Bill Text: TX HB2506 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to creating defined contribution retirement plans for persons eligible to participate in the Employees Retirement System of Texas and the Teacher Retirement System of Texas.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-04-26 - Left pending in committee [HB2506 Detail]
Download: Texas-2011-HB2506-Introduced.html
82R372 KFF-D | ||
By: Chisum | H.B. No. 2506 |
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relating to creating defined contribution retirement plans for | ||
persons eligible to participate in the Employees Retirement System | ||
of Texas and the Teacher Retirement System of Texas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
ARTICLE 1. CREATION OF DEFINED CONTRIBUTION PLANS | ||
SECTION 1.01. Section 812.002, Government Code, is amended | ||
by amending Subsection (b) and adding Subsection (d) to read as | ||
follows: | ||
(b) Subject to Subsection (d), membership [ |
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the elected class is optional. | ||
(d) A person required to participate in the defined | ||
contribution plan under Section 816.003 may not become a member of | ||
the elected class. | ||
SECTION 1.02. Effective September 1, 2012, Section | ||
812.003(a), Government Code, is amended to read as follows: | ||
(a) Except as provided by Subsection [ |
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includes all employees and appointed officers of every department, | ||
commission, board, agency, or institution of the state except: | ||
(1) independent contractors and their employees | ||
performing work for the state; [ |
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(2) persons disqualified from membership under | ||
Section 812.201; and | ||
(3) persons who are required to or elect to | ||
participate in the defined contribution plan under Chapter 816. | ||
SECTION 1.03. Sections 812.201(b) and (c), Government Code, | ||
are amended to read as follows: | ||
(b) Except as provided by Section 816.003(a)(2)(B), a [ |
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retiree who takes a position not included in a membership class from | ||
which the retiree receives retirement benefit payments: | ||
(1) is required to become or remain a member if the | ||
position is included in the employee class; or | ||
(2) may elect to become or remain a member if the | ||
position is included in the elected class. | ||
(c) A person who is retired from the elected class of | ||
membership and who again holds a position included in that class may | ||
elect to become a member again by filing notice with the retirement | ||
system unless Section 816.003(a)(2)(B) applies. Except as | ||
provided by Section 812.203(c), when benefit payments are resumed, | ||
the retirement system shall recompute the annuity selected at the | ||
time of the person's original retirement to include the additional | ||
service established during membership under this subsection. | ||
SECTION 1.04. Sections 815.403(b), (d), and (e), Government | ||
Code, are amended to read as follows: | ||
(b) Before November 2 of each even-numbered year, the | ||
retirement system shall certify to the Legislative Budget Board and | ||
to the budget division of the governor's office for review: | ||
(1) an estimate of the amount necessary to pay the | ||
state's contribution under Subsections (a)(1), (a)(2), (a)(3), and | ||
(a)(5) for the following biennium; [ |
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(2) as a separate item, an estimate of the amount | ||
required to administer the law enforcement and custodial officer | ||
supplemental retirement fund for the following biennium; and | ||
(3) an estimate of the amount necessary to pay the | ||
state's contribution under Section 816.009(a). | ||
(d) Before September 1 of each year, the retirement system | ||
shall certify to the state comptroller of public accounts: | ||
(1) an estimate of the amount necessary to pay the | ||
state's contribution under Subsection (a)(1) for the following | ||
fiscal year; | ||
(2) an estimate of the amount necessary to pay | ||
membership fees for the following fiscal year, if the legislature | ||
has appropriated money for that purpose; [ |
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(3) an estimate of the amount required to pay lump-sum | ||
death benefits for retirees under Section 814.501 for the following | ||
fiscal year; and | ||
(4) an estimate of the amount necessary to pay the | ||
state's contribution under Section 816.009(a) for the following | ||
fiscal year. | ||
(e) All money allocated and appropriated by the state to the | ||
retirement system for benefits provided by the retirement system, | ||
except money for the payment of lump-sum death benefits, [ |
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the payment of benefits from the law enforcement and custodial | ||
officer supplemental retirement fund, and for the payment of the | ||
state's contribution under Section 816.009(a), shall be paid, based | ||
