program administrator" means the | ||
person who administers: | ||
(1) the uniform program under Section 1601.102, | ||
Insurance Code; or | ||
(2) the group program under Chapter 1575, Insurance | ||
Code. | ||
(b) An individual eligible to participate in the uniform | ||
program under Section 1601.102, Insurance Code, or the group | ||
program under Chapter 1575, Insurance Code, may authorize the | ||
retirement system to deduct the amount of the contribution and any | ||
other qualified health insurance premium from the individual's | ||
regular monthly service or disability retirement annuity payment if | ||
the individual is: | ||
(1) eligible to receive a monthly annuity from the | ||
retirement system greater than the amount of the authorized | ||
deduction; and | ||
(2) eligible under Section 402(l), Internal Revenue | ||
Code of 1986, or a similar law, to elect to exclude from annual | ||
gross income up to $3,000 of distributions from an eligible | ||
retirement plan used for qualified health insurance premiums. | ||
SECTION 12. Section 824.1012(a), Government Code, is | ||
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 of the optional annuity was | ||
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designated the spouse as beneficiary of the optional annuity, to | ||
change from the optional annuity to a standard retirement annuity | ||
under this subsection, the spouse or former spouse, as applicable, | ||
who was designated [ |
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sign a notarized consent to the change[ |
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jurisdiction over the marriage of [ |
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change [ |
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retirement system receives the request to change the plan, provided | ||
the signed consent form or court order, as applicable, is | ||
subsequently received by the retirement system [ |
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SECTION 13. Sections 824.1013(b) and (c-1), Government | ||
Code, are amended to read as follows: | ||
(b) If the beneficiary designated at the time of the | ||
retiree's retirement is the spouse of the retiree at the time of the | ||
designation: | ||
(1) the spouse must give written, 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 | ||
approve or order [ |
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(c-1) Notwithstanding Subsection (c), a beneficiary | ||
designated under this section is entitled on the retiree's death to | ||
receive monthly payments of the survivor's portion of the retiree's | ||
optional retirement annuity for the remainder of the beneficiary's | ||
life if the beneficiary designated at the time of the retiree's | ||
retirement is a trust and the beneficiary designated under this | ||
section is: | ||
(1) the sole beneficiary of that trust; or | ||
(2) an individual who is the sole beneficiary | ||
designated in the trust instrument to receive the survivor's | ||
portion of the retiree's optional retirement annuity. | ||
SECTION 14. 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 15. Section 825.115, Government Code, is amended by | ||
adding Subsection (f) to read as follows: | ||
(f) Notwithstanding any other law, Chapter 551 does not | ||
apply to an assembly of the board of trustees or one of the board's | ||
committees while attending a summit, conference, convention, | ||
workshop, or other event held for educational purposes if the | ||
assembly or committee does not deliberate, vote, or take action on a | ||
specific matter of public business or public policy over which the | ||
board of trustees or a committee of the board has supervision or | ||
control. This subsection does not apply to a regular, special, or | ||
emergency meeting of the board of trustees scheduled or called | ||
under the board's bylaws. | ||
SECTION 16. Section 825.208(b), Government Code, is amended | ||
to read as follows: | ||
(b) The retirement system is exempt from Sections 651.002 | ||
and 651.004, Chapter 660, [ |
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Subchapter A, Chapter 661, to the extent the board of trustees | ||
determines an exemption is necessary for the performance of | ||
fiduciary duties. | ||
SECTION 17. Section 825.212, Government Code, is amended by | ||
adding Subsection (d) to read as follows: | ||
(d) Notwithstanding any other law, all personal financial | ||
disclosures made by employees of the retirement system under this | ||
section, including a rule or policy adopted under this section, are | ||
confidential and excepted from the requirements of Section 552.021. | ||
SECTION 18. Section 825.306, Government Code, is amended to | ||
read as follows: | ||
Sec. 825.306. CREDITING SYSTEM ASSETS. (a) The assets of | ||
the retirement system shall be maintained and reported in a manner | ||
that reflects the source of the assets or the purpose for which the | ||
assets are held, using appropriate ledgers and subledgers, in | ||
accordance with generally accepted accounting principles | ||
prescribed by the Governmental Accounting Standards Board or its | ||
successor. In addition, the maintenance and reporting of the | ||
assets must be in compliance with applicable tax law and consistent | ||
with any fiduciary duty owed with respect to the trust. In the | ||
alternative, the assets may be credited, according to the purpose | ||
for which they are held, to one of the following accounts: | ||
(1) member savings account; | ||
(2) state contribution account; | ||
(3) retired reserve account; | ||
(4) interest account; | ||
(5) expense account; or | ||
(6) deferred retirement option account. | ||
(b) Notwithstanding any other law, a requirement to deposit | ||
in or transfer assets from one of the accounts described under | ||
Subsection (a) is satisfied by maintaining and reporting the assets | ||
in accordance with that subsection. | ||
SECTION 19. Section 825.312(a), Government Code, is amended | ||
to read as follows: | ||
(a) The retirement system shall deposit in the expense | ||
account: | ||
(1) money transferred from the interest account under | ||
Section 825.313(d); and | ||
(2) money received from the Texas Public School | ||
Retired Employees Group Benefits [ |
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performed for the program by the retirement system. | ||
SECTION 20. Section 825.403, Government Code, is amended by | ||
amending Subsections (h) and (j) and adding Subsections (h-1), | ||
(h-2), (h-3), and (h-4) to read as follows: | ||
(h) Subject to Subsections (h-1), (h-2), (h-3), and (h-4), | ||
if [ |
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retirement system may not provide benefits based on the service or | ||
compensation unless the deposits required by this section have been | ||
fully paid. | ||
(h-1) If, due to an error, an employer does not report to the | ||
retirement system all service rendered or compensation paid as | ||
required by this section and the error relates to service rendered | ||
or compensation paid by a member in: | ||
(1) the current school year, the error may be | ||
corrected by submitting to the retirement system in the manner | ||
prescribed by the retirement system: | ||
(A) a corrected report; and | ||
(B) contributions on the unreported service or | ||
compensation, plus interest at the rate provided under Section | ||
825.408, computed from the final date on which the service or | ||
compensation should have been reported to the retirement system to | ||
the date the contributions related to that service or compensation | ||
are submitted to the retirement system; or | ||
(2) the preceding school year, the error may be | ||
corrected if the following requirements are met: | ||
(A) the member for whom contributions are due is | ||
employed by the employer and the employer owes the member | ||
compensation payable in the current year; | ||
(B) the employer requests from the retirement | ||
system a waiver of the documentation requirements under Section | ||
825.408(a) and the request is granted by the retirement system; | ||
(C) the employer, in the manner prescribed by the | ||
retirement system: | ||
(i) submits to the retirement system member | ||
contributions on the unreported service or compensation in the | ||
manner provided by Section 825.409 by making the corresponding | ||
reduction in the compensation owed to the member; | ||
(ii) submits to the retirement system any | ||
employer contributions due on the compensation; | ||
(iii) pays the interest on the | ||
contributions described by Subparagraphs (i) and (ii) at the rate | ||
provided by Section 825.408; and | ||
(iv) corrects the records relating to the | ||
report months in which the service or compensation are at issue; and | ||
(D) the error is corrected in accordance with | ||
this subsection not later than the final day of the school year | ||
following the school year in which the service or compensation at | ||
issue was rendered or paid, as applicable. | ||
(h-2) On receipt of the member and employer contributions | ||
and the corrected reports under Subsection (h-1), the retirement | ||
system shall credit the service or compensation, as applicable, to | ||
the member. | ||
(h-3) The retirement system may not credit service or | ||
compensation to a member in the manner provided by Subsections | ||
(h-1) and (h-2) for service rendered or compensation received by a | ||
member in any school year before the preceding school year. If | ||
service is rendered or compensation paid by a member in a school | ||
year before the preceding school year, the member's [ |
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employer at the time the unreported service was rendered or | ||
compensation was paid must verify the service or compensation as | ||
required by Subsection (j) and the member [ |
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verification to the retirement system not later than five years | ||
after the end of the school year in which the service was rendered | ||
or compensation was paid. To establish the service or compensation | ||
credit, the member [ |
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the actuarial present value, at the time of deposit, of the | ||
additional standard retirement annuity benefits that would be | ||
attributable to the purchase of service or compensation credit | ||
under this section, based on rates and tables recommended by the | ||
retirement system's actuary and adopted by the board of trustees. | ||
(h-4) The board of trustees shall: | ||
(1) prescribe terms for payments under Subsections | ||
(h-1), (h-2), and (h-3) [ |
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(2) credit the member [ |
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compensation to which the member [ |
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subtitle. | ||
(j) Except as otherwise provided by this section, if [ |
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deductions were previously required but not paid, proof of service | ||
satisfactory to the retirement system must be made before service | ||
credit is granted or payment for the credit is required. Proof of | ||
service is sufficient if the member's [ |
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that the employer has records made at or near the time of service | ||
that establish the amount of time worked and salary earned. An | ||
affidavit based on memory without written records made at or near | ||
the time of service is not sufficient documentation for the | ||
establishment of service credit. The retirement system may audit | ||
records used for documentation under this subsection. A member | ||
[ |
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section may not establish the service or compensation credit. | ||
SECTION 21. Section 825.408(a), Government Code, is amended | ||
to read as follows: | ||
(a) An employer that fails to remit, before the seventh day | ||
after the last day of a month, all member and employer deposits and | ||
documentation of the deposits required by this subchapter to be | ||
remitted by the employer for the month shall pay to the retirement | ||
system, in addition to the deposits, interest on the unpaid [ |
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subsection and a late fee in an amount determined by the retirement | ||
system [ |
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established under Section 825.313(b)(1), plus two percent. | ||
Interest required under this subsection [ |
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the interest account. The [ |
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grant a waiver of the deadline imposed by this subsection [ |
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SECTION 22. Section 825.4092(c), Government Code, is | ||
amended to read as follows: | ||
(c) Except as provided by Subsection (e), each payroll | ||
period, for each retiree who is enrolled in the Texas Public School | ||
Employees Group Insurance Program under Chapter 1575, Insurance | ||
Code, the employer who reports the employment of a retiree shall | ||
contribute to the trust fund established under that chapter an | ||
amount established by the retirement system. In determining the | ||
amount to be contributed by the employer under this subsection, the | ||
retirement system shall consider [ |
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amount the retiree is required to pay for the retiree and any | ||
enrolled dependents to participate in the group program and the | ||
average [ |
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participation in the group program[ |
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to the retirement system during a month, the amount of the required | ||
payment shall be prorated among the employers. | ||
SECTION 23. Section 825.410(a), Government Code, is amended | ||
to read as follows: | ||
(a) Payments to establish special service credit as | ||
authorized under this subtitle, other than service credit that may | ||
only be determined and paid for at the time of retirement such as | ||
unused leave as authorized by Section 823.403, may be made in a lump | ||
sum by a monthly payroll deduction in an amount not less than | ||
one-twelfth of the contribution required to establish at least one | ||
year of service credit, or in equal monthly installments over a | ||
period not to exceed the lesser of the number of years of credit to | ||
be purchased or 60 months. Installment and payroll deduction | ||
payments are due on the first day of each calendar month in the | ||
payment period. If an installment or payroll deduction payment is | ||
not made in full within 60 days after the due date, the retirement | ||
system may refund all installment or payroll deduction payments | ||
less fees paid on the lump sum due when installment or payroll | ||
deduction payments began. Partial payment of an installment or | ||
payroll deduction payment may be treated as nonpayment. A check | ||
returned for insufficient funds or a closed account shall be | ||
treated as nonpayment. When two or more consecutive monthly | ||
payments have a returned check, a refund may be made. [ |
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SECTION 24. Section 825.504, Government Code, is amended by | ||
amending Subsection (c) and adding Subsection (d) to read as | ||
follows: | ||
(c) Each reporting district shall cooperate with the | ||
retirement system in ascertaining: | ||
(1) a member's eligibility for membership in the | ||
retirement system; | ||
