By: Barrientos S.B. No. 81
A BILL TO BE ENTITLED
AN ACT
1-1 relating to contributions to and benefits provided by certain
1-2 statewide retirement systems.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. (a) Subchapter B, Chapter 814, Government Code,
1-5 is amended by adding Section 814.1051 to read as follows:
1-6 Sec. 814.1051. RETIREMENT INCENTIVE FOR EMPLOYEE CLASS.
1-7 (a) Instead of the standard service retirement annuity payable
1-8 under Section 814.105, a member who retires under this section is
1-9 entitled to a standard service retirement annuity for service
1-10 credited in the employee class of membership in an amount computed
1-11 as the member's average monthly compensation for service in that
1-12 class for the 36 highest months of compensation multiplied by 2.25
1-13 percent for each year of service credit in that class.
1-14 (b) A member eligible to retire under this section is one
1-15 who:
1-16 (1) meets minimum age and service requirements under
1-17 Section 814.104;
1-18 (2) applies for service retirement;
1-19 (3) files the retirement application after June 30,
1-20 1993, but before September 1, 1993, or after June 30, 1994, but
1-21 before September 1, 1994;
1-22 (4) holds a position included in the employee class of
1-23 membership on the date the application is filed; and
1-24 (5) designates an effective date of retirement that is
2-1 after August 31, 1993, but before September 1, 1995, and:
2-2 (A) is the later of September 30, 1993, or the
2-3 earliest date in the fiscal year ending August 31, 1994, that the
2-4 member's retirement may become effective; or
2-5 (B) if the member is not eligible to retire in
2-6 the fiscal year ending August 31, 1994, is the later of September
2-7 30, 1994, or the earliest date in the fiscal year ending August 31,
2-8 1995, that the member's retirement may become effective.
2-9 (c) The permissible period for applying for retirement as
2-10 provided by Section 814.101(b) is suspended for members who apply
2-11 during a period specified by this section.
2-12 (d) The minimum and maximum amounts of a standard service
2-13 retirement annuity under Section 814.105(b) apply to an annuity
2-14 computed under this section. Instead of the standard service
2-15 retirement annuity payable under this section, a member who retires
2-16 under this section may elect to receive an optional service
2-17 retirement annuity provided under Section 814.108, actuarially
2-18 reduced from the annuity computed under this section.
2-19 (e) An application for service retirement under this section
2-20 by a member eligible to retire under this section becomes
2-21 irrevocable on the designated effective date of retirement unless
2-22 the board of trustees has received a written notice of revocation
2-23 before that date.
2-24 (f) The retirement system shall report to the comptroller
2-25 the name of each person who retires under this section, the
2-26 effective date of the person's retirement, and the amount of
2-27 compensation paid to the person for the last month of employment.
3-1 The retirement system shall submit reports under this subsection at
3-2 the times and in the manner the comptroller provides.
3-3 (g) This section expires September 1, 1995.
3-4 (b) This section takes effect only if this Act takes effect
3-5 before July 1, 1993.
3-6 SECTION 2. (a) Subchapter B, Chapter 814, Government Code,
3-7 is amended by adding Section 814.1051 to read as follows:
3-8 Sec. 814.1051. RETIREMENT INCENTIVE FOR EMPLOYEE CLASS.
3-9 (a) Instead of the standard service retirement annuity payable
3-10 under Section 814.105, a member who retires under this section is
3-11 entitled to a standard service retirement annuity for service
3-12 credited in the employee class of membership in an amount computed
3-13 as the member's average monthly compensation for service in that
3-14 class for the 36 highest months of compensation multiplied by 2.25
3-15 percent for each year of service credit in that class.
3-16 (b) A member eligible to retire under this section is one
3-17 who:
3-18 (1) meets minimum age and service requirements under
3-19 Section 814.104;
3-20 (2) applies for service retirement;
3-21 (3) files the retirement application after August 31,
3-22 1993, but before November 1, 1993, or after June 30, 1994, but
3-23 before September 1, 1994;
3-24 (4) holds a position included in the employee class of
3-25 membership on the date the application is filed; and
3-26 (5) designates an effective date of retirement that is
3-27 after August 31, 1993, but before September 1, 1995, and:
4-1 (A) is the later of September 30, 1993, or the
4-2 earliest date in the fiscal year ending August 31, 1994, that the
4-3 member's retirement may become effective; or
4-4 (B) if the member is not eligible to retire in
4-5 the fiscal year ending August 31, 1994, is the later of September
4-6 30, 1994, or the earliest date in the fiscal year ending August 31,
4-7 1995, that the member's retirement may become effective.
4-8 (c) The permissible period for applying for retirement as
4-9 provided by Section 814.101(b) is suspended for members who apply
4-10 during a period specified by this section.
4-11 (d) The minimum and maximum amounts of a standard service
4-12 retirement annuity under Section 814.105(b) apply to an annuity
4-13 computed under this section. Instead of the standard service
4-14 retirement annuity payable under this section, a member who retires
4-15 under this section may elect to receive an optional service
4-16 retirement annuity provided under Section 814.108, actuarially
4-17 reduced from the annuity computed under this section.
