By McClendon                                            H.B. No. 29
         77R286 GJH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the computation of benefits payable by 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. Sections 824.203(a) and (e), Government Code, are
 1-6     amended to read as follows:
 1-7           (a)  Except as provided by Subsections (c), (d), and (e), the
 1-8     standard service retirement annuity is an amount computed on the
 1-9     basis of the member's average annual compensation for the three
1-10     years of service, whether or not consecutive, in which the member
1-11     received the highest annual compensation, times 2.25 [2.2] percent
1-12     for each year of service credit in the retirement system.
1-13           (e)  The annual standard service retirement annuity for a
1-14     person who immediately before retirement holds a position as a
1-15     classroom teacher or full-time librarian, or the annual death
1-16     benefit annuity based on the service of a member who at the time of
1-17     death held a position as a classroom teacher or full-time
1-18     librarian, may not be less than an amount computed on the basis of
1-19     the minimum annual salary provided by the Education Code for a
1-20     classroom teacher or full-time librarian, multiplied by 2.25 [2.2]
1-21     percent for each year of service credit in the retirement system.
1-22           SECTION 2. (a)  The Teacher Retirement System of Texas shall
1-23     recompute an annuity that first became payable before September 1,
1-24     2001, as though Sections 824.203(a) and (e), Government Code, as
 2-1     amended by this Act, were in effect on the date the annuity first
 2-2     became payable.
 2-3           (b)  The first payment of the recomputed annuity is payable
 2-4     on the first payment date occurring on or after the effective date
 2-5     of this Act.
 2-6           SECTION 3. This Act takes effect September 1, 2001.