By Turner of Coleman H.B. No. 3642
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain administrative procedures of 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, Government Code, is amended by
1-6 adding Subsection (d) to read as follows:
1-7 (d) The retirement system shall adopt procedures to track
1-8 and compile information of all applications filed under this
1-9 section from the time an application is made until any warrant for
1-10 the refund is issued by the retirement system.
1-11 SECTION 2. Section 824.004, Government Code, is amended by
1-12 adding Subsection (e) to read as follows:
1-13 (e) The retirement system may not require a person filing a
1-14 waiver of benefits under this section to submit a sworn affidavit
1-15 in order to receive the accumulated contributions.
1-16 SECTION 3. Section 825.307, Government Code, is amended to
1-17 read as follows:
1-18 Sec. 825.307. Member Savings Account. (a) The retirement
1-19 system shall deposit in a member's individual account in the member
1-20 savings account:
1-21 (1) the amount of contributions to the retirement
1-22 system that is deducted from the member's compensation;
1-23 (2) the portion of a deposit made on or after
1-24 resumption of membership that represents the amount of retirement
2-1 benefits received;
2-2 (3) the portion of a deposit to reinstate service
2-3 credit previously canceled that represents the amount withdrawn or
2-4 refunded;
2-5 (4) the portion of a deposit to establish membership
2-6 service credit previously waived that is required by Section
2-7 823.202(b)(1);
2-8 (5) the portion of a deposit to establish membership
2-9 service credit for service performed after retirement that is
2-10 required by Section 823.502(c)(3) or (c)(5);
2-11 (6) the portion of a deposit to establish military
2-12 service credit required by Section 823.302(c);
2-13 (7) the portion of a deposit to establish equivalent
2-14 membership service credit required by Section 823.401(d),
2-15 823.402(e)(1) or (e)(2), or 823.3021(f)(1); and
2-16 (8) interest earned on money in the account as
2-17 provided by Subsections (b) and (c) and Section 825.313(c)
2-18 [825.313(b)(1)].
2-19 (b) Interest on a member's contribution is earned monthly
2-20 and computed at the rate of five percent a year. Except as
2-21 provided by Subsection (c), interest is computed based on the mean
2-22 [average] balance in the member's account during that [the
2-23 preceding] fiscal year and[. The retirement system] shall be
2-24 credited [credit interest] on August 31 of each year.
2-25 (c) If a person's membership in the retirement system is
2-26 terminated during a fiscal year, the interest on the member's
2-27 account is computed based on the mean balance in the account from
3-1 September 1 of the fiscal year until:
3-2 (1) the last day of the month that preceded the month
3-3 in which the membership termination occurred if termination was
3-4 caused by the member's death or the withdrawal of contributions; or
3-5 (2) the effective date of retirement if membership
3-6 termination was caused by retirement.
3-7 (d) Accumulated contributions in an individual's account on
3-8 the date that the individual's membership in the retirement system
3-9 is terminated do not earn interest after that date.
3-10 SECTION 4. Section 825.309(a), Government Code, is amended
3-11 to read as follows:
3-12 (a) The retirement system shall transfer to the retired
3-13 reserve account:
3-14 (1) from the member savings account, an amount equal
3-15 to the accumulated contributions in a member's individual account
3-16 when the member retires or when the retirement system approves the
3-17 payment of any benefit authorized under this subtitle on the
3-18 member's retirement or death;
3-19 (2) from the state contribution account, an amount
3-20 certified by the actuary or determined under actuarial tables
3-21 adopted by the board of trustees pursuant to Section 825.105 as
3-22 necessary to provide for the payment of the benefit as it becomes
3-23 due; and
3-24 (3) from the interest account, the amount required by
3-25 Section 825.313(b)(1) [825.313(b)(2)].
3-26 SECTION 5. Section 825.312(a), Government Code, is amended
3-27 to read as follows:
4-1 (a) The retirement system shall deposit in the expense
4-2 account:
4-3 (1) money transferred from the interest account under
4-4 Section 825.313(d) [825.313(c)] and
4-5 (2) money received from the Texas Public School
4-6 Employees Group Insurance Program for service performed for the
4-7 program by the retirement system.
4-8 SECTION 6. Section 825.313, Government Code, is amended to
4-9 read as follows:
4-10 Sec. 825.313. Transfers From Interest or State Contribution
4-11 Account. (a) Annually, the retirement system shall transfer from
4-12 the interest account to the state contribution account amounts
4-13 accumulated under Section 825.311(2).
4-14 (b) On August 31 of each year, the retirement system shall
4-15 make the following transfers from the interest account:
4-16 (1) [to the member savings account, an amount computed
4-17 using the rate prescribed by Section 825.307(b);]
4-18 [(2)] to the retired reserve account, an amount equal
4-19 to 4-3/4 percent of the average balance of the retired reserve
4-20 account for that fiscal year or, if the transfer is authorized by
4-21 resolution of the board, an amount computed at a greater rate if
4-22 the actuary recommends the greater rate to adequately fund the
4-23 retired reserve account; and
4-24 (2) [(3)] to the state contribution account, the
4-25 amount remaining in the interest account after the other transfers
4-26 required or authorized by this section are made.
