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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of and benefits payable by the |
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Teacher Retirement System of Texas and to certain domestic |
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relations orders. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 411.081(i), Government Code, as amended |
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by Chapters 183 (H.B. 1830), 780 (S.B. 1056), 816 (S.B. 1599), and |
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1027 (H.B. 4343), Acts of the 81st Legislature, Regular Session, |
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2009, is reenacted and amended to read as follows: |
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(i) A criminal justice agency may disclose criminal history |
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record information that is the subject of an order of nondisclosure |
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under Subsection (d) to the following noncriminal justice agencies |
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or entities only: |
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(1) the State Board for Educator Certification; |
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(2) a school district, charter school, private school, |
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regional education service center, commercial transportation |
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company, or education shared service arrangement; |
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(3) the Texas Medical Board; |
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(4) the Texas School for the Blind and Visually |
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Impaired; |
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(5) the Board of Law Examiners; |
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(6) the State Bar of Texas; |
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(7) a district court regarding a petition for name |
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change under Subchapter B, Chapter 45, Family Code; |
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(8) the Texas School for the Deaf; |
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(9) the Department of Family and Protective Services; |
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(10) the Texas Youth Commission; |
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(11) the Department of Assistive and Rehabilitative |
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Services; |
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(12) the Department of State Health Services, a local |
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mental health service, a local mental retardation authority, or a |
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community center providing services to persons with mental illness |
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or retardation; |
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(13) the Texas Private Security Board; |
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(14) a municipal or volunteer fire department; |
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(15) the Texas Board of Nursing; |
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(16) a safe house providing shelter to children in |
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harmful situations; |
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(17) a public or nonprofit hospital or hospital |
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district; |
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(18) the Texas Juvenile Probation Commission; |
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(19) the securities commissioner, the banking |
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commissioner, the savings and mortgage lending commissioner, or the |
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credit union commissioner; |
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(20) the Texas State Board of Public Accountancy; |
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(21) the Texas Department of Licensing and Regulation; |
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(22) the Health and Human Services Commission; |
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(23) the Department of Aging and Disability Services; |
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(24) the Texas Education Agency; [and] |
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(25) the Guardianship Certification Board; [and] |
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(26) a county clerk's office in relation to a |
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proceeding for the appointment of a guardian under Chapter XIII, |
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Texas Probate Code; |
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(27) [(25)] the Department of Information Resources |
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but only regarding an employee, applicant for employment, |
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contractor, subcontractor, intern, or volunteer who provides |
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network security services under Chapter 2059 to: |
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(A) the Department of Information Resources; or |
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(B) a contractor or subcontractor of the |
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Department of Information Resources; |
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(28) [(25)] the Court Reporters Certification Board; |
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[and] |
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(29) [(25)] the Texas Department of Insurance; and |
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(30) the Teacher Retirement System of Texas. |
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SECTION 2. Subchapter F, Chapter 411, Government Code, is |
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amended by adding Section 411.0971 to read as follows: |
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Sec. 411.0971. ACCESS TO CRIMINAL HISTORY RECORD |
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INFORMATION: TEACHER RETIREMENT SYSTEM OF TEXAS. (a) The Teacher |
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Retirement System of Texas is entitled to obtain from the |
