By Telford, Berlanga, Ramsay, Uher, Place, H.B. No. 2644
75R10763 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to systems and programs administered 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. Section 822.005(c), Government Code, is amended
1-6 to read as follows:
1-7 (c) A person is not entitled to withdraw contributions who
1-8 is employed, has applied for employment, or has received a promise
1-9 of employment, in a position covered by the retirement system.
1-10 SECTION 2. Section 822.201(c), Government Code, is amended
1-11 to read as follows:
1-12 (c) Excluded from salary and wages are expense payments,
1-13 allowances, payments for unused vacation or sick leave, maintenance
1-14 or other nonmonetary compensation, fringe benefits, deferred
1-15 compensation other than as provided by Subsection (b)(3),
1-16 compensation that is not made pursuant to a valid employment
1-17 agreement, [payments received in the 1995-1996 or a subsequent
1-18 school year for teaching a driver education and traffic safety
1-19 course,] and any compensation not described in Subsection (b).
1-20 SECTION 3. Section 823.202(b), Government Code, is amended
1-21 to read as follows:
1-22 (b) A member may establish credit under this section by
1-23 depositing with the retirement system for each year of service
1-24 claimed an amount equal to:
1-25 (1) the contributions [and membership fees] that the
2-1 person would have paid had the person been a member of the
2-2 retirement system during that year; plus
2-3 (2) interest computed at an annual rate of five
2-4 percent of the amount of each payment that would have been due had
2-5 the person been a member, from the hypothetical payment due date to
2-6 the date of deposit.
2-7 SECTION 4. Section 823.301(b), Government Code, is amended
2-8 to read as follows:
2-9 (b) A member may not establish more than five years of
2-10 service credit in the retirement system under this subchapter for
2-11 military service. Service may be established in one-year
2-12 increments except as otherwise provided by this subchapter.
2-13 SECTION 5. Section 823.3021(d), Government Code, is amended
2-14 to read as follows:
2-15 (d) A member eligible to establish credit under this section
2-16 may not qualify for insurance coverage under the Texas Public
2-17 School [Retired] Employees Group Insurance Act (Article 3.50-4,
2-18 Insurance Code) unless the member retires with 10 or more years of
2-19 membership service credit for actual service in public schools and
2-20 complies with any other requirements for coverage provided by that
2-21 article.
2-22 SECTION 6. Section 823.303, Government Code, is amended to
2-23 read as follows:
2-24 Sec. 823.303. MILITARY LEAVE CREDIT. A member who performs
2-25 military service creditable in the retirement system but who does
2-26 not establish credit for the service by making the deposits
2-27 required by Section 823.302 is entitled to credit of a year for
3-1 each year of military service performed, if the member requests the
3-2 credit in writing before the later of the date of application for
3-3 retirement or the effective date of retirement. The credit is
3-4 usable only in determining eligibility for, but not the amount of,
3-5 benefits under Section 824.406.
3-6 SECTION 7. Sections 823.401(a) and (d), Government Code, are
3-7 amended to read as follows:
3-8 (a) Except as provided by Subsection (b), an eligible member
3-9 may establish equivalent membership service credit for employment
3-10 with a public school system maintained wholly or partly by another
3-11 state or territory of the United States or by the United States for
3-12 children of its citizens. A school receiving funds under 22 U.S.C.
3-13 Section 2701 is considered a public school for the purposes of this
3-14 section.
3-15 (d) A member may establish credit under this section by
3-16 depositing with the retirement system for each year of service
3-17 claimed a contribution computed at the rate of:
3-18 (1) 12 percent of the full-time rate of the member's
3-19 annual compensation, plus any additional eligible compensation
3-20 received, during the first year of service for which the member
3-21 received membership credit in the retirement system that is both
3-22 after the service for which credit is sought and after September 1,
3-23 1956; or
3-24 (2) 12 percent of the full-time rate of the member's
3-25 annual compensation, plus any additional eligible compensation
3-26 received, during the most recent year of service for which the
3-27 member received membership credit that is after the service for
4-1 which credit is sought, if the member has performed no service in
4-2 Texas since September 1, 1956.
