CHAPTER 824. BENEFITS - Texas Statutes

GOVERNMENT CODETITLE 8. PUBLIC RETIREMENT SYSTEMSSUBTITLE C. TEACHER RETIREMENT SYSTEM OF TEXASCHAPTER 824. BENEFITSSUBCHAPTER A. GENERAL PROVISIONSSec. 824.001. TYPES OF BENEFITS. The types of benefits payable by the retirement system are:(1) service retirement benefits;(2) disability retirement benefits; and(3) 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. 34.001 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989.

Sec. 824.002. EFFECTIVE DATE OF RETIREMENT. (a) The effective date of a member's service retirement is the last day of the later of the following months:(1) any month in a three-month period in which the third month is the month in which the member applies for retirement as provided by Section 824.201;(2) the month in which the member satisfies age and service requirements for service retirement as provided by Section 824.202; or(3) the month in which the member's employment in a position included in the coverage of the retirement system ends.(b) The effective date of a member's disability retirement is the last day of the later of the following months:(1) any month in a three-month period in which the third month is the month in which the member applies for retirement as provided by Section 824.301; or(2) the month in which the member's employment in a position included in the coverage of the retirement system ends.(c) For the purposes of this section, a member's employment in a position covered by the retirement system does not end if the member is on leave of absence or has a contract for future employment in a public school, other than a contract for employment that would, if the retiring member and the employer were to comply with all procedural requirements, qualify under Section 824.602 for an exception to the loss of monthly benefits required by Section 824.601.(d) A person who works not later than June 15 of a year in order to complete all work required for the school year may be considered to have ended employment on May 31 of that year for the purposes of Subsections (a)(3) and (b)(2).(e) Not later than the later of a member's retirement date or the last day of the month in which the member's application for retirement is submitted, a member applying for service retirement may reinstate withdrawn contributions, make deposits for military service and equivalent membership service, and receive service credit as provided by this subtitle.(f) An effective retirement date may not be changed after it is established except by revocation of retirement under Section 824.005 and retirement at a later date.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1, 1981. Amended by Acts 1985, 69th Leg., ch. 832, Sec. 4, eff. June 15, 1985. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 34.002 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 13, Sec. 4, eff. Sept. 1, 1992; Acts 1995, 74th Leg., ch. 555, Sec. 11, eff. Sept. 1, 1995; Acts 2001, 77th Leg., ch. 1229, Sec. 7, eff. Sept. 1, 2001.

Sec. 824.003. WHEN BENEFITS ARE PAYABLE. Except as otherwise provided by this chapter, an annuity provided by this chapter is payable for the month in which the person who receives the annuity dies. Monthly annuity payments are generally due to be paid on the first working day of each month following the month for which the payment accrues.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1, 1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 34.003 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 555, Sec. 12, eff. Sept. 1, 1995.

Sec. 824.004. 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. A person may revoke a waiver of benefits in the same manner as the original waiver was made.(b) A revocable waiver may be revoked only as to benefits payable after the date the revocation is filed. If a waiver is made irrevocable and is filed with the retirement system before the first benefit payment is made to the person executing the waiver, Section 824.103 applies to determine alternative beneficiaries.(c) The retirement system shall transfer to the state contribution account from the appropriate benefit reserve accounts amounts not used to pay benefits because of a waiver executed under this section.(d) The board of trustees may provide rules for administration of waivers under this section.(e) The retirement system may not require a person filing a waiver of benefits under this section to submit a sworn affidavit in order to receive the accumulated contributions.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1, 1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 34.004 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 1118, Sec. 2, eff. Sept. 1, 1999.

Sec. 824.005. REVOCATION OF RETIREMENT. (a) A person who has retired under the retirement system may revoke that retirement by filing with the system a written revocation in a form prescribed by the system. For a revocation to be effective, the retirement system must receive the written revocation before the later of the due date for the first payment of the annuity or the date on which the retirement system makes the first payment. After the later of those dates, a retiree may not revoke the retirement. For purposes of this subtitle, the retirement system makes a payment by depositing a check in the mail or sending payment by electronic fund transfer.(b) A person who has retired under the retirement system revokes that retirement if the person becomes employed in any position in a public school during the first month following that person's effective date of retirement, or during the first two months following an effective date of retirement established by reliance on Section 824.002(d), and must return any retirement benefits received under the original retirement.(c) A person who revokes a retirement under this section is restored to membership in the retirement system as if that person had never retired.

Added by Acts 1981, 67th Leg., 1st C.S., p. 204, ch. 18, Sec. 26, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 832, Sec. 5, eff. June 15, 1985. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 34.005 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 555, Sec. 13, eff. Sept. 1, 1995.

Sec. 824.006. PAYMENT OF ANNUITY ON DEATH OF MEMBER OR RETIREE. (a) 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.(b) The effective date of death of a member who dies before retirement is, for the purpose of a death or survivor benefit annuity, the last day of the month preceding the month in which the member dies. The first payment of the annuity becomes due at the end of the month in which the member's death occurs.

Added by Acts 1995, 74th Leg., ch. 555, Sec. 14, eff. Sept. 1, 1995.