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department, the Federal Bureau of Investigation Criminal Justice |
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Information Services Division, or another law enforcement agency |
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criminal history record information maintained by the department, |
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division, or agency that relates to a person who: |
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(1) is an employee or an applicant for employment with |
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the retirement system; |
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(2) is a consultant, contract employee, independent |
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contractor, intern, or volunteer for the retirement system or an |
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applicant to serve in one of those positions; |
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(3) proposes to enter into a contract with or has a |
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contract with the retirement system to perform services for or |
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supply goods to the retirement system; or |
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(4) is an employee or subcontractor, or an applicant |
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to be an employee or subcontractor, of a contractor that provides |
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services to the retirement system. |
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(b) Criminal history record information obtained by the |
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Teacher Retirement System of Texas under Subsection (a) may not be |
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released or disclosed to any person except: |
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(1) on court order; |
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(2) with the consent of the person who is the subject |
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of the criminal history record information; or |
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(3) to a federal agency as required by federal law or |
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executive order. |
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(c) The Teacher Retirement System of Texas shall destroy |
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criminal history record information obtained under this section |
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after the information is used for the purposes authorized by this |
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section. |
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(d) The Teacher Retirement System of Texas may provide a |
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copy of the criminal history record information obtained from the |
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department, the Federal Bureau of Investigation Criminal Justice |
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Information Services Division, or other law enforcement agency to |
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the individual who is the subject of the information. |
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(e) The failure or refusal of an employee or applicant to |
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provide the following on request constitutes good cause for |
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dismissal or refusal to hire: |
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(1) a complete set of fingerprints; |
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(2) a true and complete name; or |
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(3) other information necessary for a law enforcement |
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entity to obtain criminal history record information. |
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SECTION 3. Subchapter F, Chapter 551, Government Code, is |
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amended by adding Section 551.130 to read as follows: |
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Sec. 551.130. BOARD OF TRUSTEES OF TEACHER RETIREMENT |
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SYSTEM OF TEXAS; TELEPHONE CONFERENCE CALL. (a) In this section, |
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"board" means the board of trustees of the Teacher Retirement |
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System of Texas. |
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(b) Except as provided by this section, this chapter does |
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not prohibit the board from holding an open or closed meeting by |
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telephone conference call. |
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(c) A meeting held by telephone conference call by the board |
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may be held only if a quorum of the board is physically present at a |
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single location that is open to the public during any open portion |
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of the meeting. |
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(d) The telephone conference call meeting is subject to the |
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notice requirements applicable to other meetings. |
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(e) The notice of the telephone conference call meeting must |
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specify as the location of the meeting the location where the quorum |
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of the board of trustees will be physically present. |
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(f) Each part of the telephone conference call meeting that |
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is open to the public must be audible to the public at the location |
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specified in the notice of the meeting and shall be tape-recorded at |
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that location. The tape recording shall be made available to the |
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public. |
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(g) The meeting location specified in the notice must |
