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79S30731 DLF-D

By:  Eiland                                                       H.B. No. 107



A BILL TO BE ENTITLED

AN ACT

relating to public financing of retirement of state employees and 
officers; making an appropriation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 815.403, Government Code, is amended by 
amending Subsections (a), (b), and (d) and adding Subsection (a-1) 
to read as follows:
	(a)  During each fiscal year, the state shall contribute to 
the retirement system an amount sufficient to fund the liability of 
the retirement system for service retirement benefits, disability 
retirement benefits, and death benefits provided under this 
subtitle for members, retirees, and beneficiaries in both classes 
of membership during the fiscal year in which the contribution is 
made.
	(a-1)  The amount of the state contribution:                            
		(1)  must include:                                                     
			(A) [(1)]  an amount equal to at least 7.4 percent 
of the total compensation of all members of the retirement system 
for that year;
			(B) [(2)]  money to pay lump-sum death benefits 
for retirees under Section 814.501;
			(C) [(3)]  an amount for the law enforcement and 
custodial officer supplemental retirement fund equal to at least
2.13 percent of the aggregate state compensation of all custodial 
and law enforcement officers for that year;
			(D) [(4)]  money necessary for the administration 
of the law enforcement and custodial officer supplemental 
retirement fund;  and
			(E) [(5)]  money for service credit not 
previously established, as provided by Section 813.202(c) or 
813.302(d); and
		(2)  may not be less than the amount necessary to 
satisfy the requirement of Subsection (a).
	(b)  Before November 2 of each even-numbered year, the 
retirement system shall certify to the Legislative Budget Board and 
to the budget division of the governor's office for review:
		(1)  an estimate of the amount necessary to pay the 
state's contribution under Subsections (a-1)(1)(A), (a-1)(1)(B), 
(a-1)(1)(C), and (a-1)(1)(E) [(a)(1), (a)(2), (a)(3), and (a)(5)] 
for the following biennium;  and
		(2)  as a separate item, an estimate of the amount 
required to administer the law enforcement and custodial officer 
supplemental retirement fund for the following biennium.
	(d)  Before September 1 of each year, the retirement system 
shall certify to the state comptroller of public accounts:
		(1)  an estimate of the amount necessary to pay the 
state's contribution under Subsection (a-1)(1)(A) [(a)(1)] for the 
following fiscal year;
		(2)  an estimate of the amount necessary to pay 
membership fees for the following fiscal year, if the legislature 
has appropriated money for that purpose;  and
		(3)  an estimate of the amount required to pay lump-sum 
death benefits for retirees under Section 814.501 for the following 
fiscal year.
	SECTION 2.  In addition to the estimated amounts 
appropriated for the following purpose by S.B. No. 1, Acts of the 
79th Legislature, Regular Session, 2005, the additional amount of 
$55 million is appropriated out of the general revenue fund to the 
Employees Retirement System of Texas for the fiscal year beginning 
September 1, 2006, for the purpose of making retirement 
contributions for members of the retirement system.
	SECTION 3.  Section 815.403, Government Code, as amended by 
this Act, applies beginning with the 2007-2008 fiscal year.
	SECTION 4.  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.