CHAPTER 814. BENEFITS - Texas Statutes

GOVERNMENT CODE

TITLE 8. PUBLIC RETIREMENT SYSTEMS

SUBTITLE B. EMPLOYEES RETIREMENT SYSTEM OF TEXAS

CHAPTER 814. BENEFITS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 814.001. TYPES OF BENEFITS. The types of benefits payable

by the retirement system are:

(1) service retirement benefits;

(2) occupational disability retirement benefits;

(3) nonoccupational disability retirement benefits; and

(4) death benefits.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.001 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989.

Sec. 814.002. BENEFITS FROM BOTH MEMBERSHIP CLASSES. (a) If a

member has service credit in both classes of membership, is

eligible to retire from one class, and does not hold a position

included in the other class, the member may retire from both

classes and receive benefits based on all service credited in the

retirement system.

(b) If a member is retiring and uses service credited in a class

of membership to meet a length-of-service requirement for

retirement, the member must retire from that class.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.002 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989.

Sec. 814.003. EFFECTIVE DATE OF RETIREMENT. (a) The effective

date of a member's service retirement is the date the member

designates at the time the member applies for retirement as

provided by Section 814.101, but the date must be the last day of

a calendar month.

(b) If a person elects to receive a standard service retirement

annuity and dies during the first calendar month that begins

after the effective date of the person's retirement, the person

is considered to have been a contributing member at the time of

death.

(c) The retirement system may allow an applicant for retirement

time after the effective date of the person's retirement to make

a selection of a retirement annuity. If the applicant dies within

the time allowed without having given the retirement system

notice of a selection, the person is considered to have been a

contributing member at the time of death.

(d) The effective date of a member's disability retirement is

the date designated on the application for retirement filed by or

for the member as provided by Section 814.201, but the date must

be the last day of a calendar month.

(e) If a person elects to receive a standard disability

retirement annuity and dies during the first calendar month that

begins after the effective date of the person's retirement, the

person is considered to have been a contributing member at the

time of death.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.003 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 586, Sec. 11,

eff. Aug. 28, 1995.

Sec. 814.004. WHEN BENEFITS ARE PAYABLE. A monthly annuity

payable to a retiree or beneficiary is payable to that person

through the month in which the person dies. A continuation of an

optional annuity or the payment of a death or survivor benefit

annuity begins with payment for the month following the month in

which the death occurs.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.004 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989. Amended by Acts 1995, 74th Leg., ch. 586, Sec. 12, eff.

Aug. 28, 1995.

Sec. 814.005. WAIVER OF BENEFITS. (a) A person may, on a form

prescribed by and filed with the retirement system, waive all or

a portion of any benefits from the retirement system to which the

person is entitled. The retirement system also shall give effect

as a waiver to a full or partial disclaimer executed in

accordance with Section 37A, Texas Probate Code, unless the

benefit to be disclaimed is a lifetime annuity. A person may

revoke a waiver of benefits in the same manner as the original

waiver was made, unless the original waiver by its terms was made

irrevocable.

(b) A waiver or a revocation of a waiver applies only to

benefits that become payable on or after the date the document is

filed.

(c) The retirement system shall transfer to the state

accumulation account amounts from the appropriate benefit payment

accounts not used to pay benefits because of a waiver executed

under this section.

(d) The board of trustees may adopt rules for the administration

of waivers under this section.

Added by Acts 1983, 68th Leg., p. 1147, ch. 257, Sec. 1, eff. May

27, 1983. Amended by Acts 1985, 69th Leg., ch. 91, Sec. 4, eff.

Sept. 1, 1985. Renumbered from Vernon's Ann.Civ.St. Title 110B,

Sec. 24.005 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept.

1, 1989. Amended by Acts 1997, 75th Leg., ch. 1048, Sec. 11, eff.

Sept. 1, 1997.

Sec. 814.006. SIMULTANEOUS DEATH OF MEMBER AND BENEFICIARY.

When a member or annuitant and the beneficiary of the member or

annuitant have died within a period of less than 120 hours, the

member or annuitant is considered to have survived the

beneficiary for the purpose of determining the rights to amounts

payable under this subtitle on the death of the member or

annuitant.

Added by Acts 1995, 74th Leg., ch. 586, Sec. 13, eff. Aug. 28,

1995.

Sec. 814.007. BENEFICIARY CAUSING DEATH OF MEMBER OR ANNUITANT.

(a) A benefit payable on the death of a member or annuitant may

not be paid to a person convicted 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

part on the age of the convicted 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 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.

(e) For the purposes of this section, a person has been

convicted 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 of, causing the death of the member or annuitant,

regardless of whether sentence is imposed or probated; and

(2) has no appeal of the conviction pending and the time

provided for appeal has expired.

Added by Acts 1995, 74th Leg., ch. 586, Sec. 13, eff. Aug. 28,

1995.

Sec. 814.008. CHANGE OF BENEFICIARY AFTER RETIREMENT. (a) A

retiree receiving an optional service or disability retirement

annuity approved by the board of trustees or described by Section

814.108(c)(1), (c)(2), or (c)(5) may change the designated

beneficiary as provided by this section for the benefits payable

after the retiree's death.

(b) If the beneficiary designated at the time of the retiree's

retirement is the spouse or former spouse of the retiree:

(1) the spouse or former spouse must give written, notarized

consent to the change; or

(2) a court with jurisdiction over the marriage must have

ordered the change.

(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

shorter of:

(1) the remainder of the life expectancy of the beneficiary

designated as of the effective date of the retiree's retirement;

or

(2) the remainder of the new beneficiary's life.

(d) A retiree may not change a beneficiary under this section

after retirement if the retiree has previously changed after

retirement a beneficiary for optional retirement annuity payments

under this subtitle.