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provide two-way communication during the entire telephone |
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conference call, and the identification of each party to the |
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telephone conference must be clearly stated before the party |
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speaks. |
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(h) A board member who participates in a board meeting by |
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telephone conference call and who is not physically present at the |
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location of the meeting is not considered absent from the meeting |
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for any purpose, including for purposes of Section 825.010(a). |
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(i) This section does not authorize a person who is not a |
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board member to speak at a meeting from a remote location by |
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telephone conference call, except as provided by Section 551.129. |
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SECTION 4. Subchapter C, Chapter 552, Government Code, is |
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amended by adding Section 552.153 to read as follows: |
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Sec. 552.153. EXCEPTION: NAME OF APPLICANT FOR EXECUTIVE |
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DIRECTOR, CHIEF INVESTMENT OFFICER, OR CHIEF AUDIT EXECUTIVE OF |
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TEACHER RETIREMENT SYSTEM OF TEXAS. The name of an applicant for |
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the position of executive director, chief investment officer, or |
|
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chief audit executive of the Teacher Retirement System of Texas is |
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excepted from the requirements of Section 552.021, except that the |
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board of trustees of the Teacher Retirement System of Texas must |
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give public notice of the names of three finalists being considered |
|
|
for one of those positions at least 21 days before the date of the |
|
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meeting at which the final action or vote is to be taken on choosing |
|
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a finalist for employment. |
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SECTION 5. Section 804.003, Government Code, is amended by |
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|
amending Subsections (f) and (g) and adding Subsection (p) to read |
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|
as follows: |
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(f) A domestic relations order is a qualified domestic |
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relations order only if such order: |
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(1) clearly specifies the: |
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(A) name[, social security number,] and last |
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known mailing address[, if any,] of: |
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(i) the member or retiree; and |
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(ii) [the name, social security number, and
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mailing address of] each alternate payee covered by the order; and |
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(B) social security number, or an express |
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|
authorization for the parties to use an alternate method acceptable |
|
|
to the public retirement system to verify the social security |
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|
number, of the member or retiree and each alternate payee covered by |
|
|
the order; |
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(2) clearly specifies the amount or percentage of the |
|
|
member's or retiree's benefits to be paid by a public retirement |
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|
system to each such alternate payee or the manner in which such |
|
|
amount or percentage is to be determined; |
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(3) clearly specifies the number of payments or the |
|
|
period to which such order applies; |
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|
(4) clearly specifies that such order applies to a |
|
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designated public retirement system; |
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(5) does not require the public retirement system to |
|
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provide any type or form of benefit or any option not otherwise |
|
|
provided under the plan; |
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(6) does not require the public retirement system to |
|
|
provide increased benefits determined on the basis of actuarial |
|
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value; |
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(7) does not require the payment of benefits to an |
|
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alternate payee which are required to be paid to another alternate |
|
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payee under another order previously determined to be a qualified |
|
|
domestic relations order; and |
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(8) does not require the payment of benefits to an |
|
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alternate payee before the retirement of a member, the distribution |
|
|
of a withdrawal of contributions to a member, or other distribution |
|
|
to a member required by law. |
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(g) A public retirement system may reject a domestic |
|
|
relations order as a qualified domestic relations order unless the |
|
|
order: |
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(1) provides for a proportional reduction of the |
|
|
amount awarded to an alternate payee in the event of the retirement |
|
|
of the member before normal retirement age; |
|
|
(2) does not purport to require the designation of a |
|
|
particular person as the recipient of benefits in the event of a |
|
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member's or annuitant's death; |
|
|
