Bill Text: TX HB4076 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to benefits administered by the Teacher Retirement System of Texas.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-03-21 - Referred to Pensions, Investments & Financial Services [HB4076 Detail]

Download: Texas-2019-HB4076-Introduced.html
 
 
  By: King of Hemphill H.B. No. 4076
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to benefits administered by the Teacher Retirement System
  of Texas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. TEACHER RETIREMENT SYSTEM COST-OF-LIVING ADJUSTMENT
         SECTION 1.01.  Subchapter H, Chapter 824, Government Code,
  is amended by adding Section 824.703 to read as follows:
         Sec. 824.703.  ADDITIONAL COST-OF-LIVING ADJUSTMENT. (a)
  Notwithstanding Section 824.702 and subject to Section 821.006, the
  retirement system shall make a one-time cost-of-living adjustment
  payable to annuitants receiving a monthly death or retirement
  benefit annuity, as provided by this section.
         (b)  Subject to Subsections (c) and (d), to be eligible for
  the adjustment, a person must be, on the effective date of the
  adjustment and disregarding any forfeiture of benefits under
  Section 824.601, an annuitant eligible to receive:
               (1)  a standard service or disability retirement
  annuity payment;
               (2)  an optional service or disability retirement
  annuity payment as either a retiree or beneficiary;
               (3)  an annuity payment under Section 824.402(a)(3) or
  (4);
               (4)  an annuity payment under Section 824.502; or
               (5)  an alternate payee annuity payment under Section
  804.005.
         (c)  If the annuitant:
               (1)  is a retiree or is a beneficiary under an optional
  retirement payment plan, to be eligible for the adjustment under
  this section:
                     (A)  the annuitant must be living on the effective
  date of the adjustment; and
                     (B)  the effective date of the retirement of the
  member of the retirement system must have been on or before August
  31, 2019;
               (2)  is a beneficiary under Section 824.402(a)(3) or
  (4) or 824.502, to be eligible for the adjustment:
                     (A)  the annuitant must be living on the effective
  date of the adjustment; and
                     (B)  the date of death of the member of the
  retirement system must have been on or before August 31, 2019; or
               (3)  is an alternate payee under Section 804.005, the
  annuitant is eligible for the adjustment only if the effective date
  of the election to receive the annuity payment was on or before
  August 31, 2019.
         (d)  An adjustment made under this section does not apply to
  payments under:
               (1)  Section 824.203(d), relating to retirees who
  receive a standard service retirement annuity in an amount fixed by
  statute;
               (2)  Section 824.304(a), relating to disability
  retirees with less than 10 years of service credit;
               (3)  Section 824.304(b)(2), relating to disability
  retirees who receive a disability annuity in an amount fixed by
  statute;
               (4)  Section 824.404(a), relating to active member
  survivor beneficiaries who receive a survivor annuity in an amount
  fixed by statute;
               (5)  Section 824.501(a), relating to retiree survivor
  beneficiaries who receive a survivor annuity in an amount fixed by
  statute; or
               (6)  Section 824.804(b), relating to participants in
  the deferred retirement option plan with regard to payments from
  their deferred retirement option plan accounts.
         (e)  An adjustment under this section:
               (1)  must be made beginning with an annuity payable for
  the month of December 2019; and
               (2)  is limited to an amount equal to 20 percent of the
  monthly benefit subject to the increase.
         (f)  The board of trustees shall determine the eligibility
  for and the amount of any adjustment in monthly annuities in
  accordance with this section.