on the annual estimate of the retirement system, in monthly | ||
installments to the state accumulation fund. The money required | ||
for state contributions and membership fees shall be from | ||
respective funds appropriated to pay the compensation of the member | ||
for whose benefit the contribution or fee is paid. If the total of | ||
the estimated required payments is not equal to the total of the | ||
actual payments required for a fiscal year, the retirement system | ||
shall certify to the state comptroller of public accounts at the end | ||
of that year the amount required for necessary adjustments, and the | ||
comptroller shall make the required adjustments. | ||
SECTION 1.05. Subtitle B, Title 8, Government Code, is | ||
amended by adding Chapter 816 to read as follows: | ||
CHAPTER 816. DEFINED CONTRIBUTION PLAN | ||
Sec. 816.001. DEFINITIONS. In this chapter: | ||
(1) "Defined contribution plan" means the defined | ||
contribution plan established under this chapter. | ||
(2) "Qualified plan" means an employee benefit plan | ||
qualified under Section 401(a), Internal Revenue Code of 1986. | ||
Sec. 816.002. ESTABLISHMENT AND ADMINISTRATION OF DEFINED | ||
CONTRIBUTION PLAN. (a) The retirement system shall establish and | ||
administer a defined contribution plan that is a qualified plan and | ||
under which a participant pays contributions to the plan for the | ||
purchase of investment products selected by the participant from | ||
among products that are offered by companies authorized to provide | ||
the products in this state and selected by the retirement system | ||
under Subsection (b). | ||
(b) The retirement system shall adopt rules for the | ||
selection of companies to provide investment products under the | ||
defined contribution plan. The rules must provide for the | ||
selection of vendors of a wide variety of investment products | ||
authorized for a qualified plan. The retirement system shall select | ||
vendors every two years. | ||
(c) A provider of investment products is exempt from the | ||
payment of franchise or premium taxes on products issued under the | ||
defined contribution plan. | ||
Sec. 816.003. MANDATORY PARTICIPATION IN PLAN. (a) Except | ||
as provided by Subsection (b), a person must participate in the | ||
defined contribution plan if the person: | ||
(1) on or after September 1, 2012: | ||
(A) was hired as an employee or appointed as an | ||
officer of a department, commission, board, agency, or institution | ||
of this state; or | ||
(B) was elected: | ||
(i) to a state office that is normally | ||
filled by statewide election and that is not included in the | ||
coverage of the Judicial Retirement System of Texas Plan One or the | ||
Judicial Retirement System of Texas Plan Two; | ||
(ii) as a member of the legislature; or | ||
(iii) as a district or criminal district | ||
attorney, to the extent the person receives a salary from the state | ||
general revenue fund; and | ||
(2) on the date the person was elected, appointed, or | ||
hired, as applicable: | ||
(A) was not a member of the system; or | ||
(B) was a member of the system who was not serving | ||
in a position included in the coverage of the system during the 30 | ||
days preceding the date the person was elected, appointed, or | ||
hired. | ||
(b) For purposes of Subsection (a)(1)(A), an office or | ||
employment that is included in the coverage of the Teacher | ||
Retirement System of Texas, the Judicial Retirement System of Texas | ||
Plan One, or the Judicial Retirement System of Texas Plan Two is not | ||
a position with a department, commission, board, agency, or | ||
institution of the state. | ||
Sec. 816.004. OPTIONAL PARTICIPATION IN PLAN. (a) A | ||
contributing member of the retirement system may elect to | ||
participate in the defined contribution plan. An election to | ||
participate in the defined contribution plan under this section | ||
must be on a form prescribed by and filed with the retirement | ||
system. | ||
(b) Participation in the defined contribution plan is an | ||
alternative to participation as a contributing member of the | ||
retirement system for the same period. | ||
(c) An election made under this section is irrevocable. | ||
(d) If a person elects to participate in the defined | ||
contribution plan under this section, the retirement system shall | ||
transfer to the vendors of investment products selected by the | ||
participant an amount equal to the actuarial present value of the | ||
person's accrued service benefit in the retirement system. The | ||
transfer shall be made not later than the 45th day after the date | ||
the election is filed with the retirement system. | ||
(e) A transfer under Subsection (d) terminates a person's | ||
membership in the retirement system and all rights and benefits | ||
from the system based on the person's previous service, including | ||
the right to withdraw accumulated contributions from the retirement | ||
system. | ||
Sec. 816.005. EFFECT OF EMPLOYMENT CHANGES. A person | ||
