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A BILL TO BE ENTITLED
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AN ACT
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relating to optional annuity increases for certain retirees and |
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beneficiaries of the Texas Municipal Retirement System. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 853.404, Government Code, is amended by |
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adding Subsections (f) and (f-1) to read as follows: |
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(f) Subject to Subsection (f-1) and notwithstanding |
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conflicting provisions of Subsection (c) or Section 854.203, the |
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governing body of a participating municipality that adopts an |
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ordinance under Section 854.203 providing for increased annuities |
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effective January 1 of 2024, 2025, or 2026 may elect to compute the |
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annuity increase, including an annual annuity increase authorized |
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under Subsection (c), as the sum of prior and current service |
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annuities, as increased in subsequent years under Section 854.203 |
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or Subsection (c), of the person on whose service the annuities are |
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based on the effective date of the annuity increase, multiplied by: |
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(1) the percentage change in the Consumer Price Index |
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for All Urban Consumers, published by the Bureau of Labor |
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Statistics of the United States Department of Labor, during the |
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12-month period ending in December of the year that is 13 months |
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before the effective date of the ordinance providing the increase; |
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and |
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(2) 30 percent, 50 percent, or 70 percent, as |
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specified by the governing body in the ordinance. |
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(f-1) Subsection (f) applies only with respect to: |
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(1) a participating municipality that as of January 1, |
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2023: |
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(A) does not provide by ordinance an annual |
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annuity increase under Subsection (c) because the municipality: |
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(i) passed an ordinance before January 1, |
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2023, that rescinded a previous ordinance authorizing annual |
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increases under Subsection (c); or |
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(ii) has not passed an ordinance |
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authorizing annual increases under Subsection (c); or |
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(B) does provide by ordinance an annual annuity |
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increase under Subsection (c) if the governing body of the |
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municipality elects to provide increased annuities recomputed in |
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accordance with Subsection (f) for purposes of maintaining or |
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increasing the amount of the annuity increase otherwise authorized |
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by the ordinance; and |
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(2) the annuity of: |
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(A) a retiree who retired not later than the last |
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day of December of the year that is 13 months before the effective |
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date of the ordinance providing the increase; or |
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(B) a beneficiary of a deceased retiree whose |
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death occurred not later than the last day of December of the year |
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that is 13 months before the effective date of the ordinance |
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providing the increase. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |