CHAPTER 844. BENEFITS - Texas Statutes

GOVERNMENT CODE

TITLE 8. PUBLIC RETIREMENT SYSTEMS

SUBTITLE F. TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM

CHAPTER 844. BENEFITS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 844.001. TYPES OF BENEFITS. (a) Pension benefits payable

from the retirement plan and trust are:

(1) retirement annuities payable on service retirements;

(2) retirement annuities payable on disability retirements;

(3) survivor annuities payable on the deaths of members; and

(4) refunds of accumulated contributions.

(b) Nonpension group term life coverage may be provided by an

electing subdivision for its employees and retirees under the

optional group term life program. The board of trustees shall

administer the program, and insurance proceeds are payable from

the optional group term life fund.

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

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

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

1989. Amended by Acts 2001, 77th Leg., ch. 122, Sec. 20, eff.

Dec. 31, 2001.

Amended by:

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

873, Sec. 27, eff. January 1, 2008.

Sec. 844.002. COMPOSITION OF RETIREMENT ANNUITY. (a) Each

retirement annuity payable under this subtitle consists of a

basic annuity and a supplemental annuity.

(b) A basic annuity is an amount payable from the current

service annuity reserve fund and is actuarially determined from

the sum of a member's:

(1) accumulated contributions; and

(2) current service credit.

(c) A supplemental annuity is an amount payable from the

subdivision accumulation fund, subject to limitation under

Section 844.008, and is actuarially determined from the sum of:

(1) a member's allocated prior service credit; and

(2) a member's multiple matching credit.

(d) Any increase in the annuity granted by a participating

subdivision is payable from the subdivision accumulation fund as

part of the supplemental annuity.

(e) A separate retirement annuity is payable with respect to

each subdivision from which a person retires under this subtitle

or is considered to have retired.

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

1981. Amended by Acts 1985, 69th Leg., ch. 491, Sec. 15, eff.

June 12, 1985. Renumbered from Vernon's Ann.Civ.St. Title 110B,

Sec. 54.002 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1,

eff. Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 427,

Sec. 22, eff. Dec. 31, 1999; Acts 2001, 77th Leg., ch. 122, Sec.

21, eff. Dec. 31, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 16, eff. January 1, 2006.

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

873, Sec. 28, eff. January 1, 2008.

Sec. 844.003. EFFECTIVE DATE OF RETIREMENT. (a) Except as

otherwise provided by this section, the effective date of a

member's service retirement is the date the member designates at

the time the member applies for retirement under Section 844.101,

but the date must be the last day of a calendar month and may not

precede the date the member terminates employment with the

subdivision from which the member seeks to retire.

(b) If a member who is an eligible member under Section 844.407

dies before retirement, the member is considered to have retired

on the last day of the month before the month in which death

occurred.

(b-1) A vested member who has not retired before the member's

required beginning date determined under Section 841.010 is

considered to have retired on the last day of the month preceding

the member's required beginning date.

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

the date the member designates at the time the member applies for

retirement under Section 844.301, but the date must be the last

day of a calendar month and may not precede the later of the date

the member became disabled or the date the member terminated

employment with all participating subdivisions.

(d) A member who is eligible for service retirement and who

terminates employment with a participating subdivision may apply

for and receive a service retirement annuity based on service for

that subdivision despite the fact that the member is or becomes

an employee of another participating subdivision.

(e) Notwithstanding Subsections (a), (b), (b-1), (c), and (f),

the effective retirement date of a member may not precede the

first anniversary of the effective date of participation of the

subdivision.

(f) The board of trustees by rule may authorize a retiring

member to designate an effective service or disability retirement

date that is not more than six months before the date the

retirement system receives the retirement application. A rule

adopted under this section may not suspend another requirement

provided by this section for retirement.

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

1981. Amended by Acts 1987, 70th Leg., ch. 63, Sec. 7, eff. May

6, 1987. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.

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

Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 175, Sec. 8,

eff. Jan. 1, 1994; Acts 1993, 73rd Leg., ch. 536, Sec. 1, Jan. 1,

1994; Acts 1995, 74th Leg., ch. 245, Sec. 9, eff. Sept. 1, 1995;

Acts 1997, 75th Leg., ch. 309, Sec. 8, 33, eff. Dec. 1, 1997;

Acts 1999, 76th Leg., ch. 65, Sec. 1, eff. May 10, 1999; Acts

1999, 76th Leg., ch. 427, Sec. 23, eff. Dec. 31, 1999; Acts 2001,

77th Leg., ch. 122, Sec. 22, eff. Dec. 31, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 17, eff. January 1, 2006.

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

873, Sec. 29, eff. January 1, 2008.

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

300, Sec. 16, eff. January 1, 2010.

Sec. 844.004. STANDARD RETIREMENT ANNUITY. (a) The standard

retirement annuity payable under this subtitle is computed with

an allowance for the possible payment of a benefit under Section

844.402 and is the actuarial equivalent of the sum of a member's:

(1) accumulated contributions;

(2) current service credit;

(3) allocated prior service credit; and

(4) multiple matching credit.

(b) A standard retirement annuity is payable throughout the life

of a retiree.

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

873, Sec. 30, eff. January 1, 2008.

Sec. 844.0041. OPTIONAL RETIREMENT ANNUITIES. (a) Instead of

the standard retirement annuity payable under Section 844.004, a

retiring member may receive an optional retirement annuity under

this section or an optional retirement annuity in another form

authorized by the board of trustees.

(b) At a member's effective retirement date, an optional

retirement annuity is actuarially equivalent to the standard

retirement annuity to which the member is entitled.

(c) An optional retirement annuity under this section is:

(1) a retirement annuity that is payable monthly throughout the

life of a retiree, and after the retiree's death, throughout the

life of an individual designated by the retiree; or

(2) a monthly retirement annuity that is payable throughout the

life of a retiree and, if the retiree dies before 180 monthly

payments have been made, the remainder of the 180 monthly

payments are payable to the retiree's beneficiary or, if a

beneficiary does not exist, to the retiree's spouse or, if no

surviving spouse exists, to the retiree's estate.