Sec. 824.007. DEDUCTIONS FROM SERVICE OR DISABILITY RETIREMENT ANNUITY. (a) In this section, "program administrator" means the person who administers the uniform program under Section 1601.102, Insurance Code.(b) An individual eligible to participate in the uniform program under Section 1601.102, Insurance Code, may authorize the retirement system to deduct the amount of the contribution and any other qualified health insurance premium from the individual's regular monthly service or disability retirement annuity payment if the individual is:(1) eligible to receive a monthly annuity from the retirement system greater than the amount of the authorized deduction; and(2) eligible under Section 402(l), Internal Revenue Code of 1986, or a similar law, to elect to exclude from annual gross income up to $3,000 of distributions from an eligible retirement plan used for qualified health insurance premiums.(c) An individual may authorize the deduction described by Subsection (b) on a form provided by the program administrator. The program administrator shall coordinate the implementation of an authorization under Subsection (b) with the retirement system.(d) After making the deductions, the retirement system shall pay to the program administrator an aggregate amount for all individuals who authorize annuity deductions under Subsection (b).(e) If an individual no longer receives a monthly annuity greater than the amount of the authorized deduction, the retirement system:(1) shall inform the program administrator; and(2) is not required to make any deduction under this section for the individual.(f) The retirement system is not required to accept an authorization for a deduction under this section if payment of qualified health insurance premiums by deduction from a retirement plan annuity is not required for an eligible retiree to elect the gross income exclusion described by Subsection (b)(2).

Added by Acts 2009, 81st Leg., R.S., Ch. 1171, Sec. 2, eff. September 1, 2009.

SUBCHAPTER B. BENEFICIARIESSec. 824.101. DESIGNATION OF BENEFICIARY. (a) Except as provided by Subsection (c), any member or annuitant may, on a form prescribed by and filed with the retirement system, designate one or more beneficiaries to receive benefits payable by the retirement system on the death of the member or annuitant.(b) Except as provided by Subsection (c), a member or annuitant may change or revoke a designation of beneficiary in the same manner as the original designation was made.(c) Only one person may be designated as beneficiary of an optional retirement annuity under Section 824.204(c)(1), (c)(2), or (c)(5), and a designation of beneficiary under any of those options may not be made, changed, or revoked, except as provided by Sections 824.1011, 824.1012, and 824.1013, after the later of the date on which the retirement system makes the first annuity payment to the retiree or the date the first payment becomes due. For purposes of this section, the term "makes payment" includes the depositing in the mail of a payment warrant or the crediting of an account with payment through electronic funds transfer.(d) Unless a contrary intention is clearly indicated by a written designation of beneficiary and except as otherwise provided by this section, the most recent designation of beneficiary by a member or annuitant applies to all benefits payable on the death of the member or annuitant.(e) The retirement system by rule may provide for the designation of alternate beneficiaries and may adopt other rules to administer this section.(f) A beneficiary designation, change in beneficiary, or revocation of beneficiary is not effective unless it is authorized by this subchapter. Except as provided by Subsection (g), any authorized beneficiary designation, change in beneficiary, or revocation of beneficiary, including any modification ordered by a court or contemplated in a trust or testamentary document, must be executed by the member or annuitant in a form prescribed by the retirement system and must be received by the retirement system before the member's or annuitant's death or, for a beneficiary named to receive continued optional service or disability retirement payments, not later than the deadline established elsewhere in this subtitle.(g) Receipt by the retirement system of a certified copy of a divorce decree between a member or annuitant and a designated beneficiary revokes any designation of the former spouse as beneficiary of any death benefits payable under Subchapter E or F of this chapter that was effective before the date of divorce, if the decree is received by the retirement system before the payment of any part of the death benefit to any beneficiary.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1, 1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 34.101 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 812, Sec. 5, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 555, Sec. 15, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1416, Sec. 12, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1540, Sec. 6, eff. Sept. 1, 1999.

Sec. 824.1011. DESIGNATION OF BENEFICIARY AFTER RETIREMENT. (a) A retiree who is receiving a standard service or disability retirement annuity under Section 824.203 or 824.304(b) and who marries after the date of the person's retirement may replace the annuity by selecting an optional retirement annuity under Section 824.204(c)(1), (c)(2), or (c)(5) or under Section 824.308(c)(1), (c)(2), or (c)(5), as applicable, and designating the person's spouse as beneficiary before the second anniversary of the marriage in the same manner as an annuity selection and designation of beneficiary may be made before retirement.(b) The selection of an optional annuity and designation of a beneficiary under this section do not take effect until the first payment of the annuity that becomes due two years after the date the selection and designation are filed with the retirement system.(c) The retirement system shall recompute the annuity of a retiree who selects an optional annuity and designates a beneficiary under this section to reflect that change and shall adjust the annuity as appropriate for early retirement and postretirement increases provided after the date of the retiree's retirement. The retirement system shall by rule provide for the adjustment of the monthly payments of the annuity under the option selected to an amount which is the actuarial equivalent of the annuity being paid immediately before the change in benefit option and beneficiary selection.(d) If a retiree who selects an optional annuity and designates a beneficiary under this section dies before the change takes effect or if the designated beneficiary dies before the change takes effect, the selection of an optional annuity and designation of beneficiary have no effect.

Added by Acts 1995, 74th Leg., ch. 555, Sec. 16, eff. Sept. 1, 1995; Amended by Acts 1997, 75th Leg., ch. 1416, Sec. 13, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1540, Sec. 7, eff. Sept. 1, 1999.

