By: Haley S.B. No. 756
73R5862 SOS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to retirement eligibility and benefits for certain members
1-3 of the Teacher Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter C, Chapter 824, Government Code, is
1-6 amended by adding Section 824.2021 to read as follows:
1-7 Sec. 824.2021. TEMPORARY ELIGIBILITY FOR SERVICE RETIREMENT.
1-8 (a) This section applies only to retirements that occur on or
1-9 after January 1, 1994, but before January 1, 1995.
1-10 (b) Notwithstanding Section 824.202, a member is eligible to
1-11 retire and receive a service retirement annuity if:
1-12 (1) the member has at least 20 years of service
1-13 credit; and
1-14 (2) the member is at least 50 years of age.
1-15 (c) The standard service retirement annuity of an eligible
1-16 member under this section is computed under Section 824.203 using
1-17 the amount of the member's service credit plus five years, except
1-18 that:
1-19 (1) the addition to the member's service credit may
1-20 not be used in determining the member's average annual
1-21 compensation; or
1-22 (2) if the addition to the member's service credit
1-23 results in an amount that is more than 50 years, the member's total
1-24 service credit is equal to 50 years.
2-1 (d) An annuity reduced because of age under
2-2 Section 824.202(b), (c), or (d) of an eligible member under this
2-3 section is computed using the amount of the member's service credit
2-4 plus five years and the member's age plus five years.
2-5 (e) An optional service retirement annuity under
2-6 Section 824.204 of an eligible member under this section must be
2-7 actuarially reduced, using the member's age plus five years, from
2-8 the annuity otherwise payable under this chapter.
2-9 (f) The retirement system shall notify each employer that
2-10 has an employee who retires under this section of the retiree's
2-11 name and the amount of the retiree's annual salary in the final
2-12 year of employment. Not later than the 120th day after the date
2-13 the employer receives the notification under this subsection, the
2-14 employer, on a form prescribed by the retirement system, shall
2-15 notify the retirement system of the names of individuals, if any,
2-16 who have been employed to replace the retirees and of the amount of
2-17 the annual salary of those individuals. The employer is not
2-18 required to notify the retirement system of the names or salaries
2-19 of individuals who have been transferred from other positions with
2-20 the employer to replace the retirees.
2-21 (g) If the combined annual salaries of the individuals who
2-22 have been employed to replace the employees of an employer who
2-23 retire under this section is less than the combined annual salaries
2-24 of the employees of the employer who retire under this section in
2-25 their final year of employment, the employer shall reimburse the
2-26 retirement system for the unfunded liability, as determined by the
2-27 actuary of the retirement system and certified by the comptroller,
3-1 incurred by the retirement system that is attributable to the
3-2 employees of the employer who retire under this section. The
3-3 retirement system shall establish the method of reimbursement under
3-4 this subsection to allow amortized reimbursement over a five-year
3-5 period.
3-6 (h) This section expires September 1, 2001.
3-7 SECTION 2. The importance of this legislation and the
3-8 crowded condition of the calendars in both houses create an
3-9 emergency and an imperative public necessity that the
3-10 constitutional rule requiring bills to be read on three several
3-11 days in each house be suspended, and this rule is hereby suspended.