(d) The board of trustees by rule may authorize additional forms

of optional retirement annuities, each of which must be

actuarially equivalent to the standard retirement annuity to

which the retiree is entitled as of the effective retirement

date.

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

873, Sec. 30, eff. January 1, 2008.

Sec. 844.0042. AUTHORITY TO PAY BENEFITS UNDER ALTERNATE FORMS.

(a) The board of trustees may authorize the payment of the

benefit that is due a recipient to be made as a lump sum or in

another alternate form that is actuarially equivalent to the

benefit that would otherwise be payable to the recipient at the

time payments to the recipient would begin. An authorization

under this subsection may be made as a policy of general

application or may be made on a case-by-case basis considering

the particular facts and circumstances.

(b) Payment to a retiree in a lump sum or other alternate form

may not be made without the retiree's consent if the payment is

to be sent to an address in the United States and the present

value of the retiree's benefit exceeds a minimum amount set by

the board of trustees. A retiree who receives payment in a lump

sum or other alternate form under this section continues as a

retiree for purposes of a benefit provided by the subdivision

under the optional group term life program.

(c) Except as otherwise limited under Subsection (b), payment

under this section is within the exclusive discretion of the

board of trustees, and payment in a lump sum or other alternate

form constitutes full satisfaction of the retirement benefit

otherwise owed to the recipient.

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

of this section, including rules for the payment of benefits

internationally and for the verification of a continuing right to

receive payments.

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

873, Sec. 30, eff. January 1, 2008.

Sec. 844.005. WHEN ANNUITY IS PAYABLE; CHANGES BEFORE FIRST

PAYMENT. (a) A retiree may revoke an application for

retirement, change the retiree's choice of retirement annuity

payment plans, or change the designation of beneficiary after the

retiree's effective date of retirement by filing written notice

with the retirement system not later than the last day of the

month a benefit payment is first made. After that day, a retiree

may not revoke the application for retirement, change the annuity

payment plan selected, or change the designated beneficiary

except under Section 844.006.

(b) If an applicant for retirement dies on or before the last

day that the application for retirement could have been revoked

under Subsection (a), the decedent's application for retirement

is considered canceled, except that the valid beneficiary

designations made in connection with the retirement application

remain in effect. The beneficiary of a decedent who had been an

eligible member under Section 844.407 may receive an annuity in

accordance with that section.

(b-1) Under rules established by the board of trustees, the

retirement system may cancel an application for retirement if the

applicant fails to timely provide all information and forms

necessary to put the retirement into effect.

(c) An annuity under this subtitle is payable to a retiree or

beneficiary through the month in which the retiree or beneficiary

dies. A continuation of an optional annuity begins with payment

for the month following the month in which 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.

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

1989. Amended by Acts 1995, 74th Leg., ch. 245, Sec. 10, eff.

Sept. 1, 1995; Acts 2001, 77th Leg., ch. 122, Sec. 23, eff. Dec.

31, 2001.

Amended by:

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

873, Sec. 31, eff. January 1, 2008.

Sec. 844.006. CHANGE OF BENEFICIARY OR DIVISION OF BENEFIT FOR

CERTAIN PERSONS RECEIVING MONTHLY BENEFITS. (a) A retiree who

is receiving payments under a retirement annuity computed on the

life of the retiree only may revoke any existing selection and

designation of beneficiary nominated to receive any payments that

may become due under the annuity after the retiree's death and

may select a new beneficiary to whom payments may be made.

(b) A person who, as beneficiary of a deceased retiree, is

receiving monthly payments of any fixed-term annuity described by

Subsection (a) may select and designate a person to whom shall be

paid any monthly payments that may become due under the annuity

after the death of the beneficiary making the designation. If a

valid beneficiary designation is not on file with the retirement

system, any monthly payments that become due after the death of

the beneficiary are payable to the beneficiary's spouse or, if no

surviving spouse exists, to the beneficiary's estate.

(c) A retiree who is receiving payments under a retirement

annuity computed on the joint lives of the retiree and the

retiree's designated beneficiary may revoke the designation of

the beneficiary to receive the annuity on the death of the

retiree, if a court of competent jurisdiction in a divorce

proceeding involving the retiree and beneficiary awards to the

retiree the entire retirement benefit earned by the retiree. The

order awarding the retirement benefit may be set forth in the

divorce decree or in an order approving the terms of a property

settlement agreement incident to the divorce of the retiree and

beneficiary but must be dated on or after December 31, 1999. The

revocation takes effect when the retirement system receives it

and cancels the optional annuity selection made by the retiree.

Beginning with the month following the month in which the

retirement system receives the notice of revocation, the retiree

is entitled to receive a standard retirement annuity in the same

amount that the retiree would receive for the same month if the

retiree had originally retired with a standard retirement

annuity.

(d) The benefit payable to a retiree who is receiving payments

of a standard or optional retirement annuity may be divided by

the retirement system into two annuities in accordance with the

terms of a model qualified domestic relations order adopted by

the board of trustees by rule.

(e) The division of an annuity under Subsection (d) is effective

when the order is determined by the retirement system to be a

qualified domestic relations order, and the amount of each of the

two annuities shall be computed by the retirement system at that

time, based on tables that have been adopted by the retirement

system and in effect at that time, so that the two annuities are

actuarially equivalent at the time of division to the annuity

being divided.

(f) The board of trustees has sole authority and discretion to

specify the terms and format that are required for a domestic

relations order to be acceptable for purposes of this section, to

require strict compliance for qualification, and to define the

terms and features of the benefit awarded an alternate payee

under the order. The board by rule may establish requirements

for forms, documentation, and procedures necessary or desirable

for the administration of this section.

Added by Acts 1991, 72nd Leg., ch. 460, Sec. 11, eff. Jan. 1,

1992. Amended by Acts 1993, 73rd Leg., ch. 175, Sec. 9, 10, eff.

Jan. 1, 1994; Acts 1999, 76th Leg., ch. 427, Sec. 24, eff. Dec.