  ARTICLE 2. TRANSFERRING COVERAGE PROVIDED TO ACTIVE EDUCATION
  EMPLOYEES FROM TEXAS SCHOOL EMPLOYEES UNIFORM GROUP HEALTH COVERAGE
  ACT TO TEXAS EMPLOYEES GROUP BENEFITS ACT
         SECTION 2.01.  Section 1551.004(b), Insurance Code, is
  amended to read as follows:
         (b)  In this section, "child" includes:
               (1)  a natural child, adopted child, stepchild, foster
  child, or child in the possession of a participant who is designated
  as managing conservator of the child under an irrevocable or
  unrevoked affidavit of relinquishment under Chapter 161, Family
  Code; or
               (2)  a child who is related by blood or marriage and was
  claimed as a dependent on the federal income tax return of an
  individual who is eligible to participate in the group benefits
  program under Section 1551.101 or 1551.102 or as an education
  employee under Subchapter D-1 for the calendar year preceding the
  plan year in which the child is first enrolled as a dependent under
  Subchapter D, and for each subsequent year in which the child is
  enrolled as a dependent.
         SECTION 2.02.  Section 1551.151, Insurance Code, is amended
  to read as follows:
         Sec. 1551.151.  ENTITLEMENT TO COVERAGE. An individual who
  is eligible to participate in the group benefits program under
  Section 1551.101, 1551.102, [or] 1551.1022, or 1551.167 is entitled
  to secure for a dependent of the individual any group coverages
  provided under this chapter, as determined by the board of trustees
  and subject to the exceptions provided by this subchapter.
         SECTION 2.03.  Chapter 1551, Insurance Code, is amended by
  adding Subchapter D-1 to read as follows:
  SUBCHAPTER D-1. COVERAGE AND PARTICIPATION OF EDUCATION EMPLOYEES
         Sec. 1551.161.  DEFINITIONS. In this subchapter:
               (1)  "Charter school" means an open-enrollment charter
  school established under Subchapter D, Chapter 12, Education Code.
               (2)  "Education employee" means a participating member
  of the Teacher Retirement System of Texas who is employed by a
  participating education entity and who is not receiving coverage
  from a program under Chapter 1575 or 1601. The term does not
  include an individual performing personal services as an
  independent contractor.
               (3)  "Full-time education employee" and "part-time
  education employee" have the meanings assigned by rules adopted by
  the board of trustees.
               (4)  "Participating education entity" means an entity
  that elects or is required to participate under this subchapter in
  the group benefits program established under this chapter. The
  term includes:
                     (A)  a school district;
                     (B)  another educational district whose employees
  are members of the Teacher Retirement System of Texas;
                     (C)  a regional education service center; and
                     (D)  a charter school that meets the requirements
  of Section 1551.166.
               (5)  "Regional education service center" means a
  regional education service center established under Chapter 8,
  Education Code.
         Sec. 1551.162.  REFERENCES TO COVERAGE PLAN. A reference in
  this code to a "primary care coverage plan" or "health benefit plan"
  under former Chapter 1579 means a basic coverage plan provided to
  eligible education employees under this subchapter.
         SECTION 2.04.  Sections 1579.151, 1579.152, 1579.153, and
  1579.154, Insurance Code, are transferred to Subchapter D-1,
  Insurance Code, as added by this Act, redesignated as Sections
  1551.163, 1551.164, 1551.165, and 1551.166, Insurance Code, and
  amended to read as follows:
         Sec. 1551.163 [1579.151].  REQUIRED PARTICIPATION OF SCHOOL
  DISTRICTS WITH 500 OR FEWER EDUCATION EMPLOYEES. (a) Each school
  district with 500 or fewer education employees and each regional
  education service center is required to participate in the group
  benefits program.
         (b)  Notwithstanding Subsection (a), a school district
  otherwise subject to Subsection (a) that, on January 1, 2001, was
  individually self-funded for the provision of health coverage to
  its education employees may elect not to participate in the group
  benefits program.
         (c)  An educational district described by Section
  1551.161(4)(B) [1579.002(5)(B)] that, on January 1, 2001, had 500
  or fewer education employees may elect not to participate in the
  group benefits program.
