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A BILL TO BE ENTITLED
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AN ACT
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relating to an optional service retirement annuity of the Employees |
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Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 814, Government Code, is |
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amended by adding Section 814.109 to read as follows: |
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Sec. 814.109. COST-OF-LIVING ADJUSTMENTS OPTION. (a) A |
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member who is eligible for an unreduced service retirement annuity |
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may select a standard retirement annuity or an optional service |
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retirement annuity described by Section 814.108 together with the |
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option for cost-of-living adjustments as described by this section. |
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(b) The retirement system shall provide the cost-of-living |
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adjustments by reducing benefits for an appropriate period |
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beginning immediately after the member's retirement and |
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periodically increasing the amount of the benefits, as determined |
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by the system, during the period the member or designated |
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beneficiary is entitled to service retirement benefits. |
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(c) The service retirement annuity selected by the member |
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must be calculated to reflect the cost-of-living adjustments to be |
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provided under this section and be actuarially equivalent to a |
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standard or optional service retirement annuity, as applicable. |
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The annuity and adjustments must be computed to result in no |
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actuarial loss to the retirement system. |
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(d) The cost-of-living adjustments option under this |
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section may be elected only once by a member and may not be elected |
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by a retiree. A member retiring under the proportionate retirement |
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program under Chapter 803 is not eligible for the partial lump-sum |
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option. |
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(e) This section does not apply to a disability retirement |
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annuity. |
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(f) Before a retiring member selects the cost-of-living |
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adjustments option under this section, the retirement system must |
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provide a written notice to the member of the amount by which the |
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member's annuity will be reduced and the period of the reduction |
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because of that selection. The retirement system shall maintain a |
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copy of the notice under this subsection signed by the member. |
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(g) The board of trustees may adopt rules for the |
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implementation of this section. |
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SECTION 2. Section 814.109, Government Code, as added by |
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this Act, applies only to a retirement that occurs on or after |
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January 1, 2022. |
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SECTION 3. This Act takes effect September 1, 2023. |