(2) a member's annual earnings, employment status, and | ||
hours and days worked during any year; and | ||
(3) any other information the retirement system | ||
requires from the employer to administer the retirement system's | ||
benefit plan. | ||
(d) The board of trustees by rule may prescribe the form of | ||
and procedures for filing certifications required by this section. | ||
SECTION 25. Section 825.505, Government Code, is amended to | ||
read as follows: | ||
Sec. 825.505. AUDITS. For the purpose of determining the | ||
propriety of employer reports, including demographic data, and | ||
contributions or credits, the records of an employer concerning the | ||
employment and compensation of all its personnel are subject to | ||
audit and examination, in the offices of the employer during | ||
regular working hours, by representatives of the retirement system | ||
designated to conduct the audit and examination. | ||
SECTION 26. Section 825.508(b), Government Code, is amended | ||
to read as follows: | ||
(b) The system must honor a power of attorney executed in | ||
accordance with Chapter 752, Estates [ |
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SECTION 27. Section 825.509(b-1), Government Code, is | ||
amended to read as follows: | ||
(b-1) Notwithstanding Subsection (b)(3), with respect to a | ||
distribution made on or after January 1, 2002, an otherwise | ||
eligible portion of a rollover distribution that consists of | ||
after-tax employee contributions not includable in gross income is | ||
an eligible rollover distribution for purposes of this section. | ||
The eligible portion may be transferred only: | ||
(1) to an individual retirement account or annuity | ||
described by Section 408(a) or (b), Internal Revenue Code of 1986; | ||
(2) to a qualified plan described by Section 403(a), | ||
Internal Revenue Code of 1986; | ||
(3) for distributions occurring on or after January 1, | ||
2007, to a qualified plan described by Section 401(a), Internal | ||
Revenue Code of 1986, if the plan separately accounts for: | ||
(A) the amounts transferred and the earnings on | ||
amounts transferred; and | ||
(B) the portion of the distribution that is | ||
includable in gross income and the portion of the distribution that | ||
is not includable in gross income; or | ||
(4) to an annuity contract described by Section | ||
403(b), Internal Revenue Code of 1986, that agrees to separately | ||
account for amounts transferred and earnings on amounts | ||
transferred, including for the portion of the distribution that is | ||
includable in gross income and the portion of the distribution that | ||
is not includable in gross income. | ||
SECTION 28. 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 as Administrative/Professional, Teacher/Full-Time | ||
Librarian, Support, Bus Driver, Food Service Worker, 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 29. Section 830.201(h), Government Code, is amended | ||
to read as follows: | ||
(h) Before November 2 of each even-numbered year, the Texas | ||
Higher Education Coordinating Board [ |
||
coordination with the Legislative Budget Board, shall certify to | ||
the comptroller for review and adoption an estimate of the amount | ||
necessary to pay the state's contributions to the retirement system | ||
for the following biennium. For qualifying employees under | ||
Subsection (g)(1), the Texas Higher Education Coordinating Board | ||
[ |
||
state under Subsection (g)(1) in determining the amount to be | ||
certified. | ||
SECTION 30. The heading to Chapter 1575, Insurance Code, is | ||
amended to read as follows: | ||
CHAPTER 1575. TEXAS PUBLIC SCHOOL RETIRED EMPLOYEES GROUP | ||
BENEFITS PROGRAM | ||
SECTION 31. Section 1575.002(4), Insurance Code, is amended | ||
to read as follows: | ||
(4) "Group program" means the Texas Public School | ||
Retired Employees Group Benefits [ |
||
this chapter. | ||
SECTION 32. Section 1575.004(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) In this chapter, "retiree" means: | ||
(1) an individual not eligible, at the time of the | ||
individual's retirement, for coverage under a plan provided under | ||
Chapter 1551 or 1601 who: | ||
(A) has taken a service retirement under the | ||
Teacher Retirement System of Texas after September 1, 2005, with at | ||
least 10 years of service credit in the system, which may include up | ||
to five years of military service credit, but which may not include | ||
any other service credit purchased for equivalent or special | ||
service credit, and either: | ||
(i) the sum of the retiree's age and years | ||
of service credit in the retirement system equals or exceeds 80 at | ||
the time of retirement, regardless of whether the retiree had a | ||
reduction in the retirement annuity for early age; or | ||
(ii) the retiree has 30 or more years of | ||
service credit in the retirement system at the time of retirement; | ||
(B) has taken a service retirement under the | ||
Teacher Retirement System of Texas after September 1, 2004, but on | ||
or before August 31, 2005, and on September 1, 2005, either: | ||
(i) meets the requirements for eligibility | ||
for the group program for coverage as a retiree as those | ||
requirements existed on August 31, 2004; | ||
(ii) meets the requirements of Paragraph | ||
(A); or | ||
(iii) is enrolled in the group program and | ||
was enrolled in the group program on August 31, 2005; or | ||
(C) has taken a service retirement under the | ||
Teacher Retirement System of Texas on or before August 31, 2004, and | ||
who is enrolled in the group program on August 31, 2005; | ||
(2) an individual who: | ||
(A) has taken a disability retirement under the | ||
Teacher Retirement System of Texas; and | ||
(B) is entitled to receive monthly benefits from | ||
the Teacher Retirement System of Texas; or | ||
(3) an individual who: | ||
(A) has taken a disability retirement under the | ||
Teacher Retirement System of Texas; | ||
(B) has at least 10 years of service credit in the | ||
Teacher Retirement System of Texas on the date of disability | ||
retirement, as determined under Section 824.304, Government Code; | ||
and | ||
(C) is not entitled to receive monthly benefits | ||
from the Teacher Retirement System of Texas because those benefits | ||
have been suspended in accordance with Section 824.310, Government | ||
Code. | ||
SECTION 33. Section 1575.153, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1575.153. BASIC COVERAGE. A retiree who applies for | ||
coverage during an enrollment period may not be denied coverage in a | ||
basic plan provided under this chapter unless: | ||
(1) the retiree's coverage is suspended under Section | ||
1575.165; or | ||
(2) the trustee finds under Subchapter K that the | ||
retiree defrauded or attempted to defraud the group program. | ||
SECTION 34. Section 1575.155(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) Subject to Section 1575.165, a [ |
||
participating in the group program is entitled to secure for the | ||
retiree's dependents group coverage provided for the retiree under | ||
this chapter, as determined by the trustee. | ||
SECTION 35. Section 1575.158(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) Subject to Sections [ |
||
the trustee may, in addition to providing a basic plan, contract for | ||
and make available an optional group health benefit plan for | ||
retirees, dependents, surviving spouses, or surviving dependent | ||
children. | ||
SECTION 36. Subchapter D, Chapter 1575, Insurance Code, is | ||
amended by adding Section 1575.165 to read as follows: | ||
Sec. 1575.165. SUSPENSION AND REACTIVATION OF COVERAGE | ||
UNDER GROUP PROGRAM. (a) Coverage under the group program for a | ||
retiree and the retiree's dependents shall be suspended during any | ||
period the retiree is: | ||
(1) eligible for and elects health benefit coverage | ||
under a plan provided under Chapter 1551 or 1601; or | ||
(2) employed by a public school and is, as a result of | ||
that employment, eligible for health benefit coverage offered by | ||
the school. | ||
(b) During the period a retiree's coverage under the group | ||
program is suspended under this section, the retiree and the | ||
retiree's dependents shall remain enrolled in the group program. | ||
(c) A retiree and the retiree's eligible dependents whose | ||
coverage under the group program is suspended under this section | ||
shall be reactivated at the time the retiree: | ||
(1) ceases to be covered under a plan provided under | ||
Chapter 1551 or 1601, if the retiree is subject to Subsection | ||
(a)(1); or | ||
(2) terminates employment with or ceases to be | ||
eligible for health benefit coverage offered by a public school, if | ||
the retiree is subject to Subsection (a)(2). | ||
(d) The trustee shall adopt rules necessary to implement | ||
this section. | ||
SECTION 37. Section 1575.204(b), Insurance Code, is amended | ||
to read as follows: | ||
(b) Each state fiscal year, each employer who reports to the | ||
retirement system under Section 824.6022, Government Code, the | ||
employment of a retiree who is enrolled in and receiving coverage | ||
under the group program shall contribute to the fund an amount | ||
established by the trustee. In determining the amount to be | ||
contributed by the employer under this subsection, the trustee | ||
shall consider the [ |
||
amount a [ |
||
retiree and any enrolled dependents to participate in the group | ||
program and the [ |
||
enrolled dependents' participation in the group program[ |
||
|
||
retiree to the retirement system during a month, the amount of the | ||
contribution required by this subsection shall be prorated among | ||
the employers. The amounts required to be paid under this | ||
subsection are not required to be paid by a reporting employer for a | ||
retiree who retired from the retirement system before September 1, | ||
2005. | ||
SECTION 38. Section 1575.207, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1575.207. INTEREST ASSESSED ON LATE PAYMENT OF | ||
DEPOSITS BY EMPLOYING PUBLIC SCHOOLS. (a) An employing public | ||
school that does not remit to the trustee all contributions | ||
required by this subchapter before the seventh day after the last | ||
day of the month shall pay to the fund: | ||
(1) the contributions; and | ||
(2) interest on the unpaid amounts at the annual rate | ||
of six percent [ |
||
(b) The [ |
||
deadline imposed by this section [ |