Sec. 824.1012. REVOCATION OF BENEFICIARY DESIGNATION FOR CERTAIN RETIREMENT BENEFIT OPTIONS. (a) As an exception to Section 824.101(c), a retiree who selected an optional service retirement annuity under Section 824.204(c)(1), (c)(2), or (c)(5) or an optional disability retirement annuity under Section 824.308(c)(1), (c)(2), or (c)(5) may revoke the designation of the beneficiary to receive the annuity on the death of the retiree, if a court in a divorce proceeding involving the retiree and beneficiary approves or orders the revocation in the divorce decree or acceptance of a property settlement or if the beneficiary is the spouse, a former spouse, or an adult child of the retiree and signs a notarized consent to the revocation. The revocation takes effect when the retirement system receives it.(b) A revocation described by Subsection (a) cancels the optional annuity selection made by the retiree, effective with the beginning of payments of the annuity as recomputed under this subsection. The retiree is entitled to receive payments of a standard service or disability retirement annuity, as applicable, reduced for early retirement, if applicable, beginning with the payment for the month after the month in which the retirement system receives the notice of revocation and ending on the death of the retiree.(c) The retirement system by rule may establish requirements for forms, documentation, and procedures necessary for the administration of this section.

Added by Acts 1997, 75th Leg., ch. 401, Sec. 1, eff. May 28, 1997. Amended by Acts 1999, 76th Leg., ch. 1540, Sec. 8, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1229, Sec. 8, eff. Sept. 1, 2001.

Sec. 824.1013. CHANGE OF BENEFICIARY AFTER RETIREMENT. (a) A retiree receiving an optional retirement annuity under Section 824.204(c)(1), (c)(2), or (c)(5) or Section 824.308(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 under those sections.(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 or designated after retirement a beneficiary for optional retirement annuity payments under this subtitle.

Acts 1997, 75th Leg., ch. 1416, Sec. 14, eff. Sept. 1, 1997. Renumbered as Sec. 824.1013 by Acts, 1999, 76th Leg., ch. 1540, Sec. 9, eff. Sept. 1, 1999.

Sec. 824.102. TRUST AS BENEFICIARY. (a) Except as provided by Subsection (b), a member or annuitant may designate a trust as beneficiary for the payment of benefits from the retirement system. If a trust is designated beneficiary, the beneficiary of the trust is considered the designated beneficiary for the purposes of determining eligibility for and the amount and duration of benefits. The trustee is entitled to exercise any rights to elect benefit options and name subsequent beneficiaries.(b) A trust having more than one beneficiary may not receive benefits to which multiple designated beneficiaries are not entitled under this chapter.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1, 1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 34.102 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989.

Sec. 824.103. ABSENCE OF BENEFICIARY. (a) Benefits payable on the death of a member or annuitant, except an optional retirement annuity under Section 824.204(c)(1), (c)(2), or (c)(5), are payable, and rights to elect survivor benefits, if applicable, are available, to one of the classes of persons described in Subsection (b), if:(1) the member or annuitant fails to designate a beneficiary before death;(2) a designated beneficiary does not survive the member or annuitant; or(3) a designated beneficiary, under Section 824.004, waives claims to benefits payable on the death of the member or annuitant.(b) The following classes of persons, in descending order of precedence, are eligible to receive benefits in a situation described in Subsection (a):(1) any surviving joint designated beneficiaries;(2) any alternate beneficiaries;(3) the surviving spouse of the decedent;(4) any children of the decedent or their descendants by representation;(5) the parents of the decedent;(6) the executor or administrator of the decedent's estate; or(7) the persons entitled by law to distribution of the decedent's estate.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1, 1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 34.103 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 555, Sec. 17, eff. Sept. 1, 1995.

Sec. 824.104. FAILURE OF BENEFICIARY TO CLAIM BENEFITS. (a) If, before the first anniversary of the death of a member or annuitant, the retirement system does not receive a claim for payment of benefits from a designated beneficiary or a person entitled to benefits under Section 824.103, the retirement system may pay benefits, except an optional retirement annuity under Section 824.204(c)(1), (c)(2), or (c)(5), under the order of precedence in Section 824.103(b), as if the person failing to claim benefits had predeceased the decedent.(b) Payment under Subsection (a) bars recovery by any other person of the benefits distributed.(c) If, before the fourth anniversary of the death of a member or annuitant, payment of benefits based on the death has not been made and no claim for benefits is pending with the retirement system, the accumulated contributions of the deceased member or the balance of the reserve for the deceased annuitant is forfeited to the benefit of the retirement system. The retirement system shall transfer funds forfeited under this subsection to the state contribution account.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1, 1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 34.104 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 555, Sec. 18, eff. Sept. 1, 1995.

Sec. 824.105. 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 to a person who would be entitled to the benefit had the convicted person 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 pay 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.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1, 1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 34.105 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989.

Sec. 824.106. 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 1987, 70th Leg., ch. 61, Sec. 4, eff. Aug. 31, 1987. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 34.106 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER C. SERVICE RETIREMENT BENEFITSSec. 824.201. APPLICATION FOR SERVICE RETIREMENT BENEFITS. (a) A member may apply for a service retirement annuity by filing a written application for retirement with the board of trustees.(b) At any time before the retirement system makes the first annuity payment or the first annuity payment becomes due, a member may, by filing written notice with the board of trustees, revoke the member's application for retirement or make, revoke, or change a selection of an optional service retirement annuity available as provided by Section 824.204.(c) Except as specifically provided by this subtitle, a retiree may not revoke a retirement nor make, revoke, or change a selection of an optional service 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. 34.201 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 555, Sec. 19, eff. Sept. 1, 1995.

