By McClendon H.B. No. 27 77R928 GJH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to supplemental annuity payments by the Teacher Retirement 1-3 System of Texas. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 824, Government Code, is amended by 1-6 adding Subchapter J to read as follows: 1-7 SUBCHAPTER J. SUPPLEMENTAL ANNUITY PAYMENTS 1-8 Sec. 824.821. SUPPLEMENTAL ANNUITY PAYMENTS AUTHORIZED. (a) 1-9 The board of trustees may authorize the retirement system to make a 1-10 supplemental payment in a particular fiscal year of annuities 1-11 payable by the system that are based on service retirements, 1-12 disability retirements, or deaths and are not excluded by 1-13 Subsection (c). A supplemental payment is in addition to the 1-14 regular monthly annuity payment. 1-15 (b) The amount of a supplemental payment is equal to 10 1-16 percent of the amount of a regular monthly annuity payment 1-17 multiplied by the number of fiscal years in which the annuity has 1-18 been paid. For the purpose of this section, the board of trustees 1-19 may exclude any of the most recent two fiscal years of annuity 1-20 payments. The amount of a supplemental payment may not exceed 350 1-21 percent of the amount of a regular monthly annuity payment. 1-22 Supplemental payments under this section must comply with Section 1-23 821.006. 1-24 (c) A supplemental payment may not apply to annuities 2-1 payable under Section 824.304(a), 824.404, or 824.501. 2-2 Sec. 824.822. SOURCE OF SUPPLEMENTAL ANNUITY PAYMENTS. The 2-3 retirement system shall pay a supplemental annuity payment 2-4 authorized under Section 824.821 from the retired reserve account 2-5 and may transfer to that account from the state contribution 2-6 account any portion of the amount that exceeds the amount in the 2-7 retired reserve account available to finance the supplemental 2-8 payment and that is actuarially determined to be necessary to 2-9 finance the supplemental payment. 2-10 Sec. 824.823. RULES FOR SUPPLEMENTAL ANNUITY PAYMENTS. The 2-11 board of trustees may adopt rules to implement supplemental annuity 2-12 payments, including rules that govern the timing of a supplemental 2-13 payment. 2-14 SECTION 2. The board of trustees of the Teacher Retirement 2-15 System of Texas shall authorize a supplemental payment under 2-16 Subchapter J, Chapter 824, Government Code, as added by this Act, 2-17 to be made in the fiscal years beginning September 1, 2001, and 2-18 September 1, 2002, if the conditions required by Section 2-19 824.821(b), Government Code, as added by this Act, are met. 2-20 SECTION 3. This Act takes effect September 1, 2001.