4-3 SECTION 8. Section 823.402(e), Government Code, is amended
4-4 to read as follows:
4-5 (e) A member may establish credit under this section by
4-6 depositing with the retirement system for each year of
4-7 developmental leave claimed an amount equal to the sum of:
4-8 (1) the rate of member contributions required during
4-9 the year of leave, times the member's annual rate of compensation
4-10 during the member's most recent year of creditable service that
4-11 preceded the year of leave; plus
4-12 (2) the amount that the state would have contributed
4-13 had the member performed membership service during the year of
4-14 leave at the member's annual rate of compensation during the most
4-15 recent year of service that preceded the leave[; plus]
4-16 [(3) any membership fees in effect during the year of
4-17 leave].
4-18 SECTION 9. Section 823.501, Government Code, is amended by
4-19 amending Subsections (b) and (c) and adding Subsections (e) and (f)
4-20 to read as follows:
4-21 (b) A person eligible to reinstate service credit under this
4-22 section is one who is a contributing member of the retirement
4-23 system at the time the service is reinstated [resumes membership
4-24 service in the retirement system].
4-25 (c) A member may reinstate canceled credit under this
4-26 section by depositing with the retirement system:
4-27 (1) the amount withdrawn or refunded; plus
5-1 (2) [membership fees for the period that membership
5-2 was terminated; plus]
5-3 [(3)] a reinstatement fee of six percent, compounded
5-4 annually, of the amount withdrawn or refunded from the date of
5-5 withdrawal or refund to the date of redeposit.
5-6 (e) Service credit canceled by a withdrawal of contributions
5-7 not authorized by Section 822.005 is required to be reinstated
5-8 under this section.
5-9 (f) A contributing member may have an account that was
5-10 terminated by absence from service reactivated by requesting the
5-11 reactivation in writing. The beneficiary of a decedent who was a
5-12 contributing member at the time of death may have an account that
5-13 was terminated by the decedent's absence from service reactivated
5-14 by requesting the reactivation in writing before the first
5-15 anniversary of the decedent's death.
5-16 SECTION 10. Section 823.502(c), Government Code, is amended
5-17 to read as follows:
5-18 (c) A person may resume membership and claim credit under
5-19 this section by depositing with the retirement system:
5-20 (1) an amount equal to service retirement benefits
5-21 received; plus
5-22 (2) a reinstatement fee of six percent, compounded
5-23 annually, of the amount determined under Subdivision (1) from the
5-24 date of the person's return to service to the date of redeposit;
5-25 plus
5-26 (3) an amount equal to the total contributions that
5-27 would have been deducted from the person's annual compensation each
6-1 year after the return to service had the person been a member of
6-2 the retirement system; plus
6-3 (4) a reinstatement fee of six percent, compounded
6-4 annually, of the amount determined under Subdivision (3) from the
6-5 end of each year of service after the return to service to the date
6-6 of deposit[; plus]
6-7 [(5) membership fees for the years after the return to
6-8 service].
6-9 SECTION 11. Section 824.1011(a), Government Code, is amended
6-10 to read as follows:
6-11 (a) A retiree who is receiving a standard service or
6-12 disability retirement annuity under Section 824.203 or 824.304(b)
6-13 and who marries after the date of the person's retirement may
6-14 replace the annuity by selecting an optional retirement annuity
6-15 under Section 824.204(c)(1), (c)(2), or (c)(5) or under Section
6-16 824.308(c)(1), (c)(2), or (c)(5), as applicable, and designating
6-17 the person's spouse as beneficiary before the first anniversary of
6-18 the marriage in the same manner as an annuity selection and
6-19 designation of beneficiary may be made before retirement.
6-20 SECTION 12. Sections 824.202(a) and (c), Government Code,
6-21 are amended to read as follows:
6-22 (a) A member is eligible to retire and receive a standard
6-23 service retirement annuity if [the member]:
6-24 (1) the member is at least 65 years old and has at
6-25 least five years of service credit in the retirement system;
6-26 (2) the member is at least 60 years old and has at
6-27 least 20 years of service credit in the retirement system; [or]
7-1 (3) the member is at least 50 years old and has at
7-2 least 30 years of service credit in the retirement system; or
7-3 (4) the sum of the member's age and amount of service
7-4 credit in the retirement system equals the number 80.