Added by Acts 1999, 76th Leg., ch. 168, Sec. 1, eff. May 21,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 9, eff. September 1, 2009.

Sec. 814.009. DEDUCTION FROM ANNUITY. (a) A person who

receives an annuity under this subchapter may, on a form

prescribed by and filed with the retirement system, authorize the

retirement system to deduct from the person's monthly annuity

payment the amount of a fee for the person's membership in a

state employee organization that:

(1) is a certified eligible state employee organization under

Section 403.0165; or

(2) has at least 2,500 retirees as members on January 1

preceding the fiscal year for which the deduction is made.

(b) An authorization made under this section remains in effect

until:

(1) the person who receives the annuity modifies or revokes the

authorization; or

(2) the state employee organization fails to meet the

requirements of Subsection (a).

(c) The retirement system shall adopt rules to administer this

section.

Added by Acts 2001, 77th Leg., ch. 1231, Sec. 7, eff. Sept. 1,

2001.

Sec. 814.010. ELECTRONIC FILING OF BENEFICIARY DESIGNATION.

(a) In this section, "electronic filing" means the filing of data

in the form of digital electronic signals transformed by computer

and stored on magnetic tape, optical disks, or any other medium.

(b) A person entitled to designate a beneficiary under any

system or program administered by the retirement system may make

the designation by electronic filing under procedures adopted by

the retirement system.

Added by Acts 2003, 78th Leg., ch. 1111, Sec. 16, eff. Sept. 1,

2003; Acts 2003, 78th Leg., ch. 1310, Sec. 51, eff. June 20,

2003.

Sec. 814.011. LUMP-SUM PAYMENTS IN LIEU OF ANNUITIES. The

retirement system may elect to make a lump-sum payment to a

retiree or beneficiary in lieu of annuity payments if the

actuarial present value of the annuity at the time of retirement

or death does not exceed $20,000. Payment of a lump sum under

this section does not affect eligibility for any other program

administered by the retirement system.

Added by Acts 2005, 79th Leg., Ch.

347, Sec. 11, eff. September 1, 2005.

Sec. 814.012. DISPOSITION OF UNCLAIMED BENEFICIARY BENEFITS.

If, as of the fourth anniversary of the death of a member or

annuitant, the retirement system has not paid benefits and a

claim for benefits is not pending with the retirement system

based on the death of the member or annuitant, the accumulated

contributions of the deceased member or the balance of the

reserve for the deceased annuitant reverts to the benefit of the

retirement system. The retirement system shall transfer funds

reverted under this section to the state accumulation account.

Added by Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 10, eff. September 1, 2009.

SUBCHAPTER B. SERVICE RETIREMENT BENEFITS

Sec. 814.101. APPLICATION FOR SERVICE RETIREMENT BENEFITS. (a)

A member may apply for a service retirement annuity by filing an

application for retirement with the board of trustees.

(b) An application for a service retirement annuity may not be

made:

(1) after the date the member wishes to retire; or

(2) more than 90 days before the date the member wishes to

retire.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.101 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989.

Sec. 814.102. ELIGIBILITY OF ELECTED MEMBERS FOR SERVICE

RETIREMENT. Except as provided by rule adopted under Section

813.304(d) or Section 803.202(2), a member who has service credit

in the elected class of membership, is eligible to retire and

receive a service retirement annuity if the member:

(1) is at least 60 years old and has 8 years of service credit

in that class; or

(2) is at least 50 years old and has 12 years of service credit

in that class.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1983, 68th Leg., p. 1978, ch. 361, Sec. 1,

eff. Sept. 1, 1983. Renumbered from Vernon's Ann.Civ.St. Title

110B, Sec. 24.102 and amended by Acts 1989, 71st Leg., ch. 179,

Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch.

850, Sec. 9, eff. Sept. 1, 1991.

Sec. 814.103. SERVICE RETIREMENT BENEFITS FOR ELECTED CLASS

SERVICE. (a) Except as provided by Subsection (b), the standard

service retirement annuity for service credited in the elected

class of membership is an amount equal to the number of years of

service credit in that class, times two percent of the state

salary, excluding longevity pay payable under Section 659.0445

and as adjusted from time to time, being paid a district judge.

(b) The standard service retirement annuity for service credited

in the elected class may not exceed at any time 100 percent of

the state salary being paid a district judge.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1983, 68th Leg., p. 1979, ch. 361, Sec. 2,

eff. Sept. 1, 1983. Renumbered from Vernon's Ann.Civ.St. Title

110B, Sec. 24.103 and amended by Acts 1989, 71st Leg., ch. 179,

Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch.

850, Sec. 10, eff. Sept. 1, 1991.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1328, Sec. 4, eff. September 1, 2007.

Sec. 814.104. ELIGIBILITY OF MEMBER FOR SERVICE RETIREMENT. (a)

Except as provided by Subsection (d) of this section, Section

814.102, or by rule adopted under Section 813.304(d) or

803.202(a)(2), a member who has service credit in the retirement

system is eligible to retire and receive a service retirement

annuity if the member:

(1) is at least 60 years old and has at least 5 years of service

credit in the employee class; or

(2) has at least 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.

(b) A member who is at least 55 years old and who has at least

10 years of service credit as a commissioned peace officer

engaged in criminal law enforcement activities of the Department

of Public Safety, the Texas Alcoholic Beverage Commission, the

Parks and Wildlife Department, or the office of inspector general

at the Texas Youth Commission, or as a custodial officer, is

eligible to retire and receive a service retirement annuity.

(c) For the sole purpose of determining eligibility to receive a

service retirement annuity, the retirement system shall consider

service performed as a participant in the optional retirement

program under Chapter 830 as if it were service for which credit

is established in the retirement system.

