By Turner of Coleman H.B. No. 3642
76R7411 GJH-D
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 or obtain a seal in order to receive the accumulated contributions.
1-16 SECTION 3. Sections 825.307(a) and (b), Government Code, are
1-17 amended to read as follows:
1-18 (a) The retirement system shall deposit in a member's
1-19 individual account in the member savings account:
1-20 (1) the amount of contributions to the retirement
1-21 system that is deducted from the member's compensation;
1-22 (2) the portion of a deposit made on or after
1-23 resumption of membership that represents the amount of retirement
1-24 benefits received;
2-1 (3) the portion of a deposit to reinstate service
2-2 credit previously canceled that represents the amount withdrawn or
2-3 refunded;
2-4 (4) the portion of a deposit to establish membership
2-5 service credit previously waived that is required by Section
2-6 823.202(b)(1);
2-7 (5) the portion of a deposit to establish membership
2-8 service credit for service performed after retirement that is
2-9 required by Section 823.502(c)(3) or (c)(5);
2-10 (6) the portion of a deposit to establish military
2-11 service credit required by Section 823.302(c);
2-12 (7) the portion of a deposit to establish equivalent
2-13 membership service credit required by Section 823.401(d),
2-14 823.402(e)(1) or (e)(2), or 823.3021(f)(1); and
2-15 (8) interest earned on money in the account as
2-16 provided by Subsections (b) and (c) and Section 825.313(c)
2-17 [825.313(b)(1)].
2-18 (b) Interest on a member's contribution is computed at the
2-19 rate of five percent a year on the average balance in the account
2-20 during the preceding fiscal year. The retirement system shall
2-21 credit interest on the last day [August 31] of each month [year].
2-22 SECTION 4. Section 825.309(a), Government Code, is amended
2-23 to read as follows:
2-24 (a) The retirement system shall transfer to the retired
2-25 reserve account:
2-26 (1) from the member savings account, an amount equal
2-27 to the accumulated contributions in a member's individual account
3-1 when the member retires or when the retirement system approves the
3-2 payment of any benefit authorized under this subtitle on the
3-3 member's retirement or death;
3-4 (2) from the state contribution account, an amount
3-5 certified by the actuary or determined under actuarial tables
3-6 adopted by the board of trustees pursuant to Section 825.105 as
3-7 necessary to provide for the payment of the benefit as it becomes
3-8 due; and
3-9 (3) from the interest account, the amount required by
3-10 Section 825.313(b)(1) [825.313(b)(2)].
3-11 SECTION 5. Section 825.312(a), Government Code, is amended
3-12 to read as follows:
3-13 (a) The retirement system shall deposit in the expense
3-14 account:
3-15 (1) money transferred from the interest account under
3-16 Section 825.313(d) [825.313(c)] and
3-17 (2) money received from the Texas Public School
3-18 Employees Group Insurance Program for service performed for the
3-19 program by the retirement system.
3-20 SECTION 6. Section 825.313, Government Code, is amended to
3-21 read as follows:
3-22 Sec. 825.313. TRANSFERS FROM INTEREST OR STATE CONTRIBUTION
3-23 ACCOUNT. (a) Annually, the retirement system shall transfer from
3-24 the interest account to the state contribution account amounts
3-25 accumulated under Section 825.311(2).
3-26 (b) On August 31 of each year, the retirement system shall
3-27 make the following transfers from the interest account:
4-1 (1) [to the member savings account, an amount computed
4-2 using the rate prescribed by Section 825.307(b);]
4-3 [(2)] to the retired reserve account, an amount equal
4-4 to 4 3/4 percent of the average balance of the retired reserve
4-5 account for that fiscal year or, if the transfer is authorized by
4-6 resolution of the board, an amount computed at a greater rate if
4-7 the actuary recommends the greater rate to adequately fund the
4-8 retired reserve account; and
4-9 (2) [(3)] to the state contribution account, the
4-10 amount remaining in the interest account after the other transfers
4-11 required or authorized by this section are made.
4-12 (c) Each month the retirement system shall transfer from the
4-13 interest account to the member savings account an amount computed
4-14 using the rate prescribed by Section 825.307(b).