31, 1999; Acts 2001, 77th Leg., ch. 122, Sec. 24, eff. Dec. 31,

2001.

Amended by:

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

873, Sec. 32, eff. January 1, 2008.

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

300, Sec. 17, eff. January 1, 2010.

Sec. 844.007. INTEREST CREDIT FOR OTHER THAN DECEMBER

RETIREMENTS. A member who retires with an effective retirement

date other than December 31 will be credited interest on the

beginning balance in the member's individual account from January

1 of the year of retirement to the effective date of retirement.

Added by Acts 1991, 72nd Leg., ch. 460, Sec. 11, eff. Jan. 1,

1992. Amended by Acts 1995, 74th Leg., ch. 245, Sec. 11, eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 427, Sec. 25, 64(6),

eff. Dec. 31, 1999.

Amended by:

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

873, Sec. 33, eff. January 1, 2008.

Sec. 844.008. LIMITATION ON PAYMENT OF BENEFITS. (a)

Notwithstanding any other provision of this subtitle, the benefit

payable to a retiree of the retirement system may not exceed the

maximum benefit permitted under Section 415(b) of the Internal

Revenue Code of 1986 as adjusted in accordance with Section

415(d) of that code. Any adjustments are applicable to the

postretirement benefits of retirees as well as to the benefits of

retiring members. For the purpose of determining whether the

benefit of a retiring member or retiree exceeds the limitations

provided in this section, all defined benefit plans of the

employer and of entities required to be aggregated with the

employer for purposes of Section 415 of the Internal Revenue Code

of 1986 are to be treated as one defined benefit plan for

purposes of Section 415 of that code. The limitation year for

determining maximum benefits is the calendar year.

(b) An employer may not provide employee retirement benefits

under a defined benefit plan other than the retirement system to

the extent that the provision of the benefits, when considered

together with the benefits provided under the retirement system,

would result in the failure of the retirement system to meet any

of the limitation requirements of Section 415 of the Internal

Revenue Code of 1986, and the benefits of the other plan will

automatically be reduced, eliminated, or adjusted to the extent

necessary to prevent the failure.

Added by Acts 1993, 73rd Leg., ch. 175, Sec. 11, eff. Jan. 1,

1994. Amended by Acts 1995, 74th Leg., ch. 245, Sec. 12 to 14,

eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 309, Sec. 9, eff.

Dec. 1, 1997.

Amended by:

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

300, Sec. 18, eff. January 1, 2010.

Sec. 844.009. PARTIAL LUMP-SUM DISTRIBUTION ON SERVICE

RETIREMENT. (a) With the consent of the board of trustees, the

governing body of a subdivision may authorize partial lump-sum

distributions under this section.

(b) A member who is eligible and applies for service retirement

may simultaneously apply for a partial lump-sum distribution

under this section.

(c) The amount of a lump-sum distribution under this section may

not exceed 100 percent of the total accumulated contributions in

the member's individual account in the employees saving fund

attributable to service with the subdivision for which the member

has applied for retirement.

(d) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec.

92(12), eff. January 1, 2008.

(e) For all purposes, the member's basic annuity is the annuity

actuarially determined from the sum remaining under Section

844.002(b) after deducting the amount of the lump-sum

distribution.

(f) The amount of a lump-sum distribution made under this

section is considered to be an annuity payment for the purpose of

determining whether the amount in the retiree's individual

account in the employees saving fund available for distribution

at the time of retirement exceeds the total amount of annuity

payments made.

(g) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec.

92(12), eff. January 1, 2008.

(h) No portion of a benefit awarded to an alternate payee under

a qualified domestic relations order may be distributed in the

form of a lump sum under this section, unless the member and the

alternate payee agree in writing that the alternate payee will

receive all or a portion of the lump-sum distribution payable

under this section instead of or as part of the benefits awarded

under the qualified domestic relations order.

(i) Repealed by Acts 2001, 77th Leg., ch. 122, Sec. 56(2), eff,

Dec. 31, 2001.

Added by Acts 1999, 76th Leg., ch. 901, Sec. 1, eff. Dec. 31,

1999; Amended by Acts 2001, 77th Leg., ch. 122, Sec. 25, 56(2),

eff. Dec. 31, 2001; Acts 2003, 78th Leg., ch. 621, Sec. 19, eff.

Jan. 1, 2004.

Amended by:

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

873, Sec. 34, eff. January 1, 2008.

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

873, Sec. 92(12), eff. January 1, 2008.

Sec. 844.010. CERTAIN BENEFICIARY DESIGNATIONS. (a) A

beneficiary designation that names a former spouse as beneficiary

is invalid for purposes of this subtitle unless the designation:

(1) is made or confirmed in writing after the date of divorce;

or

(2) was made by a retiree who, at the time of divorce, is

receiving payments under an optional service or disability

retirement with payments to continue to the beneficiary for the

beneficiary's life.

(b) In addition to the authority provided by Section 804.051,

the board of trustees may adopt rules to require consent of a

member's spouse to:

(1) the member's designation of a beneficiary who is not the

member's spouse;

(2) the member's selection of an optional form of retirement

benefit; or

(3) the member's election of a withdrawal of contributions.

(c) A benefit payable under this subtitle is not subject to a

will, other testamentary document, or the law of intestacy to the

extent that the member, retiree, or other former member has a

different beneficiary under the retirement system than under the

testamentary document or law of intestacy.

(d) The board of trustees may adopt rules concerning the

designation, validity, cancellation, revocation, and eligibility

of beneficiaries under this subtitle.

Added by Acts 2003, 78th Leg., ch. 621, Sec. 20, eff. Jan. 1,

2004.

Amended by:

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

873, Sec. 35, eff. January 1, 2008.

SUBCHAPTER B. SERVICE RETIREMENT BENEFITS

Sec. 844.101. APPLICATION FOR SERVICE RETIREMENT ANNUITY. To

receive a retirement annuity for service, an eligible member must

apply by filing a valid application with the retirement system.

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

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

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

1989. Amended by Acts 1995, 74th Leg., ch. 245, Sec. 15, eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 427, Sec. 26, eff. Dec.