(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 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.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1983, 68th Leg., p. 1979, ch. 361, Sec. 3,

eff. Sept. 1, 1983. Renumbered from Vernon's Ann.Civ.St. Title

110B, Sec. 24.104 and amended by Acts 1989, 71st Leg., ch. 179,

Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch.

850, Sec. 11, eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch. 297,

Sec. 1, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 688, Sec.

2, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1048, Sec. 12,

eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1541, Sec. 13, eff.

Sept. 1, 1999; Acts 2003, 78th Leg., ch. 1111, Sec. 17, eff.

Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

74, Sec. 2, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

263, Sec. 22, eff. June 8, 2007.

Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 11, eff. September 1, 2009.

Sec. 814.105. SERVICE RETIREMENT BENEFITS FOR EMPLOYEE CLASS

SERVICE. (a) Except as otherwise provided by this section, the

standard service retirement annuity for service credited in the

employee class of membership is an amount computed as the

member's average monthly compensation for service in that class

for the 36 highest months of compensation multiplied by 2.3

percent for each year of service credit in that class.

(b) The standard service retirement annuity for service credited

in the employee class may not be less than $150 a month nor more

than 100 percent of the average monthly compensation computed

under Subsection (a).

(c) The standard service retirement annuity for service credited

in the employee class of membership for a member who was not a

member on the date hired, was hired on or after September 1,

2009, and is eligible to retire is an amount computed as the

member's average monthly compensation for service in that class

for the 48 highest months of compensation multiplied by 2.3

percent for each year of service credit in that class.

(d) The standard service retirement annuity computed under

Subsection (c) is reduced by five percent for each year the

member retires before the member reaches age 60, with a maximum

possible reduction of 25 percent.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1986, 69th Leg., 2nd C.S., ch. 15, Sec. 1,

eff. Sept. 23, 1986; Acts 1987, 70th Leg., ch. 577, Sec. 1, eff.

Aug. 31, 1987; Acts 1987, 70th Leg., 2nd C.S., ch. 4, Sec. 3,

eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 602, Sec. 4, eff.

Sept. 1, 1989. Renumbered from Vernon's Ann.Civ.St. Title 110B,

Sec. 24.105 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1,

eff. Sept. 1, 1989. Amended by Acts 1989, 71st Leg., ch. 1100,

Sec. 4.09(a), eff. Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 850,

Sec. 11, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1048, Sec.

14, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1231, Sec. 8,

eff. Sept. 1, 2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 12, eff. September 1, 2009.

Sec. 814.107. SERVICE RETIREMENT BENEFITS FOR CERTAIN PEACE

OFFICERS. (a) A member who has at least 20 years of service

credit as a law enforcement or custodial officer is eligible to

retire regardless of age and receive a standard service

retirement annuity in an amount and to be funded as provided by

this section.

(b) The standard service retirement annuity payable for at least

20 years of service credit as a law enforcement or custodial

officer is an amount computed on the basis of the member's

average monthly compensation for the 36 highest months of

compensation in the employee class, times the sum of the

percentage factor used in the computation of a standard service

retirement annuity under Section 814.105 plus .5 percent.

(c) The standard combined service retirement annuity that is

payable under this section is based on retirement on or after the

attainment of the normal retirement age, which for purposes of

this section is the earlier of either the age of 50 or the age at

which the sum of the member's age and amount of service credit in

the employee class equals the number 80. A law enforcement or

custodial officer who retires before attaining the normal

retirement age is entitled only to an annuity that is actuarially

reduced from the annuity available at the normal retirement age

to the law enforcement or custodial officer whose service credit

annuity amount is based on the sum of the member's age and amount

of law enforcement or custodial officer service credit and

employee class service credit, and is not entitled to have the

annuity recalculated at normal retirement age. The standard or

reduced annuity is payable from the trust fund established by

Section 815.310 and the law enforcement and custodial officer

supplemental retirement fund in a ratio determined by the

retirement system.

(d) A member who retires under this section retires

simultaneously from the employee class of membership. Optional

retirement annuities provided by Section 814.108 are available to

a member eligible to receive a service retirement annuity under

this section, but the same optional plan and beneficiary must be

selected for the portion of the annuity payable from the law

enforcement and custodial officer supplemental retirement fund

and the portion payable from the trust fund established by

Section 815.310.

(e) The amount payable from the law enforcement and custodial

officer supplemental retirement fund is reducible by the amount

paid from the trust fund established by Section 815.310 for

service as a law enforcement or custodial officer. The total

combined amount of an annuity under this section may not be less

than the authorized benefit under Subsection (b) subtracted by

any amount necessary because of selection of an optional annuity,

because of retirement before the normal retirement age, or as

provided by Subsection (f).

(f) The standard combined service retirement annuity payable for

at least 20 years of service credit as a law enforcement or

custodial officer may not exceed 100 percent of the average

compensation computed under Subsection (b).

(g) For purposes of this section, service as a law enforcement

or custodial officer is creditable as provided by rule of the

board of trustees or on a month-to-month basis, whichever is

greater.

(h) Repealed by Acts 1995, 74th Leg., ch. 586, Sec. 45(1), eff.

Aug. 28, 1995.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1981, 67th Leg., 1st C.S., p. 199, ch. 18,

Sec. 13, 14, eff. Nov. 10, 1981; Acts 1989, 71st Leg., ch. 1227,

Sec. 1, eff. Sept. 1, 1989. Renumbered from Vernon's Ann.Civ.St.

Title 110B, Sec. 24.107 and amended by Acts 1989, 71st Leg., ch.