(3) does not purport to require the selection of a |
|
|
particular benefit payment plan or option; |
|
|
(4) provides clearly for each possible benefit |
|
|
distribution under plan provisions; |
|
|
(5) does not require any action on the part of the |
|
|
retirement system contrary to its governing statutes or plan |
|
|
provision other than the direct payment of the benefit awarded to an |
|
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alternate payee; |
|
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(6) does not make the award of an interest contingent |
|
|
on any condition other than those conditions resulting in the |
|
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liability of a retirement system for payments under its plan |
|
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provisions; |
|
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(7) does not purport to award any future benefit |
|
|
increases that are provided or required by the legislature; [and] |
|
|
(8) provides for a proportional reduction of the |
|
|
amount awarded to an alternate payee in the event that benefits |
|
|
available to the retiree or member are reduced by law; and |
|
|
(9) if required by the retirement system, conforms to |
|
|
a model order adopted by the retirement system. |
|
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(p) A public retirement system may assess administrative |
|
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fees on a party who is subject to a domestic relations order for the |
|
|
review of the order under this subchapter and, as applicable, for |
|
|
the administration of payments under an order that is determined to |
|
|
be qualified. In addition to other methods of collecting fees that |
|
|
a retirement system may establish, the retirement system may deduct |
|
|
fees from payments made under the order. |
|
|
SECTION 6. Section 821.008, Government Code, is amended to |
|
|
read as follows: |
|
|
Sec. 821.008. PURPOSE OF RETIREMENT SYSTEM. (a) The |
|
|
purpose of the retirement system is to invest and protect funds of |
|
|
the retirement system and to deliver the benefits provided by |
|
|
statute, not to advocate or influence legislative action or |
|
|
inaction or to advocate higher benefits. |
|
|
(b) This section does not prohibit comments by an employee |
|
|
of the retirement system on federal laws, regulations, or other |
|
|
official actions or proposed actions affecting or potentially |
|
|
affecting the retirement system that are made in accordance with |
|
|
policies adopted by the board. |
|
|
SECTION 7. Section 823.002, Government Code, is amended by |
|
|
adding Subsection (b) to read as follows: |
|
|
(b) A member shall notify the retirement system in writing |
|
|
of membership service that has not been properly credited by the |
|
|
retirement system on an annual statement. The member must provide |
|
|
verification and make deposits as required by the retirement system |
|
|
before the service may be credited. A member must notify the |
|
|
retirement system of the service in writing on or before the last |
|
|
day of the fifth school year after the end of the school year in |
|
|
which the service was rendered for the service to be credited. |
|
|
SECTION 8. Subchapter A, Chapter 824, Government Code, is |
|
|
amended by adding Section 824.008 to read as follows: |
|
|
Sec. 824.008. DEDUCTIONS FROM AMOUNTS PAYABLE BY THE |
|
|
RETIREMENT SYSTEM. (a) Notwithstanding Section 821.005, the |
|
|
retirement system may deduct the amount of a person's indebtedness |
|
|
to the retirement system from an amount payable by the retirement |
|
|
system to the person or the person's estate and the distributees of |
|
|
the estate. |
|
|
(b) If the retirement system makes a payment to a |
|
|
participant who is deceased and the payment is not payable, the |
|
|
retirement system may deduct the amount of the payment from any |
|
|
amount payable by the retirement system to a person who received the |
|
|
payment or to that person's estate and distributees of the estate. |
|
|
SECTION 9. Section 824.1013, Government Code, is amended by |
|
|
adding Subsection (c-1) to read as follows: |
|
|
(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 the sole beneficiary of that trust. |
|
|
SECTION 10. Section 824.103(a), Government Code, is amended |
|
|
to read as follows: |
|
|
(a) Benefits payable on the death of a member or annuitant, |
|
|
except an optional retirement annuity under Section 824.204(c)(1), |
|
|
(c)(2), or (c)(5), are payable, and rights to elect survivor |
|
|
benefits, if applicable, are available, to one of the classes of |
|
|
persons described in Subsection (b), if: |
|
|
(1) the member or annuitant fails to designate a |
|
|
beneficiary before death; |
|
|
(2) a designated beneficiary does not survive the |
|
|
member or annuitant; [or] |
|
|
(3) a designated beneficiary, under Section 824.004, |
|
|
waives claims to benefits payable on the death of the member or |
|
|
annuitant; |
|
|
(4) a beneficiary designation is revoked under Section |
|
|
824.101(g); or |
|
|
(5) a person is not eligible to receive a benefit under |
|
|
Section 824.105. |
|
|
SECTION 11. Section 824.105, Government Code, is amended by |
|
|
amending Subsections (a), (c), and (d) and adding Subsection (f) to |
|
|
read as follows: |
|
|
(a) A benefit payable on the death of a member or annuitant |
|
|
may not be paid to a person who has been convicted of causing that |
|
|
death or who is otherwise ineligible under Subsection (f) but |
|
|
instead is payable to a person who would be entitled to the benefit |
|
|
had the convicted or otherwise ineligible person predeceased the |
|
|
decedent. |
|
|
(c) The retirement system shall reduce any annuity computed |
|
|
in part on the age of the convicted or otherwise ineligible person |
|
|
to a lump sum equal to the present value of the remainder of the |
|
|
annuity. The reduced amount is payable to a person entitled as |
|
|
provided by this section to receive the benefit. |
|
|
(d) The retirement system is not required to pay benefits |
|
|
under this section unless it receives actual notice of the |
|
|
conviction or other ground of ineligibility of a beneficiary. |
|
|
However, the retirement system may delay payment of a benefit |
|
|
payable on the death of a member or annuitant pending the results of |
|
|
a criminal investigation and of legal proceedings relating to the |
|
|
cause of death. |
|
|
(f) A person is ineligible to receive a benefit payable on |
|
|
the death of a member or annuitant if the person is: |
|
|
(1) found not guilty by reason of insanity under |
|
|
Chapter 46C, Code of Criminal Procedure, of causing the death of the |
|
|
