§ 103.0535.Alternative Annuity Compensation

Title 5. Governmental Liability · Chapter 103. Compensation to Persons Wrongfully Imprisoned · Subchapter B. Administrative Proceeding · Last amended 2019 · Last verified August 29, 2026

In one sentenceSection 103.0535 lets a claimant trade a smaller monthly payment for survivor protection, choosing among three spousal continuation options and two guaranteed-term options, with a pop-up if the spouse dies first.

Full Text of § 103.0535

Text sizeJump to: (a) (b) (c) (d) (d-1) (e)

(a)A person entitled to compensation under Section 103.001(a) may elect to receive reduced alternative annuity payments under this section instead of standard annuity payments.

(b)Alternative annuity payments are payable throughout the life of the claimant and are actuarially reduced from the standard annuity payments to their actuarial equivalent under the option selected under Subsection (c).

(c)A claimant may select one of the following options, which provide that:

(1)after the claimant's death, the alternative annuity payments are payable to and throughout the life of the claimant's spouse;

(2)after the claimant's death, three-fourths of the initial alternative annuity payment amount is payable to and throughout the life of the claimant's spouse;

(3)after the claimant's death, one-half of the initial alternative annuity payment amount is payable to and throughout the life of the claimant's spouse;

(4)if the claimant dies before 180 monthly alternative annuity payments have been made, the remainder of the 180 payments are payable to the claimant's spouse or designated beneficiary; or

(5)if the claimant dies before 120 monthly alternative annuity payments have been made, the remainder of the 120 payments are payable to the claimant's spouse or designated beneficiary.

(d)An election under this section must be made not later than the 45th day after the date:

(1)on which the claimant files with the comptroller the application required by Section 103.051; or

(2)on which the claimant experiences one of the following life-changing events:

(A)marriage or divorce of the claimant;

(B)the addition of a dependent of the claimant; or

(C)the death of a dependent, spouse, or beneficiary of the claimant.

(d-1)An election under Subsection (d) must be made on a form prescribed by the comptroller that:

(1)identifies the claimant's spouse or designated beneficiary according to Section 103.0536; and

(2)specifies the option selected under Subsection (c).

(e)A claimant who elects to receive alternative annuity payments under this section that are payable to the claimant and the claimant's spouse and survives the claimant's spouse is entitled to an increase in the amount of the claimant's monthly annuity payments so that the claimant's monthly payments equal the monthly payments the claimant would have received had the claimant not elected to receive the alternative annuity payments. The claimant is entitled to the increased payments beginning the month after the month in which the claimant's spouse dies and ending on the date of the claimant's death.

End

Plain-English Summary

The standard annuity dies with the claimant. This section sells protection against that, and the price is a smaller cheque.

The election is the claimant’s to make, in place of the standard payments, and the reduced amount is the actuarial equivalent of what the claimant gave up.

Three options continue payments to a spouse for life. The survivor receives the full alternative payment, three-fourths of the initial amount, or one-half, and the deeper the survivor benefit, the smaller the payment during the claimant’s life.

Two options guarantee a number of payments instead. If the claimant dies before 180 monthly payments have been made — or before 120, under the other option — the remainder goes to the spouse or a designated beneficiary.

The difference between the two families of options is who is protected. A spousal option runs as long as the spouse lives, however long that is. A guaranteed-term option pays out a fixed count and stops, but it can go to someone other than a spouse.

The election window is 45 days, running from the filing of the application under Section 103.051 or from a life-changing event.

The listed events are marriage or divorce, the addition of a dependent, and the death of a dependent, spouse or beneficiary. Each is a change in who needs protecting, which is why each reopens the choice.

The election goes on the comptroller’s form, identifying the spouse or designated beneficiary under Section 103.0536 and specifying the option chosen.

Outliving the spouse restores the full payment. A claimant who elected a spousal option and survives the spouse returns to the amount the standard annuity would have paid, beginning the month after the spouse’s death and running until the claimant dies.

Frequently Asked Questions

What does electing the alternative annuity cost?

A reduced monthly payment, actuarially equivalent to the standard annuity under the option selected.

What options are available?

Continuation to a spouse for life at the full, three-quarter or half amount, or a guarantee of 180 or 120 monthly payments to a spouse or designated beneficiary.

When must the election be made?

Within 45 days of filing the application, or within 45 days of a marriage, divorce, added dependent, or the death of a dependent, spouse or beneficiary.

What happens if the claimant outlives the spouse?

The payments increase to what the standard annuity would have paid, starting the month after the spouse dies.

Amendment History

Added by Acts 2015, 84th Leg., R.S., Ch. 689 (H.B. 638), Sec. 2, eff. September 1, 2015.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 621 (S.B. 1151), Sec. 1, eff. June 10, 2019.

Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source