Bill Text: TX SB1664 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to the powers and duties of and contributions to and benefits from the systems and programs administered by the Employees Retirement System of Texas.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2011-06-17 - See remarks for effective date [SB1664 Detail]

Download: Texas-2011-SB1664-Introduced.html

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By: Duncan S.B. No. 1664

A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of and benefits available under
the Employees Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 609, Government Code, is
amended by adding Section 609.015 to read as follows:
Sec. 609.015. BENEFICIARY CAUSING DEATH OF PARTICIPATING
EMPLOYEE. (a) Any benefits, funds, or account balances payable on
the death of a participating employee may not be paid to a person
convicted or adjudged of causing that death but instead is payable
as if the convicted person had predeceased the decedent.
(b) The plan is not required to change the recipient of
benefits under this section unless is receives actual notice of the
conviction or adjudication of a beneficiary. However, the plan may
delay payment of a benefit payable on the death of a member or
annuitant pending the results of a criminal investigation or civil
proceeding and of legal proceedings relating to the cause of death.
(c) For the purposes of this section, a person has been
convicted or adjudicated of causing the death of a participating
employee if the person:
(1) pleads guilty or nolo contendere to, or is found
guilty by a court or jury in a criminal proceeding of, causing the
death of the participating employee, regardless of whether sentence
is imposed or probated, and has no appeal of the conviction pending
and the time provided for appeal has expired; or
(2) is found liable by a court or jury in a civil
proceeding of causing the death of the participating employee, and
has no appeal of the judgement pending and the time provided for
appeal has expired.
SECTION 2. Section 813.404, Government Code, is amended to
read as follows:
Sec. 813.404. CONTRIBUTIONS FOR SERVICE NOT PREVIOUSLY
ESTABLISHED. For each month of membership, military, or equivalent
membership service not previously credited in the retirement
system, a member claiming credit in the elected class shall pay a
contribution in an amount equal to the greater of:
(1) eight percent of the monthly salary paid to
members of the legislature at the time the credit is established; or
(2) the appropriate member contribution set by Section
815.402 for [six percent of the monthly state salary paid to] a
person who holds, at the time the credit is established, the office
for which credit is sought.
SECTION 3. Section 813.505(a), Government Code, is amended
to read as follows:
(a) A member claiming credit in the employee class for
membership service not previously established shall, for each month
of the service, pay a contribution in an amount equal to the greater
of:
(1) the appropriate member contribution set by Section
815.402 [six percent of the member's monthly state compensation]
for the service during the time for which credit is sought; or
(2) $18.
SECTION 4. Section 814.104(d), Government Code, is amended
to read as follows:
(d) Except as provided by Section 814.102 or by rule adopted
under Section 813.304(d) or 803.202(a)(2), a member who was not a
member on the date hired, was hired on or after September 1, 2009,
and has service credit in the retirement system is eligible to
retire and receive a service retirement annuity if the member:
(1) is at least 65 years old and has at least 10 years
of service credit in the employee class; or
(2) has at least 10 [5] years of service credit in the
employee class and the sum of the member's age and amount of service
credit in the employee class, including months of age and credit,
equals or exceeds the number 80.
SECTION 5. Section 814.1075(d), Government Code, is amended
to read as follows:
(d) The standard combined service retirement annuity that
is payable under this section is based on retirement at either the
age of 55 or the age at which the sum of the member's age and amount
of service credit in the employee class equals or exceeds the number
80. The annuity of a law enforcement or custodial officer who
retires before reaching the age of 55 under any eligibility
criteria is actuarially reduced by five percent for each year the
member retires before the member reaches age 55, with a maximum
possible reduction of 25 percent. The actuarial reduction
described by this section is in addition to any other actuarial
reduction required by law.
SECTION 6. Section 815.303, Government Code, is amended to
read as follows:
Sec. 815.303. SECURITIES LENDING. (a) The retirement
system may, in the exercise of its constitutional discretion to
manage the assets of the retirement system, select one or more
commercial banks, depository trust companies, or other entities to
serve as custodian or custodians of the system's securities and to
lend the securities under rules or policies adopted by the board of
trustees and as required by this section.
(b) To be eligible to lend securities under this section, a
bank or brokerage firm must:
(1) be experienced in the operation of a fully secured
securities loan program;
(2) maintain adequate capital in the prudent judgment
of the retirement system to assure the safety of the securities;
(3) execute an indemnification agreement satisfactory
in form and content to the retirement system fully indemnifying the
retirement system against loss resulting from borrower default in
its operation of a securities loan program for the system's
securities; and
(4) require any securities broker or dealer to whom it
lends securities belonging to the retirement system to deliver to
and maintain with the securities lending agent or custodian
collateral in the form of cash, [or] United States government
securities, or United States government agency securities in an
amount equal to but not less than 100 percent of the market value,
from time to time, as determined by the retirement system, of the
loaned securities.
SECTION 7. Subchapter D, Chapter 834, Government Code, is