participating in the defined contribution plan continues to | ||
participate in the plan when the person changes employment to | ||
another position included in the coverage of the retirement system. | ||
Sec. 816.006. VESTING OF BENEFITS; TERMINATION OF | ||
PARTICIPATION. (a) Benefits in the defined contribution plan vest | ||
in a participant on the first anniversary of the person's | ||
participation in the plan. | ||
(b) A person terminates participation in the defined | ||
contribution plan, without losing any vested benefits, by: | ||
(1) death; | ||
(2) retirement; or | ||
(3) termination of employment in all positions | ||
included in the coverage of the retirement system. | ||
(c) The benefits of a product purchased under the defined | ||
contribution plan become available under the terms of the annuity | ||
but not before the earlier of the date the member: | ||
(1) terminates participation as provided by | ||
Subsection (b); or | ||
(2) attains the age of 70-1/2 years. | ||
Sec. 816.007. CREDITABLE SERVICE. A person may not | ||
establish in the retirement system credit for service performed | ||
during a period the person was participating in the defined | ||
contribution plan. | ||
Sec. 816.008. INVESTMENT ADVISORY FEES. (a) A participant | ||
in the defined contribution plan may authorize the payment of | ||
investment advisory fees from the amount in the participant's | ||
custodial account or product if: | ||
(1) the investment advisory fees for each fiscal year | ||
do not exceed two percent of the annual value of the participant's | ||
custodial account or product as of the last day of that fiscal year; | ||
(2) the fees are paid directly to a registered | ||
investment advisor that provides investment advice to the | ||
participant; | ||
(3) the investment advisor to whom the fees are paid is | ||
registered with the Securities and Exchange Commission under the | ||
Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) | ||
and is engaged full-time in the business of providing investment | ||
advice; | ||
(4) the participant and the investment advisor enter | ||
into a contract, for a term of not more than one year, for services | ||
that provides for the payment of fees as provided by this section; | ||
and | ||
(5) the retirement system has received an official | ||
determination from the Internal Revenue Service that payment of | ||
investment advisory fees as prescribed by this section is not a | ||
distribution of funds that is prohibited or subject to taxation and | ||
penalty under the Internal Revenue Code. | ||
(b) The executive director of the retirement system shall | ||
request an official determination from the Internal Revenue Service | ||
concerning whether the payment of investment advisory fees as | ||
prescribed by this section is a distribution of funds that is | ||
prohibited or subject to taxation and penalty under the Internal | ||
Revenue Code. If the executive director receives an official | ||
determination from the Internal Revenue Service as specified by | ||
this subsection, the executive director shall file the official | ||
determination with the secretary of state's office for publication | ||
in the Texas Register. | ||
Sec. 816.009. CONTRIBUTIONS. (a) A participant in the | ||
defined contribution plan shall make contributions to the plan at | ||
the same rate that a member of the retirement system is required to | ||
make for current service, and the state shall make contributions to | ||
the plan for each participant at the same rate as is made for | ||
contributing members of the retirement system. Contributions | ||
required under this subsection shall be credited to the benefit of | ||
the participant. | ||
(b) A participant in the defined contribution plan and the | ||
participant's employer shall execute an agreement under which the | ||
salary of the participant is reduced by the amount of the | ||
contribution required by this section. An agreement under this | ||
subsection is irrevocable until the participant terminates | ||
participation in the plan under Section 816.006. | ||
(c) Participant contributions shall be made in the manner | ||
provided by Section 815.402, and state contributions shall be made | ||
in the manner provided by Section 815.403. | ||
Sec. 816.010. EXCESS BENEFIT ARRANGEMENT. The retirement | ||
system may establish a governmental excess benefit arrangement as | ||
provided by Section 415(m), Internal Revenue Code of 1986, for the | ||
purpose of providing to participants in the defined contribution | ||
plan any portion of a participant's benefits that would otherwise | ||
be payable under the terms of the plan except for the limitation on | ||
benefits imposed by Section 415, Internal Revenue Code of 1986. | ||
Sec. 816.011. HEALTH BENEFITS AND OTHER COVERAGES. A | ||
person who participates or who is eligible to participate in the | ||
defined contribution plan established under this chapter is | ||
eligible for health benefits and other coverages under Subtitle H, | ||
