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