         Sec. 1551.164 [1579.152].  PARTICIPATION OF OTHER SCHOOL
  DISTRICTS. A [Effective September 1, 2005, a] school district with
  more than 500 education employees may elect to participate in the
  group benefits program. A school district that elects to
  participate under this section shall apply for participation in the
  manner prescribed by the board of trustees [trustee] by rule.
         Sec. 1551.165 [1579.153].  PARTICIPATION BY CERTAIN RISK
  POOLS. (a) In determining the number of education employees of a
  school district for purposes of Sections 1551.163 [1579.151] and
  1551.164 [1579.152], school districts that, on January 1, 2001,
  were members of a risk pool established under the authority of
  Chapter 172, Local Government Code, as provided by Section 22.004,
  Education Code, are [may elect to be] treated as a single unit if an
  appropriate election was made[. A school district shall elect
  whether to be considered as a member of a risk pool under this
  section] by notifying the Teacher Retirement System of Texas
  [trustee] not later than September 1, 2001.
         (b)  A risk pool in existence on January 1, 2001, that, as of
  that date, provided group health coverage to 500 or fewer school
  district education employees may elect to participate in the group
  benefits program.
         (c)  A school district with 500 or fewer education employees
  that is a member of a risk pool described by Subsection (a) that
  provides group health coverage to more than 500 school district
  education employees is [must elect, not later than September 1,
  2001, whether to be] treated as a school district with 500 or fewer
  education employees or as part of a unit with more than 500
  education employees in accordance with the election made by
  notification to[. The school district must notify] the Teacher
  Retirement System of Texas [trustee of the election, in the manner
  prescribed by the trustee,] not later than September 1, 2001.
         (d)  For purposes of this section, participation in the group
  benefits program by school districts covered by a risk pool is
  limited to school districts covered by the risk pool as of January
  1, 2001.
         Sec. 1551.166 [1579.154].  PARTICIPATION BY CHARTER
  SCHOOLS; ELIGIBILITY. (a) A charter school is eligible to
  participate in the group benefits program if the school agrees:
               (1)  that all records of the school relating to
  participation in the group benefits program are open to inspection
  by the board of trustees [trustee], the administering firm, the
  commissioner of education, or a designee of any of those entities;
  and
               (2)  to have the school's accounts relating to
  participation in the group benefits program annually audited by a
  certified public accountant at the school's expense.
         (b)  A charter school must notify the board of trustees
  [trustee] of the school's intent to participate in the group
  benefits program in the manner and within the time required by rules
  adopted by the board of trustees [trustee].
         SECTION 2.05.  Sections 1579.202, 1579.203, 1579.204, and
  1579.205, Insurance Code, are transferred to Subchapter D-1,
  Insurance Code, as added by this Act, redesignated as Sections
  1551.167, 1551.168, 1551.169, and 1551.170, Insurance Code, and
  amended to read as follows:
         Sec. 1551.167 [1579.202].  ELIGIBLE EDUCATION EMPLOYEES.
  (a) Except as provided by Section 1551.169 [1579.204],
  participation under this subchapter in the group benefits program
  is limited to education employees of participating education
  entities who are full-time employees and to part-time employees who
  are participating members in the Teacher Retirement System of
  Texas.
         (b)  An education employee described by Subsection (a) who
  applies for coverage during an open enrollment period prescribed by
  the board of trustees [trustee] is automatically covered by the
  basic [catastrophic care] coverage plan for employees unless the
  employee:
               (1)  specifically waives coverage under this chapter;
  or
               (2)  [selects a higher tier coverage plan; or
               [(3)]  is expelled from the program.
         Sec. 1551.168 [1579.203].  SELECTION OF COVERAGE. (a) A
  participating education employee may select coverage in any
  coverage plan offered by the board of trustees [trustee].
         (b)  The education employee is not required to continue
  participation in the coverage plan initially selected and may
  select a different [higher or lower tier] coverage plan than the
  plan initially selected by the employee in the manner provided by
  rules adopted by the board of trustees [trustee].
