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