By Bailey H.B. No. 2886
76R7400 GJH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to benefits payable by the Teacher Retirement System of
1-3 Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 824.203, Government Code, is amended by
1-6 amending Subsection (a) and by adding Subsection (f) to read as
1-7 follows:
1-8 (a) Except as provided by Subsections (c), (d), [and] (e),
1-9 and (f), the standard service retirement annuity is an amount
1-10 computed on the basis of the member's average annual compensation
1-11 for the three years of service, whether or not consecutive, in
1-12 which the member received the highest annual compensation, times
1-13 two percent for each year of service credit in the retirement
1-14 system.
1-15 (f) The percentage used to compute annuities under this
1-16 section will be increased to 2.25 when the board of trustees
1-17 determines, after consultation with the actuary for the retirement
1-18 system, that the increase would not cause the amortization period
1-19 for the unfunded actuarial liabilities of the retirement system to
1-20 exceed 24 years by one or more years. An increase under this
1-21 subsection may take effect at the beginning of any state fiscal
1-22 year that begins on or after September 1, 1999.
1-23 SECTION 2. (a) Monthly payments of a death or retirement
1-24 benefit annuity by the Teacher Retirement System of Texas are
2-1 increased beginning with the payment due at the end of September
2-2 1999.
2-3 (b) The increase does not apply to payments under Section
2-4 824.304(a), 824.404, or 824.501, Government Code.
2-5 (c) The amount of the monthly increase is computed by
2-6 multiplying the previous monthly benefit by a percentage determined
2-7 in accordance with the following table:
2-8 LATEST RETIREMENT DATE OR,
2-9 IF APPLICABLE, DATE OF DEATH INCREASE
2-10 Before September 1, 1973 5%
2-11 On or after September 1, 1973, but before September 1, 1974 6%
2-12 On or after September 1, 1974, but before September 1, 1979 5%
2-13 On or after September 1, 1979, but before September 1, 1981 6%
2-14 On or after September 1, 1981, but before September 1, 1982 7%
2-15 On or after September 1, 1982, but before September 1, 1983 6%
2-16 On or after September 1, 1983, but before September 1, 1990 7%
2-17 On or after September 1, 1990, but before September 1, 1991 6%
2-18 On or after September 1, 1991, but before September 1, 1992 7%
2-19 On or after September 1, 1992, but before September 1, 1995 6%
2-20 On or after September 1, 1995, but before September 1, 1997 5%
2-21 SECTION 3. (a) Not later than December 1, 2000, the
2-22 executive director of the Teacher Retirement System of Texas shall
2-23 report to the legislature on the financial viability of recomputing
2-24 all annuities as though Section 824.203(f), Government Code, as
2-25 amended by this Act, applied to the annuities on the dates the
2-26 annuities first became payable.
2-27 (b) Subject to the limitation of the amortization period for
3-1 the unfunded actuarial liabilities of the Teacher Retirement System
3-2 of Texas being less than 26 years by one or more years, a report
3-3 under this section shall include:
3-4 (1) an estimated date that the recomputed annuities
3-5 will be payable without an additional appropriation by the 77th
3-6 Legislature; and
3-7 (2) the amount of the additional appropriation by the
3-8 legislature required to provide the recomputed annuities on
3-9 September 1, 2001.
3-10 SECTION 4. This Act takes effect September 1, 1999.
3-11 SECTION 5. The importance of this legislation and the
3-12 crowded condition of the calendars in both houses create an
3-13 emergency and an imperative public necessity that the
3-14 constitutional rule requiring bills to be read on three several
3-15 days in each house be suspended, and this rule is hereby suspended.