Sec. 824.202. ELIGIBILITY FOR SERVICE RETIREMENT. (a) Except as provided by Subsection (a-1), a member is eligible to retire and receive a standard service retirement annuity if:(1) the member is at least 65 years old and has at least five years of service credit in the retirement system;(2) the member is at least 60 years old and has at least 20 years of service credit in the retirement system;(3) the member is at least 50 years old and has at least 30 years of service credit in the retirement system; or(4) the sum of the member's age and amount of service credit in the retirement system equals the number 80.(a-1) This subsection applies only to a person who becomes a member of the retirement system on or after September 1, 2006. A member subject to this subsection is eligible to retire and receive a standard service retirement annuity if:(1) the member is at least 65 years old and has at least five years of service credit in the retirement system; or(2) the member is at least 60 years old and has at least five years of service credit in the retirement system and the sum of the member's age and amount of service credit in the retirement system equals the number 80.(b) This subsection applies only to a person who is not subject to Subsection (b-1) or (d). If a member subject to this subsection is at least 55 years old and has at least five years of service credit in the retirement system, the member is eligible to retire and receive a service retirement annuity reduced from the standard service retirement annuity available under Subsection (a)(1), to a percentage derived from the following table:

Age at date of retirement

55

56

57

58

59

60

61

62

63

64

65

Percentage of standard annuity receivable

47%

51%

55%

59%

63%

67%

73%

80%

87%

93%

100%

(b-1) This subsection applies only to a person who becomes a

member of the retirement system on or after September 1, 2006.

If a member subject to this subsection is at least 55 years old

and has at least five years of service credit in the retirement

system, but does not meet the requirements under Subsection

(d-1), the member is eligible to retire and receive a service

retirement annuity reduced from the standard service retirement

annuity available under Subsection (a-1)(1), to a percentage

derived from the following table:

Age at date of retirement

55

56

57

58

59

60

61

62

63

64

65

Percentage of standard annuity receivable

47%

51%

55%

59%

63%

67%

73%

80%

87%

93%

100%

(c) Repealed by Acts 2005, 79th Leg., Ch. 1359, Sec. 55(a)(1),

eff. September 1, 2005.

(d) This subsection applies only to a person who is not subject

to Subsection (d-1). If a member subject to this subsection has

at least 30 years of service credit in the retirement system, the

member is eligible to retire regardless of age and receive a

service retirement annuity consisting of the standard service

retirement annuity available under Subsection (a) decreased by

two percent for each year of age under 50 years.

(d-1) This subsection applies only to a person who becomes a

member of the retirement system on or after September 1, 2007.

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

the retirement system equals the number 80, with at least five

years of service credit, or if the member has at least 30 years

of service credit in the retirement system, the member is

eligible to retire regardless of age and receive a service

retirement annuity, reduced from the standard service retirement

annuity available under Subsection (a)(2), to a percentage

derived from the following table:

Age at date of retirement

50

51

52

53

54

55

56

57

58

59

60

Minimum years of service credit required

30

29

28

27

26

25

24

23

22

21

20

Percentage of standard annuity receivable

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

For each year of age under 50 years with 30 years of service

credit, the standard service retirement annuity shall be five

percent less than the percentage for age 50 with 30 years of

service credit.

(e) The board of trustees may adopt tables for reduction of

benefits for early retirement by each month of age, but the range

of percentages in the tables within a year must be limited to the

range provided between two years of age by this section.

(f) Except as provided by Chapter 803 or 805, a member is not

eligible to receive service retirement benefits from the

retirement system unless the member has at least five years of

service credit in the retirement system for actual service in

public schools.

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

1981. Amended by Acts 1986, 69th Leg., 3rd C.S., ch. 25, Sec. 1,

eff. Oct. 15, 1986; Acts 1989, 71st Leg., ch. 222, Sec. 1, eff.

Sept. 1, 1989; Acts 1989, 71st Leg., ch. 835, Sec. 3(a), (b),

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

110B, Sec. 34.202 and amended by Acts 1989, 71st Leg., ch. 179,

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

1100, Sec. 4.11(a), eff. Sept. 1, 1989; Acts 1991, 72nd Leg., ch.

16, Sec. 11.05(c), eff. Aug. 26, 1991; Acts 1995, 74th Leg., ch.

555, Sec. 20, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1416,

Sec. 15, eff. Sept. 1, 1997.

Amended by:

Acts 2005, 79th Leg., Ch.

1359, Sec. 11, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

1359, Sec. 55(a)(1), eff. September 1, 2005.

Sec. 824.203. STANDARD SERVICE RETIREMENT BENEFITS. (a) Except

as provided by Subsections (c) and (d), the standard service

retirement annuity is an amount computed on the basis of the

member's average annual compensation for the five years of

service, whether or not consecutive, in which the member received

the highest annual compensation, times 2.3 percent for each year

of service credit in the retirement system.

(b) In the case of a person who retired before August 27, 1979,

ceilings in the definition of "annual compensation" apply to the

computation of average annual compensation under Subsection (a).