179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg.,

ch. 16, Sec. 11.08(a), eff. Aug. 26, 1991; Acts 1991, 72nd Leg.,

ch. 850, Sec. 12, eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch.

586, Sec. 15, 45(1), eff. Aug. 28, 1995; Acts 1999, 76th Leg.,

ch. 1541, Sec. 16, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch.

1231, Sec. 9, eff. Sept. 1, 2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 13, eff. September 1, 2009.

Sec. 814.1075. ADJUSTED BENEFITS FOR CERTAIN PEACE OFFICERS.

(a) This section applies only to a person hired on or after

September 1, 2009, who was not a member on the date hired.

(b) A member who has at least 20 years of service credit as a

law enforcement or custodial officer is eligible to retire

regardless of age and receive a standard service retirement

annuity as provided by this section.

(c) The standard service retirement annuity payable for at least

20 years of service credit as a law enforcement or custodial

officer is an amount computed on the basis of the member's

average monthly compensation for the 48 highest months of

compensation in the employee class multiplied by the sum of the

percentage factor used in the computation of a standard service

retirement annuity under Section 814.105(c) plus 0.5 percent.

(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.

(e) An annuity payable under this section:

(1) is payable from the trust fund established by Section

815.310 and from the law enforcement and custodial officer

supplemental retirement fund in a ratio determined by the

retirement system; and

(2) is based on the service credit available to the law

enforcement or custodial officer at the time of retirement and

the sum of the member's age and amount of law enforcement or

custodial officer service credit and employee class service

credit.

(f) A member who retires under this section retires

simultaneously from the employee class of membership. Optional

retirement annuities provided by Section 814.108 are available to

a member eligible to receive a service retirement annuity under

this section, but the same optional plan and beneficiary must be

selected for the portion of the annuity payable from the law

enforcement and custodial officer supplemental retirement fund

and the portion payable from the trust fund established by

Section 815.310.

(g) The amount payable from the law enforcement and custodial

officer supplemental retirement fund is reducible by the amount

paid from the trust fund established by Section 815.310 for

service as a law enforcement or custodial officer. The total

combined amount of an annuity under this section may not be less

than the authorized benefit under Subsection (c) subtracted by

any amount necessary because of the selection of an optional

annuity, because of retirement before the age of 55, or as

provided by Subsection (h).

(h) The standard combined service retirement annuity payable for

at least 20 years of service credit as a law enforcement or

custodial officer may not exceed 100 percent of the average

compensation computed under Subsection (c).

(i) For purposes of this section, service as a law enforcement

or custodial officer is creditable as provided by rule of the

board of trustees or on a month-to-month basis, whichever is

greater.

Added by Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 14, eff. September 1, 2009.

Sec. 814.108. OPTIONAL SERVICE RETIREMENT BENEFITS. (a)

Instead of the standard service retirement annuity payable under

Section 814.103 or 814.105, the standard combined service

retirement annuity payable under Section 814.107, or an annuity

actuarially reduced because of age under Section 814.107, a

retiring member may elect to receive an optional service

retirement annuity under this section.

(b) A person who selects an optional lifetime retirement annuity

must designate before the selection becomes effective one person

to receive the annuity on the death of the person making the

selection. A person who selects an optional retirement annuity

payable for a guaranteed period may designate, before or after

retirement, one or more persons to receive the annuity on the

death of the person making the selection.

(c) An eligible person may select one of the following options,

which provides that:

(1) after the retiree's death, the reduced annuity is payable in

the same amount throughout the life of the person designated by

the retiree before retirement;

(2) after the retiree's death, one-half of the reduced annuity

is payable throughout the life of the person designated by the

retiree before retirement;

(3) if the retiree dies before 60 monthly annuity payments have

been made, the remainder of the 60 payments are payable to one or

more beneficiaries or, if one does not exist, to the retiree's

estate;

(4) if the retiree dies before 120 monthly annuity payments have

been made, the remainder of the 120 payments are payable to one

or more beneficiaries or, if one does not exist, to the retiree's

estate; or

(5) after the retiree's death, three-fourths of the reduced

annuity is payable throughout the life of the person designated

by the retiree before retirement.

(d) If a person who is nominated by a retiree in the written

designation under Subsection (b) predeceases the retiree, the

reduced annuity of a retiree who has elected an optional lifetime

retirement annuity shall be increased to the standard service

retirement annuity that the retiree would otherwise be entitled

to receive if the retiree had not selected that annuity option.

The standard service retirement annuity shall be adjusted as

appropriate for:

(1) early retirement as permitted by law; and

(2) postretirement increases in retirement benefits authorized

by law after the date of retirement.

(e) The increase in the annuity under Subsection (d) begins with

the monthly payment made to the retiree for the month following

the month in which the person nominated dies or the September 30,

1991, payment, whichever is later, and is payable to the retiree

for the remainder of the retiree's life.

(f) The computation of an optional annuity must be made without

regard to the gender of the annuitant or designee involved.

(g) Except as provided by Section 814.008 or 814.1081, a person

who selected an optional service retirement annuity approved by

the board of trustees or an optional service retirement annuity

described by Subsection (c)(1), (c)(2), or (c)(5) may not change

or revoke a beneficiary designation after the person's effective

date of retirement.

(h) A beneficiary designation that names a former spouse as

beneficiary for a guaranteed optional annuity described by

Subsection (c)(3) or (c)(4) is invalid unless the designation is

made after the date of the divorce.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.108 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 850, Sec. 13,

eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch. 586, Sec. 16, eff.

Aug. 28, 1995; Acts 1999, 76th Leg., ch. 168, Sec. 2, eff. May

21, 1999; Acts 2001, 77th Leg., ch. 1231, Sec. 10, eff. Sept. 1,

2001; Acts 2003, 78th Leg., ch. 1111, Sec. 18, eff. Sept. 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 15, eff. September 1, 2009.