7-5 (c) If a member is at least 55 years old and has at least 20
7-6 years of service credit in the retirement system, the member is
7-7 eligible to retire and receive a service retirement annuity reduced
7-8 from the standard service retirement annuity available under
7-9 Subsection (a)(2), to a percentage derived from the following
7-10 table:
7-11 Years of Service Age at Date of Retirement
7-12 55 56 57 58 59 60
7-13 at least 20 but less than 21 90% 92% 94% 96% 98% 100%
7-14 at least 21 but less than 22 92% 94% 96% 98% 100% 100%
7-15 [98%]
7-16 at least 22 but less than 23 94% 96% 98% 100% 100% 100%
7-17 [98%] [98%]
7-18 at least 23 but less than 24 96% 98% 100% 100% 100% 100%
7-19 [98%] [98%] [98%]
7-20 at least 24 but less than 25 98% 100% 100% 100% 100% 100%
7-21 [30]
7-22 [98%] [98%] [98%] [98%]
7-23 [30 or more 100% 100% 100% 100% 100% 100%]
7-24 SECTION 13. Section 824.203(d), Government Code, is amended
7-25 to read as follows:
7-26 (d) In no case may the standard service retirement annuity
7-27 be less than [$6.50 a month for each year of service credit or, for
8-1 a member who is at least 65 years old at the time of retirement,
8-2 less than the greater of $6.50 a month for each year of service
8-3 credit, or] $150 a month. The minimum benefits provided by this
8-4 section are subject to reduction in the same manner as other
8-5 benefits because of early retirement or selection of an optional
8-6 retirement annuity.
8-7 SECTION 14. Section 824.204(d), Government Code, is amended
8-8 to read as follows:
8-9 (d) If a person who is nominated by a retiree in the written
8-10 designation under Section 824.101 predeceases the retiree, the
8-11 reduced annuity of a retiree who has elected an optional service
8-12 retirement annuity under Subsection (c)(1), (c)(2), or (c)(5) [or
8-13 (2)] shall be increased to the standard service retirement annuity
8-14 that the retiree would otherwise be entitled to receive if the
8-15 retiree had not selected that annuity option. The standard service
8-16 retirement annuity shall be adjusted as appropriate for:
8-17 (1) early retirement as provided by Section 824.202;
8-18 and
8-19 (2) postretirement increases in retirement benefits
8-20 authorized by law after the date of retirement.
8-21 SECTION 15. Section 824.304, Government Code, is amended by
8-22 amending Subsection (b) and adding Subsection (d) to read as
8-23 follows:
8-24 (b) If a member has a total of at least 10 years of service
8-25 credit in the retirement system on the date of disability
8-26 retirement, the retirement system shall pay the person for the
8-27 duration of the disability a disability retirement annuity in an
9-1 amount equal to the greater of:
9-2 (1) a standard service retirement annuity computed
9-3 under Section 824.203; or
9-4 (2) [$6.50 a month for each year of service credit on
9-5 the date of retirement; or]
9-6 [(3)] $150 a month.
9-7 (d) The minimum benefits provided by this section are
9-8 subject to reduction in the same manner as other benefits because
9-9 of the selection of an optional retirement annuity.
9-10 SECTION 16. Section 825.206, Government Code, is amended by
9-11 adding Subsection (f) to read as follows:
9-12 (f) An actuarial audit shall be performed in conjunction
9-13 with an actuarial experience study or at least once every five
9-14 years. The audit must include:
9-15 (1) an analysis of the appropriateness of the
9-16 actuarial assumptions;
9-17 (2) a review of the assumptions and methodology for
9-18 compliance with the funding standards;
9-19 (3) verification of demographic data; and
9-20 (4) confirmation of the valuation results, including a
9-21 determination of actuarial accrued liability, normal cost, expected
9-22 employee contributions, and the effects of any recent legislation.
