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Senate Bill 1458 |
Senate Author: Duncan et al. |
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Effective: See below |
House Sponsor: Callegari et al. |
Senate Bill 1458 amends the Government Code to require a minimum of five years of service credit as a member of the Teacher Retirement System of Texas (TRS) for a TRS member to be eligible to retire and receive a standard service retirement annuity under the rule of 80. The bill also makes a member who does not have at least five years of TRS service credit on or before August 31, 2014, or who becomes a TRS member on or after September 1, 2014, subject to the following conditions of eligibility for retirement or for early retirement:
· The member is eligible to retire and receive a standard service retirement annuity at age 65 with at least five years of TRS service credit or at age 62 with at least five years of TRS service credit if the member meets the rule of 80.
· The member is eligible to retire and receive a reduced annuity at age 55 with at least five years of service credit if the member does not meet the rule of 80, with the annuity reduced to specified percentages of the standard service retirement annuity for each year of early retirement before the age of 65.
· The member is eligible to retire, regardless of age, and receive an annuity reduced from the standard service retirement annuity by five percent for each year of early retirement before the age of 62 if the member either meets the rule of 80 or has at least 30 years of service credit.
Senate Bill 1458, effective September 1, 2013, requires TRS to make a one-time cost‑of‑living adjustment of three percent or $100 per month, whichever is less, payable to annuitants receiving a monthly death or retirement benefit annuity and sets out related provisions.
Senate Bill 1458 decreases from five percent to two percent the annual, prorated interest rate applicable to the interest on a member's TRS deferred retirement option account and the annual interest rate used to calculate the monthly interest on member contributions to an individual TRS account. The bill, effective September 1, 2013, incrementally increases the rate of member contributions to TRS each year up to 7.7 percent of the member's annual compensation or that 7.7 percent reduced in proportion to any reduction in the state contribution rate for services rendered on or after September 1, 2017. The bill also requires an employer who reports a member to TRS for whom the employer is not making contributions to the federal Old‑Age, Survivors, and Disability Insurance (OASDI) program to make monthly employer contributions to TRS for each such member at the rates specified by the bill.
Senate Bill 1458 amends the Insurance Code to make a service retiree and any dependent of a service retiree ineligible to participate in an optional group health benefit plan under the Texas Public School Retired Employees Group Benefits Act unless the retiree is at least 62 years of age, is ineligible under the Texas Employees Group Benefits Act and the State University Employees Uniform Insurance Benefits Act, and meets other conditions prescribed in statute relating to taking a service retirement under TRS. The bill authorizes such a retiree, on the date the retiree reaches 62 years of age and under rules adopted by TRS, to enroll in any coverage tier under the group program and to enroll in the same coverage tier the retiree's dependents who are enrolled in the group program as of the date the retiree reaches 62 years of age.
Senate Bill 1458, effective September 1, 2013, repeals provisions relating to comparability of primary care coverage plans provided under both the Texas School Employees Uniform Group Health Coverage Act and the Texas Employees Group Benefits Act.
Senate Bill 1458 takes effect September 1, 2014, except as otherwise provided.