Sec. 814.1081. CHANGE IN ANNUITY SELECTION. (a) A person who

retired and selected an optional service retirement annuity

described by Section 814.108(c)(1), (c)(2), or (c)(5) may change

the optional annuity selection to the selection of a standard

service retirement annuity by filing with the retirement system a

request to change the annuity selection, if the retiree

designated a person as beneficiary who:

(1) was not at the time of designation and is not currently the

retiree's spouse or dependent child; or

(2) has executed since the designation a transfer and release,

approved by a court of competent jurisdiction pursuant to a

divorce decree, of the beneficiary's interest in the annuity and

is not currently the retiree's spouse or dependent child.

(b) If a retiree files a request as provided by Subsection (a),

the retirement system shall recompute the annuity as a standard

service retirement annuity. The increase in the annuity under

this section begins with the monthly payment made to the retiree

for the month following the month in which a request is filed as

provided by Subsection (a).

(c) Expired.

Added by Acts 1991, 72nd Leg., ch. 850, Sec. 14, eff. Sept. 1,

1991. Amended by Acts 1995, 74th Leg., ch. 586, Sec. 17, eff.

Aug. 28, 1995; Acts 1997, 75th Leg., ch. 1048, Sec. 15, eff.

Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1231, Sec. 11, eff.

Sept. 1, 2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 16, eff. September 1, 2009.

Sec. 814.1082. PARTIAL LUMP-SUM OPTION. (a) A member who is

eligible for an unreduced service retirement annuity may select a

standard retirement annuity or an optional retirement annuity

described by Section 814.108 together with a partial lump-sum

distribution.

(b) The amount of the lump-sum distribution under this section

may not exceed the sum of 36 months of a standard service

retirement annuity computed without regard to this section.

(c) The service retirement annuity selected by the member shall

be actuarially reduced to reflect the lump-sum option selected by

the member and shall be actuarially equivalent to a standard or

optional service retirement annuity, as applicable, without the

partial lump-sum distribution. The annuity and lump sum shall be

computed to result in no actuarial loss to the retirement system.

(d) Unless otherwise specified in rules adopted by the board of

trustees, the lump-sum distribution will be made as a single

payment payable at the time that the first monthly annuity

payment is paid to the retiree.

(e) The amount of the lump-sum distribution will be deducted

from any amount otherwise payable under Section 814.505.

(f) The partial lump-sum option under this section may be

elected only once by a member and may not be elected by a

retiree. A member retiring under the proportionate retirement

program under Chapter 803 is not eligible for the partial

lump-sum option.

(g) Before a retiring member selects a partial lump-sum

distribution under this section, the retirement system shall

provide a written notice to the member of the amount by which the

member's annuity will be reduced because of the selection. The

member shall be asked to sign a copy of or a receipt for the

notice, and the retirement system shall maintain the signed copy

or receipt.

(h) The board of trustees may adopt rules for the implementation

of this section and may authorize the option to be used for a

death benefit annuity. This section does not apply to a

disability retirement annuity.

Added by Acts 1999, 76th Leg., ch. 1541, Sec. 17, eff. Sept. 1,

1999.

SUBCHAPTER C. DISABILITY RETIREMENT BENEFITS

Sec. 814.201. APPLICATION FOR DISABILITY RETIREMENT BENEFITS.

(a) A member may apply for a disability retirement annuity by:

(1) filing an application for retirement with the board of

trustees; or

(2) having an application filed with the board by the member's

spouse, employer, or legal representative.

(b) An application for a disability retirement annuity may not

be made:

(1) after the date the disability retirement is to become

effective; or

(2) more than 90 days before the date the disability retirement

is to become effective.

(c) An application for an occupational disability retirement

annuity may not be made after the second anniversary of the date

the injury or disease that causes the disability occurs unless

the executive director permits the application after that date

because of a showing of good cause for delay.

(d) An applicant must submit to medical examination and provide

other pertinent information as required by the retirement system.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1983, 68th Leg., p. 1111, ch. 252, Sec. 5,

eff. Aug. 29, 1983. Renumbered from Vernon's Ann.Civ.St. Title

110B, Sec. 24.201 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 2001, 77th Leg., ch. 1231, Sec.

12, eff. Sept. 1, 2001.

Sec. 814.202. ELIGIBILITY FOR DISABILITY RETIREMENT. (a) A

member who was contributing to the retirement system at the time

the member became permanently disabled for the further

performance of duty is eligible to retire for a nonoccupational

disability if the member has at least:

(1) 8 years of membership service credit in the elected class of

membership;

(2) 6 years of membership service credit in the elected class

plus 2 years of military service credit established before

January 1, 1978; or

(3) 10 years of membership service credit in the employee class

of membership.

(b) A member who was contributing to the retirement system at

the time the member became permanently incapacitated for the

further performance of duty, who meets the requirements provided

by Section 811.001(12), and who has service credit in either

membership class is eligible to retire for an occupational

disability regardless of age or amount of service credit.

(c) A member otherwise eligible may not receive a disability

retirement annuity unless the member is the subject of a

certification issued as provided by Section 814.203.

(d) Repealed by Acts 2005, 79th Leg., Ch. 347, Sec. 36(6), eff.

September 1, 2005.

(e) A member otherwise eligible may not apply for or receive a

nonoccupational disability annuity if the member is eligible for

a service retirement annuity under Section 814.102 or

814.104(a)(2) or (b).

(f) An application for a nonoccupational disability retirement

may not be made after the second anniversary of the date the

member ceased making contributions to the retirement system.