31, 1999; Acts 2001, 77th Leg., ch. 122, Sec. 26, eff. Dec. 31,

2001.

Amended by:

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

873, Sec. 36, eff. January 1, 2008.

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

300, Sec. 19, eff. January 1, 2010.

Sec. 844.102. SYSTEMWIDE ELIGIBILITY FOR SERVICE RETIREMENT

ANNUITY. (a) A member is eligible to apply for and receive a

service retirement annuity if the member:

(1) is at least 60 years old and has at least 10 years of

credited service in the retirement system;

(2) has at least 30 years of credited service in the retirement

system; or

(3) has at least 10 years of credited service in the retirement

system and the sum of the member's credited service and attained

age equals or exceeds the number 80.

(b) A person who has retired under this section with a service

retirement annuity is eligible, without regard to any age or

credited service requirement, to apply for and receive a service

retirement annuity based on the member's accumulated

contributions and service credit with any participating

subdivision from which the person has terminated 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.

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

Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 427, Sec. 27,

eff. Dec. 31, 1999; Acts 2001, 77th Leg., ch. 122, Sec. 26, eff.

Dec. 31, 2001.

Amended by:

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

873, Sec. 37, eff. January 1, 2008.

Sec. 844.1021. OPTIONAL ELIGIBILITY PROVISIONS FOR SERVICE

RETIREMENT. (a) In accordance with this subtitle, a subdivision

may adopt any optional service retirement eligibility provision

described by this section or authorized by the board of trustees.

(b) A subdivision may not revoke its adoption of an optional

service retirement eligibility provision described by this

section. A subdivision may adopt an optional service retirement

eligibility provision providing less restrictive eligibility

requirements.

(c) An optional service retirement eligibility provision may

provide that a member who has at least 10 years of credited

service is eligible to apply for retirement if the member has

attained age 60 or an age at which the sum of the member's

credited service and attained age equals or exceeds the number

75.

(d) An optional service retirement eligibility provision may

provide that a member who has at least eight years of credited

service is eligible to apply for retirement if the member has

attained age 60.

(e) An optional service retirement eligibility provision may

provide that a member who has at least five years of credited

service is eligible to apply for retirement if the member has

attained age 60.

(f) An optional service retirement eligibility provision may

provide that a member who has at least 20 years of credited

service is eligible to apply for retirement.

(g) The board of trustees may authorize additional optional

service retirement eligibility provisions for adoption by

participating subdivisions.

(h) The board of trustees shall establish rules for recognizing

and combining a member's service credited under dissimilar

retirement eligibility provisions for purposes of meeting the

retirement eligibility provisions of the respective subdivisions.

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

873, Sec. 38, eff. January 1, 2008.

Sec. 844.1022. SPECIAL ELIGIBILITY PROVISIONS FOR SERVICE

RETIREMENT. (a) Subject to the consent of the board of trustees

and effective for the period and on terms that the board

approves, a subdivision may adopt a special service retirement

eligibility provision that relates to a singular, identifiable

event or action particular to the subdivision and that applies

only to its members who satisfy the specific terms of the special

eligibility provision.

(b) A special service retirement eligibility provision must bear

a rational relationship to the operation, management, and

function of the subdivision.

(c) A special service retirement eligibility provision may not

be adopted or implemented under this section in a manner that has

the effect of establishing a separate, ongoing retirement program

for a branch, department, division, employee occupational group,

or other separately identifiable component of the subdivision.

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

873, Sec. 38, eff. January 1, 2008.

SUBCHAPTER C. OPTIONAL RETIREMENT BENEFITS

Sec. 844.208. OPTIONAL INCREASE IN RETIREMENT ANNUITIES. (a)

The governing body of a participating subdivision, from time to

time but not more frequently than once in each 12-month period,

may provide for increased annuities to be paid to retirees and

beneficiaries of deceased retirees of the subdivision. An annuity

increased under this section replaces any annuity or increased

annuity previously granted to the same person.

(b) The amount of annuity increase under this section is

computed as the sum of the basic and supplemental annuities on

the effective date of retirement of the person on whose service

the annuities are based and is computed as if the person had

selected a standard retirement annuity on the person's effective

date of retirement, multiplied by:

(1) the percentage change in the Consumer Price Index for All

Urban Consumers, published by the Bureau of Labor Statistics of

the United States Department of Labor, from December of the year

immediately preceding the effective date of the person's

retirement to the December that is 13 months before the month in

which the effective date of the order or resolution providing the

increase occurs; and

(2) a fraction, specified by the governing body in the order or

resolution, that is not less than 10 percent nor more than 100

percent and is a multiple of 10 percent.

(c) The effective date of an order or resolution under this

section is January 1 of the year that begins after the year in

which the governing body adopts and notifies the retirement

system of the order or resolution.

(d) An increase in an annuity that was reduced because of an

option selection or partial lump-sum distribution is reducible in

the same proportion and in the same manner that the original

annuity was reduced.

(e) If a computation under Subsection (b) does not result in an

increase in the amount of annuity, the amount of the annuity may

not be changed under this section.

(f) The amount by which an increase under this section exceeds

all previously granted increases to an annuitant is payable as a

supplemental annuity, is an obligation of the subdivision's

account in the subdivision accumulation fund, and is subject to

reduction under Section 845.307(c).

(g) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec.

92(17), eff. January 1, 2008.

Added by Acts 1991, 72nd Leg., ch. 460, Sec. 14, eff. Jan. 1,

1992. Amended by Acts 2003, 78th Leg., ch. 621, Sec. 22, eff.

Jan. 1, 2004.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 18, eff. January 1, 2006.

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

873, Sec. 39, eff. January 1, 2008.

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

873, Sec. 92(17), eff. January 1, 2008.

Sec. 844.209. ALTERNATIVE OPTIONAL INCREASE IN RETIREMENT

ANNUITIES. (a) The governing body of a participating

subdivision, from time to time but not more frequently than once

in each 12-month period, may provide for increased annuities to

be paid to retirees and beneficiaries of deceased retirees of the

subdivision. The governing body of the subdivision may not elect

an increase in retirement annuities under Section 844.208 and

under this section in the same 12-month period.

