By Maxey H.B. No. 934
75R3155 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to retirement benefits for certain members and annuitants
1-3 of the employee class of the Employees Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 814, Government Code, is
1-6 amended by adding Section 814.1051 to read as follows:
1-7 Sec. 814.1051. TEMPORARY RETIREMENT INCENTIVE FOR EMPLOYEE
1-8 CLASS. (a) Instead of the standard service retirement annuity
1-9 payable under Section 814.105, a member who retires under this
1-10 section is entitled to a standard service retirement annuity for
1-11 service credited in the employee class of membership in an amount
1-12 computed as the member's average monthly compensation for service
1-13 in that class for the 36 highest months of compensation multiplied
1-14 by 2.25 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) holds a position included in the employee class of
1-21 membership on the date the application is filed; and
1-22 (4) has an effective date of retirement that is after
1-23 August 31, 1997, but before September 1, 1999.
1-24 (c) The minimum and maximum amounts of a standard service
2-1 retirement annuity under Section 814.105(b) apply to an annuity
2-2 computed under this section. Instead of the standard service
2-3 retirement annuity payable under this section, a member who retires
2-4 under this section may elect to receive an optional service
2-5 retirement annuity under Section 814.108, actuarially reduced from
2-6 the annuity computed under this section.
2-7 (d) This section expires September 1, 1999.
2-8 SECTION 2. Subchapter B, Chapter 814, Government Code, is
2-9 amended by adding Section 814.1071 to read as follows:
2-10 Sec. 814.1071. TEMPORARY RETIREMENT INCENTIVE FOR CERTAIN
2-11 PEACE OFFICERS. (a) A member who is at least 50 years old and is
2-12 eligible to retire under Section 814.107 is entitled to retire in
2-13 the manner and under the terms provided by Section 814.1051 and
2-14 receive a combined service retirement annuity under Section
2-15 814.107, increased by the amount that an annuity computed under
2-16 Section 814.1051 exceeds the amount of a comparable annuity
2-17 computed under Section 814.105. The annuity is actuarially
2-18 reducible if an optional annuity is selected under Section 814.108.
2-19 (b) The amount by which a combined service retirement
2-20 annuity payable under this section exceeds a combined service
2-21 retirement annuity payable under Section 814.107 is payable from
2-22 the trust fund established by Section 815.310.
2-23 (c) This section expires September 1, 1999.
2-24 SECTION 3. (a) Annuities that are described by Section
2-25 814.107, 814.207, 814.305, or 814.601(a), Government Code, and are
2-26 based on service retirements, disability retirements, or deaths
2-27 that occurred after August 31, 1996, but before September 1, 1997,
3-1 are increased by 12.5 percent.
3-2 (b) The increase in annuities under Subsection (a) of this
3-3 section is payable beginning with the first monthly payments of the
3-4 annuities that become due after the effective date of this Act.
3-5 (c) The board of trustees of the retirement system shall pay
3-6 the increased annuities provided by this section from the
3-7 retirement annuity reserve account of the retirement system and may
3-8 transfer to that account from the state accumulation account of the
3-9 retirement system any portion of the amount that exceeds the amount
3-10 in the retirement reserve account available to finance the
3-11 increases in benefits, and that is actuarially determined to be
3-12 necessary to finance the increases, for the duration of the
3-13 annuities to which the increases apply.
3-14 SECTION 4. This Act takes effect September 1, 1997.
3-15 SECTION 5. The importance of this legislation and the
3-16 crowded condition of the calendars in both houses create an
3-17 emergency and an imperative public necessity that the
3-18 constitutional rule requiring bills to be read on three several
3-19 days in each house be suspended, and this rule is hereby suspended.