Title 8, Insurance Code, to the same extent as a person who is a | ||
member or who is eligible to be a member of the retirement system. | ||
Sec. 816.012. RULES. The retirement system may adopt rules | ||
necessary to implement this chapter. | ||
SECTION 1.06. Section 822.001(a), Government Code, is | ||
amended to read as follows: | ||
(a) Subject to Subsection (b), membership [ |
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the retirement system includes: | ||
(1) all persons who were members of the retirement | ||
system on the day before the effective date of this subtitle; and | ||
(2) all employees of the public school system. | ||
SECTION 1.07. Section 822.0015(a), Government Code, is | ||
amended to read as follows: | ||
(a) In lieu of participating in the Employees Retirement | ||
System of Texas, the commissioner of education may elect to | ||
participate in the retirement system in the same manner and under | ||
the same conditions as [ |
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school system. | ||
SECTION 1.08. Section 822.002, Government Code, is amended | ||
to read as follows: | ||
Sec. 822.002. EXCEPTIONS TO MEMBERSHIP REQUIREMENT. An | ||
employee of the public school system is not permitted to be a member | ||
of the retirement system if the employee: | ||
(1) is eligible and elects to participate in the | ||
optional retirement program under Chapter 830; | ||
(2) is solely employed by a public institution of | ||
higher education that as a condition of employment requires the | ||
employee to be enrolled as a student in the institution; [ |
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(3) has retired under the retirement system and has | ||
not been reinstated to membership pursuant to Section 824.005 or | ||
824.307; or | ||
(4) is required to or elects to participate in the | ||
defined contribution plan established under Chapter 826. | ||
SECTION 1.09. Section 822.005(c), Government Code, is | ||
amended to read as follows: | ||
(c) Except as provided by Section 826.004, a [ |
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not entitled to withdraw contributions who is employed, has applied | ||
for employment, or has received a promise of employment, in a | ||
position covered by the retirement system. | ||
SECTION 1.10. Sections 825.404(b) and (e), Government Code, | ||
are amended to read as follows: | ||
(b) Before November 2 of each even-numbered year, the board | ||
of trustees shall certify to the comptroller of public accounts for | ||
review and adoption an estimate of the amount necessary to pay the | ||
state's contributions to: | ||
(1) the retirement system for the following biennium; | ||
and | ||
(2) the defined contribution plan under Chapter 826 | ||
for the following biennium. | ||
(e) All money appropriated by the state to the retirement | ||
system shall be paid to the state contribution account in equal | ||
monthly installments as provided by Section 403.093(c), | ||
[ |
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(1) under Subsection (d), which remains in the general | ||
revenue fund until expenses are approved under Chapter 2103; and | ||
(2) for the payment of the state's contributions under | ||
Section 826.009(a). | ||
SECTION 1.11. Section 825.4041(a), Government Code, is | ||
amended to read as follows: | ||
(a) For purposes of this section, a new member is a person | ||
who: | ||
(1) was first employed on or after September 1, 2005, | ||
including a former member who withdrew retirement contributions | ||
under Section 822.003 and is reemployed on or after September 1, | ||
2005; and | ||
(2) is not required and has not elected to participate | ||
in the defined contribution plan under Chapter 826. | ||
SECTION 1.12. Subtitle C, Title 8, Government Code, is | ||
amended by adding Chapter 826 to read as follows: | ||
CHAPTER 826. DEFINED CONTRIBUTION PLAN | ||
Sec. 826.001. DEFINITIONS. In this chapter: | ||
(1) "Defined contribution plan" means the defined | ||
contribution plan established under this chapter. | ||
(2) "Qualified plan" means an employee benefit plan | ||
qualified under Section 401(a) or 403(b), Internal Revenue Code of | ||
1986. | ||
Sec. 826.002. ESTABLISHMENT AND ADMINISTRATION OF DEFINED | ||
CONTRIBUTION PLAN. (a) The retirement system shall establish and | ||
administer a defined contribution plan that is a qualified plan and | ||
under which a participant pays contributions to the plan for the | ||
purchase of investment products selected by the participant from | ||
among products that are offered by companies authorized to provide | ||
the products in this state and selected by the retirement system | ||
under Subsection (b). | ||
(b) The retirement system shall adopt rules for the | ||
selection of companies to provide investment products under the | ||
defined contribution plan. The rules must provide for the | ||
selection of vendors of a wide variety of investment products | ||
authorized for a qualified plan. The retirement system shall select | ||
