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.