4-18 (e) An application for service retirement under this section
4-19 by a member eligible to retire under this section becomes
4-20 irrevocable on the designated effective date of retirement unless
4-21 the board of trustees has received a written notice of revocation
4-22 before that date.
4-23 (f) The retirement system shall report to the comptroller
4-24 the name of each person who retires under this section, the
4-25 effective date of the person's retirement, and the amount of
4-26 compensation paid to the person for the last month of employment.
4-27 The retirement system shall submit reports under this subsection at
5-1 the times and in the manner the comptroller provides.
5-2 (g) This section expires September 1, 1995.
5-3 (b) This section takes effect only if this Act takes effect
5-4 on or after July 1, 1993.
5-5 SECTION 3. Subchapter B, Chapter 814, Government Code, is
5-6 amended by adding Section 814.1071 to read as follows:
5-7 Sec. 814.1071. RETIREMENT INCENTIVE FOR CERTAIN PEACE
5-8 OFFICERS. (a) A member who is at least 50 years old and is
5-9 eligible to retire under Section 814.107 is entitled to retire in
5-10 the manner and under the terms provided by Section 814.1051 and
5-11 receive a combined service retirement annuity under Section
5-12 814.107, increased by the amount that an annuity computed under
5-13 Section 814.1051 exceeds the amount of a comparable annuity
5-14 computed under Section 814.105. The annuity is actuarially
5-15 reducible if an optional annuity is selected under Section 804.108.
5-16 (b) The amount by which a combined service retirement
5-17 annuity payable under this section exceeds a combined service
5-18 retirement annuity payable under Section 814.107 is payable from
5-19 the trust fund established by Section 815.310.
5-20 (c) This section expires September 1, 1995.
5-21 SECTION 4. Subsection (a), Section 814.601, Government Code,
5-22 is amended to read as follows:
5-23 (a) Except as provided by Subsections (b) and (e), on the
5-24 first day of each fiscal year, the retirement system shall increase
5-25 the amounts of annuities that are:
5-26 (1) computed as provided by Section 814.105 or a
5-27 predecessor to that section, Section 814.1051, Section 814.206 or a
6-1 predecessor to that section, or if the standard annuity is derived
6-2 from Section 814.105 or a predecessor, as provided by Section
6-3 814.108 or a predecessor to that section;
6-4 (2) based on service that was credited in the
6-5 retirement system as employee class service; and
6-6 (3) payable to a retiree of the retirement system, to
6-7 the survivor of a retiree of the retirement system, or to the
6-8 survivor of a deceased member of the retirement system.
6-9 SECTION 5. (a) Notwithstanding Subsection (e), Section
6-10 815.403, Government Code, the comptroller may not make monthly
6-11 payments from any fund or account to the state accumulation account
6-12 of the trust fund for the Employees Retirement System of Texas
6-13 during June, July, or August of 1995, except as provided by
6-14 Subsection (b) of this section. On September 1, 1995, the
6-15 comptroller shall make the payments for those months deferred by
6-16 this section.
6-17 (b) Each month in which any portion of a payment deferred by
6-18 this section remains unpaid, the comptroller shall transfer to the
6-19 state accumulation account of the trust fund for the Employees
6-20 Retirement System of Texas from the general revenue fund an amount
6-21 certified by the Employees Retirement System of Texas that is equal
6-22 to the greater of eight percent of or the rate of yield that would
6-23 have been earned on the unpaid deferred amount if monthly
6-24 contributions to the Employees Retirement System of Texas had been
6-25 made as provided by Subsection (e), Section 815.403, Government
6-26 Code, for that month and for each previous month of the fiscal year
6-27 in which the payments have been deferred as provided by this
7-1 section and had been invested.
7-2 SECTION 6. (a) Notwithstanding Subsection (c), Section
7-3 403.093, Government Code, the comptroller may not make monthly
7-4 payments from the general revenue fund to the state contribution
7-5 account of the trust fund for the Teacher Retirement System of
7-6 Texas during June, July, or August of 1995, except as provided by
7-7 Subsection (b) of this section. Not later than September 3, 1995,
7-8 the comptroller shall make the payments for those months deferred
7-9 by this section.
7-10 (b) Each month in which any portion of a payment deferred by
7-11 this section remains unpaid, the comptroller shall transfer to the
7-12 state contribution account of the trust fund for the Teacher
7-13 Retirement System of Texas from the general revenue fund an amount
7-14 certified by the Teacher Retirement System of Texas that is equal
7-15 to the greater of eight percent of or the rate of yield that would
7-16 have been earned on the unpaid deferred amount if monthly
7-17 contributions to the Teacher Retirement System of Texas had been
7-18 made as provided by Subsection (c), Section 403.093, Government
7-19 Code, for that month and for each previous month of the fiscal year
7-20 in which the payments have been deferred as provided by this
7-21 section and had been invested.
7-22 SECTION 7. The importance of this legislation and the
7-23 crowded condition of the calendars in both houses create an
7-24 emergency and an imperative public necessity that the
7-25 constitutional rule requiring bills to be read on three several
7-26 days in each house be suspended, and this rule is hereby suspended,
7-27 and that this Act take effect and be in force from and after its
8-1 passage, and it is so enacted.