vendors every two years. | ||
(c) A provider of investment products is exempt from the | ||
payment of franchise or premium taxes on products issued under the | ||
defined contribution plan. | ||
Sec. 826.003. MANDATORY PARTICIPATION IN PLAN. A person | ||
must participate in the defined contribution plan if the person: | ||
(1) is an employee who was employed on or after | ||
September 1, 2012; and | ||
(2) on the date the person began employment: | ||
(A) was not a member of the system; or | ||
(B) was a member of the system who was not serving | ||
in a position included in the coverage of the system during the 30 | ||
days preceding the date the person was elected, appointed, or | ||
hired. | ||
Sec. 826.004. OPTIONAL PARTICIPATION IN PLAN. (a) An | ||
employee who is a contributing member of the retirement system may | ||
elect to participate in the defined contribution plan. An election | ||
to participate in the defined contribution plan under this section | ||
must be on a form prescribed by and filed with the retirement | ||
system. | ||
(b) Participation in the defined contribution plan is an | ||
alternative to participation as a contributing member of the | ||
retirement system for the same period. | ||
(c) An election made under this section is irrevocable. | ||
(d) If a person elects to participate in the defined | ||
contribution plan under this section, the retirement system shall | ||
transfer to the vendors of investment products selected by the | ||
participant an amount equal to the actuarial present value of the | ||
person's accrued service benefit in the retirement system. The | ||
transfer shall be made not later than the 45th day after the date | ||
the election is filed with the retirement system. | ||
(e) A transfer under Subsection (d) terminates a person's | ||
membership in the retirement system and all rights and benefits | ||
from the system based on the person's previous service, including | ||
the right to withdraw accumulated contributions from the retirement | ||
system. | ||
Sec. 826.005. EFFECT OF EMPLOYMENT CHANGES. A person | ||
participating in the defined contribution plan continues to | ||
participate in the plan when the person changes employment to | ||
another position included in the coverage of the retirement system. | ||
Sec. 826.006. VESTING OF BENEFITS; TERMINATION OF | ||
PARTICIPATION. (a) Benefits in the defined contribution plan vest | ||
in a participant on the first anniversary of the person's | ||
participation in the plan. | ||
(b) A person terminates participation in the defined | ||
contribution plan, without losing any vested benefits, by: | ||
(1) death; | ||
(2) retirement; or | ||
(3) termination of employment in all positions | ||
included in the coverage of the retirement system. | ||
(c) The benefits of a product purchased under the defined | ||
contribution plan become available under the terms of the annuity | ||
but not before the earlier of the date the member: | ||
(1) terminates participation as provided by | ||
Subsection (b); or | ||
(2) attains the age of 70-1/2 years. | ||
Sec. 826.007. CREDITABLE SERVICE. A person may not | ||
establish in the retirement system credit for service performed | ||
during a period the person was participating in the defined | ||
contribution plan. | ||
Sec. 826.008. INVESTMENT ADVISORY FEES. (a) A participant | ||
in the defined contribution plan may authorize the payment of | ||
investment advisory fees from the amount in the participant's | ||
custodial account or product if: | ||
(1) the investment advisory fees for each fiscal year | ||
do not exceed two percent of the annual value of the participant's | ||
custodial account or product as of the last day of that fiscal year; | ||
(2) the fees are paid directly to a registered | ||
investment advisor that provides investment advice to the | ||
participant; | ||
(3) the investment advisor to whom the fees are paid is | ||
registered with the Securities and Exchange Commission under the | ||
Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) | ||
and is engaged full-time in the business of providing investment | ||
advice; | ||
(4) the participant and the investment advisor enter | ||
into a contract, for a term of not more than one year, for services | ||
that provides for the payment of fees as provided by this section; | ||
and | ||
(5) the retirement system has received an official | ||
determination from the Internal Revenue Service that payment of | ||
investment advisory fees as prescribed by this section is not a | ||
distribution of funds that is prohibited or subject to taxation and | ||
penalty under the Internal Revenue Code. | ||
(b) The executive director of the retirement system shall | ||
request an official determination from the Internal Revenue Service | ||
concerning whether the payment of investment advisory fees as | ||
prescribed by this section is a distribution of funds that is | ||
prohibited or subject to taxation and penalty under the Internal | ||
Revenue Code. If the executive director receives an official | ||
