1-1 By: Barrientos S.B. No. 81
1-2 (In the Senate - Filed February 17, 1993; February 17, 1993,
1-3 read first time and referred to Committee on State Affairs;
1-4 March 1, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 9, Nays 0; March 1, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Harris of Dallas x
1-10 Rosson x
1-11 Carriker x
1-12 Henderson x
1-13 Leedom x
1-14 Lucio x
1-15 Luna x
1-16 Nelson x
1-17 Patterson x
1-18 Shelley x
1-19 Sibley x
1-20 West x
1-21 Whitmire x
1-22 COMMITTEE SUBSTITUTE FOR S.B. No. 81 By: Harris of Dallas
1-23 A BILL TO BE ENTITLED
1-24 AN ACT
1-25 relating to contributions to and benefits provided by certain
1-26 statewide retirement systems.
1-27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-28 SECTION 1. (a) Subchapter B, Chapter 814, Government Code,
1-29 is amended by adding Section 814.1051 to read as follows:
1-30 Sec. 814.1051. RETIREMENT INCENTIVE FOR EMPLOYEE CLASS.
1-31 (a) Instead of the standard service retirement annuity payable
1-32 under Section 814.105, a member who retires under this section is
1-33 entitled to a standard service retirement annuity for service
1-34 credited in the employee class of membership in an amount computed
1-35 as the member's average monthly compensation for service in that
1-36 class for the 36 highest months of compensation multiplied by 2.25
1-37 percent for each year of service credit in that class.
1-38 (b) A member eligible to retire under this section is one
1-39 who:
1-40 (1) meets minimum age and service requirements under
1-41 Section 814.104;
1-42 (2) applies for service retirement;
1-43 (3) files the retirement application after June 30,
1-44 1993, but before September 1, 1993, or after June 30, 1994, but
1-45 before September 1, 1994;
1-46 (4) holds a position included in the employee class of
1-47 membership on the date the application is filed; and
1-48 (5) designates an effective date of retirement that is
1-49 after August 31, 1993, but before September 1, 1995, and:
1-50 (A) is the later of September 30, 1993, or the
1-51 earliest date in the fiscal year ending August 31, 1994, that the
1-52 member's retirement may become effective; or
1-53 (B) if the member is not eligible to retire in
1-54 the fiscal year ending August 31, 1994, is the later of September
1-55 30, 1994, or the earliest date in the fiscal year ending August 31,
1-56 1995, that the member's retirement may become effective.
1-57 (c) The permissible period for applying for retirement as
1-58 provided by Section 814.101(b) is suspended for members who apply
1-59 during a period specified by this section.
1-60 (d) The minimum and maximum amounts of a standard service
1-61 retirement annuity under Section 814.105(b) apply to an annuity
1-62 computed under this section. Instead of the standard service
1-63 retirement annuity payable under this section, a member who retires
1-64 under this section may elect to receive an optional service
1-65 retirement annuity provided under Section 814.108, actuarially
1-66 reduced from the annuity computed under this section.
1-67 (e) An application for service retirement under this section
1-68 by a member eligible to retire under this section becomes
2-1 irrevocable on the designated effective date of retirement unless
2-2 the board of trustees has received a written notice of revocation
2-3 before that date.
2-4 (f) The retirement system shall report to the comptroller
2-5 the name of each person who retires under this section, the
2-6 effective date of the person's retirement, and the amount of
2-7 compensation paid to the person for the last month of employment.
2-8 The retirement system shall submit reports under this subsection at
2-9 the times and in the manner the comptroller provides.
2-10 (g) This section expires September 1, 1995.
2-11 (b) This section takes effect only if this Act takes effect
2-12 before July 1, 1993.
2-13 SECTION 2. (a) Subchapter B, Chapter 814, Government Code,
2-14 is amended by adding Section 814.1051 to read as follows:
2-15 Sec. 814.1051. RETIREMENT INCENTIVE FOR EMPLOYEE CLASS.
2-16 (a) Instead of the standard service retirement annuity payable
2-17 under Section 814.105, a member who retires under this section is
2-18 entitled to a standard service retirement annuity for service
2-19 credited in the employee class of membership in an amount computed
2-20 as the member's average monthly compensation for service in that
2-21 class for the 36 highest months of compensation multiplied by 2.25
2-22 percent for each year of service credit in that class.
