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A JOINT RESOLUTION
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proposing a constitutional amendment limiting the contribution |
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rate of the members of the Teacher Retirement System of Texas, |
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authorizing the legislature to provide cost-of-living adjustments |
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or other benefit enhancements to eligible annuitants of the system, |
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and providing a one-time transfer of funds for benefit enhancements |
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and for contributions and actuarially determined payments to |
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eliminate the unfunded actuarial liabilities of the system. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 67(b)(3), Article XVI, Texas |
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Constitution, is amended to read as follows: |
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(3) The amount contributed by a person participating |
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in the Employees Retirement System of Texas or the Teacher |
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Retirement System of Texas shall be established by the legislature |
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but may not be less than six percent of current compensation nor for |
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a person participating in the Teacher Retirement System of Texas |
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more than nine percent of current compensation. The amount |
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contributed by the state may not be less than six percent nor more |
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than 10 percent of the aggregate compensation paid to individuals |
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participating in the system. In an emergency, as determined by the |
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governor, the legislature may appropriate such additional sums as |
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are actuarially determined to be required to fund benefits |
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authorized by law. |
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SECTION 2. Article XVI, Texas Constitution, is amended by |
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adding Section 67-a to read as follows: |
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Sec. 67-a. (a) Only as authorized by this section, the |
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legislature by general law may provide one or more cost-of-living |
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adjustments or supplemental payments as benefit enhancements to |
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annuitants of the Teacher Retirement System of Texas who are |
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eligible for the enhancements, as determined by that law. |
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(b) The legislature may provide a benefit enhancement as |
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described by this section and, as necessary, direct the comptroller |
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of public accounts to transfer funds to the Teacher Retirement |
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System of Texas for the payment of the benefit enhancement only if: |
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(1) the retirement system is actuarially sound, as |
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determined by general law; and |
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(2) except as provided by Subsection (c) of this |
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section and subject to Subsection (d) of this section, the |
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legislature appropriates money in an amount sufficient to fully pay |
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for the benefit enhancement, as determined by the board of trustees |
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of the retirement system. |
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(c) Subsection (b)(2) of this section does not apply to a |
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continuing cost-of-living adjustment that is: |
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(1) authorized by general law; and |
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(2) payable only: |
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(A) if the return on the investment of the assets |
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of the Teacher Retirement System of Texas meets or exceeds a minimum |
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threshold prescribed by general law; and |
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(B) out of the return. |
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(d) In determining the amount that is sufficient to fully |
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pay for the benefit enhancement under Subsection (b)(2) of this |
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section, the board of trustees of the Teacher Retirement System of |
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Texas shall reduce that amount by the amount by which the actuarial |
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value of the system's assets exceeds the actuarial accrued |
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liability of the system. |
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SECTION 3. The following temporary provision is added to |
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the Texas Constitution: |
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TEMPORARY PROVISION. (a) This temporary provision applies |
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to the constitutional amendment proposed by the 88th Legislature, |
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Regular Session, 2023, authorizing the legislature to provide |
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cost-of-living adjustments or other benefit enhancements to |
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eligible annuitants of the Teacher Retirement System of Texas and |
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providing a one-time transfer of funds for contributions, |
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actuarially determined payments, and benefit enhancements. |
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(b) As soon as practicable after the effective date of the |
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amendment to which this temporary provision applies, the |
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comptroller of public accounts shall transfer $1.9 billion from the |
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general revenue fund to the trust fund of the Teacher Retirement |
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System of Texas. Money transferred to the trust fund under this |
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temporary provision may be spent by the system only for the purposes |
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of providing contributions, actuarially determined payments, and |
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benefit enhancements to the system's annuitants, as provided by |
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general law. The transfer made under this temporary provision is |
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not an appropriation of state tax revenues for the purposes of |
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Section 22, Article VIII, of this constitution. |
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(c) This temporary provision expires January 1, 2056. |
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SECTION 4. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 7, 2023. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment authorizing the |
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legislature to provide cost-of-living adjustments or other benefit |
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enhancements to eligible annuitants of the Teacher Retirement |
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System of Texas and providing a one-time transfer of $1.9 billion to |
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the retirement system for benefit enhancements and for |
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contributions and actuarially determined payments to eliminate the |
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unfunded accrued actuarial liabilities of the retirement system." |