4-15 (d) The board of trustees, by resolution recorded in its
4-16 minutes, may transfer from the interest account to the expense
4-17 account an amount necessary to cover the expenses of the retirement
4-18 system for the fiscal year that exceed the amount of operating
4-19 expenses appropriated under Section 825.404(d) and that are
4-20 required to perform the fiduciary duties of the board, including
4-21 the expense of servicing mortgages insured by the Federal Housing
4-22 Administration under the National Housing Act (12 U.S.C. Section
4-23 1701 et seq.).
4-24 SECTION 7. Section 825.314(b), Government Code, is amended
4-25 to read as follows:
4-26 (b) The staff of the retirement system shall report to the
4-27 board at each board meeting the amounts and uses since the
5-1 preceding board meeting of any money expended by the system from
5-2 amounts transferred under Section 825.314(d) [825.313(c)] and
5-3 include an explanation of why the amounts were needed to perform
5-4 the fiduciary duties of the board. The retirement system annually
5-5 shall prepare and issue to each contributing member and annuitant
5-6 and to the governor, lieutenant governor, and speaker of the house
5-7 of representatives a summary of the reports presented during the
5-8 preceding year to the board.
5-9 SECTION 8. Section 825.407(f), Government Code, is amended
5-10 to read as follows:
5-11 (f) Any portion of the reimbursement required under this
5-12 section to be made for a fiscal year by a general academic teaching
5-13 institution or a medical and dental unit that remains unpaid on the
5-14 first day of the next fiscal year accrues interest, beginning on
5-15 that day or the due date for the portion, whichever is later, at an
5-16 annual rate, compounded monthly, equal to the rate established
5-17 under Section 825.313(b)(1) [825.313(b)], plus two percent.
5-18 SECTION 9. Section 825.408(a), Government Code, is amended
5-19 to read as follows:
5-20 (a) An employing district that fails to remit, before the
5-21 11th day after the last day of a month, all member and employer
5-22 deposits required by this subchapter to be remitted by the district
5-23 for the month shall pay to the retirement system, in addition to
5-24 the deposits, interest on the unpaid amounts at an annual rate
5-25 compounded monthly. The rate of interest is the rate established
5-26 under Section 825.313(b)(1) [825.313(b)(2)], plus two percent.
5-27 Interest required under this section is creditable to the interest
6-1 account.
6-2 SECTION 10. Subchapter F, Chapter 825, Government Code, is
6-3 amended by adding Section 825.518 to read as follows:
6-4 Sec. 825.518. ANNUAL REPORT. The Teacher Retirement System
6-5 of Texas shall submit a statistical analysis based on information
6-6 compiled under Section 822.005(d) not later than the 25th day of
6-7 the month following the end of each fiscal year to the governor,
6-8 the lieutenant governor, the speaker of the house of
6-9 representatives, the executive director of the State Pension Review
6-10 Board, the appropriate oversight committees of the house and
6-11 senate, and the Legislative Budget Board.
6-12 SECTION 11. Section 830.203(f), Government Code, is amended
6-13 to read as follows:
6-14 (f) Any portion of the reimbursement required under this
6-15 section to be made for a fiscal year by a general academic teaching
6-16 institution or a medical and dental unit that remains unpaid on the
6-17 first day of the next fiscal year accrues interest, beginning on
6-18 that day or the due date for the portion, whichever is later, at an
6-19 annual rate, compounded monthly, equal to the rate established
6-20 under Section 825.313(b)(1) [825.313(b)], plus two percent.
6-21 SECTION 12. This Act takes effect September 1, 1999, and
6-22 applies only to a withdrawal application that is submitted under
6-23 Section 822.005, Government Code, as amended by this Act, on or
6-24 after that date. A withdrawal application submitted before the
6-25 effective date of this Act is governed by the law in effect on the
6-26 day the withdrawal application was filed, and the former law is
6-27 continued in effect for that purpose.
7-1 SECTION 13. The importance of this legislation and the
7-2 crowded condition of the calendars in both houses create an
7-3 emergency and an imperative public necessity that the
7-4 constitutional rule requiring bills to be read on three several
7-5 days in each house be suspended, and this rule is hereby suspended.