(b) An increase under this section applies to all annuities for

which the effective retirement date is at least twelve months

before the effective date of the increase.

(c) The amount of annuity increase under this section is

computed as the sum of the person's basic and supplemental

annuities on the effective date of the increase multiplied by the

integer percentage increase specified by the governing body for

all annuitants in the order or resolution adopting the increase.

The specified percentage increase may not exceed the percentage

established by the board of trustees as the maximum allowable

percentage increase.

(d) Except as provided by Subsection (g), the effective date of

an order or resolution under this section is January 1 of the

year that begins after the year in which the governing body

adopts and notifies the retirement system of the order or

resolution.

(e) An increase in an annuity that was reduced because of an

option selection or partial lump-sum distribution is reducible in

the same proportion and in the same manner that the original

annuity was reduced.

(f) The amount of an increase under this section is payable as a

supplemental annuity, is an obligation of the subdivision's

account in the subdivision accumulation fund, and is subject to

reduction under Section 845.307(c).

(g) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec.

92(18), eff. January 1, 2008.

Added by Acts 1991, 72nd Leg., ch. 460, Sec. 14, eff. Jan. 1,

1992. Amended by Acts 1993, 73rd Leg., ch. 175, Sec. 13, eff.

Jan. 1, 1994; Acts 1995, 74th Leg., ch. 245, Sec. 18, eff. Sept.

1, 1995; Acts 1997, 75th Leg., ch. 309, Sec. 10, eff. Dec. 1,

1997; Acts 1999, 76th Leg., ch. 427, Sec. 31, eff. Dec. 31, 1999.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 19, eff. January 1, 2006.

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

873, Sec. 40, eff. January 1, 2008.

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

873, Sec. 92(18), eff. January 1, 2008.

SUBCHAPTER D. DISABILITY RETIREMENT BENEFITS

Sec. 844.301. APPLICATION FOR DISABILITY RETIREMENT. (a) A

member may apply for disability retirement by filing a valid

application for retirement with the retirement system.

(b) An applicant must provide medical and other pertinent

information for evaluation by the medical board and submit to

medical examination as required by the medical board.

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

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

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

1989. Amended by Acts 1995, 74th Leg., ch. 245, Sec. 19, eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 427, Sec. 34, eff. Dec.

31, 1999; Acts 2001, 77th Leg., ch. 122, Sec. 30, eff. Dec. 31,

2001.

Amended by:

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

873, Sec. 41, eff. January 1, 2008.

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

300, Sec. 20, eff. January 1, 2010.

Sec. 844.3011. ANNUITY PAYABLE ON DISABILITY RETIREMENT. Except

for eligibility requirements and as otherwise provided by this

subtitle, a retirement annuity payable on the disability

retirement of a member is equal in amount and equivalent in all

respects under this subtitle to a retirement annuity payable on

the service retirement of the member at the same age.

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

873, Sec. 42, eff. January 1, 2008.

Sec. 844.302. ELIGIBILITY FOR DISABILITY RETIREMENT ANNUITY.

(a) A member who is not vested for service retirement beginning

on or before the date the member attains age 60 and who has

applied for disability retirement is eligible to receive a

disability retirement annuity if the member is the subject of a

certification issued as provided by Section 844.303(b)(1).

(b) A member who is vested for service retirement based on

service in this system alone beginning on or before the date the

member attains age 60 and who has applied for disability

retirement is eligible to receive a retirement annuity if the

member is the subject of a certification issued as provided by

Section 844.303(b)(2).

(c) If a member who has filed an application for disability

retirement under this subchapter is eligible for service

retirement, an evaluation by the medical board under Section

844.303 will not be made and the retirement system shall consider

the retirement application as an application filed for service

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.

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

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 460, Sec. 15,

eff. Jan. 1, 1992; Acts 1999, 76th Leg., ch. 427, Sec. 35, eff.

Dec. 31, 1999.

Amended by:

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

873, Sec. 43, eff. January 1, 2008.

Sec. 844.303. CERTIFICATION OF DISABILITY. (a) Except as

provided by Section 844.302(c) and Subsection (c) of this

section, as soon as practicable after an application for

disability retirement is filed, the medical board shall evaluate

the medical and other pertinent information concerning the

member's application.

(b) The medical board shall issue a certification of disability

and submit it to the board of trustees, if the medical board

finds:

(1) in the case of a member described by Section 844.302(a),

that:

(A) the member is mentally or physically incapacitated for any

gainful occupation;

(B) the incapacity is the direct result of injuries sustained

during membership by external and violent means as a direct and

proximate result of the performance of duty; and

(C) the incapacity is likely to be permanent; or

(2) in the case of a member described by Section 844.302(b),

that:

(A) the member is mentally or physically incapacitated for any

gainful occupation; and

(B) the incapacity is likely to be permanent.

(c) The board of trustees may establish a procedure for summary

disposition of disability retirement applications without medical

board review under facts and circumstances that the board has

determined cause a review by the medical board to be unnecessary.

The board may delegate to the director the authority and

discretion to make determinations under the summary disposition

procedure and, if appropriate, to issue a certification of

disability described by Subsection (b) or refer the matter to the

medical board. The director is not authorized under this section

to make a finding that an applicant is not permanently

incapacitated.

(d) The board of trustees may define terms and standards to be

applied by the medical board in making its determinations and

shall establish such other rules as the board considers necessary

to administer this subchapter.

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

1981. Amended by Acts 1985, 69th Leg., ch. 491, Sec. 22, eff.

June 12, 1985. Renumbered from Vernon's Ann.Civ.St. Title 110B,

Sec. 54.303 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept.

1, 1989. Amended by Acts 1991, 72nd Leg., ch. 460, Sec. 16, eff.

Jan. 1, 1992; Acts 1999, 76th Leg., ch. 427, Sec. 36, eff. Dec.

31, 1999.

Amended by:

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

873, Sec. 44, eff. January 1, 2008.