         (c)  If the combined contributions received from the state
  and the employing participating education entity under this
  subchapter [Subchapter F] exceed the cost of a coverage plan
  selected by the education employee, the employee may use the excess
  amount of contributions to obtain optional coverages provided
  [coverage] under this chapter [a higher tier coverage plan] or to
  pay all or part of the cost of coverage for the employee's
  dependents.
         (d)  A married couple, both of whom are eligible for coverage
  under this subchapter under the group benefits program, may pool
  the amount of contributions to which the couple are entitled under
  this subchapter [the program] to obtain coverage for themselves and
  dependent coverage.
         Sec. 1551.169 [1579.204].  CERTAIN PART-TIME EDUCATION
  EMPLOYEES. A part-time education employee of a participating
  education entity who is not a participating member in the Teacher
  Retirement System of Texas is eligible to participate in the
  program only if the employee pays all of the premiums and other
  costs associated with the health coverage plan selected by the
  employee.
         Sec. 1551.170 [1579.205].  PAYMENT BY PARTICIPATING
  EDUCATION ENTITY. Notwithstanding Section 1551.169 [1579.204], a
  participating education entity may pay any portion of what
  otherwise would be the employee share of premiums and other costs
  associated with the coverage selected by the education employee.
         SECTION 2.06.  Sections 1579.251, 1579.252, 1579.253,
  1579.254, and 1579.255, Insurance Code, are transferred to
  Subchapter D-1, Insurance Code, as added by this Act, redesignated
  as Sections 1551.171, 1551.172, 1551.173, 1551.174, and 1551.175,
  Insurance Code, and amended to read as follows:
         Sec. 1551.171 [1579.251].  STATE ASSISTANCE. (a) The state
  shall assist education employees of participating school districts
  and charter schools in the purchase of group health coverage under
  this chapter by providing for each covered education employee the
  amount of $900 each state fiscal year or a greater amount as
  provided by the General Appropriations Act. The state contribution
  shall be distributed through the school finance formulas under
  Chapters 41 and 42, Education Code, and used by school districts and
  charter schools as provided by Section 42.260, Education Code.
         (b)  The state shall assist education employees of
  participating regional education service centers and educational
  districts described by Section 1551.161(4)(B) [1579.002(5)(B)] in
  the purchase of group health coverage under this chapter by
  providing to the employing service center or educational district,
  for each covered education employee, the amount of $900 each state
  fiscal year or a greater amount as provided by the General
  Appropriations Act.
         Sec. 1551.172 [1579.252].  CONTRIBUTION BY PARTICIPATING
  EDUCATION ENTITIES. A participating education entity shall make
  contributions for the program as provided by Chapter 1581.
         Sec. 1551.173 [1579.253].  CONTRIBUTION BY EDUCATION
  EMPLOYEE. (a) An education employee covered by the group benefits
  program shall pay that portion of the cost of coverage selected by
  the employee that exceeds the amount of the state contribution
  under Section 1551.171 [1579.251] and the participating education
  entity contribution under Section 1551.172 in the manner required
  by the board of trustees [1579.252].
         (b)  The education employee may pay the employee's
  contribution under this subsection from the amount distributed to
  the employee under Subchapter D, Chapter 22, Education Code.
         (c)  Notwithstanding Subsection (a), a participating
  education entity may pay any portion of what otherwise would be the
  employee share of premiums and other costs associated with the
  coverage selected by the education employee.
         Sec. 1551.174 [1579.254].  CONTRIBUTIONS HELD IN TRUST FOR
  FUND. A participating education entity:
               (1)  shall hold contributions required by this
  subchapter in trust for the Texas school employees uniform group
  coverage trust fund and its participants; and
               (2)  may not divert the contributions for any other
  purpose.