In the case of a person who retires on or after that date, those

ceilings do not apply and the computation shall be based on

actual compensation paid or payable for services as an employee

to the extent that the computation includes compensation for

school years before the 1981-82 school year.

(c) Except as provided by Subsection (d), for benefits payable

because of the death or retirement of a member that occurred

before September 1, 1982, the standard service retirement annuity

is computed in accordance with applicable prior law.

(d) In no case may the standard service retirement annuity be

less than $150 a month. The minimum benefits provided by this

section are subject to reduction in the same manner as other

benefits because of early retirement or selection of an optional

retirement annuity.

(e) Repealed by Acts 2001, 77th Leg., ch. 1229, Sec. 29(4), eff.

Sept. 1, 2001.

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

1981. Amended by Acts 1981, 67th Leg., 1st C.S., p. 204, ch. 18,

Sec. 27, eff. Sept. 1, 1982. Renumbered from Vernon's Ann.Civ.St.

Title 110B, Sec. 34.203 and amended by Acts 1989, 71st Leg., ch.

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

1st C.S., ch. 13, Sec. 5, eff. Nov. 12, 1991; Acts 1995, 74th

Leg., ch. 555, Sec. 21, eff. Sept. 1, 1995; Acts 1997, 75th Leg.,

ch. 1416, Sec. 16, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch.

1540, Sec. 10, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch.

1229, Sec. 9, 29(4), eff. Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1359, Sec. 12, eff. September 1, 2005.

Sec. 824.2031. BENEFIT IMPROVEMENTS. (a) Each regular

legislative session, the legislature shall determine whether the

performance of the retirement system trust fund makes the fund

capable of supporting improvements in the plan of benefits.

(b) A determination under this section shall be founded on the

information in the most recent report of an investment

performance audit conducted under Section 825.512 and the

application of that information to:

(1) the present amortization period for liabilities of the

retirement system;

(2) the rate of return on retirement system investments over and

above the rate of inflation of the investment portfolio as a

whole, of the portion of the investment portfolio entrusted to

private investment entities, and of the portion of the investment

portfolio entrusted to investment officers who are employees of

the retirement system;

(3) economic projections of market conditions and future

investment rates of return as reflected in the comptroller's most

recent economic forecast and revenue estimate;

(4) the costs, including changes in the amortization period for

liabilities of the retirement system, of providing cost-of-living

or other increases in benefits to current annuitants; and

(5) an evaluation of the diversity of retirement system

investments and whether the portfolio provides low-risk,

long-term growth.

Added by Acts 1995, 74th Leg., ch. 555, Sec. 22, eff. Sept. 1,

1995.

Sec. 824.204. OPTIONAL SERVICE RETIREMENT BENEFITS. (a)

Instead of the standard service retirement annuity payable under

Section 824.203 or an annuity reduced because of age under

Section 824.202, a retiring member may elect to receive an

optional service retirement annuity, reduced for early retirement

if applicable, under this section. An election to receive an

optional service retirement annuity must be filed with the board

of trustees not later than the effective date of retirement.

(b) An optional service retirement annuity is an annuity payable

throughout the life of the retiree and is actuarially reduced

from the annuity otherwise payable under this subtitle to its

actuarial equivalent under the option selected under Subsection

(c).

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

which provide that:

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

and throughout the life of the person nominated by the retiree's

written designation filed prior to retirement;

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

is payable to and throughout the life of the person nominated by

the retiree's written designation filed prior to retirement;

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

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

designated beneficiary;

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

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

designated beneficiary; or

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

annuity is payable to and throughout the life of the person

nominated by the retiree's written designation filed prior to

retirement.

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

designation under Section 824.101 predeceases the retiree, the

reduced annuity of a retiree who has elected an optional service

retirement annuity under Subsection (c)(1), (c)(2), or (c)(5)

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 provided by Section 824.202; 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 payment due at the end of September, 1995, or the first

monthly payment made to the retiree following the date of death

of the person nominated, whichever is later, and is payable to

the retiree for the remainder of the retiree's life.

(f) The board of trustees shall adopt separate tables to be used

to reduce an optional service retirement annuity under Subsection

(d) to the actuarial equivalent of the standard service

retirement annuity.

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

1981. Amended by Acts 1989, 71st Leg., ch. 835, Sec. 4, eff.

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

Sec. 34.204 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1,

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

11.05(d), eff. Aug. 26, 1991; Acts 1993, 73rd Leg., ch. 812, Sec.

6, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 555, Sec. 23,

eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1416, Sec. 17, eff.

Sept. 1, 1997.

Sec. 824.2045. PARTIAL LUMP-SUM OPTION. (a) A member may

select a standard service retirement annuity or an optional

service retirement annuity described by Section 824.204, reduced

for early age as applicable under Section 824.202, together with

a partial lump-sum distribution, if:

(1) the member is eligible for a service retirement annuity;

(2) the sum of the member's age and amount of service credit in

the retirement system equals the number 90; and

(3) the member is not participating in the deferred retirement

option plan under Subchapter I.

