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79S31601 DLF-D
By: Eiland, Flynn, Bonnen, et al. H.B. No. 73
Substitute the following for H.B. No. 73:
By: Eiland C.S.H.B. No. 73
A BILL TO BE ENTITLED
AN ACT
relating to public financing of the public education employee
retirement system and certain retirement benefits; making an
appropriation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 825.404(a), Government Code, is amended
to read as follows:
(a) During each fiscal year, the state shall contribute to
the retirement system an amount sufficient to amortize, within a
30-year funding period, the actuarial liability of the retirement
system for service retirement benefits, disability retirement
benefits, and death benefits provided under this subtitle for
members, retirees, and beneficiaries. The amount must be
determined based on the annual August 31 actuarial valuation and
must be equal to at least six and not more than 10 percent of the
aggregate annual compensation of all members of the retirement
system during that fiscal year.
SECTION 2. (a) The Teacher Retirement System of Texas
shall make a one-time supplemental payment of a retirement or death
benefit, as provided by this section.
(b) The supplemental payment is payable in January 2007 and,
to the extent practicable, on a date or dates that coincide with the
regular annuity payment payable to each eligible annuitant.
(c) The amount of the supplemental payment is equal to the
lesser of:
(1) $2,000; or
(2) the gross amount of the regular annuity payment to
which the eligible annuitant is otherwise entitled for the month of
December 2006.
(d) The supplemental payment is payable in January 2007,
without regard to any forfeiture of benefits under Section 824.602,
Government Code. The Teacher Retirement System of Texas shall make
applicable tax withholding and other legally required deductions
before disbursing the supplemental payment. The supplemental
payment under this section is in addition to and not in lieu of the
regular monthly annuity payment to which the eligible annuitant is
otherwise entitled.
(e) Subject to Subsection (f) of this section, to be
eligible for the supplemental payment, a person must be, for the
month of December 2006, and disregarding any forfeiture of benefits
under Section 824.602, Government Code, an annuitant eligible to
receive:
(1) a standard retirement annuity payment;
(2) an optional retirement annuity payment as either a
retiree or beneficiary;
(3) a life annuity payment under Section
824.402(a)(4), Government Code;
(4) an annuity for a guaranteed period of 60 months
under Section 824.402(a)(3), Government Code; or
(5) an alternate payee annuity payment under Section
804.005, Government Code.
(f) If the annuitant is a retiree or a beneficiary under an
optional retirement payment plan, to be eligible for the
supplemental payment, the effective date of the retirement of the
member of the Teacher Retirement System of Texas must have been
before September 1, 2005. If the annuitant is a beneficiary under
Section 824.402(a)(3) or (4), Government Code, to be eligible for
the supplemental payment, the date of death of the member of the
retirement system must have been before September 1, 2005. The
supplemental payment shall be made to an alternate payee who is an
annuitant under Section 804.005, Government Code, only if the
annuity payments to the alternate payee commenced before September
1, 2005. The supplemental payment is in addition to the guaranteed
number of payments under Section 824.402(a)(3) or 824.204(c)(3) or
(4), Government Code, and may not be counted as one of the
guaranteed monthly payments.
(g) The supplemental payment does not apply to payments
under:
(1) Section 824.304(a), Government Code, relating to
disability retirees with less than 10 years of service credit;
(2) Section 824.804(b), Government Code, relating to
participants in the deferred retirement option plan with regard to
payments from their deferred retirement option plan accounts;
(3) Section 824.501(a), Government Code, relating to
retiree survivor beneficiaries receiving a survivor annuity in an
amount fixed by statute; or
(4) Section 824.404(a), Government Code, relating to
active member survivor beneficiaries receiving a survivor annuity
in an amount fixed by statute.
(h) Except as provided by this section, the board of
trustees of the Teacher Retirement System of Texas shall determine
the eligibility for and the amount and timing of a supplemental
payment and the manner in which the payment is made.
(i) The Teacher Retirement System of Texas shall pay the
supplemental payment made under this section from the retired
reserve account and may transfer to that account from the state
contribution account any portion of the amount that exceeds the
amount in the retired reserve account available to finance the
supplemental payment and that is actuarially determined to be
necessary to finance the supplemental payment. The supplemental
payment under this section must comply with Section 821.006,
Government Code.
SECTION 3. The amount necessary to fund the supplemental
payment required by Section 2 of this Act (an estimated amount of
$310 million) is appropriated out of the general revenue fund to the
Teacher Retirement System of Texas for the fiscal year beginning
September 1, 2006, for the purpose of funding that supplemental
payment.
SECTION 4. Section 825.404(a), Government Code, as amended
by this Act, applies beginning with the 2007–2008 fiscal year.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect on the 91st day after the last day of the
legislative session.