Public Agenda Item #4.1 Revie iew, D Dis iscussio ion and C d - - PowerPoint PPT Presentation

Public Agenda Item #4.1

Revie iew, D Dis iscussio ion and C d Conside deratio ion of the R Rules of the Board d of Trustees, Texas A Adm dmin inis istrative Code de, T Tit itle 3 34, Part I IV, Chapter 73. 73.47 7 - (Action

• n)

December 10, 2019

Robin Hardaway, Director of Customer Benefits

Reasons for proposed amendments to Chapter 73

• During the 86th Legislative session, House Bill 3522 added Tex. Gov’t Code § 814.404

and § 814.504 to permit designated beneficiaries of ERS members and retirees to assign lump-sum death benefits to licensed funeral directors or funeral establishments.

• Death Benefits that can be assigned include:
• Active account death benefits (lump sum of account balance and additional death benefit)
• Retiree death benefits ($5,000)
• Occupational death benefits

Proposed Amendments to Chapter 73 Concerning Benefits

Agenda Item 5.1 – Board of Trustees Meeting, December 10, 2019

Proposed Amendments to Chapter 73 (Benefits) adding new rule Section 73.47 Assignment

• f Death Benefit for Funeral Services
• Section 73.47 (a) allows a designated beneficiary of a member or retiree to assign a

death benefit.

• Section 73.47(b) clarifies that an assignment must be made on a form promulgated by the

System, and gives the System sole discretion to determine if the assignment is valid and legal.

• Section 73.47(c) clarifies assignment when there are multiple beneficiaries..

Proposed Amendments to Chapter 73 Benefits

Agenda Item 5.1 – Board of Trustees Meeting, December 10, 2019

• Notice of the proposed amendments to Chapter 73 was published in the

October 25, 2019 Texas Register (44 TexReg 6284).

• The deadline to receive comments was Monday, November 25, 2019.

No comments were received.

Proposed Amendments to Chapter 73 Benefits (Continued)

Agenda Item 5.1 – Board of Trustees Meeting, December 10, 2019

Questions?

Action Item