9-23 SECTION 17. Section 825.207, Government Code, is amended to
9-24 read as follows:
9-25 Sec. 825.207. COMPTROLLER [STATE TREASURER]. (a) Except as
9-26 provided by Section 825.302 or 825.303 or by Subsection (e) of this
9-27 section, the comptroller [state treasurer] is the custodian of all
10-1 securities and cash of the retirement system, including securities
10-2 held in the name of a nominee of the retirement system.
10-3 (b) The comptroller [state treasurer] shall pay money from
10-4 the accounts of the retirement system on warrants drawn by the
10-5 comptroller [of public accounts] and authorized by vouchers signed
10-6 by the executive director or other persons designated by the board
10-7 of trustees.
10-8 (c) The comptroller [state treasurer] annually shall furnish
10-9 to the board of trustees a sworn statement of the amount of the
10-10 retirement system's assets in the comptroller's [treasurer's]
10-11 custody.
10-12 (d) The comptroller [state treasurer] is not responsible,
10-13 under either civil or criminal law, for any action or losses with
10-14 respect to assets of the retirement system while the assets are in
10-15 the custody of a commercial bank as provided by Section 825.302 or
10-16 825.303 or by Subsection (e) of this section.
10-17 (e) The board of trustees may, in the exercise of its
10-18 constitutional discretion to manage the assets of the retirement
10-19 system, select one or more commercial banks, depository trust
10-20 companies, or other entities to serve as custodian or custodians of
10-21 all or part of the retirement system's assets.
10-22 SECTION 18. Sections 825.209(a), (b), and (c), Government
10-23 Code, are amended to read as follows:
10-24 (a) The comptroller [state treasurer] shall give a surety
10-25 bond in an [the] amount of at least $50,000.
10-26 (b) The executive director shall give a surety bond in an
10-27 [the] amount of at least $25,000.
11-1 (c) The board of trustees may require any trustee or
11-2 employee of the board[, other than the executive director,] to give
11-3 a surety bond in an amount determined by the board and may increase
11-4 the minimum amount of a bond required by Subsection (a) or (b).
11-5 SECTION 19. Sections 825.410(a) and (c), Government Code,
11-6 are amended to read as follows:
11-7 (a) Payments to establish special service credit as
11-8 authorized in Sections 805.002, [823.202,] 823.302, 823.304,
11-9 823.401, [823.402,] 823.501, and 825.403 may be made in a lump sum
11-10 or in equal monthly installments over a period not to exceed the
11-11 lesser of the number of years of credit to be purchased or 60
11-12 months. Installment payments are due on the first day of each
11-13 calendar month in the payment period. If an installment payment is
11-14 not made in full within 60 days after the due date, the retirement
11-15 system may refund all installment payments less fees paid on the
11-16 lump sum due when installment payments began. Partial payment of
11-17 an installment payment may be treated as nonpayment. A check
11-18 returned for insufficient funds or a closed account shall be
11-19 treated as nonpayment. When two or more consecutive monthly
11-20 payments have a returned check, a refund may be made. If the
11-21 retirement system refunds payments pursuant to this subsection, the
11-22 member is not permitted to use the installment method of payment
11-23 for the same service for [a period of] three years after [from] the
11-24 date of the refund. A member who requests and receives a refund
11-25 of installment payments also is not permitted to use the
11-26 installment method of payment for the same service for three years
11-27 after the date of the refund.
12-1 (c) All installment payments must be made on or before the
12-2 service retirement date or the last day of the month in which the
12-3 member's application for service retirement is submitted, whichever
12-4 is later, or before the 31st day following the date on which the
12-5 medical board certifies a member's disability. The installment
12-6 payment method may not be used to establish service credit after
12-7 retirement.
12-8 SECTION 20. Section 825.512(e), Government Code, is amended
12-9 to read as follows:
12-10 (e) The retirement system shall submit an annual investment
12-11 performance report not later than the 45th day after the end of
12-12 [25th day of the month following] each fiscal year to the governor,
12-13 the lieutenant governor, the speaker of the house of
12-14 representatives, the executive director of the State Pension Review
12-15 Board, the legislative audit committee, the committees of the
12-16 senate and the house of representatives having jurisdiction over
12-17 appropriations, the committees of the senate and the house of
12-18 representatives having principal jurisdiction over legislation
12-19 governing the retirement system, and the Legislative Budget Board.