         Sec. 1551.175 [1579.255].  INTEREST ASSESSED ON LATE
  PAYMENT OF CONTRIBUTIONS BY PARTICIPATING EDUCATION ENTITIES. (a)
  A participating education entity that does not remit to the board of
  trustees [trustee] all contributions required by this subchapter
  before the seventh day after the last day of the month shall pay to
  the Texas school employees uniform group coverage trust fund:
               (1)  the contributions; and
               (2)  interest on the unpaid amounts at the annual rate
  of six percent compounded monthly.
         (b)  On request, the board of trustees [trustee] may grant a
  waiver of the deadline imposed by this section based on a
  participating education entity's financial or technological
  resources.
         SECTION 2.07.  Section 1579.301, Insurance Code, is
  transferred to Subchapter D-1, Insurance Code, as added by this
  Act, and redesignated as Section 1551.176, Insurance Code, to read
  as follows:
         Sec. 1551.176 [1579.301].  FUND; ADMINISTRATION. The Texas
  school employees uniform group coverage trust fund is a trust fund
  with the comptroller.
         SECTION 2.08.  Sections 1579.302, 1579.303, and 1579.304,
  Insurance Code, are transferred to Subchapter D-1, Insurance Code,
  as added by this Act, redesignated as Sections 1551.177, 1551.178,
  and 1551.179, Insurance Code, and amended to read as follows:
         Sec. 1551.177 [1579.302].  COMPOSITION OF FUND. The Texas
  school employees uniform group coverage trust fund is composed of:
               (1)  all contributions made to the fund under this
  subchapter [chapter] from education employees, participating
  education entities, and the state;
               (2)  contributions made by education employees or
  participating education entities for optional coverages;
               (3)  investment income;
               (4)  any additional amounts appropriated by the
  legislature for contingency reserves, administrative expenses, or
  other expenses; and
               (5)  any other money required or authorized to be paid
  into the fund.
         Sec. 1551.178  [1579.303].  PAYMENTS FROM FUND. The board
  of trustees [trustee] may use amounts in the Texas school employees
  uniform group coverage trust fund only to provide group coverages
  to eligible education employees under the group benefits program
  [this chapter] and to pay the expenses of administering the group
  benefits program for participating education entities.
         Sec. 1551.179 [1579.304].  INVESTMENT OF FUND. The board of
  trustees [trustee] may invest assets of the Texas school employees
  uniform group coverage trust fund in the manner provided by Section
  67(a)(3), Article XVI, Texas Constitution.
         SECTION 2.09.  Section 1501.009(b), Insurance Code, is
  amended to read as follows:
         (b)  An independent school district that is participating in
  the state employees [uniform] group benefits [coverage] program
  established under Chapter 1551 [1579] may not participate in the
  small employer market under this section for health insurance
  coverage [and may not renew a health insurance contract obtained in
  accordance with this section after the date on which the program of
  coverages provided under Chapter 1579 is implemented]. This
  subsection does not affect a contract for the provision of optional
  coverages not included in a health benefit plan under this chapter.
         SECTION 2.10.  Section 1581.001(2), Insurance Code, is
  amended to read as follows:
               (2)  "Participating charter school" means an
  open-enrollment charter school established under Subchapter D,
  Chapter 12, Education Code, that participates in the [uniform]
  group benefits [coverage] program established under Chapter 1551
  [1579].
         SECTION 2.11.  Sections 22.004(a), (c), (i), and (j),
  Education Code, are amended to read as follows:
         (a)  A district shall participate in the state employees
  [uniform] group benefits [coverage] program established under
  Chapter 1551 [1579], Insurance Code, as provided by Subchapter D-1
  [D] of that chapter.
         (c)  The cost of the coverage provided under the program
  described by Subsection (a) shall be paid by the state, the
  district, and the employees in the manner provided by Subchapter
  D-1 [F], Chapter 1551 [1579], Insurance Code. The cost of coverage
  provided under a plan adopted under Subsection (b) shall be shared
  by the employees and the district using the contributions by the
  state described by Subchapter D-1 [F], Chapter 1551 [1579],
  Insurance Code, or Subchapter D.