||
|
||
SECTION 39. Section 1579.003, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1579.003. DEFINITION OF EMPLOYEE. In this chapter, | ||
"employee" means an individual [ |
||
|
||
participating entity for an average of at least 10 hours per week | ||
and who is not receiving coverage from a program under Chapter 1551, | ||
1575, or 1601. The term does not include an individual performing | ||
personal services as an independent contractor. | ||
SECTION 40. 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 an [ |
||
employee; | ||
(2) a child of an [ |
||
if the child is younger than 26 years of age, 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 natural child; | ||
(3) an [ |
||
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 an [ |
||
specified by rules adopted by the board of trustees. | ||
SECTION 41. Section 1579.006(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) The following are exempt from execution, attachment, | ||
garnishment, or any other process: | ||
(1) benefit payments, including optional benefit | ||
payments; | ||
(2) contributions of [ |
||
and a participating entity, and any other contributions; | ||
(3) any rights, benefits, or payments accruing to any | ||
person under this chapter; and | ||
(4) any money in the Texas school employees uniform | ||
group coverage trust fund. | ||
SECTION 42. Section 1579.202, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1579.202. ELIGIBLE EMPLOYEES. (a) Except as provided | ||
by Section 1579.204, participation in the program is limited to | ||
employees of participating entities who are full-time or [ |
||
|
||
|
||
(b) An employee described by Subsection (a) who applies for | ||
coverage during an open enrollment period prescribed by the trustee | ||
is automatically covered by the catastrophic care coverage plan | ||
unless the employee: | ||
(1) [ |
||
[ |
||
(2) [ |
||
SECTION 43. Section 1579.204, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1579.204. CERTAIN PART-TIME EMPLOYEES. | ||
Notwithstanding any other provision of this chapter, a [ |
||
part-time employee of a participating entity [ |
||
|
||
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 for [ |
||
SECTION 44. Section 1579.255, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1579.255. INTEREST ASSESSED ON LATE PAYMENT OF | ||
CONTRIBUTIONS BY PARTICIPATING ENTITIES. (a) A participating | ||
entity that does not remit to the trustee all contributions | ||
required by this subchapter before the 16th [ |
||
|
||
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) The [ |
||
deadline imposed by this section based on a participating entity's | ||
financial or technological resources. | ||
SECTION 45. Section 1581.001(1), Insurance Code, is amended | ||
to read as follows: | ||
(1) "Participating employee" means an employee of a | ||
school district, other educational district whose employees are | ||
members of the Teacher Retirement System of Texas, participating | ||
charter school, or regional education service center who | ||
participates in a group health coverage plan provided by or through | ||
the district, school, or service center, including an employee | ||
whose coverage under the group program established under Chapter | ||
1575 has been suspended. | ||
SECTION 46. Subchapter B, Chapter 1581, Insurance Code, is | ||
amended by adding Section 1581.055 to read as follows: | ||
Sec. 1581.055. REPORTING REQUIREMENT. Each school | ||
district, other educational district whose employees are members of | ||
the Teacher Retirement System of Texas, participating charter | ||
school, and regional education service center shall annually report | ||
to the Teacher Retirement System of Texas, under rules adopted by | ||
the retirement system, the monthly amount each uses to provide | ||
health coverage under this chapter. | ||
SECTION 47. The following provisions are repealed: | ||
(1) Section 825.404(b-1), Government Code; and | ||
(2) Section 1579.106(c), Insurance Code. | ||
SECTION 48. Section 821.001(4), Government Code, as amended | ||
by this Act, applies only to a member of the Teacher Retirement | ||
System of Texas who retires on or after the effective date of this | ||
Act. | ||
SECTION 49. Sections 821.001(6) and 822.001, Government | ||
Code, as amended by this Act, apply only to a person who becomes a | ||
member of the Teacher Retirement System of Texas on or after the | ||
effective date of this Act. | ||
SECTION 50. Section 825.4092(c), Government Code, as | ||
amended by this Act, applies to a retiree of the Teacher Retirement | ||
System of Texas regardless of whether the person retired from | ||
employment before, on, or after the effective date of this Act. | ||
SECTION 51. The changes in law made by this Act apply only | ||
to health benefit plans provided under Chapters 1575, 1579, and | ||
1581, Insurance Code, beginning with the first plan year that | ||
begins on or after September 1, 2015. A plan year that begins | ||
before September 1, 2015, is governed by the law as it existed | ||
immediately before that date and that law is continued in effect for | ||
that purpose. | ||
SECTION 52. This Act takes effect September 1, 2015. | ||
* * * * * |