12-20 The report shall include a listing of all commissions and fees paid
12-21 by the system during the reporting period for the sale, purchase,
12-22 or management of system assets. The report shall be in a form
12-23 recommended by the evaluating firm.
12-24 SECTION 21. Subchapter F, Chapter 825, Government Code, is
12-25 amended by adding Section 825.516 to read as follows:
12-26 Sec. 825.516. NONPROFIT ASSOCIATION DUES. (a) A retiree
12-27 who is receiving an annuity from the retirement system may request
13-1 the system to withhold from the retiree's monthly annuity payment
13-2 membership dues for a nonprofit association of retired school
13-3 employees in this state. The request for withholding must be on a
13-4 form provided by the retirement system.
13-5 (b) After the retirement system receives a request
13-6 authorized by this section, the system shall make the requested
13-7 deductions until the earlier of:
13-8 (1) the date the annuity is terminated; or
13-9 (2) the first payment of the annuity after the date
13-10 the system receives a written request signed by the retiree
13-11 canceling the request for the withholding.
13-12 (c) The retirement system shall send all dues withheld under
13-13 this section to the nonprofit association after each monthly
13-14 payment of annuities.
13-15 SECTION 22. The heading of Article 3.50-4, Insurance Code,
13-16 is amended to read as follows:
13-17 ARTICLE 3.50-4. TEXAS PUBLIC SCHOOL [RETIRED] EMPLOYEES
13-18 GROUP INSURANCE PROGRAM
13-19 SECTION 23. Sections 7A(a) and (e), Article 3.50-4,
13-20 Insurance Code, are amended to read as follows:
13-21 (a) A public school district may elect to participate in the
13-22 program provided under this article. A district that elects to
13-23 participate must accept the schedule of costs adopted by the
13-24 trustee. A district [and] may [not] offer an alternative health
13-25 benefit plan to its active employees during the period of its
13-26 participation in the program if the trustee approves the plan as
13-27 providing contributions, participation, and a design that are in
14-1 accordance with sound group benefit underwriting principles.
14-2 (e) Each participating school district shall contribute for
14-3 each district employee covered by the program an amount equal to
14-4 not less than 75 percent of the cost for the employee only of the
14-5 plans of group coverages authorized by the trustee for active
14-6 employees. The district shall certify to the trustee the amount
14-7 the district will contribute monthly toward the cost of coverage.
14-8 The trustee shall determine if the amount is sufficient to
14-9 underwrite the plan for the district based on sound group benefit
14-10 underwriting principles. A determination by the trustee under this
14-11 subsection is final[, except that the school district's
14-12 contribution may not exceed the amount contributed for each state
14-13 employee by the state under the Texas Employees Uniform Group
14-14 Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
14-15 Code)].
14-16 SECTION 24. Section 8, Article 3.50-4, Insurance Code, is
14-17 amended to read as follows:
14-18 Sec. 8. PURCHASE OF GROUP HEALTH CARE BENEFITS [INSURANCE].
14-19 (a) The trustee shall be designated as the group policyholder for
14-20 any plan or plans established in this article. The trustee has
14-21 authority to establish one or more plans that are self-insured.
14-22 (b) The [group insurance] coverages provided under the plan
14-23 or plans may include but are not limited to life insurance,
14-24 accidental death and dismemberment, hospital care and benefits,
14-25 surgical care and treatment, medical care and treatment, dental
14-26 care, eye care, obstetrical benefits, long-term care, prescribed
14-27 drugs, medicines, and prosthetic devices, and other supplemental
15-1 benefits, supplies, and services as provided by this article,
15-2 protection against loss of salary, and other coverages considered
15-3 advisable.
15-4 (c) The trustee may provide different plans for retirees and
15-5 surviving spouses covered by Medicare than the plans provided for
15-6 retirees and surviving spouses who are not covered by Medicare.