         (i)  Notwithstanding any other provision of this section, a
  district participating in the state employees [uniform] group
  benefits [coverage] program established under Chapter 1551 [1579],
  Insurance Code, may not make group health coverage available to its
  employees under this section after the date on which the program of
  coverages provided under Chapter 1551 [1579], Insurance Code, is
  implemented.
         (j)  This section does not preclude a district that is
  participating in the state employees [uniform] group benefits
  [coverage] program established under Chapter 1551 [1579],
  Insurance Code, from entering into contracts to provide optional
  insurance coverages for the employees of the district.
         SECTION 2.12.  Section 22.101(3), Education Code, is amended
  to read as follows:
               (3)  "Participating charter school" means an
  open-enrollment charter school established under Subchapter D,
  Chapter 12, that participates in the group benefits program
  established under Chapter 1551 [1579], Insurance Code.
         SECTION 2.13.  Sections 42.260(a) and (c), Education Code,
  are amended to read as follows:
         (a)  In this section, "participating charter school" means
  an open-enrollment charter school that participates in the state
  employees [uniform] group benefits [coverage] program established
  under Chapter 1551 [1579], Insurance Code.
         (c)  Notwithstanding any other provision of this code, a
  school district or participating charter school may use the sum of
  the following amounts of funds only to pay contributions under a
  group health coverage plan for district or school employees:
               (1)  the amount determined by multiplying the amount of
  $900 or the amount specified in the General Appropriations Act for
  that year for purposes of the state contribution under Section
  1551.171 [1579.251], Insurance Code, by the number of district or
  school employees who participate in a group health coverage plan
  provided by or through the district or school; and
               (2)  the difference between the amount necessary for
  the district or school to comply with Section 1581.052, Insurance
  Code, for the school year and the amount the district or school is
  required to use to provide health coverage under Section 1581.051,
  Insurance Code, for that year.
         SECTION 2.14.  The following provisions of the Insurance
  Code are repealed:
               (1)  Subchapters A, B, and C, Chapter 1579;
               (2)  the headings to Subchapters D and E, Chapter 1579;
               (3)  Section 1579.201; and
               (4)  the headings to Subchapters F and G, Chapter 1579.
         SECTION 2.15.  (a)  In this section, "program" means the
  uniform group coverage program under Chapter 1579, Insurance Code,
  as it existed before amendment by this Act.
         (b)  Effective September 1, 2020:
               (1)  all functions and activities of the Teacher
  Retirement System of Texas under Chapter 1579, Insurance Code,
  before that date are transferred to the Employees Retirement System
  of Texas;
               (2)  all rules, fees, policies, procedures, decisions,
  and forms of the Teacher Retirement System of Texas related to the
  program become applicable rules, fees, policies, procedures,
  decisions, and forms of the Employees Retirement System of Texas
  until changed by the board of trustees of that system;
               (3)  a complaint, investigation, contested case, or
  other proceeding related to the program that is pending on
  September 1, 2020, is transferred without change in status to the
  Employees Retirement System of Texas;
               (4)  the management of the Texas school employees
  uniform group coverage trust fund and all other money, contracts,
  property, and obligations related to the program are transferred to
  the Employees Retirement System of Texas; and
               (5)  the unexpended and unobligated balance of any
  money appropriated by the legislature for the program for the
  purpose of administering the program is transferred to the
  Employees Retirement System of Texas.
         (c)  The Teacher Retirement System of Texas shall provide to
  the Employees Retirement System of Texas the records and other
  information necessary for the Employees Retirement System of Texas
  to implement its duties under this Act.
         SECTION 2.16.  The changes in law made by this article apply
  only to group coverage provided under Chapter 1551, Insurance Code,
  or Chapter 1579, Insurance Code, for a plan year beginning on or
  after September 1, 2020. A plan year that begins before that date is
  governed by the law as it existed immediately before the effective
  date of this Act, and that law is continued in effect for that
  purpose.