determination from the Internal Revenue Service as specified by | ||
this subsection, the executive director shall file the official | ||
determination with the secretary of state's office for publication | ||
in the Texas Register. | ||
Sec. 826.009. CONTRIBUTIONS. (a) A participant in the | ||
defined contribution plan shall make contributions to the plan at | ||
the same rate that a member of the retirement system is required to | ||
make for current service, and the state shall make contributions to | ||
the plan for each participant at the same rate as is made for | ||
contributing members of the retirement system. Contributions | ||
required under this subsection shall be credited to the benefit of | ||
the participant. | ||
(b) A participant in the defined contribution plan and the | ||
participant's employer shall execute an agreement under which the | ||
salary of the participant is reduced by the amount of the | ||
contribution required by this section. An agreement under this | ||
subsection is irrevocable until the participant terminates | ||
participation in the plan under Section 826.006. | ||
(c) Participant contributions shall be made in the manner | ||
provided by Subchapter E, Chapter 825, for member contributions to | ||
the retirement system. | ||
Sec. 826.010. EXCESS BENEFIT ARRANGEMENT. The retirement | ||
system may establish a governmental excess benefit arrangement as | ||
provided by Section 415(m), Internal Revenue Code of 1986, for the | ||
purpose of providing to participants in the defined contribution | ||
plan any portion of a participant's benefits that would otherwise | ||
be payable under the terms of the plan except for the limitation on | ||
benefits imposed by Section 415, Internal Revenue Code of 1986. | ||
Sec. 826.011. HEALTH BENEFITS AND OTHER COVERAGES. A | ||
person who participates or who is eligible to participate in the | ||
defined contribution plan established under this chapter is | ||
eligible for health benefits and other coverages under Subchapter | ||
D, Chapter 22, Education Code, and Subtitle H, Title 8, Insurance | ||
Code, to the same extent as a person who is a member or who is | ||
eligible to be a member of the retirement system. | ||
Sec. 826.012. RULES. The retirement system may adopt rules | ||
necessary to implement this chapter. | ||
SECTION 1.13. Section 830.002(b), Government Code, is | ||
amended to read as follows: | ||
(b) Participation in the optional retirement program is an | ||
alternative to active membership in the retirement system or | ||
required participation in the defined contribution plan under | ||
Chapter 826, as appropriate. | ||
SECTION 1.14. Sections 830.102(a) and (d), Government Code, | ||
are amended to read as follows: | ||
(a) A person included in the coverage [ |
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retirement system who is eligible [ |
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program. | ||
(d) An eligible person who does not elect to participate in | ||
the optional retirement program is considered to have chosen to | ||
continue membership in the retirement system or to participate in | ||
the defined contribution plan established under Chapter 826, as | ||
applicable. | ||
SECTION 1.15. Section 830.106, Government Code, is amended | ||
to read as follows: | ||
Sec. 830.106. ELIGIBILITY FOR RESUMPTION OF MEMBERSHIP. A | ||
participant in the optional retirement program is not eligible for | ||
membership in the retirement system unless, before September 1, | ||
2012, the person: | ||
(1) terminates employment covered by the optional | ||
retirement program; and | ||
(2) becomes employed in the public school system or | ||
with a state agency in a position that is not eligible for | ||
participation in the optional retirement program. | ||
ARTICLE 2. CONFORMING AMENDMENTS | ||
SECTION 2.01. Effective September 1, 2012, Section | ||
91.003(b), Agriculture Code, is amended to read as follows: | ||
(b) An individual appointed as an inspector or to work in | ||
another capacity with an inspection service under Subsection (a) of | ||
this section is performing work for the state under the supervision | ||
of the department and shall participate in the defined contribution | ||
plan established under Chapter 816 [ |
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SECTION 2.02. Effective September 1, 2012, Section | ||
12.012(b), Education Code, is amended to read as follows: | ||
(b) An employee of a home-rule school district who qualifies | ||
for participation in the defined contribution plan administered by | ||
[ |
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covered under the system in the same manner and to the same extent | ||
as a qualified employee employed by an independent school district | ||
is covered. | ||
SECTION 2.03. Effective September 1, 2012, Section | ||
12.057(b), Education Code, is amended to read as follows: | ||
(b) An employee of an independent school district who is | ||
employed on a campus or program granted a charter under this | ||
subchapter and who qualifies for participation in the defined | ||
contribution plan administered by [ |
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Retirement System of Texas shall be covered under the system in the | ||
same manner and to the same extent as a qualified employee of the | ||
independent school district who is employed on a regularly | ||
operating campus or in a regularly operating program. | ||
SECTION 2.04. Effective September 1, 2012, Section | ||
12.1057(a), Education Code, is amended to read as follows: | ||
(a) An employee of an open-enrollment charter school | ||
operating under a charter granted by the State Board of Education | ||
who qualifies for participation in the defined contribution plan | ||
administered by [ |
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Texas shall be covered under the system to the same extent a | ||
qualified employee of a school district is covered. | ||
SECTION 2.05. Effective September 1, 2012, Section | ||
19.009(e), Education Code, is amended to read as follows: | ||
(e) Each employee of the district who qualifies for | ||
participation in the defined contribution plan administered by | ||
[ |
||
covered under the system to the same extent a qualified employee of | ||
any other district is covered. | ||
SECTION 2.06. Section 21.0452(b), Education Code, is | ||
amended to read as follows: | ||
(b) The board shall make available at least the following | ||
information regarding each educator preparation program: | ||
(1) the information specified in Sections 21.045(a) | ||
and (b); | ||
(2) in addition to any other appropriate information | ||
indicating the quality of persons admitted to the program, the | ||
average academic qualifications possessed by persons admitted to | ||
the program, including: | ||
(A) average overall grade point average and | ||
average grade point average in specific subject areas; and | ||
(B) average scores on the Scholastic Assessment | ||
Test (SAT), the American College Test (ACT), or the Graduate Record | ||
Examination (GRE), as applicable; | ||
(3) the degree to which persons who complete the | ||
program are successful in obtaining teaching positions; | ||
(4) the extent to which the program prepares teachers, | ||
including general education teachers and special education | ||
teachers, to effectively teach: | ||
(A) students with disabilities; and | ||
(B) students of limited English proficiency, as | ||
defined by Section 29.052; | ||
(5) the activities offered by the program that are | ||
designed to prepare teachers to: | ||
(A) integrate technology effectively into | ||
curricula and instruction, including activities consistent with | ||
the principles of universal design for learning; and | ||
(B) use technology effectively to collect, | ||
manage, and analyze data to improve teaching and learning for the | ||
purpose of increasing student academic achievement; | ||
(6) the perseverance of beginning teachers in the | ||
profession, as determined on the basis of the number of beginning | ||
teachers who maintain status as active contributing participants | ||
[ |
||
three years after certification in comparison to similar programs; | ||
(7) the results of exit surveys given to program | ||
participants on completion of the program that involve evaluation | ||
of the program's effectiveness in preparing participants to succeed | ||
in the classroom; and | ||
(8) the results of surveys given to school principals | ||
that involve evaluation of the program's effectiveness in preparing | ||
participants to succeed in the classroom, based on experience with | ||
employed program participants. | ||
SECTION 2.07. Effective September 1, 2012, Section | ||
21.452(c), Education Code, is amended to read as follows: | ||
(c) An employee on developmental leave continues to be a | ||
participant in [ |
||
and is entitled to participate in programs, hold memberships, and | ||
receive benefits afforded by employment in the school district. | ||
SECTION 2.08. Sections 51.107(a) and (b), Education Code, | ||
are amended to read as follows: | ||
(a) A faculty member on faculty development leave shall | ||
continue to be a member of the Teacher Retirement System of Texas or | ||
a participant in the defined contribution plan established under | ||
Chapter 826, Government Code, or [ |
||
Program of the institution of higher education, or to be a member of | ||
or participant in more than one program [ |
||
member of the faculty on full-time duty. | ||
(b) The institution of higher education shall cause to be | ||
deducted from the compensation paid to a member of the faculty on | ||
faculty development leave the deposit and [ |
||
required to be paid by him to the Teacher Retirement System of Texas | ||
or to the Optional Retirement Program, or both, the contribution | ||
for Old Age and Survivors Insurance, and any other amounts required | ||
or authorized to be deducted from the compensation paid any faculty | ||
member. | ||
SECTION 2.09. Effective September 1, 2012, Section | ||
