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82nd Texas Legislature

The following is a list of some of the bills that have been filed that affect the programs administered by the ERS. This list does not include every bill. The list will be updated throughout the legislative session. For more information on legislation, please visit the Texas Legislature Online website.

General Appropriations Bill
Retirement	ERS state contribution at 6% in 2012; 6.5% in 2013 LECOSRF state contribution 0% in 2012; 0.5% for 2013 to be funded by a percentage of court fees collected by the Comptroller JRS 2 state contribution 6% in 2012; 6.5% in 2013 JRS 1, Chapter 615 & Retiree Death Benefits are fully funded ERS to conduct an interim study related to pension changes such as eligibility, final average salary, benefit multiplier and the creation of a hybrid plan, unless the legislature implements such changes. The study report is due to the LBB and Governor by September 1, 2012 (Article IX Rider)
Insurance	State contributions remain at 100% / 50%, and 100% for basic life coverage $60 opt-out payment specifically funded Tobacco user monthly premium fee at $30 a month to be applied to any tobacco user covered under the GBP, contingent on passage of SB 1664 ERS is required to either implement a Medicare Advantage program or change Medicare coordination of benefits to require retirees pay 30% coinsurance on GBP's portion of claims ERS to conduct a GBP sustainability study including design and funding and submit to the Governor and LBB by September 1, 2012 State agencies and participating higher education institutions to contribute an amount equal to 1% of their base payrolls to the GBP (Article IX Rider) ERS to establish a pilot program in which GBP participating physicians and health care providers are compensated under a payment system designed to test alternatives to traditional fee-for-service payments. (Article IX Rider)

ERS Omnibus Bill

SB 1664

Maintains the employee ERS/LECOS contributions at 6.5%/.5%, respectively, for fiscal year 2012 only.
Raises the dependent children eligibility age in the GBP to 26 effective September 1, 2011, to comply with federal health care reform.
Requires ERS to assess a "tobacco user premium differential" to GBP participating tobacco users at a monthly rate set by the Board or the Appropriations bill, and begin covering tobacco cessation prescription drugs by January 1, 2012.
Assesses an "employer enrollment fee" for each employer whose employees participate in the GBP to be deposited in the insurance trust fund effective September 1, 2011.
Prohibits benefits being paid to a beneficiary found to cause the death of the member.
Allows ERS annuitants to contribute to the State Employee Charitable Campaign (SECC) through monthly annuity payroll deductions.
Sets next transfer of member data to the Comptroller to 2016 and every 5 years after that.
Funding source for LECOSF at 11.1426% of criminal and civil court fees collected by the Comptroller from counties and municipalities (SB 1811).
Makes other non-substantive amendments to existing satutes to clarify and comport with current rules or practices.

Insurance - Plan Design

HB 2277

Changes the definition of "viatical settlement" (an arrangement by a terminally ill person to sell a life insurance policy to a third party for less than its mature value, in order to benefit from the proceeds while alive) under the GBP to "life settlement agreement" which will have the effect of expanding the parties involved and types of arrangements allowed under the GBP, including allowing payday-type loans.

Insurance - Eligibility
HB 755	Allows employees and retirees eligible to participate in the GBP to enroll dependents over age 25 if the dependent was previously enrolled as their dependent in group coverage under TRS, or the UT & A&M Systems.
SB 423	Extends survivor coverage under the GBP and Chapter 615 for law enforcement officers killed in the line of duty to officer trainees, and allows survivors not currently in the GBP to apply for coverage through September 1, 2012 effective immediately upon signature of the Governor.
SB 29	Provides insurance coverage under the GBP to graduate students and postdoctoral fellows at state higher education institutions, other than UT & A&M Systems, starting with plan year 2012, unless the Board determines that coverage could "reasonably" begin earlier.
SB 1686 / HB417	The Senate committee substitute provides health insurance coverage under the GBP to wrongfully imprisoned individuals with the full cost of coverage being paid for by the eligible individual.

Board of Trustees / Investment Advisory Committee
HB 2193	Adds eligibility criteria and conflict of interest restrictions that apply to members of the ERS Investment Advisory Committee. Requires the Board to review IAC members’ eligibility and compliance to the new provisions annually and lists, but does not limit, the grounds in which the Board may remove a member from the IAC.

Miscellaneous
HB 1608	Allows ERS annuitants to contribute to the State Employee Charitable Campaign (SECC) through monthly annuity payroll deductions. Note: The proposed committee substitute provides that ERS' related administrative costs be paid for either through the SECC budget or by fees from participating SECC charitable organizations.
HB 2460	Provides public retirement systems greater protection under the Public Information Act to maintain the confidentiality of records relating to members, annuitants, retirees, beneficiaries, alternate payees and program participants without seeking an opinion from the OAG.