HBA-PDH H.B. 264 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 264
By: Hochberg
Pensions and Investments
2/15/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, a person who retires under the Employees Retirement System (ERS)
and chooses one of two optional retirement annuity plans cannot change the
beneficiary after the retiree's annuity payments begin.  H.B. 264 allows a
retiree who retired under ERS and selected an optional retirement annuity
plan to change the beneficiary designated at the time of retirement after
annuity payments begin, but prohibits changing the beneficiary more than
once after retirement. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter A, Chapter 814, Government Code, by adding
Section 814.008, as follows: 

Sec. 814.008.  CHANGE OF BENEFICIARY AFTER RETIREMENT.  Authorizes a
retiree receiving an optional service or disability retirement annuity
approved by the board of trustees or described by Section 814.108(c)(1) or
(c)(2) (Optional Service Retirement Benefits) to change the designated
beneficiary.  Provides that a spouse or former spouse must give written,
notarized consent to the change, or the change must be ordered by a court
with jurisdiction over the marriage, if a spouse or a former spouse is the
designated beneficiary at the time of retirement.  Provides that the
designated beneficiary is entitled to receive monthly payments from the
retiree's optional retirement annuity for the shorter of either the
beneficiary's life expectancy remaining at retiree's retirement or the life
of the new beneficiary.  Prohibits a retiree from changing the beneficiary
more than once after retirement. 

SECTION 2.  Amends Section 814.108(g), Government Code, to make a
conforming change. 

SECTION 3.  Emergency clause.
  Effective date: upon passage.