By: Barrientos S.B. No. 81
73R4750 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to contributions to and benefits provided by the Employees
1-3 Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. (a) Subchapter B, Chapter 814, Government Code,
1-6 is amended by adding Section 814.1051 to read as follows:
1-7 Sec. 814.1051. RETIREMENT INCENTIVE FOR EMPLOYEE CLASS. (a)
1-8 Instead of the standard service retirement annuity payable under
1-9 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) files the retirement application after June 30,
1-21 1993, but before September 1, 1993, or after June 30, 1994, but
1-22 before September 1, 1994;
1-23 (4) holds a position included in the employee class of
1-24 membership on the date the application is filed; and
2-1 (5) designates an effective date of retirement that:
2-2 (A) is after August 31, 1993, but before
2-3 September 1, 1995; and
2-4 (B) is the later of September 1, 1993, or the
2-5 earliest date that the member's retirement may become effective.
2-6 (c) The effective date of retirement provided by Section
2-7 814.003(a) is suspended for members who elect to retire under this
2-8 section on September 1, 1993. The permissible period for applying
2-9 for retirement as provided by Section 814.101(b) is suspended for
2-10 members who apply during a period specified by this section.
2-11 (d) The minimum and maximum amounts of a standard service
2-12 retirement annuity under Section 814.105(b) apply to an annuity
2-13 computed under this section. Instead of the standard service
2-14 retirement annuity payable under this section, a member who retires
2-15 under this section may elect to receive an optional service
2-16 retirement annuity provided under Section 814.108, actuarially
2-17 reduced from the annuity computed under this section.
2-18 (e) An application for service retirement under this section
2-19 by a member eligible to retire under this section becomes
2-20 irrevocable on the designated effective date of retirement unless
2-21 the board of trustees has received a written notice of revocation
2-22 before that date.
2-23 (f) A person who retires under this section is ineligible,
2-24 for two years after the person's effective date of retirement, to
2-25 be reemployed in a position included in the employee class of
2-26 membership or to contract with the state to provide services as an
2-27 independent contractor, if any of the services would be provided
3-1 during that period. This disqualification exists whether or not
3-2 the retiree's benefits would be affected under Section 812.202 or
3-3 812.203.
3-4 (g) The retirement system shall report to the comptroller
3-5 the name of each person who retires under this section, the
3-6 effective date of the person's retirement, and the amount of
3-7 compensation paid to the person for the last month of employment.
3-8 The retirement system shall submit reports under this subsection at
3-9 the times and in the manner the comptroller provides.
3-10 (h) This section expires September 1, 1995.
3-11 (b) This section takes effect only if this Act takes effect
3-12 before July 1, 1993.
3-13 SECTION 2. (a) Subchapter B, Chapter 814, Government Code,
3-14 is amended by adding Section 814.1051 to read as follows:
3-15 Sec. 814.1051. RETIREMENT INCENTIVE FOR EMPLOYEE CLASS. (a)
3-16 Instead of the standard service retirement annuity payable under
3-17 Section 814.105, a member who retires under this section is
3-18 entitled to a standard service retirement annuity for service
3-19 credited in the employee class of membership in an amount computed
3-20 as the member's average monthly compensation for service in that
3-21 class for the 36 highest months of compensation multiplied by 2.25
3-22 percent for each year of service credit in that class.
3-23 (b) A member eligible to retire under this section is one
3-24 who:
3-25 (1) meets minimum age and service requirements under
3-26 Section 814.104;
3-27 (2) applies for service retirement;
4-1 (3) files the retirement application after August 31,
4-2 1993, but before November 1, 1993, or after June 30, 1994, but
4-3 before September 1, 1994;
4-4 (4) holds a position included in the employee class of
4-5 membership on the date the application is filed; and
4-6 (5) designates an effective date of retirement that:
4-7 (A) is after August 31, 1993, but before
4-8 September 1, 1995; and
4-9 (B) is the later of September 1, 1993, or the
4-10 earliest date that the member's retirement may become effective.
4-11 (c) The effective date of retirement provided by Section
4-12 814.003(a) is suspended for members who elect to retire under this
4-13 section on November 1, 1993. The permissible period for applying
4-14 for retirement as provided by Section 814.101(b) is suspended for
4-15 members who apply during a period specified by this section.
4-16 (d) The minimum and maximum amounts of a standard service
4-17 retirement annuity under Section 814.105(b) apply to an annuity
4-18 computed under this section. Instead of the standard service
4-19 retirement annuity payable under this section, a member who retires
4-20 under this section may elect to receive an optional service
4-21 retirement annuity provided under Section 814.108, actuarially
4-22 reduced from the annuity computed under this section.