4-27 (c) On August 31 of each year, the retirement system shall
5-1 transfer from the interest account to the member savings account an
5-2 amount computed under Section 825.307(b) unless membership is
5-3 terminated in that fiscal year. If membership is terminated during
5-4 the fiscal year, the retirement system shall transfer from the
5-5 interest account to the member savings account an amount computed
5-6 under Section 825.307(c).
5-7 (d) The board of trustees, by resolution recorded in its
5-8 minutes, may transfer from the interest account to the expense
5-9 account an amount necessary to cover the expenses of the retirement
5-10 system for the fiscal year that exceed the amount of operating
5-11 expenses appropriated under Section 825.404(d) and that are
5-12 required to perform the fiduciary duties of the board, including
5-13 the expense of servicing mortgages insured by the Federal Housing
5-14 Administration under the National Housing Act (12 U.S.C. Section
5-15 1701 et seq.).
5-16 SECTION 7. Section 825.314(b), Government Code, is amended
5-17 to read as follows:
5-18 (b) The staff of the retirement system shall report to the
5-19 board at each board meeting the amounts and uses since the
5-20 preceding board meeting of any money expended by the system from
5-21 amounts transferred under Section 825.313(d) [825.313(c)] and
5-22 include an explanation of why the amounts were needed to perform
5-23 the fiduciary duties of the board. The retirement system annually
5-24 shall prepare and issue to each contributing member and annuitant
5-25 and to the governor, lieutenant governor, and speaker of the house
5-26 of representatives a summary of the reports presented during the
5-27 preceding year to the board.
6-1 SECTION 8. Section 825.407(f), Government Code, is amended
6-2 to read as follows:
6-3 (f) Any portion of the reimbursement required under this
6-4 section to be made for a fiscal year by a general academic teaching
6-5 institution or a medical and dental unit that remains unpaid on the
6-6 first day of the next fiscal year accrues interest, beginning on
6-7 that day or the due date for the portion, whichever is later, at an
6-8 annual rate, compounded monthly, equal to the rate established
6-9 under Section 825.313(b)(1) [825.313(b)], plus two percent.
6-10 SECTION 9. Section 825.408(a), Government Code, is amended
6-11 to read as follows:
6-12 (a) An employing district that fails to remit, before the
6-13 11th day after the last day of a month, all member and employer
6-14 deposits required by this subchapter to be remitted by the district
6-15 for the month shall pay to the retirement system, in addition to
6-16 the deposits, interest on the unpaid amounts at an annual rate
6-17 compounded monthly. The rate of interest is the rate established
6-18 under Section 825.313(b)(1) [825.313(b)(2)], plus two percent.
6-19 Interest required under this section is creditable to the interest
6-20 account.
6-21 SECTION 10. Subchapter F, Chapter 825, Government Code, is
6-22 amended by adding Section 825.518 to read as follows:
6-23 Sec. 825.518. ANNUAL REPORT. The Teacher Retirement System
6-24 of Texas shall submit a statistical analysis based on information
6-25 compiled under Section 822.005(d) not later than the 25th day of
6-26 the month following the end of each fiscal year to the governor,
6-27 the lieutenant governor, the speaker of the house of
7-1 representatives, the executive director of the State Pension Review
7-2 Board, the appropriate oversight committees of the house and
7-3 senate, and the Legislative Budget Board.
7-4 SECTION 11. Section 830.203(f), Government Code, is amended
7-5 to read as follows:
7-6 (f) Any portion of the reimbursement required under this
7-7 section to be made for a fiscal year by a general academic teaching
7-8 institution or a medical and dental unit that remains unpaid on the
7-9 first day of the next fiscal year accrues interest, beginning on
7-10 that day or the due date for the portion, whichever is later, at an
7-11 annual rate, compounded monthly, equal to the rate established
7-12 under Section 825.313(b)(1) [825.313(b)], plus two percent.
7-13 SECTION 12. This Act takes effect September 1, 1999, and
7-14 applies only to a withdrawal application that is submitted under
7-15 Section 822.005, Government Code, as amended by this Act, on or
7-16 after that date. A withdrawal application submitted before the
7-17 effective date of this Act is governed by the law in effect on the
7-18 day the withdrawal application was filed, and the former law is
7-19 continued in effect for that purpose.
7-20 SECTION 13. The importance of this legislation and the
7-21 crowded condition of the calendars in both houses create an
7-22 emergency and an imperative public necessity that the
7-23 constitutional rule requiring bills to be read on three several
7-24 days in each house be suspended, and this rule is hereby suspended.