member or annuitant; or |
|
|
(2) the subject of an indictment, information, |
|
|
complaint, or other charging instrument alleging that the person |
|
|
caused the death of the member or annuitant, and the person is |
|
|
determined to be incompetent to stand trial under Chapter 46B, Code |
|
|
of Criminal Procedure. |
|
|
SECTION 12. Sections 824.202(a-1) and (b-1), Government |
|
|
Code, are amended to read as follows: |
|
|
(a-1) This subsection applies only to a person who becomes a |
|
|
member of the retirement system on or after September 1, 2007 |
|
|
[2006]. A member subject to this subsection is eligible to retire |
|
|
and receive a standard service retirement annuity if: |
|
|
(1) the member is at least 65 years old and has at |
|
|
least five years of service credit in the retirement system; or |
|
|
(2) the member is at least 60 years old and has at |
|
|
least five years of service credit in the retirement system and the |
|
|
sum of the member's age and amount of service credit in the |
|
|
retirement system equals the number 80. |
|
|
(b-1) This subsection applies only to a person who becomes a |
|
|
member of the retirement system on or after September 1, 2007 |
|
|
[2006]. If a member subject to this subsection is at least 55 years |
|
|
old and has at least five years of service credit in the retirement |
|
|
system, but does not meet the requirements under Subsection (d-1), |
|
|
the member is eligible to retire and receive a service retirement |
|
|
annuity reduced from the standard service retirement annuity |
|
|
available under Subsection (a-1)(1), to a percentage derived from |
|
|
the following table: |
|
|
| Age at date of |
55 |
56 |
57 |
58 |
59 |
60 |
61 |
62 |
63 |
64 |
65 |
|
|
|
|
|
|
| Percentage of |
47% |
51% |
55% |
59% |
63% |
67% |
73% |
80% |
87% |
93% |
100% |
|
|
|
|
|
|
|
|
|
SECTION 13. Section 824.405, Government Code, is amended to |
|
|
read as follows: |
|
|
Sec. 824.405. TABLES FOR DETERMINATION OF DEATH BENEFIT |
|
|
ANNUITY. For the purpose of computing a death benefit annuity under |
|
|
Section 824.402(a)(4) or Section 824.403, the board of trustees |
|
|
shall extend the tables[:
|
|
|
[(1)] in Section 824.202 [824.202(b) or (b-1), as
|
|
|
applicable,] to ages earlier than indicated in the tables [55
|
|
|
years] by actuarially reducing the benefit available under the |
|
|
applicable table [at the age of 55 years] to the actuarial |
|
|
equivalent at the attained age of the member [beneficiary; and
|
|
|
[(2)
in Section 824.202(b) or (d-1), as applicable, to
|
|
|
ages earlier than the earliest retirement age by actuarially
|
|
|
reducing the benefit available at the earliest retirement age to
|
|
|
the actuarial equivalent at the attained age of the beneficiary]. |
|
|
SECTION 14. Section 825.002, Government Code, is amended by |
|
|
amending Subsections (f) and (g) and adding Subsection (h) to read |
|
|
as follows: |
|
|
(f) Persons considered for nomination under Subsection (c), |
|
|
(d), or (e) must have been nominated [by written ballot] at an |
|
|
election conducted under rules adopted by the board of trustees. |
|
|
(g) To provide for the nomination of persons for appointment |
|
|
under Subsection (d), the board shall send to each retiree of the |
|
|
retirement system: |
|
|
(1) notice of the deadline for filing as a candidate |
|
|
for nomination; |
|
|
(2) information on procedures to follow in filing as a |
|
|
candidate; and |
|
|
(3) instructions on how to request a paper ballot or |
|
|
vote in another manner established by the board, including by |
|
|
telephone or other electronic means [a written ballot]. |
|
|
(h) If only two persons are nominated under Subsection (c), |
|
|
(d), or (e), the governor shall appoint a member of the board to the |
|
|
applicable trustee position from the slate of two nominated |
|
|
persons. If only one person is nominated under Subsection (c), (d), |
|
|
or (e), the governor shall appoint that person to the applicable |
|
|
trustee position. If no member or retiree is nominated for a |
|
|
position under Subsection (c), (d), or (e), the governor shall |
|
|
appoint to the applicable trustee position a person who otherwise |
|
|
meets the qualifications required for the position. |
|
|
SECTION 15. Section 825.206(c), Government Code, is amended |
|
|
to read as follows: |
|
|
(c) The board of trustees annually shall evaluate the |
|
|
performance of the actuary during the previous year. At least once |
|
|
every four [three] years, the board shall redesignate its actuary |
|
|
after advertising for and reviewing proposals from providers of |
|
|
actuarial services. |
|
|
SECTION 16. Section 825.215, Government Code, is amended to |
|
|
read as follows: |
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Sec. 825.215. ADVOCACY PROHIBITED. (a) An employee of the |
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retirement system may not advocate increased benefits or engage in |
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activities to advocate or influence legislative action or inaction. |
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Advocacy or activity of this nature is grounds for dismissal of an |
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employee. |
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(b) This section does not prohibit comments by an employee |
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of the retirement system on federal laws, regulations, or other |
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official actions or proposed actions affecting or potentially |
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affecting the retirement system that are made in accordance with |
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policies adopted by the board. |
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SECTION 17. Section 825.315, Government Code, is amended to |
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read as follows: |
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Sec. 825.315. PROHIBITED USE OF ASSETS. (a) Assets of the |
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retirement system may not be used to advocate or influence the |
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outcome of an election or the passage or defeat of any legislative |
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measure. This prohibition may not be construed to prevent any |
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trustee or employee from furnishing information in the hands of the |
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trustee or employee that is not considered confidential under law |