(g) A member otherwise eligible to receive a disability

retirement annuity may not receive the annuity if the member is:

(1) still earning a salary or wage from the employment for which

the member is claiming disability; or

(2) on leave without pay from the employment for which the

member is claiming disability.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1983, 68th Leg., p. 1980, ch. 361, Sec. 4,

eff. Sept. 1, 1983. Renumbered from Vernon's Ann.Civ.St. Title

110B, Sec. 24.202 and amended by Acts 1989, 71st Leg., ch. 179,

Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch.

850, Sec. 15, eff. Sept. 1, 1991; Acts 1999, 76th Leg., ch. 1541,

Sec. 18, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1231, Sec.

13, eff. Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

347, Sec. 12, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

347, Sec. 36(6), eff. September 1, 2005.

Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 17, eff. September 1, 2009.

Sec. 814.203. CERTIFICATION OF DISABILITY. (a) As soon as

practicable after an application for disability retirement is

filed, the medical board shall evaluate the medical and other

pertinent information regarding the member's application. If the

medical board finds that the member is mentally or physically

incapacitated for the further performance of duty, as supported

by substantial, objective, medical evidence, and that the

incapacity is likely to be permanent, the medical board shall

issue a certification of disability and submit it to the

executive director. A certification under this section is

admissible in a contested case under Section 815.511 without

proving the medical board as experts.

(b) For purposes of this subchapter, a member is incapacitated

for the further performance of duty if the member has

demonstrably sought and been denied workplace accommodation of

the disability in accordance with applicable law, and the member

is physically or mentally unable to continue to hold the position

occupied or to hold any other position offering comparable pay.

The employee's education, training, and experience must be

considered when making a determination of incapacity under this

subchapter.

(c) For the purposes of this section, "comparable pay" means 80

percent or more of the member's final state employment base pay

before deductions for taxes or deferred compensation under state

and federal law, including any longevity or hazardous duty pay,

but excluding the monetary value of any insurance or retirement

benefits. Comparable pay may be adjusted by the retirement

system to account for adjustments in state pay rates.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.203 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989. Amended by Acts 2003, 78th Leg., ch. 1111, Sec. 19, eff.

Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

347, Sec. 13, eff. September 1, 2005.

Acts 2009, 81st Leg., R.S., Ch.

1308, Sec. 18, eff. September 1, 2009.

Sec. 814.204. INFORMATION ABOUT OCCUPATIONAL DISABILITY. (a) A

member who applies for retirement for an occupational disability

shall furnish the retirement system all information and other

data requested by the retirement system and relating to the

disability.

(b) The retirement system may require information and other data

relating to an occupational disability retirement application to

be furnished by any officer or employee of the agency with which

the applicant holds a position.

(c) If a person who is requested to submit information or other

data under this section withholds the requested material, the

retirement system may elect to treat the application as one for

nonoccupational disability retirement benefits.

(d) After receiving information and other data the retirement

system considers necessary, the executive director shall

determine, subject to review by the board of trustees, whether or

not the disability is occupational.

(e) A contributing member who is also a member of the Texas

National Guard or the Texas State Guard is eligible for

retirement for an occupational disability if the person:

(1) is injured while on active duty with the national or state

guard;

(2) is discharged from that entity because of the injury; and

(3) ceases state employment.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.204 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989. Amended by Acts 1997, 75th Leg., ch. 1245, Sec. 1, eff.

Sept. 1, 1997.

Sec. 814.205. DISABILITY RETIREMENT BENEFITS FOR ELECTED CLASS

SERVICE. (a) Except as provided by Subsection (b), a disability

retirement annuity for service credited in the elected class of

membership is an amount computed in the same manner as the

standard service retirement annuity, not reduced because of age,

for service credited in the elected class.

(b) An occupational disability retirement annuity for service

credited in the elected class is computed on the basis of the

amount of the member's service credit or eight years, whichever

is greater.

(c) A person who retires under this section may select an

optional retirement plan instead of the standard retirement

annuity.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.205 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 850, Sec. 16,

eff. Sept. 1, 1991.

Sec. 814.2055. AVERAGE MONTHLY COMPENSATION. For purposes of

Sections 814.206 and 814.207, "average monthly compensation"

means:

(1) a member's average monthly compensation for service in the

employee class for the 36 highest months of compensation; or

(2) a member's average monthly compensation for service in the

employee class if a member retires with less than 36 months of

service.

Added by Acts 2001, 77th Leg., ch. 1231, Sec. 14, eff. Sept. 1,

2001.

Sec. 814.206. DISABILITY RETIREMENT BENEFITS FOR EMPLOYEE CLASS

SERVICE. (a) Except as provided by Subsection (b) and Section

814.207, a standard disability retirement annuity for service

credited in the employee class of membership is an amount

computed at the rate of 2.3 percent for each year of service

credit in that class, times the member's average monthly

compensation.

(b) A standard disability retirement annuity under this section

may not be more than 100 percent of the average monthly

compensation or, if occupational, not less than 35 percent of the

average monthly compensation or $150 a month, whichever is

greater.

(c) A standard disability retirement annuity computed under this

section is payable throughout the life of the retiree, except as

provided by Section 814.210.

(d) Instead of the standard disability retirement annuity

payable under this section, a retiring member may elect to

receive an optional disability retirement annuity payable

throughout the life of the retiree and actuarially reduced, under

tables adopted by the board of trustees, from the standard

disability retirement annuity.

(e) Optional disability retirement annuities available to a

disabled retiring member are those available to members retiring

from regular service under Section 814.108(c).

(f) A standard nonoccupational disability retirement annuity

under this section is reducible, under actuarial tables adopted

by the board of trustees, for a member who retires before

reaching an applicable age provided by Section 814.102 or

814.104.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.206 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 850, Sec. 17,

eff. Sept. 1, 1991; Acts 2001, 77th Leg., ch. 1231, Sec. 15, eff.

Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

347, Sec. 14, eff. September 1, 2005.

Sec. 814.207. DISABILITY RETIREMENT BENEFITS FOR CERTAIN PEACE

OFFICERS. (a) An annuity payable for an occupational disability

resulting from a risk to which law enforcement or custodial

officers are exposed because of the nature of law enforcement or

custodial duties is payable under the same terms and conditions

that apply to other occupational disability retirement annuities

under this subtitle, except that the source and amount of the

annuity are as provided by this section.

(b) Except as provided by Subsection (c), an occupational

disability retirement annuity under this section is an amount,

but not more than 100 percent, computed on the basis of the

officer's average monthly compensation, times a percentage

derived by application of Section 814.107(b).

(c) A disability retirement annuity under this section is not

reducible because of age and may not be less than 50 percent of

the officer's average monthly compensation regardless of the

amount of service credited to the officer in the employee class.

(d) The portions of the annuity under this section payable from

the law enforcement and custodial officer supplemental retirement

fund are the amount remaining after deduction of any amount

payable under Section 814.206, except the portion of an amount

that exceeds the minimum payments provided by Section 814.206(b)

and that is made for service other than as a law enforcement or

custodial officer and any amount by which an annuity is increased

under Subsection (e).

(e) If a retiring member or retiree under this section presents

evidence satisfactory to the retirement system that the person's

occupational disability makes the person incapable of substantial

gainful activity solely because of the disability and is

considered a total disability under federal social security law,

the retirement system shall increase the person's occupational

disability retirement annuity to 100 percent of the officer's

average monthly compensation.

(f) An annuity increase under Subsection (e) is not payable

before the first month following the month in which the

satisfactory evidence is received by the retirement system under

Subsection (e).

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1981, 67th Leg., 1st C.S., p. 200, ch. 18,

Sec. 15, eff. Nov. 10, 1981. Renumbered from Vernon's Ann.Civ.St.

Title 110B, Sec. 24.207 and amended by Acts 1989, 71st Leg., ch.

179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg.,

ch. 586, Sec. 18, eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch.

1231, Sec. 16, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.

1111, Sec. 20, eff. Sept. 1, 2003.

Sec. 814.208. MEDICAL EXAMINATION OF DISABILITY RETIREE. (a)

Once each year during the first five years after a member retires

for disability, and once in each three-year period after that,

the retirement system may require a disability retiree to undergo

a medical examination.

(b) An examination under this section may be held at the

retiree's residence or at any place mutually agreed to by the

retirement system and the retiree. The retirement system may

designate a physician to perform the examination. The retiree

shall pay the expense of the examination.

(c) If a disability retiree refuses to submit to a medical

examination as provided by this section, the executive director

shall discontinue the retiree's annuity payments until the

retiree submits to an examination. If a retiree has not submitted

to an examination as provided by this section before the first

anniversary of the date of first refusal, the executive director

shall revoke all rights of the retiree to an annuity.

(d) If the medical board finds that a disability retiree is no

longer mentally or physically incapacitated for the performance

of duty, it shall certify its findings and submit them to the

executive director. If the executive director concurs in this

certification, the annuity terminates and membership is restored

as provided by Section 814.210.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.208 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989. Amended by Acts 1991, 72nd Leg., ch. 850, Sec. 17, eff.

Sept. 1, 1991.

Sec. 814.210. RESTORATION OF DISABILITY RETIREE TO ACTIVE

SERVICE. (a) If a retiree who is receiving a disability

retirement annuity returns to state service or if the retiree is

found to be no longer incapacitated for the further performance

of duty, the person must again become a member of the retirement

system or, if the person holds a position included in the elected

class of membership, may elect to become a member. If a person

becomes a member under this section, the executive director shall

terminate the person's annuity payments.

(b) A person who becomes a member under this section is entitled

to service credit for all service previously established and not

canceled by a withdrawal of contributions.

(c) If a person's disability retirement annuity is discontinued

under this section, the person's selection of any optional

annuity becomes void.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.210 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,

1989. Amended by Acts 1991, 72nd Leg., ch. 850, Sec. 17, eff.

Sept. 1, 1991.

Sec. 814.211. REFUND AT ANNUITY DISCONTINUANCE. (a) Except as

provided by Subsection (b), if a disability retirement annuity is

discontinued, the member is entitled to a lump-sum payment from

the retirement annuity reserve account in an amount, if any, by

which the amount in the member's individual account in the

employees saving account at the time of disability retirement

exceeds the amount of payments payable before the date the

annuity was discontinued.

(b) The benefit provided by this section is not payable to a

member who, after discontinuance of a disability retirement

annuity, returns to state service or elects a service retirement

annuity.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1985, 69th Leg., ch. 91, Sec. 5, eff. Sept.

1, 1985. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.211 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 850, Sec. 17,

eff. Sept. 1, 1991.

SUBCHAPTER D. DEATH BENEFIT ANNUITIES

Sec. 814.301. SELECTION OF DEATH BENEFIT PLAN BY MEMBER. (a) A

contributing member who has at least 10 years of service credit

in the elected or employee class of membership may select a death

benefit plan for the payment, if the member dies while the member

is eligible to select a plan, of a death benefit annuity to a

person designated by the member. Death benefit annuities

available for selection by a member described in this subsection

are the optional annuities provided by Sections 814.108(c)(1) and

(c)(4), payable as if the member had retired at the time of

death.

