79R1472 DLF-D

By:  Van Arsdale                                                  H.B. No. 235



A BILL TO BE ENTITLED

AN ACT

relating to the computation of certain benefits under the Teacher 
Retirement System of Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 824.203, Government Code, is amended by 
amending Subsection (a) and adding Subsections (a-1) and (c-1) to 
read as follows:
	(a)  Except as provided by Subsections (a-1), (c), and (d), 
[and (e),] 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, whether or not consecutive, in which 
the member received the highest annual compensation, times 2.3 
percent for each year of service credit in the retirement system.
	(a-1)  This subsection applies only to a member who, during 
any month of the member's service, received compensation of $5,000 
or more.  Except as provided by Subsections (c-1) and (d), the 
standard service retirement annuity for a member subject to this 
subsection is an amount computed as the member's median monthly 
compensation for the 60 months of service, whether or not 
consecutive, in which the member received the highest monthly 
compensation, times 2.3 percent for each year of service credit in 
the retirement system.
	(c-1)  Notwithstanding Subsection (a-1), and except as 
provided by Subsection (d), for benefits payable because of the 
death or retirement of a member otherwise subject to Subsection 
(a-1) that occurred before September 1, 2005, the standard service 
retirement annuity is computed in accordance with the law 
applicable to the computation of those benefits immediately before 
that date.
	SECTION 2.  Section 824.806, Government Code, is amended by 
amending Subsection (b) and adding Subsection (c) to read as 
follows:
	(b)  Except as provided by Subsection (c), at [At] the time a 
member retires or dies, the retirement system shall compute the 
value of the additional service credit at the rate provided under 
Section 824.203, based on the lesser of the three years of service 
after the member's termination of plan participation, or the 
member's actual years of service after the termination, in which 
the member received the highest annual compensation.  The 
retirement system shall add the amount computed under this 
subsection to the amount determined on the effective date of plan 
participation, and the sum is payable, subject to actuarial 
reduction if applicable, as the monthly annuity payment.
	(c)  This subsection applies only to a member who is subject 
to Section 824.203(a-1).  At the time the member retires or dies, 
the retirement system shall compute the value of the additional 
service credit at the rate provided under Section 824.203(a-1), 
based on the lesser of the 60 months of service after the member's 
termination of plan participation, or the member's actual months of 
service after the termination, in which the member received the 
highest monthly compensation.  The retirement system shall add the 
amount computed under this subsection to the amount determined on 
the effective date of plan participation, and the sum is payable, 
subject to actuarial reduction if applicable, as the monthly 
annuity payment.
	SECTION 3.  The change in law made by this Act applies only 
to benefits payable because of the death or retirement of a member 
of the Teacher Retirement System of Texas that occurs on or after 
September 1, 2005.  Benefits payable because of a death or 
retirement that occurs before September 1, 2005, are governed by 
the law as it existed immediately before that date, and that law is 
continued in effect for that purpose.
	SECTION 4.  This Act takes effect September 1, 2005.