(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 reduced for early age as applicable under

Section 824.202 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, reduced for

early age as applicable under Section 824.202, 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) The retiring member may choose a lump sum equal to 12 months

of a standard service retirement annuity and payable at the same

time that the first monthly payment of the annuity is paid, a

lump sum equal to 24 months of a standard annuity and payable in

one or two annual payments, or a lump sum equal to 36 months of a

standard annuity and payable in one, two, or three annual

payments. At the option of the member, a payment under this

subsection may be made as provided by Section 825.509. The

amount of the lump sum shall be computed based on a standard

service retirement annuity reduced for early age as applicable

under Section 824.202.

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

from any amounts otherwise payable under Section 824.503.

(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 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.

Added by Acts 1999, 76th Leg., ch. 1540, Sec. 11, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., Ch.

1359, Sec. 13, eff. September 1, 2005.

Sec. 824.205. DEDUCTIONS FROM SERVICE RETIREMENT ANNUITY. (a)

A person who receives a service retirement annuity under Section

824.202, 824.203, or 824.204 may, on a form satisfactory to and

filed with the retirement system, authorize the retirement system

to deduct from the person's monthly annuity payment the amount

required as a monthly premium for:

(1) hospital insurance benefits provided to uninsured

individuals not otherwise eligible for medical insurance for the

aged, as provided by Part A of Title XVIII of the federal Social

Security Act (42 U.S.C. Section 1395c et seq.); and

(2) supplementary medical insurance benefits for the aged, as

provided by Part B of Title XVIII of the federal Social Security

Act (42 U.S.C. Section 1395j et seq.).

(b) After making deductions authorized under Subsection (a), the

retirement system shall pay the required premiums to the treasury

of the United States, subject to applicable laws relating to the

time and manner of payment.

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

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

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

Sept. 1, 1989.

Sec. 824.206. CHANGE OF SERVICE RETIREMENT ANNUITY PAYMENT PLAN.

(a) A retiree may change the retiree's choice of service

retirement annuity payment plans after the retiree's effective

date of retirement by filing written notice with the board of

trustees before the later of the date on which the retirement

system makes the first annuity payment or the date the first

payment becomes due. After the first payment has been made by the

retirement system or has become due, a retiree may not change the

annuity payment plan selected.

(b) For purposes of this section, the term "makes payment"

includes the depositing in the mail of a payment warrant or the

crediting of an account with payment through electronic funds

transfer.

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

section.

Added by Acts 1993, 73rd Leg., ch. 812, Sec. 7, eff. Sept. 1,

1993.

SUBCHAPTER D. DISABILITY RETIREMENT BENEFITS

Sec. 824.301. APPLICATION FOR DISABILITY RETIREMENT BENEFITS.

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

(1) filing a written application for retirement with the board

of trustees; or

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

legal representative.

(b) In addition to an application for retirement, a member shall

file with the board of trustees the results of a medical

examination of the member.

(c) The board of trustees by rule may require the submission to

it of additional information about a disability. The retirement

system shall prescribe forms for the information required by this

section.

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

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

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

1989.

Sec. 824.302. ELIGIBILITY FOR DISABILITY RETIREMENT. Subject to

Section 824.310, a member is eligible to retire and receive a

disability retirement annuity if the member:

(1) is mentally or physically disabled from the further

performance of duty; and

(2) has a disability that is probably permanent.

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

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

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

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 13,

Sec. 6, eff. Sept. 1, 1992.

Amended by:

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

1230, Sec. 1, eff. September 1, 2007.

Sec. 824.303. CERTIFICATION OF DISABILITY. (a) After a member

applies for disability retirement, the medical board may require

the member to submit additional information about the disability.

(b) If the medical board finds that the member is mentally or

physically disabled from the further performance of duty and that

the disability is probably permanent, the medical board shall

certify disability, and the member shall be retired.

(c) The medical board may rule on an application for disability

retirement at a regular or special meeting or by mail, telephone,

telegraph, or other suitable means of communication.

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

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

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

1989.

Sec. 824.304. DISABILITY RETIREMENT BENEFITS. (a) Subject to

Section 824.310, if a member has a total of less than 10 years of

service credit in the retirement system on the date of disability

retirement, the retirement system shall pay the person a

disability retirement annuity of $150 a month for the shortest of

the following periods:

(1) the duration of the disability;

(2) the number of months of creditable service the person has at

retirement; or

(3) the duration of the person's life.

(b) Subject to Section 824.310, if a member has a total of at

least 10 years of service credit in the retirement system on the

date of disability retirement, the retirement system shall pay

the person for the duration of the disability a disability

retirement annuity in an amount equal to the greater of:

(1) a standard service retirement annuity computed under Section

824.203; or

(2) $150 a month.

(c) Before the 31st day after the date on which the medical

board certifies a member's disability, the member may reinstate

withdrawn contributions and make deposits for military service

and equivalent membership service and receive service credit as

provided by this subtitle.

(d) The minimum benefits provided by this section are subject to

reduction under rules adopted under Section 824.310 and are also

subject to reduction in the same manner as other benefits because

of the selection of an optional 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.

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

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 13,

Sec. 7, eff. Sept. 1, 1992; Acts 1993, 73rd Leg., ch. 812, Sec.

8, 38, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 555, Sec.

24, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1416, Sec. 18,

eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1229, Sec. 10, eff.

Sept. 1, 2001.

Amended by:

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

1230, Sec. 2, eff. September 1, 2007.

Sec. 824.305. 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 board of trustees may require a disability retiree who is

less than 60 years old to undergo a medical examination by one or

more physicians the board designates.

