By Johnson, McCoulskey, Averitt, Dear H.B. No. 930
74R4736 GCH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to benefits payable by the Teacher Retirement System of
1-3 Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 824.203(a), Government Code, is amended
1-6 to read as follows:
1-7 (a) Except as provided by Subsections (c) and (d), the
1-8 standard service retirement annuity is an amount computed on the
1-9 basis of the member's average annual compensation for the three
1-10 years of service, whether or not consecutive, in which the member
1-11 received the highest annual compensation, times 2-2/10 <two>
1-12 percent for each year of service credit in the retirement system.
1-13 SECTION 2. Section 824.204(e), Government Code, is amended
1-14 to read as follows:
1-15 (e) The increase in the annuity under Subsection (d)<:>
1-16 <(1)> begins with the payment due at the end of
1-17 September 1995 or the first monthly payment made to the retiree
1-18 following the date of death of the person nominated, whichever is
1-19 later, and is payable to the retiree for the remainder of the
1-20 retiree's life<; and>
1-21 <(2) applies only to a member who retires after August
1-22 31, 1989>.
1-23 SECTION 3. (a) Monthly payments of a death or retirement
1-24 benefit annuity by the Teacher Retirement System of Texas are
2-1 increased beginning with the payment due at the end of September
2-2 1995.
2-3 (b) The increase applies only if the latest effective date
2-4 of retirement of the person on whose account the benefit is based,
2-5 or the date of death in the case of a death benefit annuity,
2-6 occurred before September 1, 1994. The increase does not apply to
2-7 payments under Section 824.304(a), 824.404, or 824.501, Government
2-8 Code.
2-9 (c) Except as provided by Subsection (d) or (e) of this
2-10 section, the amount of the increase is computed by multiplying the
2-11 previous monthly benefit by a percentage determined in accordance
2-12 with the following table:
2-13 Retirement Date or, if applicable, Date of Death Increase
2-14 Before September 1, 1970 15%
2-15 On or after September 1, 1970, but before September 1, 1972 14%
2-16 On or after September 1, 1972, but before September 1, 1973 15%
2-17 On or after September 1, 1973, but before September 1, 1974 17%
2-18 On or after September 1, 1974, but before September 1, 1975 14%
2-19 On or after September 1, 1975, but before September 1, 1976 13%
2-20 On or after September 1, 1976, but before September 1, 1977 16%
2-21 On or after September 1, 1977, but before September 1, 1978 14%
2-22 On or after September 1, 1978, but before September 1, 1979 13%
2-23 On or after September 1, 1979, but before September 1, 1980 12%
2-24 On or after September 1, 1980, but before September 1, 1981 9%
2-25 On or after September 1, 1981, but before September 1, 1982 8%
2-26 On or after September 1, 1982, but before September 1, 1983 7%
2-27 On or after September 1, 1983, but before September 1, 1985 8%
3-1 On or after September 1, 1985, but before September 1, 1986 7%
3-2 On or after September 1, 1986, but before September 1, 1987 8%
3-3 On or after September 1, 1987, but before September 1, 1989 7%
3-4 On or after September 1, 1989, but before September 1, 1991 5%
3-5 On or after September 1, 1991, but before September 1, 1992 4%
3-6 On or after September 1, 1992, but before September 1, 1994 3%
3-7 (d) Except as provided by Subsection (e) of this section,
3-8 under rules adopted by the Teacher Retirement System of Texas, an
3-9 annuitant is entitled to the greater of:
3-10 (1) the monthly benefit annuity to which the annuitant
3-11 is entitled, including the increase computed in accordance with
3-12 Subsection (c) of this section; or
3-13 (2) a monthly benefit annuity computed as if:
3-14 (A) Subtitle C, Title 8, Government Code, as it
3-15 existed on January 1, 1995, had been in effect on the date of
3-16 retirement or on the date of death, as applicable;
3-17 (B) all benefits increases were included that
3-18 are applicable to the annuity and were provided after the date the
3-19 annuity began; and
3-20 (C) the increase under Subsection (c) of this
3-21 section did not apply.
3-22 (e) An increase authorized by this Act may not result in a
3-23 benefit that exceeds the limits prescribed by Section 415, United
3-24 States Internal Revenue Code (26 U.S.C. Section 415).
3-25 SECTION 4. This Act takes effect September 1, 1995.
3-26 SECTION 5. The importance of this legislation and the
3-27 crowded condition of the calendars in both houses create an
4-1 emergency and an imperative public necessity that the
4-2 constitutional rule requiring bills to be read on three several
4-3 days in each house be suspended, and this rule is hereby suspended.