2-23 (b) A member eligible to retire under this section is one
2-24 who:
2-25 (1) meets minimum age and service requirements under
2-26 Section 814.104;
2-27 (2) applies for service retirement;
2-28 (3) files the retirement application after August 31,
2-29 1993, but before November 1, 1993, or after June 30, 1994, but
2-30 before September 1, 1994;
2-31 (4) holds a position included in the employee class of
2-32 membership on the date the application is filed; and
2-33 (5) designates an effective date of retirement that is
2-34 after August 31, 1993, but before September 1, 1995, and:
2-35 (A) is the later of September 30, 1993, or the
2-36 earliest date in the fiscal year ending August 31, 1994, that the
2-37 member's retirement may become effective; or
2-38 (B) if the member is not eligible to retire in
2-39 the fiscal year ending August 31, 1994, is the later of September
2-40 30, 1994, or the earliest date in the fiscal year ending August 31,
2-41 1995, that the member's retirement may become effective.
2-42 (c) The permissible period for applying for retirement as
2-43 provided by Section 814.101(b) is suspended for members who apply
2-44 during a period specified by this section.
2-45 (d) The minimum and maximum amounts of a standard service
2-46 retirement annuity under Section 814.105(b) apply to an annuity
2-47 computed under this section. Instead of the standard service
2-48 retirement annuity payable under this section, a member who retires
2-49 under this section may elect to receive an optional service
2-50 retirement annuity provided under Section 814.108, actuarially
2-51 reduced from the annuity computed under this section.
2-52 (e) An application for service retirement under this section
2-53 by a member eligible to retire under this section becomes
2-54 irrevocable on the designated effective date of retirement unless
2-55 the board of trustees has received a written notice of revocation
2-56 before that date.
2-57 (f) The retirement system shall report to the comptroller
2-58 the name of each person who retires under this section, the
2-59 effective date of the person's retirement, and the amount of
2-60 compensation paid to the person for the last month of employment.
2-61 The retirement system shall submit reports under this subsection at
2-62 the times and in the manner the comptroller provides.
2-63 (g) This section expires September 1, 1995.
2-64 (b) This section takes effect only if this Act takes effect
2-65 on or after July 1, 1993.
2-66 SECTION 3. Subchapter B, Chapter 814, Government Code, is
2-67 amended by adding Section 814.1071 to read as follows:
2-68 Sec. 814.1071. RETIREMENT INCENTIVE FOR CERTAIN PEACE
2-69 OFFICERS. (a) A member who is at least 50 years old and is
2-70 eligible to retire under Section 814.107 is entitled to retire in
3-1 the manner and under the terms provided by Section 814.1051 and
3-2 receive a combined service retirement annuity under Section
3-3 814.107, increased by the amount that an annuity computed under
3-4 Section 814.1051 exceeds the amount of a comparable annuity
3-5 computed under Section 814.105. The annuity is actuarially
3-6 reducible if an optional annuity is selected under Section 804.108.
3-7 (b) The amount by which a combined service retirement
3-8 annuity payable under this section exceeds a combined service
3-9 retirement annuity payable under Section 814.107 is payable from
3-10 the trust fund established by Section 815.310.
3-11 (c) This section expires September 1, 1995.
3-12 SECTION 4. Subsection (a), Section 814.601, Government Code,
3-13 is amended to read as follows:
3-14 (a) Except as provided by Subsections (b) and (e), on the
3-15 first day of each fiscal year, the retirement system shall increase
3-16 the amounts of annuities that are:
3-17 (1) computed as provided by Section 814.105 or a
3-18 predecessor to that section, Section 814.1051, Section 814.206 or a
3-19 predecessor to that section, or if the standard annuity is derived
3-20 from Section 814.105 or a predecessor, as provided by Section
3-21 814.108 or a predecessor to that section;
3-22 (2) based on service that was credited in the
3-23 retirement system as employee class service; and
3-24 (3) payable to a retiree of the retirement system, to
3-25 the survivor of a retiree of the retirement system, or to the
3-26 survivor of a deceased member of the retirement system.