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

examination as provided by this section, the board of trustees

shall discontinue the retiree's annuity payments until the

retiree submits to an examination.

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

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

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

1989.

Sec. 824.307. RESTORATION OF DISABILITY RETIREE TO MEMBERSHIP.

(a) 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

board of trustees.

(b) If a disability retiree is restored to active service, other

than service described by Section 824.602(a)(1), or refuses for

more than one year to submit to a required medical examination,

or if the board of trustees concurs in a certification issued

under Subsection (a), the board shall discontinue the retiree's

annuity payments and the retiree must again become a member of

the retirement system.

(c) When a person becomes a member under this section, an amount

equal to the sum in the person's individual account in the member

savings account at the time of retirement, minus the amount of

annuity payments made since retirement, shall be transferred from

the retired reserve account to the person's individual account in

the member savings account. The member is entitled to service

credit for all service credit used to compute the member's

disability retirement annuity at the time of retirement.

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

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

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

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 13,

Sec. 8, eff. Sept. 1, 1992.

Sec. 824.308. OPTIONAL DISABILITY RETIREMENT BENEFITS. (a)

Instead of an annuity payable under Section 824.304(b), a member

retiring under that section may elect to receive an optional

disability retirement annuity under this section. An election to

receive an optional disability retirement annuity must be filed

with the board of trustees not later than the later of the

effective date of retirement or the date the member applies for

retirement.

(b) An optional disability retirement annuity is an annuity

payable throughout the disability of the disability retiree and

is actuarially reduced from the annuity otherwise payable under

Section 824.304(b), after any reduction under rules adopted under

Section 824.310, to its actuarial equivalent under the option

selected under Subsection (c).

(c) An eligible member may select one of the following options:

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

payable throughout the life of a person nominated by the

retiree's written designation under Section 824.101 filed before

retirement;

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

reduced annuity is payable throughout the life of the retiree's

designated beneficiary;

(3) if the disability retiree dies before 60 monthly annuity

payments have been made, the remainder of the 60 payments are

payable to the designated beneficiary;

(4) if the disability retiree dies before 120 monthly annuity

payments have been made, the remainder of the 120 payments are

payable to the designated beneficiary; or

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

reduced annuity is payable throughout the life of the retiree's

designated beneficiary.

(d) If the person nominated by the disability retiree's written

designation under Section 824.101 filed before or at the time of

retirement predeceases the disability retiree, the reduced

annuity of a disability retiree who has elected an optional

retirement annuity under Subsection (c)(1), (c)(2), or (c)(5) is

increased to the standard retirement annuity that the disability

retiree would otherwise be entitled to receive if the disability

retiree had not selected an annuity option. The standard

retirement annuity shall be adjusted as appropriate for

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 first monthly payment made to the disability retiree after

the date of death of the designated beneficiary and is payable to

the disability retiree for the remainder of the disability

retiree's disability.

(f) The board of trustees shall adopt separate tables to be used

to reduce an optional disability retirement annuity under this

section to the actuarial equivalent of the standard retirement

annuity.

(g) The continued payment to a disability retiree and the future

payment to the retiree's designated beneficiary of any disability

benefit, including an optional payment elected under Subsection

(c), are conditioned on the continuation of the retiree's

disabled status until the date of the retiree's death.

(h) The same requirements and limitations that apply to the

designation or changing of beneficiaries for service retirement

annuity options, including Section 824.101, apply to the

designation of beneficiaries for disability retirement options.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 13, Sec. 9, eff.

Sept. 1, 1992. Amended by Acts 1993, 73rd Leg., ch. 812, Sec. 9,

eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 555, Sec. 25, eff.

Sept. 1, 1995.

Amended by:

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

1230, Sec. 3, eff. September 1, 2007.

Sec. 824.309. CHANGE OF DISABILITY RETIREMENT PAYMENT PLAN. (a)

A retiree may change the retiree's choice of disability

retirement payment plans after the retiree's effective date of

retirement by filing written notice with the board of trustees

before the later of the date on which the retirement system makes

the first annuity payment or the date the first payment becomes

due. After the first payment has been made by the retirement

system or has become due, a retiree may not change the annuity

payment plan selected.

(b) For purposes of this section, the term "makes payment"

includes the depositing in the mail of a payment warrant or the

crediting of an account with payment through electronic funds

transfer.

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

section.

Added by Acts 1993, 73rd Leg., ch. 812, Sec. 10, eff. Sept. 1,

1993.

Sec. 824.310. PURPOSE OF DISABILITY BENEFIT; LIMIT ON

SUPPLEMENTAL INCOME. (a) The purpose of a disability retirement

annuity paid under this subchapter is to lessen the financial

hardships faced by a member with a disability.

(b) The board of trustees shall adopt rules under which the

disability retirement annuity paid to a disability retiree under

this subchapter is reduced on a sliding-scale basis or is

suspended for a period in which the compensation earned by the

retiree for work performed in a 12-month period during the

disability retirement, as determined under the rules of the board

of trustees, exceeds the compensation earned by the retiree

during the 12-month period in which the retiree earned the

highest compensation for actual service as a member of the

retirement system.

(c) The rules adopted under Subsection (b) must provide for the

partial or full reinstatement of a disability retirement annuity

that is reduced or suspended if the compensation earned by the

retiree for work performed during the disability retirement is

reduced or suspended.

