Texas Government Code 814.505 – Return of Excess Contributions in Other Circumstances
(a) Except as provided by Subsection (c), when a person who receives a service or disability retirement annuity dies, a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the retiree’s individual account in the employees saving account at the time of service retirement exceeds the total of annuity payments payable before the retiree’s death.
(b) The benefit provided by Subsection (a) is payable to a person designated by the retiree at the time of retirement in a signed and witnessed document filed with the retirement system. If a retiree does not designate a beneficiary or if the beneficiary does not survive the retiree, the benefit is payable to the retiree’s estate.
Terms Used In Texas Government Code 814.505
- 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
- Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
(c) A death benefit may not be paid under Subsections (a) and (b) if the retiree selected an optional service retirement annuity under § 814.108.
(d) If the person designated as the beneficiary of an optional service retirement annuity, other than one selected under § 814.108(c)(3) or 814.108(c)(4), predeceases the retiree, a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the retiree’s individual account in the employees saving account at the time of service retirement exceeds the sum of annuity payments payable to the retiree before death.
(e) The benefit provided by Subsection (d) is payable to the deceased retiree’s estate.
(f) If a beneficiary dies while receiving an optional service retirement annuity, other than one selected under § 814.108(c)(3) or 814.108(c)(4), a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the retiree’s individual account in the employees saving account at the time of service retirement exceeds the sum of annuity payments payable to the retiree and the beneficiary before the beneficiary’s death.
(g) If a beneficiary dies while receiving an optional service retirement annuity selected under § 814.302 as described in § 814.108(c)(1) or § 814.304(a), a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the member’s individual account in the employees saving account at the time of death exceeds the sum of annuity payments payable to the beneficiary before the beneficiary’s death.
(h) The benefits provided by Subsections (f) and (g) are payable to the deceased beneficiary’s estate.
(i) A beneficiary designation that names a former spouse as beneficiary is invalid unless the designation is made after the date of the divorce.