51.926(b), Education Code, is amended to read as follows: | ||
(b) A person who participates in a qualified football | ||
coaches plan may also participate in another retirement plan [ |
||
|
||
institutions of higher education. | ||
SECTION 2.10. Section 606.061(4), Government Code, is | ||
amended to read as follows: | ||
(4) "State employee" includes an elected or appointed | ||
state officer but does not include an individual who: | ||
(A) is compensated by fees; or | ||
(B) is in a position eligible for membership in | ||
the Teacher Retirement System of Texas or participation in the | ||
defined contribution plan administered by that system under Chapter | ||
826 unless the person is employed by a state department, agency, or | ||
institution. | ||
SECTION 2.11. The heading to Subchapter D, Chapter 661, | ||
Government Code, is amended to read as follows: | ||
SUBCHAPTER D. PAYMENTS FOR VACATION TIME TO CONTRIBUTING | ||
PARTICIPANTS IN [ |
||
SECTION 2.12. Section 661.091(a), Government Code, is | ||
amended to read as follows: | ||
(a) A contributing member of the Employees Retirement | ||
System of Texas or participant in the defined contribution plan | ||
administered by that system under Chapter 816 who retires is | ||
entitled to be paid in a lump sum, from funds of the agency or | ||
department from which the member retires, for the member's accrued | ||
vacation time as of the date of retirement. | ||
SECTION 2.13. Section 2252.901(d)(2), Government Code, is | ||
amended to read as follows: | ||
(2) "Retired agency employee" means a person: | ||
(A) whose last state service before retirement | ||
was for the state agency with which the retiree contracts to perform | ||
services; and | ||
(B) who is a retiree [ |
||
(i) of the employee class of membership of | ||
the Employees Retirement System of Texas; [ |
||
(ii) of the Teacher Retirement System of | ||
Texas, the majority of whose service was credited in that system in | ||
a position with a state agency; | ||
(iii) receiving benefits under the defined | ||
contribution plan administered by the Employees Retirement System | ||
of Texas under Chapter 816; or | ||
(iv) receiving benefits under the defined | ||
contribution plan administered by the Teacher Retirement System of | ||
Texas under Chapter 826. | ||
SECTION 2.14. Section 62.1015(b), Health and Safety Code, | ||
is amended to read as follows: | ||
(b) A child of an employee of a charter school, school | ||
district, other educational district whose employees are members of | ||
the Teacher Retirement System of Texas or participants in the | ||
defined contribution plan administered by that system under Chapter | ||
826, Government Code, or regional education service center may be | ||
enrolled in health benefits coverage under the child health plan. A | ||
child enrolled in the child health plan under this section: | ||
(1) participates in the same manner as any other child | ||
enrolled in the child health plan; and | ||
(2) is subject to the same requirements and | ||
restrictions relating to income eligibility, continuous coverage, | ||
and enrollment, including applicable waiting periods, as any other | ||
child enrolled in the child health plan. | ||
SECTION 2.15. The heading to Section 132.007, Natural | ||
Resources Code, is amended to read as follows: | ||
Sec. 132.007. PARTICIPATION [ |
||
RETIREMENT SYSTEM. | ||
SECTION 2.16. Section 17, Self-Directed Semi-Independent | ||
Agency Project Act (Article 8930, Revised Statutes), is amended to | ||
read as follows: | ||
Sec. 17. PARTICIPATION [ |
||
SYSTEM. Employees of the project agencies are members of the | ||
Employees Retirement System of Texas under Chapter 812, Government | ||
Code, or participants in the defined contribution plan administered | ||
by that system under Chapter 816, Government Code, as applicable, | ||
and transition to independent status shall have no effect on their | ||
membership or participation. | ||
ARTICLE 3. REPEAL AND TRANSITION PROVISIONS; EFFECTIVE DATE | ||
SECTION 3.01. Effective September 1, 2012, Sections | ||
812.003(c), (d), (e), and (f), Government Code, are repealed. | ||
SECTION 3.02. The Employees Retirement System of Texas | ||
shall offer participation in the defined contribution plan | ||
described by Chapter 816, Government Code, as added by this Act, | ||
beginning September 1, 2012. | ||
SECTION 3.03. The Teacher Retirement System of Texas shall | ||
offer participation in the defined contribution plan described by | ||
Chapter 826, Government Code, as added by this Act, beginning | ||
September 1, 2012. | ||
SECTION 3.04. The changes in law made by this Act requiring | ||
a person to participate in a defined contribution plan established | ||
under Chapter 816 or 826, Government Code, as added by this Act, do | ||
not apply to a person elected, appointed, or hired to the position | ||
requiring participation in the plan before the effective date of | ||
this Act. | ||
SECTION 3.05. This Act takes effect September 1, 2011. |