(d) The board of trustees by rule shall require a disability

retiree to report to the board the amount of compensation earned

by the disability retiree that exceeds the amount established by

the board by rule for work performed during the disability.

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

1230, Sec. 4, eff. September 1, 2007.

SUBCHAPTER E. MEMBER DEATH BENEFITS

Sec. 824.401. AVAILABILITY OF ANNUITY. (a) A death benefit

annuity under this chapter is payable only if the decedent had,

at the time of death, at least the minimum amount of service

credit in the retirement system necessary for a service

retirement annuity at an attained age.

(b) Multiple beneficiaries are not eligible to receive a death

benefit annuity under Section 824.402(a)(4) or an equivalent

annuity under Section 824.403.

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

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

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

Sept. 1, 1989.

Sec. 824.402. BENEFITS ON DEATH OF ACTIVE MEMBER. (a) Except

as provided by Section 824.401, the designated beneficiary of a

member who dies during a school year in which the member has

performed service is eligible to receive at the beneficiary's

election the greatest of the following amounts:

(1) an amount equal to twice the member's annual compensation

for the school year immediately preceding the school year in

which the member dies, or $80,000, whichever is less;

(2) an amount equal to twice the member's rate of annual

compensation for the school year in which the member dies, or

$80,000, whichever is less;

(3) 60 monthly payments of a standard service retirement

annuity, computed as provided by Section 824.203;

(4) an optional retirement annuity for the designated

beneficiary's life in an amount computed as provided by Section

824.204(c)(1) as if the member had retired on the last day of the

month immediately preceding the month in which the member dies;

or

(5) an amount equal to the amount of accumulated contributions

in the member's individual account in the member savings account.

(b) In addition to the benefits provided under Subsection (a),

the designated beneficiary of a member who is an employee of a

school district and who dies as the result of a physical assault

during the performance of the employee's regular duties is

eligible to receive a lump-sum death benefit payment in the

amount of $160,000.

(c) The board of trustees by rule may prescribe the manner of

payment of benefits under this section.

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

1981. Amended by Acts 1987, 70th Leg., ch. 413, Sec. 4, eff.

Sept. 1, 1987. Renumbered from Vernon's Ann.Civ.St. Title 110B,

Sec. 34.402 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1,

eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 555,

Sec. 26, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1540, Sec.

12, eff. Sept. 1, 1999.

Sec. 824.403. BENEFITS ON DEATH OF INACTIVE MEMBER. (a) Except

as provided by Section 824.401, the designated beneficiary of a

member who dies while absent from service is eligible to receive:

(1) the same benefits payable under Section 824.402 or 824.404

if the member's absence from service was:

(A) because of sickness, accident, or other cause the board of

trustees determines involuntary;

(B) in furtherance of the objectives or welfare of the public

school system; or

(C) during a time when the member was eligible to retire or

would become eligible without further service before the fifth

anniversary of the member's last day of service as a member; or

(2) an amount equal to the accumulated contributions in the

member's individual account in the member savings account, if the

member's absence from service does not satisfy a requirement of

Subdivision (1).

(b) To the extent required by Section 401(a)(37), Internal

Revenue Code of 1986, the designated beneficiary of a member who

died on or after January 1, 2007, while the member was performing

qualified military service as defined by Section 414(u), Internal

Revenue Code of 1986, is eligible to receive additional benefits

to the same extent as if the member had resumed employment and

been employed 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.

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

Sept. 1, 1989.

Amended by:

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

1171, Sec. 3, eff. September 1, 2009.

Sec. 824.404. SURVIVOR BENEFITS. (a) The designated

beneficiary of a member who dies may, if entitled to a death

benefit other than the accumulated contributions of the member,

elect to receive, instead of a benefit payable under Section

824.402 or 824.403, a lump-sum payment of $2,500 plus an

applicable monthly benefit described in this section.

(b) If the designated beneficiary is the spouse or a dependent

parent of the decedent, the beneficiary may elect to receive for

life a monthly benefit of $250, beginning immediately or on the

date the beneficiary becomes 65 years old, whichever is later.

(c) If the designated beneficiary is the spouse of the decedent

and has one or more children less than 18 years old or has

custody of one or more children of the decedent who are less than

18 years old, the designated beneficiary may elect to receive:

(1) a monthly benefit of $350 payable until the youngest child

becomes 18 years old; and

(2) when the youngest child has attained the age of 18, a

monthly benefit for life of $250, beginning on the date the

beneficiary becomes 65 years old.

(d) If the designated beneficiary or beneficiaries are the

decedent's dependent children who are less than 18 years old,

their guardian may elect to receive for them:

(1) a monthly benefit of $350, payable as long as two or more

children are less than 18 years old; and

(2) a monthly benefit of $250, payable as long as only one child

is less than 18 years old.

(e) If the designated beneficiary is the spouse or a dependent

parent of the decedent, benefits under Subsection (d) are

payable, if a dependent child less than 18 years old exists, on

the death of the beneficiary.

(f) A person who qualifies to receive survivor benefits from

more than one deceased member as a spouse or a spouse with a

dependent child is entitled to be paid only benefits based on the

death of one of the decedents.

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

1981. Amended by Acts 1985, 69th Leg., ch. 699, Sec. 1, eff.

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

Sec. 34.404 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1,

eff. Sept. 1, 1989. Amended