By:  Ogden                                            S.B. No. 1536
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to an increase in the benefits payable from the Teacher
 1-2     Retirement System.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Sections 824.203(a) and (e), Government Code, are
 1-5     amended and subsection (f) is added to read as follows:
 1-6           (a)  Except as provided by Subsections (c), (d), [and] (e), and
 1-7     (f), the standard service retirement annuity is an amount computed
 1-8     on the basis of the member's average annual compensation for the
 1-9     three years of service, whether or not consecutive, in which the
1-10     member received the highest annual compensation, times two percent
1-11     for each year of service credit in the retirement system.
1-12           (e)  Except as provided by subsection (f), the [The] annual
1-13     standard service retirement annuity for a person who immediately
1-14     before retirement holds a position as a classroom teacher or
1-15     full-time librarian, or the annual death benefit annuity based on
1-16     the service of a member who at the time of death held a position as
1-17     a classroom teacher or full-time librarian, may not be less than an
1-18     amount computed on the basis of the minimum annual salary provided
1-19     by the Education Code for a classroom teacher or full-time
1-20     librarian, multiplied by two percent for each year of service
1-21     credit in the retirement system.
1-22           (f)  The standard service retirement annuity is an amount
 2-1     computed on the basis of the member's average annual compensation
 2-2     for the three years of service, whether or not consecutive, in
 2-3     which the member received the highest annual compensation, times
 2-4     2.25 percent for those with at least thirty years of service
 2-5     credit.
 2-6           SECTION 2.  (a)  Monthly payments of a death or retirement
 2-7     benefit annuity by the Teacher Retirement System of Texas are
 2-8     increased beginning with the payment due at the end of September
 2-9     1999.
2-10           (b)  The increase does not apply to payments under Section
2-11     824.304(a), 824.404, or 824.501, Government Code.
2-12           (c)  Except as provided by Subsections (d) and (e) of this
2-13     section, the amount of the monthly increase is computed by
2-14     multiplying the previous monthly benefit by a percentage determined
2-15     in accordance with the following table:
2-16     LATEST RETIREMENT DATE OR,
2-17     IF APPLICABLE, DATE OF DEATH                               INCREASE
2-18     Before September 1, 1973                                         5%
2-19     On or after September 1, 1973, but before September 1, 1974      6%
2-20     On or after September 1, 1974, but before September 1, 1979      5%
2-21     On or after September 1, 1979, but before September 1, 1981      6%
2-22     On or after September 1, 1981, but before September 1, 1982      7%
2-23     On or after September 1, 1982, but before September 1, 1983      6%
2-24     On or after September 1, 1983, but before September 1, 1990      7%
2-25     On or after September 1, 1990, but before September 1, 1991      6%
2-26     On or after September 1, 1991, but before September 1, 1992      7%
 3-1     On or after September 1, 1992, but before September 1, 1995      6%
 3-2     On or after September 1, 1995, but before September 1, 1997      5%
 3-3           (d)  After making the computations required by Subsection (c)
 3-4     of this section and except for Subsection (e), the retirement
 3-5     system shall increase each recomputed annuity by five percent,
 3-6     which is a benefit equivalent to the benefit provided by using a
 3-7     2.1 percent multiplier for computing annuities.
 3-8           (e)  The retirement system shall increase each recomputed
 3-9     annuity based on the service of a member who had at least thirty
3-10     years of service credit by 12.5 percent, which is a benefit
3-11     equivalent to the benefit provided by using a 2.25 percent
3-12     multiplier.
3-13           SECTION 3.  This Act takes effect September 1, 1999.
3-14           SECTION 4.  The importance of this legislation and the
3-15     crowded condition of the calendars in both houses create an
3-16     emergency and an imperative public necessity that the
3-17     constitutional rule requiring bills to be read on three several
3-18     days in each house be suspended, and this rule is hereby suspended.