3-27 SECTION 5. (a) Notwithstanding Subsection (e), Section
3-28 815.403, Government Code, the comptroller may not make monthly
3-29 payments from any fund or account to the state accumulation account
3-30 of the trust fund for the Employees Retirement System of Texas
3-31 during June, July, or August of 1995, except as provided by
3-32 Subsection (b) of this section. On September 1, 1995, the
3-33 comptroller shall make the payments for those months deferred by
3-34 this section.
3-35 (b) Each month in which any portion of a payment deferred by
3-36 this section remains unpaid, the comptroller shall transfer to the
3-37 state accumulation account of the trust fund for the Employees
3-38 Retirement System of Texas from the general revenue fund an amount
3-39 certified by the Employees Retirement System of Texas that is equal
3-40 to the greater of eight percent of or the rate of yield that would
3-41 have been earned on the unpaid deferred amount if monthly
3-42 contributions to the Employees Retirement System of Texas had been
3-43 made as provided by Subsection (e), Section 815.403, Government
3-44 Code, for that month and for each previous month of the fiscal year
3-45 in which the payments have been deferred as provided by this
3-46 section and had been invested.
3-47 SECTION 6. (a) Notwithstanding Subsection (c), Section
3-48 403.093, Government Code, the comptroller may not make monthly
3-49 payments from the general revenue fund to the state contribution
3-50 account of the trust fund for the Teacher Retirement System of
3-51 Texas during June, July, or August of 1995, except as provided by
3-52 Subsection (b) of this section. Not later than September 3, 1995,
3-53 the comptroller shall make the payments for those months deferred
3-54 by this section.
3-55 (b) Each month in which any portion of a payment deferred by
3-56 this section remains unpaid, the comptroller shall transfer to the
3-57 state contribution account of the trust fund for the Teacher
3-58 Retirement System of Texas from the general revenue fund an amount
3-59 certified by the Teacher Retirement System of Texas that is equal
3-60 to the greater of eight percent of or the rate of yield that would
3-61 have been earned on the unpaid deferred amount if monthly
3-62 contributions to the Teacher Retirement System of Texas had been
3-63 made as provided by Subsection (c), Section 403.093, Government
3-64 Code, for that month and for each previous month of the fiscal year
3-65 in which the payments have been deferred as provided by this
3-66 section and had been invested.
3-67 SECTION 7. The importance of this legislation and the
3-68 crowded condition of the calendars in both houses create an
3-69 emergency and an imperative public necessity that the
3-70 constitutional rule requiring bills to be read on three several
4-1 days in each house be suspended, and this rule is hereby suspended,
4-2 and that this Act take effect and be in force from and after its
4-3 passage, and it is so enacted.
4-4 * * * * *
4-5 Austin,
4-6 Texas
4-7 March 1, 1993
4-8 Hon. Bob Bullock
4-9 President of the Senate
4-10 Sir:
4-11 We, your Committee on State Affairs to which was referred S.B. No.
4-12 81, have had the same under consideration, and I am instructed to
4-13 report it back to the Senate with the recommendation that it do not
4-14 pass, but that the Committee Substitute adopted in lieu thereof do
4-15 pass and be printed.
4-16 Harris of
4-17 Dallas, Chairman
4-18 * * * * *
4-19 WITNESSES
4-20 FOR AGAINST ON
4-21 ___________________________________________________________________
4-22 Name: Lane Zivley x
4-23 Representing: Tx Public Employees Assoc
4-24 City: Austin
4-25 -------------------------------------------------------------------
4-26 Name: Andrea Cowan x
4-27 Representing: Comptroller's Office
4-28 City: Austin
4-29 -------------------------------------------------------------------
4-30 Name: Terri Salvaggio x
4-31 Representing: Comptroller
4-32 City: Austin
4-33 -------------------------------------------------------------------
4-34 Name: Alan Pollack x
4-35 Representing: Tx Performance Review
4-36 City: Austin
4-37 -------------------------------------------------------------------
4-38 Name: Thomas Plant x
4-39 Representing: State Comptroller
4-40 City: Austin
4-41 -------------------------------------------------------------------