Sec. 844.3051. DISABILITY RETIREMENT CONSIDERED SERVICE

RETIREMENT. (a) The retirement annuity of a disability retiree

may not be terminated under this subchapter after the earlier of:

(1) the date a disability retiree attains age 60; or

(2) the date the disability retiree would otherwise be eligible

for service retirement under this subtitle.

(b) The disability retirement of a disability retiree described

by Subsection (a) is considered for all purposes under this

subtitle as a service retirement.

Added by Acts 2001, 77th Leg., ch. 122, Sec. 33, eff. Dec. 31,

2001.

Amended by:

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

873, Sec. 45, eff. January 1, 2008.

Sec. 844.306. MEDICAL EXAMINATION OF DISABILITY RETIREE. (a)

Until the date a disability retirement is considered a service

retirement under Section 844.3051, once each year during the

first five years after a person retires for disability, and once

in each three-year period after that, the board of trustees may,

in accordance with rules and procedures established by the board,

require a disability retiree to undergo a medical examination and

provide current medical and other information reaffirming the

status of the retiree as disabled within the meaning of this

subchapter.

(b) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec.

92(24), eff. January 1, 2008.

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

examination or fails to provide current medical or other

information confirming the status of the retiree as disabled, the

board of trustees may cancel the disability retirement and

terminate the 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.

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

1989. Amended by Acts 2001, 77th Leg., ch. 122, Sec. 34, eff.

Dec. 31, 2001.

Amended by:

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

873, Sec. 46, eff. January 1, 2008.

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

873, Sec. 92(24), eff. January 1, 2008.

Sec. 844.307. CANCELLATION OF DISABILITY RETIREMENT. (a) If

the medical board finds that a disability retiree has experienced

medical improvement to the extent that the retiree is no longer

mentally or physically incapacitated, it shall certify its

findings and submit them to the board of trustees.

(b) In accordance with rules and procedures adopted by the

board, the board of trustees may adopt the findings of the

medical board and cancel the disability retirement and terminate

annuity payments to the retiree.

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

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

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

1989. Amended by Acts 1991, 72nd Leg., ch. 460, Sec. 17, eff.

Jan. 1, 1992; Acts 2001, 77th Leg., ch. 122, Sec. 35, eff. Dec.

31, 2001.

Amended by:

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

873, Sec. 47, eff. January 1, 2008.

Sec. 844.309. ADJUSTMENTS AT ANNUITY TERMINATION. (a) If a

disability retirement is canceled and the retirement annuity

terminated under this subchapter, the person automatically

resumes membership in the retirement system and the retirement

system shall transfer:

(1) from the current service annuity reserve fund and credit to

the person's individual account in the employees saving fund an

amount equal to the amount of accumulated contributions

transferred to the current service annuity reserve fund at the

time of retirement reduced by one percent for each year or part

of a year during which disability annuity payments were made; and

(2) from the current service annuity reserve fund to the

subdivision accumulation fund an amount equal to the amount

transferred from the subdivision accumulation fund to the current

service annuity reserve fund at the time of retirement reduced by

one percent for each year or part of a year during which

disability annuity payments were made.

(b) If a person whose membership resumes under this section was

receiving a supplemental annuity based in whole or in part on

prior service credit, the retirement system shall restore to

effect as the person's maximum prior service credit an amount

equal to the person's maximum prior service credit at the time of

disability retirement reduced by one percent for each year or

part of a year during which disability annuity payments were

made.

(c) A person who resumes membership under this section is

entitled to restoration of credited service in the number of

months accumulated and allowed before disability retirement.

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

and transfer of amounts and credits for a membership resumed

under this subchapter.

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

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

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

Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 460, Sec. 18,

eff. Jan. 1, 1992; Acts 2001, 77th Leg., ch. 122, Sec. 36, eff.

Dec. 31, 2001.

Amended by:

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

873, Sec. 48, eff. January 1, 2008.

SUBCHAPTER E. DEATH BENEFITS

Sec. 844.401. RETURN OF ACCUMULATED CONTRIBUTIONS. (a) Except

as provided by Subsection (c), if a member dies before

retirement, a lump-sum death benefit is payable from the

employees saving fund in the amount of:

(1) the decedent's accumulated contributions; plus

(2) interest computed on the decedent's accumulated

contributions on January 1 of the year of death from the

beginning of that year through the end of the month before the

month in which death occurs.

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

decedent's beneficiary or, if no surviving beneficiary exists, to

the decedent's spouse or, if no surviving spouse exists, to the

decedent's estate.

(c) A benefit is not payable under this section if an annuity

based on the same service with the subdivision is payable under

this subtitle.

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

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

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

Sept. 1, 1989. Amended by Acts 1997, 75th Leg., ch. 309, Sec. 11,

eff. Dec. 1, 1997; Acts 2001, 77th Leg., ch. 122, Sec. 38, eff.

Dec. 31, 2001.

Sec. 844.402. RETURN OF EXCESS CONTRIBUTIONS. (a) After the

death of a member or former member and after the final payment

has been made under any service, disability, or survivor annuity,

a lump-sum death benefit is payable in an amount, if any, by

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

employees saving fund on which the annuity was computed exceeds

the amount of annuity payments made.

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

person entitled to receive the final monthly payment of the

annuity. If that person is deceased, the benefit provided by this

section is payable to the person's beneficiary or, if no

surviving beneficiary exists, to the person's spouse or, if no

surviving spouse exists, to the person's estate.

(c) The benefit provided by this section is payable from the

current service annuity reserve fund and the subdivision

accumulation fund in the ratio that the parts of the retirement

annuity that were payable from the funds bear to the entire

benefit as determined on the effective date 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.

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

1989. Amended by Acts 2001, 77th Leg., ch. 122, Sec. 38, eff.

Dec. 31, 2001.

Sec. 844.404. PERSON CAUSING DEATH OF MEMBER OR ANNUITANT. (a)

A benefit, including any optional group term life 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 under this subtitle to the

benefit had the convicted person predeceased the decedent. If no

person would be entitled to the benefit, the benefit is payable

to the decedent's estate.

(b) 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.