15-7 (d) Each basic plan must cover preexisting conditions.
15-8 (e) The trustee may contract for and make available to all
15-9 retirees, dependents, surviving spouses, and surviving dependent
15-10 children optional group health [insurance] benefit plans in
15-11 addition to the basic plans. The optional coverage may include a
15-12 smaller deductible, lower coinsurance, or additional categories of
15-13 benefits permitted under Subsection (b) of this section to provide
15-14 additional levels of coverages and benefits. The trustee may
15-15 utilize a portion of the funds received for the Texas Public School
15-16 Employees Group Insurance Program to offset some portion of costs
15-17 paid by the retiree for optional coverage if such utilization does
15-18 not reduce the period the program is projected to remain
15-19 financially solvent by more than one year in a biennium. Any
15-20 additional contributions for these optional plans shall be paid for
15-21 by the retiree, surviving spouse, or surviving dependent children.
15-22 (f) [The trustee shall enter into a contract or contracts
15-23 with a carrier or carriers for the plan or plans that will provide
15-24 that the method of paying expenses, paying claims, and establishing
15-25 reserves shall be under the minimum premium approach to financing;
15-26 and the contract shall be referred to as a minimum premium
15-27 contract.]
16-1 [(g)] New contracts for coverages under this program shall
16-2 be submitted for competitive bidding at least every six years.
16-3 [Contracts between the trustee and carriers for the group insurance
16-4 pool may provide for renegotiation.]
16-5 (g) [(h)] Each contract shall be based on the terms and
16-6 conditions agreed on between the trustee and the entity [carrier or
16-7 carriers] selected to provide the [insurance] coverage and
16-8 benefits. Any contract for group benefits [insurance] awarded by
16-9 the trustee must meet the minimum benefit and financial standards
16-10 adopted by the trustee.
16-11 (h) [(i)] The coverage provided by the plan or plans may be
16-12 secondary to all other benefit coverage to which the retiree,
16-13 surviving spouse, dependent, or surviving dependent child is
16-14 entitled. In the event the retiree, surviving spouse, dependent,
16-15 or surviving dependent child is entitled to receive medicare
16-16 hospital insurance benefits at no charge, then the coverage
16-17 provided by the plan or plans shall be secondary to medicare
16-18 hospital and medical insurance to the extent permitted by federal
16-19 law.
16-20 (i) [(j)] In contracting for any benefits [insurance] under
16-21 this article, competitive bidding shall be required under rules
16-22 adopted by the trustee. The trustee is not required to select the
16-23 lowest bid but may consider also ability to service contracts, past
16-24 experiences, financial stability, and other relevant criteria. If
16-25 the trustee awards a contract to an entity [a carrier] whose bid
16-26 deviates from that advertised, the deviation shall be recorded and
16-27 the reasons for the deviation shall be fully justified in the
17-1 minutes of the next meeting of the trustee.
17-2 (j) [(k)] Notwithstanding any other provisions of this
17-3 article, the trustee providing programs of benefits under this
17-4 article is authorized to self-insure any and all programs available
17-5 under this article and may, at its discretion, engage private
17-6 entities to collect contributions from or to settle claims in
17-7 connection with plans established by the trustee under this section
17-8 [Section 8 of this article].
17-9 (k) [(l)] The trustee may contract directly with health care
17-10 providers, including health maintenance organizations, preferred
17-11 provider organizations, carriers, administrators, and other
17-12 qualified vendors, to provide benefits to participants in the
17-13 program. [Those benefits may include dental care, eye care,
17-14 hospital care, surgical care and treatment, medical care and
17-15 treatment, obstetrical care, and prescription drugs, medicines, and
17-16 prosthetic devices.]
17-17 SECTION 25. Section 15(c), Article 3.50-4, Insurance Code,
17-18 is amended to read as follows:
17-19 (c) Expenses for the development and administration of the
17-20 program shall be spent as provided by a budget adopted by the
17-21 trustee. [Expenses in any fiscal year may not exceed one percent
17-22 of the contributions to the program for that year by the state, the
17-23 active employees, and the covered participants in the program.]