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to a member or committee of the legislature, to any other state |
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officer or employee, or to any private citizen, at the request of |
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the person or entity to whom the information is furnished. This |
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prohibition does not apply to the incidental use of retirement |
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system facilities by groups of members or retirees or by officers or |
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employees of state agencies. |
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(b) This section does not prohibit the use of system assets |
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by an employee of the retirement system to comment on federal laws, |
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|
regulations, or other official actions or proposed actions |
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|
affecting or potentially affecting the retirement system that are |
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|
made in accordance with policies adopted by the board. |
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SECTION 18. Section 825.408, Government Code, is amended to |
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read as follows: |
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Sec. 825.408. INTEREST ON CONTRIBUTIONS AND FEES; DEPOSITS |
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IN TRUST. (a) An employer [employing district] that fails to |
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remit, before the seventh day after the last day of a month, all |
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member and employer deposits and documentation of the deposits |
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required by this subchapter to be remitted by the employer |
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[district] for the month shall pay to the retirement system, in |
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addition to the deposits, interest on the unpaid or undocumented |
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amounts at an annual rate compounded monthly. The rate of interest |
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is the rate established under Section 825.313(b)(1), plus two |
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percent. Interest required under this section is creditable to the |
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interest account. On request, the retirement system may grant a |
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waiver of the deadline imposed by this subsection based on an |
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employer's [a district's] financial or technological resources. |
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(b) An employer [employing district] and its trustees or |
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other governing body hold amounts due to the retirement system |
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under this subtitle in trust for the retirement system and its |
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members and may not divert the amounts to any other purpose. |
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SECTION 19. A member of the Teacher Retirement System of |
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Texas who seeks credit under Section 823.002(b), Government Code, |
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as added by this Act, for service rendered before September 1, 2011, |
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but not properly credited to a member's annual statement, must |
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notify the retirement system not later than the date specified in |
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Section 823.002(b), Government Code, as added by this Act, or |
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August 31, 2016, whichever is later. |
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SECTION 20. (a) The change in law made by this Act to |
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Section 804.003, Government Code, applies only to a qualified |
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domestic relations order entered on or after the effective date of |
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this Act. A qualified domestic relations order entered before the |
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effective date of this Act is governed by the law in effect |
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immediately before that date, and that law is continued in effect |
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for that purpose. |
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(b) The changes in law made by this Act to Section 824.105, |
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|
Government Code, apply only to the death of a member or annuitant |
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that is caused by conduct that occurs on or after the effective date |
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of this Act. The death of a member or annuitant that is caused by |
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conduct that occurs before the effective date of this Act is |
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governed by the law in effect immediately before that date, and the |
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former law is continued in effect for that purpose. |
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(c) The change in law made by this Act to Section 825.002, |
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Government Code, applies only to a vacancy on the board of trustees |
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of the Teacher Retirement System of Texas for a term that expires on |
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or after the effective date of this Act. A vacancy for a term that |
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expires before the effective date of this Act is governed by the law |
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|
in effect immediately before that date, and that law is continued in |
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effect for that purpose. |
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SECTION 21. This Act takes effect September 1, 2011. |
