By Maxey                                         H.B. No. 435

      75R2798 GCH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to supplemental payments of annuities by the Teacher

 1-3     Retirement System of Texas.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter H, Chapter 824, Government Code, is

 1-6     amended by adding Section 824.702 to read as follows:

 1-7           Sec. 824.702.  SUPPLEMENTAL ANNUITY PAYMENTS.  (a)  The

 1-8     retirement system shall make a supplemental payment as provided by

 1-9     Subsection (b) of each annuity that was paid by the retirement

1-10     system during the fiscal year preceding the fiscal year in which

1-11     the supplemental payment is made and that is being paid at the time

1-12     of the supplemental payment.  A supplemental payment is in addition

1-13     to the regular monthly annuity payment.  An annuitant is entitled

1-14     to receive a payment equal to 10 percent of one month's annuity

1-15     payment for each fiscal year that preceded the fiscal year in which

1-16     the supplemental payment is made and in which the annuity has been

1-17     paid, except that a supplemental payment may not exceed 350 percent

1-18     of a monthly annuity.

1-19           (b)  The retirement system shall make a supplemental payment

1-20     under this section in December 1997 and in December 1998, unless

1-21     the actuary certifies that a payment would be in violation of

1-22     Section 821.006.

1-23           (c)  The retirement system shall pay a supplemental payment

1-24     provided by Subsection (a) from the retired reserve account and may

 2-1     transfer to that account from the state contribution account any

 2-2     portion of the amount that exceeds the amount in the retired

 2-3     reserve account available to finance a supplemental payment and

 2-4     that is actuarially determined to be necessary to finance the

 2-5     supplemental payment.

 2-6           SECTION 2.  The importance of this legislation and the

 2-7     crowded condition of the calendars in both houses create an

 2-8     emergency and an imperative public necessity that the

 2-9     constitutional rule requiring bills to be read on three several

2-10     days in each house be suspended, and this rule is hereby suspended.