17-24 SECTION 26. Section 16(b), Article 3.50-4, Insurance Code,
17-25 is amended to read as follows:
17-26 (b) The state shall contribute as the state's contribution
17-27 to the fund each fiscal year [the following amounts:]
18-1 [(1) for the state fiscal year beginning September 1,
18-2 1986, an amount equal to .35 percent of the salary of each active
18-3 employee;]
18-4 [(2) for the state fiscal year beginning September 1,
18-5 1987, an amount equal to .40 percent of the salary of each active
18-6 employee;]
18-7 [(3) for the state fiscal year beginning September 1,
18-8 1988, an amount equal to .45 percent of the salary of each active
18-9 employee;]
18-10 [(4) for the state fiscal year beginning September 1,
18-11 1989, an amount equal to .50 percent of the salary of each active
18-12 employee; and]
18-13 [(5) for the state fiscal year beginning September 1,
18-14 1990, and each subsequent fiscal year,] an amount equal to .50
18-15 percent of the salary of each active employee. The state may
18-16 contribute amounts in addition to the contribution required by this
18-17 subsection.
18-18 SECTION 27. (a) Monthly payments of a death or retirement
18-19 benefit annuity by the Teacher Retirement System of Texas are
18-20 increased beginning with the payment due at the end of September
18-21 1997.
18-22 (b) The increase does not apply to payments under Section
18-23 824.304(a), 824.404, or 824.501, Government Code.
18-24 (c) The amount of the monthly increase is computed by
18-25 multiplying the previous monthly benefit by a percentage determined
18-26 in accordance with the following table:
18-27 LATEST RETIREMENT DATE OR, IF APPLICABLE, DATE OF DEATH INCREASE
19-1 Before September 1, 1971........................................ 5%
19-2 On or after September 1, 1971, but before September 1, 1972..... 6%
19-3 On or after September 1, 1972, but before September 1, 1973..... 5%
19-4 On or after September 1, 1973, but before September 1, 1974..... 8%
19-5 On or after September 1, 1974, but before September 1, 1975..... 5%
19-6 On or after September 1, 1975, but before September 1, 1976..... 2%
19-7 On or after September 1, 1976, but before September 1, 1977.... 14%
19-8 On or after September 1, 1977, but before September 1, 1978.... 13%
19-9 On or after September 1, 1978, but before September 1, 1979.... 12%
19-10 On or after September 1, 1979, but before September 1, 1981.... 10%
19-11 On or after September 1, 1981, but before September 1, 1984..... 9%
19-12 On or after September 1, 1984, but before September 1, 1985.... 10%
19-13 On or after September 1, 1985, but before September 1, 1986..... 9%
19-14 On or after September 1, 1986, but before September 1, 1987.... 10%
19-15 On or after September 1, 1987, but before September 1, 1988..... 8%
19-16 On or after September 1, 1988, but before September 1, 1989.... 10%
19-17 On or after September 1, 1989, but before September 1, 1990..... 9%
19-18 On or after September 1, 1990, but before September 1, 1992..... 6%
19-19 On or after September 1, 1992, but before September 1, 1993..... 5%
19-20 On or after September 1, 1993, but before September 1, 1994..... 7%
19-21 On or after September 1, 1994, but before September 1, 1995..... 5%
19-22 On or after September 1, 1995, but before September 1, 1996..... 3%
19-23 SECTION 28. The change in law made by this Act in Section
19-24 822.201(c), Government Code, applies to all determinations of
19-25 compensation that are made on or after the effective date of this
19-26 Act for the purpose of computing an annuity that begins on or after
19-27 that date or making contributions for the purchase of service
20-1 credit on or after that date.
20-2 SECTION 29. This Act takes effect September 1, 1997.
20-3 SECTION 30. The importance of this legislation and the
20-4 crowded condition of the calendars in both houses create an
20-5 emergency and an imperative public necessity that the
20-6 constitutional rule requiring bills to be read on three several
20-7 days in each house be suspended, and this rule is hereby suspended.