4-23 (e) An application for service retirement under this section
4-24 by a member eligible to retire under this section becomes
4-25 irrevocable on the designated effective date of retirement unless
4-26 the board of trustees has received a written notice of revocation
4-27 before that date.
5-1 (f) A person who retires under this section is ineligible,
5-2 for two years after the person's effective date of retirement, to
5-3 be reemployed in a position included in the employee class of
5-4 membership or to contract with the state to provide services as an
5-5 independent contractor, if any of the services would be provided
5-6 during that period. This disqualification exists whether or not
5-7 the retiree's benefits would be affected under Section 812.202 or
5-8 812.203.
5-9 (g) The retirement system shall report to the comptroller
5-10 the name of each person who retires under this section, the
5-11 effective date of the person's retirement, and the amount of
5-12 compensation paid to the person for the last month of employment.
5-13 The retirement system shall submit reports under this subsection at
5-14 the times and in the manner the comptroller provides.
5-15 (h) This section expires September 1, 1995.
5-16 (b) This section takes effect only if this Act takes effect
5-17 on or after July 1, 1993.
5-18 SECTION 3. Subchapter B, Chapter 814, Government Code, is
5-19 amended by adding Section 814.1071 to read as follows:
5-20 Sec. 814.1071. RETIREMENT INCENTIVE FOR CERTAIN PEACE
5-21 OFFICERS. (a) A member who is at least 50 years old and is
5-22 eligible to retire under Section 814.107 is entitled to retire in
5-23 the manner and under the terms provided by Section 814.1051 and
5-24 receive a combined service retirement annuity under Section
5-25 814.107, increased by the amount that an annuity computed under
5-26 Section 814.1051 exceeds the amount of a comparable annuity
5-27 computed under Section 814.105. The annuity is actuarially
6-1 reducible if an optional annuity is selected under Section 804.108.
6-2 (b) The amount by which a combined service retirement
6-3 annuity payable under this section exceeds a combined service
6-4 retirement annuity payable under Section 814.107 is payable from
6-5 the trust fund established by Section 815.310.
6-6 (c) This section expires September 1, 1995.
6-7 SECTION 4. Section 814.601(a), Government Code, is amended
6-8 to read as follows:
6-9 (a) Except as provided by Subsections (b) and (e), on the
6-10 first day of each fiscal year, the retirement system shall increase
6-11 the amounts of annuities that are:
6-12 (1) computed as provided by Section 814.105 or a
6-13 predecessor to that section, Section 814.1051, Section 814.206 or a
6-14 predecessor to that section, or if the standard annuity is derived
6-15 from Section 814.105 or a predecessor, as provided by Section
6-16 814.108 or a predecessor to that section;
6-17 (2) based on service that was credited in the
6-18 retirement system as employee class service; and
6-19 (3) payable to a retiree of the retirement system, to
6-20 the survivor of a retiree of the retirement system, or to the
6-21 survivor of a deceased member of the retirement system.
6-22 SECTION 5. (a) Notwithstanding Section 815.403(e),
6-23 Government Code, the comptroller may not make monthly payments from
6-24 any fund or account to the state accumulation account of the trust
6-25 fund for the Employees Retirement System of Texas during June,
6-26 July, or August of 1995, except as provided by Subsection (b) of
6-27 this section. On September 1, 1995, the comptroller shall make the
7-1 payments for those months deferred by this section.
7-2 (b) Each month in which any portion of a payment deferred by
7-3 this section remains unpaid, the comptroller shall transfer to the
7-4 state accumulation account of the trust fund for the Employees
7-5 Retirement System of Texas from the general revenue fund an amount
7-6 certified by the Employees Retirement System of Texas that is equal
7-7 to the greater of eight percent of or the rate of yield that would
7-8 have been earned on the unpaid deferred amount if monthly
7-9 contributions to the Employees Retirement System of Texas had been
7-10 made as provided by Section 815.403(e), Government Code, for that
7-11 month and for each previous month of the fiscal year in which the
7-12 payments have been deferred as provided by this section, and had
7-13 been invested.
7-14 SECTION 6. The importance of this legislation and the
7-15 crowded condition of the calendars in both houses create an
7-16 emergency and an imperative public necessity that the
7-17 constitutional rule requiring bills to be read on three several
7-18 days in each house be suspended, and this rule is hereby suspended,
7-19 and that this Act take effect and be in force from and after its
7-20 passage, and it is so enacted.