  ARTICLE 3. TERMINATION OF TEXAS PUBLIC SCHOOL EMPLOYEES GROUP
  INSURANCE PROGRAM FOR RETIREES
         SECTION 3.01.  Chapter 1575, Insurance Code, is amended by
  adding Subchapters L and M to read as follows:
  SUBCHAPTER L. TERMINATION OF GROUP PROGRAM
         Sec. 1575.551.  PROGRAM TERMINATION. Subject to Section
  1575.552, effective September 1, 2019, the group program is
  terminated.
         Sec. 1575.552.  COVERAGE ELIGIBILITY TERMINATES; PHASE-OUT
  PERIOD. (a) An individual who is not a participant in the group
  program on August 31, 2019, is not entitled to obtain coverage under
  the group program after that date.
         (b)  An individual who is a participant in the group program
  on August 31, 2019, and who is, on September 1, 2019, eligible to
  participate in Medicare, is not entitled to continue coverage under
  the group program after August 31, 2019.
         (c)  An individual who is a participant in the group program
  on August 31, 2019, but who is not, on September 1, 2019, eligible
  to participate in Medicare, may continue coverage under the group
  program in accordance with this subchapter until the earlier of:
               (1)  the date the individual first becomes eligible to
  participate in Medicare; or
               (2)  September 1, 2029.
         Sec. 1575.553.  AUTHORIZED COVERAGE. Notwithstanding
  Section 1575.151, on and after September 1, 2019, the group program
  may not offer coverage other than health benefit plan coverage.
         Sec. 1575.554.  EXCESS GROUP INSURANCE FUND MONEY. (a) Not
  later than December 31, 2019, the trustee shall determine the
  amount of money required to fund coverage for individuals under
  Section 1575.552(c) for the 2019-2020 fiscal year and shall certify
  that amount to the comptroller.
         (b)  As soon as practicable after January 1, 2020, the
  trustee shall, notwithstanding Section 1575.206, pay to each
  retiree participating in the group program on August 31, 2019, an
  equal share of the amount by which the money in the group insurance
  fund exceeds the amount of money determined under Subsection (a).
         Sec. 1575.555.  REDUCTION IN CONTRIBUTIONS. (a) Beginning
  not later than June 1, 2020, the trustee shall annually determine
  the amount of money required to fund coverage for individuals under
  Section 1575.552(c) for the subsequent fiscal year. The trustee
  shall certify that amount to the comptroller.
         (b)  The trustee, in consultation with the comptroller, may
  annually adjust the amounts of contributions to be made under
  Sections 1575.201, 1575.202, 1575.203, and 1575.204, to the extent
  that the trustee determines that money otherwise to be contributed
  under those sections for a fiscal year will exceed the amount
  determined to be required for that fiscal year under Subsection
  (a).
         Sec. 1575.556.  FINAL RECONCILIATION; TERMINATION OF FUND.
  As soon as practicable after August 31, 2029, the trustee, in
  consultation with the comptroller, shall determine any
  unencumbered amount remaining in the group insurance fund. The
  trustee shall pay that amount in equal shares to individuals
  participating in the program on August 31, 2029.
         Sec. 1575.557.  GROUP PROGRAM AND GROUP INSURANCE FUND
  ABOLISHED. Effective September 1, 2029, the group program and the
  group insurance fund are abolished.
         Sec. 1575.558.  DUTIES OF THE TRUSTEE. (a) The trustee
  shall implement a plan for the orderly termination of the group
  program in accordance with this subchapter.
         (b)  The determinations made by the trustee under Sections
  1575.554 and 1575.555 must be actuarially justified.
  SUBCHAPTER M. EXPIRATION OF CHAPTER
         Sec. 1575.601.  EXPIRATION OF CHAPTER. This chapter expires
  September 1, 2030.
  ARTICLE 4.
  EFFECTIVE DATE
         SECTION 4.01.  This Act takes effect September 1, 2019.
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