By Telford H.B. No. 1076
75R5103 ESH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to postretirement increases in benefits under 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. (a) Monthly payments of a death or retirement
1-6 benefit annuity by the Teacher Retirement System of Texas are
1-7 increased beginning with the payment due at the end of September
1-8 1997.
1-9 (b) Except as provided by Subsection (c) of this section,
1-10 the amount of the monthly increase is computed by multiplying the
1-11 previous monthly benefit by a percentage determined in accordance
1-12 with the following table:
1-13 LATEST RETIREMENT DATE OR, IF APPLICABLE, DATE OF DEATH INCREASE
1-14 Before September 1, 1973........................................ 5%
1-15 On or after September 1, 1973, but before September 1, 1974..... 8%
1-16 On or after September 1, 1974, but before September 1, 1976..... 5%
1-17 On or after September 1, 1976, but before September 1, 1977.... 14%
1-18 On or after September 1, 1977, but before September 1, 1978.... 13%
1-19 On or after September 1, 1978, but before September 1, 1979.... 12%
1-20 On or after September 1, 1979, but before September 1, 1981.... 10%
1-21 On or after September 1, 1981, but before September 1, 1982..... 9%
1-22 On or after September 1, 1982, but before September 1, 1983..... 8%
1-23 On or after September 1, 1983, but before September 1, 1984..... 9%
1-24 On or after September 1, 1984, but before September 1, 1985.... 10%
2-1 On or after September 1, 1985, but before September 1, 1986..... 9%
2-2 On or after September 1, 1986, but before September 1, 1987.... 10%
2-3 On or after September 1, 1987, but before September 1, 1988..... 8%
2-4 On or after September 1, 1988, but before September 1, 1989.... 10%
2-5 On or after September 1, 1989, but before September 1, 1990..... 8%
2-6 On or after September 1, 1990, but before September 1, 1992..... 6%
2-7 On or after September 1, 1992, but before September 1, 1993..... 5%
2-8 On or after September 1, 1993, but before September 1, 1994..... 7%
2-9 On or after September 1, 1994, but before September 1, 1995..... 4%
2-10 (c) An annuitant is entitled to the greater of:
2-11 (1) a monthly benefit annuity computed as if:
2-12 (A) Subtitle C, Title 8, Government Code, as it
2-13 existed on January 1, 1997, had been in effect on the date of
2-14 retirement or on the date of death, as applicable; and
2-15 (B) all benefit increases, including those
2-16 provided by Subsection (b) of this section, were included that are
2-17 applicable to the annuity and were provided after the date the
2-18 annuity began; or
2-19 (2) if the annuity is based on a retirement or death
2-20 that occurred before September 1, 1995, the monthly benefit annuity
2-21 option selected at the time of retirement or death:
2-22 (A) recomputed on the basis of one-twelfth of
2-23 the minimum annual salary provided by the Education Code for a
2-24 classroom teacher or full-time librarian, multiplied by two percent
2-25 for each year of service credit in the retirement system;
2-26 (B) actuarially reduced, if applicable, for
2-27 early retirement; and
3-1 (C) excluding the increase provided by
3-2 Subsection (b) of this section.
3-3 (d) For the purpose of computing the annuity increase
3-4 provided by Subsection (c) of this section for a person whose
3-5 annuity is not currently based on the highest three-year average
3-6 compensation, the retirement system may use compensation amounts
3-7 based on current actuarial assumptions. An annuitant who so
3-8 requests in writing will receive the increase computed on the
3-9 greater of compensation based on current actuarial assumptions or
3-10 actual compensation computed under the law in effect on January 1,
3-11 1997.
3-12 SECTION 2. This Act takes effect September 1, 1997.
3-13 SECTION 3. The importance of this legislation and the
3-14 crowded condition of the calendars in both houses create an
3-15 emergency and an imperative public necessity that the
3-16 constitutional rule requiring bills to be read on three several
3-17 days in each house be suspended, and this rule is hereby suspended.