Texas Government Code 854.107 – Designation of Beneficiary After Retirement Under Straight Life or Guaranteed Term Annuity
(a) This section applies only to a retiree who marries after the date of the person‘s retirement and who at the time of retirement selected either:
(1) a service or disability retirement annuity that would be payable throughout the retiree’s life and would not be paid after the retiree’s death, except as provided by Section 854.502; or
(2) a service or disability retirement annuity that would be payable throughout the retiree’s life and, if the retiree dies before 60, 120, or 180 monthly annuity payments, as appropriate, have been made, would be payable for the remainder of those months.
(b) A retiree described under Subsection (a) may replace the annuity by selecting an optional retirement annuity under Section 854.104(c)(1), (2), or (5) and by designating the person’s spouse as beneficiary in the same manner as an annuity selection and designation of beneficiary may be made before retirement.
Terms Used In Texas Government Code 854.107
- 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
- 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
- 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.
(c) The selection under Subsection (b) must be filed with the retirement system before the first anniversary of the date of the marriage unless the postretirement marriage occurred before January 1, 2002, in which case the selection must be filed with the retirement system before January 1, 2003.
(d) A person may make a postretirement designation of a beneficiary under this section only once.
(e) The retirement system shall adjust the monthly payments of the annuity under the option selected to an actuarial equivalent amount of the annuity being paid immediately before the change in benefit option and beneficiary selection.
(f) The selection of an optional annuity and designation of a beneficiary under this section is not effective if the retiree or beneficiary dies before the date the change is to take effect.