S.B. No. 81
AN ACT
1-1 relating to contributions to and benefits provided by certain
1-2 statewide retirement systems; providing for appropriation
1-3 reductions.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 814, Government Code, is
1-6 amended by adding Section 814.1051 to read as follows:
1-7 Sec. 814.1051. RETIREMENT INCENTIVE FOR EMPLOYEE CLASS.
1-8 (a) Instead of the standard service retirement annuity payable
1-9 under Section 814.105, a member who retires under this section is
1-10 entitled to a standard service retirement annuity for service
1-11 credited in the employee class of membership in an amount computed
1-12 as the member's average monthly compensation for service in that
1-13 class for the 36 highest months of compensation multiplied by 2.25
1-14 percent for each year of service credit in that class.
1-15 (b) A member eligible to retire under this section is one
1-16 who:
1-17 (1) meets minimum age and service requirements under
1-18 Section 814.104;
1-19 (2) applies for service retirement;
1-20 (3) holds a position included in the employee class of
1-21 membership on the date the application is filed; and
1-22 (4) designates an effective date of retirement that is
1-23 after August 31, 1993, but before September 1, 1995, and is the
1-24 later of September 30, 1993, or the earliest date that the member's
2-1 retirement may become effective.
2-2 (c) The minimum and maximum amounts of a standard service
2-3 retirement annuity under Section 814.105(b) apply to an annuity
2-4 computed under this section. Instead of the standard service
2-5 retirement annuity payable under this section, a member who retires
2-6 under this section may elect to receive an optional service
2-7 retirement annuity provided under Section 814.108, actuarially
2-8 reduced from the annuity computed under this section.
2-9 (d) An application for service retirement under this section
2-10 by a member eligible to retire under this section becomes
2-11 irrevocable on the designated effective date of retirement unless
2-12 the board of trustees has received a written notice of revocation
2-13 before that date.
2-14 (e) The retirement system shall report to the comptroller
2-15 the name of each person who retires under this section, the
2-16 effective date of the person's retirement, and the amount of
2-17 compensation paid to the person for the last month of employment.
2-18 The retirement system shall submit reports under this subsection at
2-19 the times and in the manner the comptroller provides.
2-20 (f) This section expires September 1, 1995.
2-21 SECTION 2. Subchapter B, Chapter 814, Government Code, is
2-22 amended by adding Section 814.1071 to read as follows:
2-23 Sec. 814.1071. RETIREMENT INCENTIVE FOR CERTAIN PEACE
2-24 OFFICERS. (a) A member who is at least 50 years old and is
2-25 eligible to retire under Section 814.107 is entitled to retire in
2-26 the manner and under the terms provided by Section 814.1051 and
2-27 receive a combined service retirement annuity under Section
3-1 814.107, increased by the amount that an annuity computed under
3-2 Section 814.1051 exceeds the amount of a comparable annuity
3-3 computed under Section 814.105. The annuity is actuarially
3-4 reducible if an optional annuity is selected under Section 814.108.
3-5 (b) The amount by which a combined service retirement
3-6 annuity payable under this section exceeds a combined service
3-7 retirement annuity payable under Section 814.107 is payable from
3-8 the trust fund established by Section 815.310.
3-9 (c) This section expires September 1, 1995.
3-10 SECTION 3. Subsection (a), Section 814.601, Government Code,
3-11 is amended to read as follows:
3-12 (a) Except as provided by Subsections (b) and (e), on the
3-13 first day of each fiscal year, the retirement system shall increase
3-14 the amounts of annuities that are:
3-15 (1) computed as provided by Section 814.105 or a
3-16 predecessor to that section, Section 814.1051, Section 814.206 or a
3-17 predecessor to that section, or if the standard annuity is derived
3-18 from Section 814.105 or a predecessor, as provided by Section
3-19 814.108 or a predecessor to that section;
3-20 (2) based on service that was credited in the
3-21 retirement system as employee class service; and
3-22 (3) payable to a retiree of the retirement system, to
3-23 the survivor of a retiree of the retirement system, or to the
3-24 survivor of a deceased member of the retirement system.
