Bill Text: TX HB577 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to establishing a joint interim committee to study the cost-effectiveness and feasibility of implementing a pension revenue enhancement plan for the Teacher Retirement System of Texas.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-01 - Referred to Pensions, Investments & Financial Services [HB577 Detail]

Download: Texas-2021-HB577-Introduced.html

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87R2015 KFF-D
By: Stephenson H.B. No. 577

A BILL TO BE ENTITLED
AN ACT
relating to establishing a joint interim committee to study the
cost-effectiveness and feasibility of implementing a pension
revenue enhancement plan for the Teacher Retirement System of
Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. INTERIM COMMITTEE; STUDY. (a) The joint interim
committee on a pension revenue enhancement plan for the Teacher
Retirement System of Texas is established to study and review the
cost-effectiveness and feasibility of implementing a pension
revenue enhancement plan to create an additional source of funding
for the Teacher Retirement System of Texas.
(b) The study must consider:
(1) a pension revenue enhancement plan under which:
(A) a life insurance policy is purchased for
certain members and annuitants of the Teacher Retirement System of
Texas enrolled in the plan; and
(B) the proceeds of the policy are issued to the
retirement system and the member's or annuitant's designated
beneficiary;
(2) methods for financing the pension revenue
enhancement plan, including by:
(A) obtaining a loan from a third-party lender to
pay the life insurance policy premiums; and
(B) establishing a trust fund to retain the
collected proceeds;
(3) eligibility criteria for members and annuitants of
the retirement system to enroll in the plan; and
(4) the process for selecting and appointing,
including eligibility criteria, persons and entities necessary to
administer and implement the plan, including members of a board of
trustees to administer the plan, a person to act as trustee of the
trust fund, a plan manager, a life insurance company, and a premium
finance company.
(c) The joint interim committee is composed of the members
of the committee of the house of representatives having
jurisdiction over pension systems and the members of the senate
committee on state affairs.
(d) The chair of the committee of the house of
representatives having jurisdiction over pension systems and the
chair of the senate committee on state affairs shall serve as
co-chairs of the joint interim committee.
(e) The joint interim committee shall convene at the call of
the co-chairs.
(f) The joint interim committee has all other powers and
duties provided to a special or select committee by the rules of the
senate and house of representatives, by Subchapter B, Chapter 301,
Government Code, and by policies of the senate and house committees
on administration.
(g) Not later than December 31, 2022, the joint interim
committee shall report the committee's findings and
recommendations to the legislature.
SECTION 2. ABOLITION OF COMMITTEE. The committee is
abolished and this Act expires January 1, 2023.
SECTION 3. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2021.