Texas Government Code 824.007 – Deductions From Service or Disability Retirement Annuity
(a) In this section, “program administrator” means the person who administers the uniform program under § 1601.102, Insurance Code.
(b) An individual eligible to participate in the uniform program under § 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.
Terms Used In Texas Government Code 824.007
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(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).