3-25 SECTION 4. (a) The comptroller shall identify to the
3-26 Legislative Budget Board state agencies that have achieved salary
3-27 savings because of service retirements under Section 814.1051,
4-1 Government Code, as added by this Act, and the amounts of the
4-2 savings.
4-3 (b) After receiving information under Subsection (a) of this
4-4 section, the Legislative Budget Board shall reduce appropriations
4-5 made for the fiscal years ending August 31, 1994, and August 31,
4-6 1995, to specified agencies that have achieved salary savings under
4-7 Section 814.1051, Government Code, as added by this Act. The board
4-8 shall make reductions in general revenue appropriations of at least
4-9 $13,411,000 not later than November 1, 1993, and additional
4-10 reductions of at least $27,340,000 not later than November 1, 1994.
4-11 (c) If the Legislative Budget Board does not make reductions
4-12 in the amounts and within the periods provided by Subsection (b) of
4-13 this section, the comptroller shall make across the board
4-14 reductions on all agencies' appropriations to achieve a total
4-15 general revenue reduction for the fiscal biennium ending August 31,
4-16 1995, of $40,751,000.
4-17 SECTION 5. (a) Notwithstanding Subsection (e), Section
4-18 815.403, Government Code, the comptroller may not make monthly
4-19 payments from any fund or account to the state accumulation account
4-20 of the trust fund for the Employees Retirement System of Texas
4-21 during June, July, or August of 1995, except as provided by
4-22 Subsection (b) of this section. On September 1, 1995, the
4-23 comptroller shall make the payments for those months deferred by
4-24 this section.
4-25 (b) Each month in which any portion of a payment deferred by
4-26 this section remains unpaid, the comptroller shall transfer to the
4-27 state accumulation account of the trust fund for the Employees
5-1 Retirement System of Texas from the general revenue fund an amount
5-2 certified by the Employees Retirement System of Texas that is equal
5-3 to the greater of eight percent of or the rate of yield that would
5-4 have been earned on the unpaid deferred amount if monthly
5-5 contributions to the Employees Retirement System of Texas had been
5-6 made as provided by Subsection (e), Section 815.403, Government
5-7 Code, for that month and for each previous month of the fiscal year
5-8 in which the payments have been deferred as provided by this
5-9 section and had been invested.
5-10 SECTION 6. (a) Notwithstanding Subsection (c), Section
5-11 403.093, Government Code, the comptroller may not make monthly
5-12 payments from the general revenue fund to the state contribution
5-13 account of the trust fund for the Teacher Retirement System of
5-14 Texas during June, July, or August of 1995, except as provided by
5-15 Subsection (b) of this section. Not later than September 3, 1995,
5-16 the comptroller shall make the payments for those months deferred
5-17 by this section.
5-18 (b) Each month in which any portion of a payment deferred by
5-19 this section remains unpaid, the comptroller shall transfer to the
5-20 state contribution account of the trust fund for the Teacher
5-21 Retirement System of Texas from the general revenue fund an amount
5-22 certified by the Teacher Retirement System of Texas that is equal
5-23 to the greater of eight percent of or the rate of yield that would
5-24 have been earned on the unpaid deferred amount if monthly
5-25 contributions to the Teacher Retirement System of Texas had been
5-26 made as provided by Subsection (c), Section 403.093, Government
5-27 Code, for that month and for each previous month of the fiscal year
6-1 in which the payments have been deferred as provided by this
6-2 section and had been invested.
6-3 SECTION 7. Section 21.02, Chapter 4, Acts of the 72nd
6-4 Legislature, 1st Called Session, 1991, is repealed.
6-5 SECTION 8. The importance of this legislation and the
6-6 crowded condition of the calendars in both houses create an
6-7 emergency and an imperative public necessity that the
6-8 constitutional rule requiring bills to be read on three several
6-9 days in each house be suspended, and this rule is hereby suspended,
6-10 and that this Act take effect and be in force from and after its
6-11 passage, and it is so enacted.