amended by adding Section 834.305 to read as follows:
Sec. 834.305. BENEFICIARY CAUSING DEATH OF MEMBER OR
ANNUITANT. (a) Any benefits, funds, or account balances payable
on the death of a member or annuitant may not be paid to a person
convicted or adjudged of causing that death but instead is payable
as if the convicted person had predeceased the decedent.
(b) A person who becomes eligible under this section to
select death or survivor benefits may select benefits as if the
person were the designated beneficiary.
(c) The retirement system shall reduce any annuity computed
in the part on the age of the convicted or adjudicated 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 change the
recipient of benefits under this section unless it receives actual
notice of the conviction or adjudication 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 or civil proceeding and of legal
proceedings relating to the cause of death.
(e) For the purposes of this section, a person has been
convicted or adjudicated of causing the death of a member or
annuitant if the person:
(1) pleads guilty or nolo contendere to, or is found
guilty by a court or jury in a criminal proceeding of, causing the
death of the member or annuitant, regardless of whether sentence is
imposed or probated, and has no appeal of the conviction pending and
the time provided for appeal has expired; or
(2) is found liable by a court or jury in a civil
proceeding of causing the death of the member or annuitant, and has
no appeal of the judgment pending and the time provided for appeal
has expired.
SECTION 8. Subchapter D, Chapter 839, Government Code, is
amended by adding Section 839.306 to read as follows:
Sec. 839.306. BENEFICIARY CAUSING DEATH OF MEMBER OR
ANNUITANT. (a) Any benefits, funds, or account balances payable
on the death of a member or annuitant may not be paid to a person
convicted or adjudged of causing that death but instead is payable
as if the convicted person had predeceased the decendent.
(b) A person who becomes eligible under this section to
select death or survivor benefits may select benefits as if the
person were the designated beneficiary.
(c) The retirement system shall reduce any annuity computed
in part on the age of the convicted or adjudicated 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 change the
recipient of benefits under this section unless it receives actual
notice of the conviction or adjudication 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 or civil proceeding and of legal
proceedings relating to the cause of death.
(e) For the purposes of this section, a person has been
convicted or adjudicated of causing the death of a member or
annuitant if the person:
(1) pleads guilty or nolo contendere to, or is found
guilty by a court or jury in a criminal proceeding of, causing the
death of the member or annuitant, regardless of whether sentence is
imposed or probated, and has no appeal of the conviction pending and
the time provided for appeal has expired; or
(2) is found liable by a court or jury in a civil
proceeding of causing the death of the member or annuitant, and has
no appeal of the judgment pending and the time provided for appeal
has expired.
SECTION 9. Section 1551.004(a), Insurance Code, is amended
to read as follows:
(a) In this chapter, "dependent" with respect to an
individual eligible to participate in the group benefits program
[under Section 1551.101 or 1551.102] means the individual's:
(1) spouse;
(2) unmarried child younger than 25 years of age;
(3) child of any age who the board of trustees
determines lives with or has the child's care provided by the
individual on a regular basis if:
(A) the child is mentally [retarded] or
physically incapacitated to the extent that the child is dependent
on the individual for care or support, as determined by the board of
trustees;
(B) the child's coverage under this chapter has
not lapsed; and
(C) the child is at least 25 years old and was
enrolled as a participant in the health benefits coverage under the
group benefits program on the date of the child's 25th birthday;
(4) child of any age who is unmarried, for purposes of
health benefit coverage under this chapter, on expiration of the
child's continuation coverage under the Consolidated Omnibus
Budget Reconciliation Act of 1985 (Pub. L. No. 99-272) and its
subsequent amendments; and
(5) ward, as that term is defined by Section 601, Texas
Probate Code, younger than 25 years of age.
SECTION 10. Subchapter B, Chapter 1551, Insurance Code, is
amended by adding Section 1551.068 to read as follows:
Sec. 1551.068. QUALIFICATION OF GROUP BENEFITS PROGRAM.
Notwithstanding any other law, it is intended that the provisions
of this chapter be construed and administered in a manner that
coverages under the group benefits program will be considered in
compliance with applicable federal laws and regulations. The board
of trustees may adopt rules that modify provisions of the this
chapter by adding, deleting, or changing a provision, including
rules that modify eligibility or enrollment requirements and
benefits available under any group benefits program coverages.
SECTION 11. Section 1551.314, Insurance Code, is amended to
read as follows:
Sec. 1551.314. CERTAIN STATE CONTRIBUTIONS PROHIBITED. A
state contribution may not be made for coverages under this chapter
selected by an individual who receives a state contribution[, other
than as a spouse, dependent, or beneficiary,] for coverages under a
group benefits program provided by another state plan or by an
institution of higher education, as defined by Section 61.003,
Education Code.
SECTION 12. The change in law made by Sections 609.015,
834.305, and 839.306, Government Code, as added by this Act, apply
only to an offense committed on or after the effective date of this
Act. An offensive comitted before the effective date of this Act is
governed by the law in effect on the date the offense was committed,
and the former law is continued in effect for that purpose. For
purposes of this section, an offense was committed before the
effective date of this Act if any element of the offense occurred
before that date.
SECTION 13. This Act takes effect September 1, 2011.