Texas Government Code 844.0041 – Optional Retirement Annuities
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(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.
Terms Used In Texas Government Code 844.0041
- 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.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Rule: includes regulation. See Texas Government Code 311.005
(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.