(c) The retirement system is not liable for any benefit paid to

a convicted person before the date the system receives actual

notice of the conviction, and any payment made before that date

is a complete discharge of the system's obligation with regard to

that benefit payment. The convicted person holds all payments

received in constructive trust for the rightful recipient.

(d) If an annuity is in pay status, the retirement system shall

pay in a lump sum the actuarial equivalent of the remainder of

any annuity or payments that would otherwise have been payable to

the convicted person to the person entitled to the benefit under

Subsection (a) or to the decedent's estate. The time of the

actuarial equivalence is the earlier of the time the retirement

system receives the notice of the conviction under Subsection (b)

or the time the retirement system begins the delay in payment of

a benefit under Subsection (b).

(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) has pleaded guilty or nolo contendere to or has been found

guilty by a court of competent jurisdiction of an offense at the

trial of which it is established that the person's intentional,

knowing, or reckless act or omission resulted in the death of a

person who was a 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. 245, Sec. 22, eff. Sept. 1,

1995.

Amended by:

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

300, Sec. 21, eff. January 1, 2010.

Sec. 844.405. TRUST AS BENEFICIARY. (a) Except as limited by

Subsection (b), a member or retiree may designate a trust as

beneficiary for the payment of benefits from the retirement

system or may designate multiple trusts as beneficiaries for the

payment of benefits from the system in the same manner and with

the same limitations that apply to the designation of multiple

beneficiaries. If a trust is designated beneficiary, the

beneficiary of the trust is considered the designated beneficiary

for the purpose of determining eligibility for and the amount and

duration of benefits. The trustee is entitled to exercise any

rights granted a designated beneficiary to elect benefit options

and name subsequent beneficiaries.

(b) Multiple trusts or a single trust having multiple

beneficiaries may not receive benefits to which multiple

designated beneficiaries are not eligible under this chapter.

Added by Acts 1995, 74th Leg., ch. 245, Sec. 23, eff. Sept. 1,

1995.

Amended by:

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

873, Sec. 49, eff. January 1, 2008.

Sec. 844.406. SIMULTANEOUS DEATH OF MEMBER AND BENEFICIARY.

When a member or retiree and the spouse or beneficiary of the

member or retiree have died within a period of less than 120

hours of each other, the member or retiree is considered to have

survived the spouse or beneficiary for the purpose of determining

the rights to amounts payable under this subtitle on the death of

the member or retiree.

Added by Acts 1995, 74th Leg., ch. 245, Sec. 24, eff. Sept. 1,

1995.

Sec. 844.407. SURVIVOR ANNUITY. (a) In this section "eligible

member" means a member who has four or more years of credited

service with one or more subdivisions that are participating in

the retirement system.

(b) Instead of any other benefit allowed under this subtitle

other than an optional group term life benefit, an annuity

described by this section may be paid on the death of an eligible

member who had not filed an application for retirement or whose

application for retirement had been revoked or canceled under

Section 844.005.

(c) An annuity under this section is payable to the valid

beneficiary designated on the unrevoked form most recently

executed by the member and filed with the system naming a

beneficiary. If no valid beneficiary exists or if the member

died without having designated a valid beneficiary, the annuity

is payable to the deceased member's surviving spouse or, if no

surviving spouse exists, to the deceased member's estate.

(d) Any annuity payable under this section must be actuarially

equivalent to the deceased member's benefit accrued under this

subtitle determined as of the last day of the month preceding the

month of the member's death. The annuity is payable in the form

and manner authorized by the board of trustees.

(e) An annuity under this section is payable from the same

accounts and is subject to the same conditions that are

applicable to a service retirement benefit for the same member.

(f) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec.

92(27), eff. January 1, 2008.

(g) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec.

92(27), eff. January 1, 2008.

(h) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec.

92(27), eff. January 1, 2008.

(i) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec.

92(27), eff. January 1, 2008.

(j) Repealed by Acts 2007, 80th Leg., R.S., Ch. 873, Sec.

92(27), eff. January 1, 2008.

Added by Acts 1999, 76th Leg., ch. 427, Sec. 38, eff. Dec. 31,

1999. Amended by Acts 2001, 77th Leg., ch. 122, Sec. 39, eff.

Dec. 31, 2001.

Amended by:

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

873, Sec. 50, eff. January 1, 2008.

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

873, Sec. 51, eff. January 1, 2008.

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

873, Sec. 92(27), eff. January 1, 2008.

Sec. 844.408. NO SURVIVING SPOUSE, EXECUTOR, OR ADMINISTRATOR.

(a) In this section "heirs" has the meaning assigned by Section

3, Texas Probate Code, except that the term excludes any person

who has filed a proper disclaimer or renunciation with the

retirement system.

(b) If the administrator of a deceased member's estate would be

entitled to a refund or an annuity because of the death of the

member, the heirs of the deceased member may apply for and

receive the benefit if:

(1) no petition for the appointment of a personal

representative of the member is pending or has been granted;

(2) 30 days have elapsed since the date of death of the member;

(3) the value of the entire assets of the member's probate

estate, excluding homestead and exempt property, does not exceed

$50,000; and

(4) on file with the retirement system is a certified copy of a

small estates affidavit that has been approved and filed in

accordance with Section 137, Texas Probate Code, or an original

affidavit described by Subsection (c).

(c) If no affidavit has been filed with the clerk of the court

having jurisdiction and venue as provided by Section 137, Texas

Probate Code, the retirement system may accept instead an

affidavit sworn to by two disinterested witnesses and by those

heirs who have legal capacity and, if the facts warrant, by the

natural guardian or next of kin of any minor or incompetent who

is also an heir. The affidavit must include the names and

addresses of the heirs and witnesses, establish the facts listed

in Subsection (b), include a list of the assets and liabilities

of the estate, show the facts that constitute the basis for the

right of the heirs to receive the estate, and show the fractional

interests of the heirs in the estate as a result of those facts.

(d) If the retirement system, acting through the director or a

person designated by the director, approves the affidavit, the

heirs may make the election if each heir agrees to it.

