SRC-JBJ S.B. 1536 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1536
By: Ogden
State Affairs
3/31/1999
As Filed


DIGEST 

Currently, the standard service retirement annuity for a public school
employee is computed by formula that uses a percent multiplier and salary
average.  The formula dictates a two percent multiplier against the average
of the three highest years of the employee's salary.  From the multiple,
which has not changed since 1977, the employee receives approximately 60
percent of the three years of salary.  S.B. 1536 would establish a
multiplier of 2.25 percent in the retirement annuity and death benefits for
employees with 30 or more years of service. 

PURPOSE

As proposed, S.B. 1536 establishes a multiplier of 2.25 percent in the
retirement annuity and death benefits for public school employees with 30
or more years of service. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 824.203, Government Code, by amending
Subsections (a) and (e) adding Subsection (f), to create an exception to
the annual standard service annuity.  Provides that the annual standard
service annuity is an amount computed on the basis of the member's average
annual compensation for three years of service, whether consecutive or not,
when the member received the highest annual compensation, times 2.25
percent for those with at least 30 years of service credit. Makes
conforming changes. 

SECTION 2.  Sets forth requirements and incremental increase tables for the
monthly payment of a death or retirement benefit annuity by the Teacher
Retirement System. 

SECTION 3. Effective date: September 1, 1999.

SECTION 4.Emergency clause.