(b) If a member of a retirement system administered by the board

of trustees selects death benefit plans under more than one

board-administered retirement system, each plan selected may take

effect. If a member selects a death benefit plan under only one

retirement system administered by the board of trustees, the plan

applies to service credit in other board-administered retirement

systems.

(c) The computation of a death benefit annuity selected under

this section must include the ages of the member and the member's

designated beneficiary at the time of the member's death.

(d) A member may select a death benefit plan by filing an

application for a plan with the retirement system on a form

prescribed by the retirement system. After selection, a death

benefit plan takes effect at death unless the member amends the

plan, selects a retirement annuity at the time of retirement, has

chosen a plan that cannot take effect, or becomes ineligible to

select a plan.

(e) A beneficiary designation that names a former spouse as

beneficiary is invalid for purposes of this section unless the

designation is made after the date of the divorce.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.301 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 850, Sec. 18,

eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch. 586, Sec. 19, eff.

Aug. 28, 1995.

Amended by:

Acts 2005, 79th Leg., Ch.

347, Sec. 15, eff. September 1, 2005.

Sec. 814.302. SELECTION OF DEATH BENEFIT PLAN BY SURVIVOR OF

MEMBER. (a) If a contributing member eligible to select a death

benefit plan under Section 814.301 dies without having made a

selection, or if a selection cannot be made effective, the

member's designated beneficiary may select a plan in the same

manner as if the member had made the selection. If there is no

designated beneficiary, the personal representative of the

decedent's estate may make the selection for the benefit of the

decedent's heirs or devisees. In lieu of selecting a death

benefit plan, the designated beneficiary or, if there is none,

the personal representative of the decedent's estate, may elect

to receive a refund of contributions and any applicable payment

under Section 814.401.

(b) If a person dies who, at the time of death, was a

contributing member of a retirement program administered by the

board of trustees and was eligible, having met the requirements

of service credit and attained age, for a service retirement

annuity based on service in one or more board-administered

programs or was a contributing member of the employee class, had

at least three years of service credit in that class, and would

have been eligible to retire under the proportionate retirement

program under Chapter 803, but was not eligible to select a death

benefit plan, the person's surviving spouse may select a plan in

the same manner that the decedent could have made the selection

if the decedent had retired on the last day of the month in which

the person died. If there is no surviving spouse, the guardian of

the decedent's surviving minor children may select a plan. If the

decedent is not survived by a spouse or minor children, an

annuity may not be paid under this subsection.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.302 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 850, Sec. 19,

eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch. 586, Sec. 20, eff.

Aug. 28, 1995; Acts 1999, 76th Leg., ch. 1541, Sec. 19, eff.

Sept. 1, 1999.

Amended by:

Acts 2005, 79th Leg., Ch.

347, Sec. 16, eff. September 1, 2005.

Sec. 814.304. ANNUITY FOR SURVIVOR OF ELECTED MEMBER. (a)

Except as provided by Subsections (b) and (c), if a member who

has at least eight years of service credit in the elected class

of membership dies, a death benefit annuity is payable in an

amount computed at the rate of one-half of the standard service

retirement annuity to which the member would have been entitled

at the member's age at the time of death or at the age of 60,

whichever is later.

(b) The annuity provided by this section is payable only to the

member's surviving spouse. If the member is not survived by a

spouse, a benefit may not be paid under this section.

(c) An annuity may not be paid under this section if, at the

time of death, the member was eligible to select a death benefit

annuity under Section 814.301.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.304 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989.

Sec. 814.305. ANNUITY FOR SURVIVOR OF LAW ENFORCEMENT OR

CUSTODIAL OFFICER. If a member who has at least 20 years of

service credit as a law enforcement or custodial officer dies,

the amount of the death benefit annuity payable for the member's

service as a law enforcement or custodial officer is an amount

computed and funded as provided by Section 814.107, including any

applicable reduction factors.

Added by Acts 1983, 68th Leg., p. 1977, ch. 360, Sec. 1, eff.

Sept. 1, 1983. Renumbered from Vernon's Ann.Civ.St. Title 110B,

Sec. 24.305 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1,

eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 850,

Sec. 20, eff. Sept. 1, 1991.

SUBCHAPTER E. MEMBER DEATH BENEFITS

Sec. 814.401. MEMBER DEATH BENEFITS GENERALLY. (a) Except as

provided by Subsection (d), if a member dies under a circumstance

described in Subsection (c), a lump-sum death benefit is payable

from the state accumulation account in an amount computed at the

rate of five percent of the amount in the member's individual

account in the employees saving account at the time of death,

times the number of full years of service credit the member had

at the time of death, but not more than 100 percent of the amount

in the member's individual account.

(b) The benefit provided by this section is payable to the

beneficiary designated by the member under Section 814.403(b). If

a member does not designate a beneficiary or if the beneficiary

designation cannot be made effective, the benefit is payable to

the member's estate.

(c) A benefit is payable under this section only if the member

at the time of death was:

(1) actively employed by the state;

(2) receiving workers' compensation benefits for an injury

sustained while employed by the state; or

(3) on authorized sick leave.

(d) A death benefit may not be paid under this section if, at

the time of death, a death benefit annuity became effective.

(e) A beneficiary designation that names a former spouse as

beneficiary is invalid unless the designation is made after the

date of the divorce.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,

1981. Amended by Acts 1985, 69th Leg., ch. 91, Sec. 6, eff. Sept.

1, 1985. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

24.401 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 850, Sec. 21,

eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch. 586, Sec. 21, eff.

Aug. 28, 1995; Acts 2001, 77th Leg., ch. 1231, Sec. 17, eff.

Sept. 1, 2001.

Sec. 814.402. MEMBER OCCUPATIONAL DEATH BENEFITS. (a) Except

as provided by Subsection (b), if a member dies and the executive