Added by Acts 1999, 76th Leg., ch. 427, Sec. 39, eff. Dec. 31,

1999. Amended by Acts 2001, 77th Leg., ch. 122, Sec. 40, eff.

Dec. 31, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

506, Sec. 20, eff. January 1, 2006.

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

873, Sec. 52, eff. January 1, 2008.

SUBCHAPTER F. OPTIONAL GROUP TERM LIFE PROGRAM

Sec. 844.501. COVERAGE IN OPTIONAL GROUP TERM LIFE PROGRAM. (a)

An employee of a participating subdivision is included within

the coverage of the optional group term life program on that day

in the first month in which:

(1) the employing subdivision is participating in the program

for coverage of all members it employs;

(2) the employee is a member of the retirement system; and

(3) the employee is required to make a contribution to the

retirement system.

(b) Once established, coverage of a person in the program

continues until the last day of a month in which a requirement of

Subsection (a) is not met.

(c) The optional group term life program constitutes "group term

life insurance purchased for employees" as described by Section

79, Internal Revenue Code of 1986.

Added by Acts 1981, 67th Leg., 1st C.S., p. 212, ch. 18, Sec. 53,

eff. Nov. 10, 1981. Amended by Acts 1987, 70th Leg., ch. 63, Sec.

10, eff. May 6, 1987. Renumbered from Vernon's Ann.Civ.St. Title

110B, Sec. 54.501 and amended by Acts 1989, 71st Leg., ch. 179,

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

122, Sec. 41, eff. Dec. 31, 2001.

Amended by:

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

873, Sec. 54, eff. January 1, 2008.

Sec. 844.502. EXTENDED OPTIONAL GROUP TERM LIFE COVERAGE. (a)

A member included in the coverage of the optional group term life

program who fails to earn compensation in a month for service to

a subdivision participating in the program may be eligible to

receive extended coverage in the program under this section.

(b) A member who dies within 24 months after the date the member

last made a required contribution to the retirement system is

considered to have received extended program coverage if the

retirement system receives at its office after the member's

death:

(1) evidence that the retirement system considers satisfactory

to establish that, as a result of illness or injury, the member

was unable to engage in gainful employment throughout the period

beginning with the date of the last required contribution and

ending on the date of death;

(2) a statement from the subdivision, on a form approved by the

board of trustees, that the member was on leave of absence under

the Family and Medical Leave Act of 1993 (Pub. L. 103-3)

throughout the period beginning with the date of the last

required contribution and ending on the date of death; or

(3) a statement from the subdivision, on a form approved by the

board of trustees, that the member was on leave of absence under

the Family and Medical Leave Act of 1993 (Pub. L. 103-3) during

part of the period beginning with the date of the last required

contribution and ending on the date of death, with evidence that

the retirement system considers satisfactory to establish that,

throughout the rest of the period, the member was unable to

engage in gainful employment as a result of illness or injury.

(c) Repealed by Acts 2001, 77th Leg., ch. 122, Sec. 56(6), eff.

Dec. 31, 2001.

(e), (f) Repealed by Acts 1999, 76th Leg., ch. 427, Sec. 64(16),

eff. Dec. 31, 1999.

Added by Acts 1981, 67th Leg., 1st C.S., p. 212, ch. 18, Sec. 53,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 491,

Sec. 23, eff. June 12, 1985. Renumbered from Vernon's Ann.Civ.St.

Title 110B, Sec. 54.502 and amended by Acts 1989, 71st Leg., ch.

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

ch. 245, Sec. 25, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch.

427, Sec. 40, 64(16), eff. Dec. 31, 1999; Acts 2001, 77th Leg.,

ch. 122, Sec. 56(6), eff. Dec. 31, 2001.

Amended by:

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

873, Sec. 55, eff. January 1, 2008.

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

873, Sec. 56, eff. January 1, 2008.

Sec. 844.503. MEMBER OPTIONAL GROUP TERM LIFE. (a) In this

section, the terms "regular rate of pay," "hours worked," "salary

basis," and "regular salary" have meanings that are consistent

with the Fair Labor Standards Act of 1938 (29 U.S.C. Section 201

et seq.).

(b) If a person included in the coverage or extended coverage of

the optional group term life program dies, a lump-sum

supplemental death benefit is payable from the optional group

term life fund in an amount equal to the current annual

compensation of the member at the time of death.

(c) The current annual compensation of a member who is not

exempt from the minimum wage and maximum hour requirements of the

Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.)

is computed by converting to an annual basis the regular rate of

pay of the member for the most recent hour worked and

proportionately reducing that annual basis if the member is not

employed in a full-time position. The current annual compensation

of a member who is exempt from those minimum wage and maximum

hour requirements and who is paid on a salary basis is computed

by converting to an annual basis the regular salary paid to the

member for the most recent pay period of active employment.

(d) If a member, because of a change in employment, makes

contributions to the retirement system during the same month as

an employee of more than one subdivision participating in the

optional group term life program, a death benefit is payable only

on the basis of the member's most recent employment. If a

member, because of simultaneous employment by more than one

subdivision, makes contributions to the retirement system during

the same month as an employee of more than one subdivision

participating in the program, a death benefit is payable on the

basis of the member's employment by each subdivision

participating in the program.

(e) The board of trustees by rule may require such proof of

compensation and periods of employment as it finds necessary.

Added by Acts 1981, 67th Leg., 1st C.S., p. 212, ch. 18, Sec. 53,

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

110B, Sec. 54.503 and amended by Acts 1989, 71st Leg., ch. 179,

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

122, Sec. 42, eff. Dec. 31, 2001.

Amended by:

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

873, Sec. 57, eff. January 1, 2008.

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

873, Sec. 58, eff. January 1, 2008.

Sec. 844.504. RETIREE OPTIONAL GROUP TERM LIFE BENEFIT. If a

retiree dies who was receiving a retirement annuity based on

service for a subdivision that has elected to provide, and

continues to provide, postretirement optional group term life

coverage, a lump-sum death benefit is payable from the optional

group term life fund in the amount of $5,000.

Added by Acts 198