SRC-CTC, BWC S.B. 29 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 29
77R286 GJH-DBy: Zaffirini
Education
2/8/2001
As Filed


DIGEST AND PURPOSE 

Currently, the standard service retirement annuity in the Teacher
Retirement System of Texas is calculated on the basis of the member's
average annual compensation for the three years of service, whether or not
consecutive, in which the member received the highest annual compensation,
times 2.2 percent for each year of service credit in the retirement system.
As proposed, S.B. 29 increases this percentage calculator for use in
benefit computation from 2.2 to 2.25 percent. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 824.203(a) and (e), Government Code, by
providing that the standard service retirement annuity is an amount
computed on the basis of the member's average annual compensation for the
three years of service in which the member received the highest annual
compensation, times 2.25, rather than 2.2, percent for each year of service
credit in the retirement system.  Makes a conforming change. 

SECTION 2.  Requires the Teacher Retirement System of Texas to recompute an
annuity that first became payable before September 1, 2001, as though
Section 824.203(a) and (e), Government Code, as amended by this Act, were
in effect on the date the annuity first became payable, and provides that
the first payment of the recomputed annuity is payable on the first payment
date occurring on or after the effective date of this Act. 

SECTION 3.  Effective date:  September 1, 2001.