By: Kolkhorst, Eiland, Griggs, H.B. No. 1579
Smith of Tarrant, Berman, et al.
A BILL TO BE ENTITLED
AN ACT
relating to contributions and eligibility for benefits of and
reports concerning certain retired members of the Teacher
Retirement System of Texas; imposing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 824.602(a), Government Code, is amended
to read as follows:
(a) Subject to Section 825.506, the retirement system may
not, under Section 824.601, withhold a monthly benefit payment if
the retiree is employed in a Texas public educational institution:
(1) as a substitute only with pay not more than the
daily rate of substitute pay established by the employer and, if the
retiree is a disability retiree, the employment has not exceeded a
total of 90 days in the school year;
(2) in a position, other than as a substitute, on no
more than a one-half time basis for the month;
(3) in one or more positions on as much as a full-time
basis, if the work occurs in not more than six months of a school
year that begins after the retiree's effective date of retirement;
(4) in a position, other than as a substitute, on no
more than a one-half time basis for no more than 90 days in the
school year, if the retiree is a disability retiree;
(5) in a position as a classroom teacher on as much as
a full-time basis, if the retiree has retired under Section
824.202(a), is certified under Subchapter B, Chapter 21, Education
Code, to teach the subjects assigned, is teaching in an acute
shortage area as determined by the board of trustees of a school
district as provided by Subsection (m), and has been separated from
service with all public schools for at least 12 months;
(6) in a position as a principal, including as an
assistant principal, on as much as a full-time basis, if the retiree
has retired under Section 824.202(a) without reduction for
retirement at an early age, is certified under Subchapter B,
Chapter 21, Education Code, to serve as a principal, and has been
separated from service with all public schools for at least 12
months; or
(7) as a bus driver for a school district on as much as
a full-time basis, if the retiree has retired under Section
824.202(a), and the retiree's primary employment is as a bus
driver.
SECTION 2. Subchapter G, Chapter 824, Government Code, is
amended by adding Section 824.6022 to read as follows:
Sec. 824.6022. REQUIRED REPORTS; OFFENSE. (a) An employer
shall file a monthly certified statement of employment of a retiree
in the form and manner required by the retirement system.
(b) A person commits an offense if the person is an
administrator of an employer, is responsible for filing a statement
under Subsection (a), and knowingly fails to file the statement as
required.
SECTION 3. Section 825.308, Government Code, is amended to
read as follows:
Sec. 825.308. STATE CONTRIBUTION ACCOUNT. The retirement
system shall deposit in the state contribution account:
(1) all state contributions to the retirement system
required by Section 825.404;
(2) amounts from the interest account as provided by
Section 825.313(b)(2);
(3) retirement annuities waived or forfeited in
accordance with Section 824.601 or 824.004;
(4) fees collected under Section 825.403(h);
(5) fees and interest for reinstatement of service
credit or establishment of membership service credit as provided by
Section 823.501;
(6) the portion of a deposit required by Section
823.302 to establish military service credit that represents a fee;
[and]
(7) the portion of a deposit required by Section
823.401(e) to establish out-of-state service credit that
represents a fee; and
(8) employer contributions required under Section
825.4092.
SECTION 4. Subchapter E, Chapter 825, Government Code, is
amended by adding Section 825.4092 to read as follows:
Sec. 825.4092. EMPLOYER CONTRIBUTIONS FOR EMPLOYED
RETIREES. (a) This section applies to an employer who reports to
the retirement system the employment of a retiree.
(b) Except as provided by Subsection (e), during each
payroll period for which a retiree is reported, the employer shall
contribute to the retirement system for each retiree reported an
amount based on the retiree's salary equal to the sum of:
(1) the current contribution amount that would be
contributed by the retiree if the retiree were an active,
contributing member; and
(2) the current contribution amount authorized by the
General Appropriations Act that the state would contribute for that
retiree if the retiree were an active, contributing member.
(c) Except as provided by Subsection (e), each payroll
period, for each retiree who is enrolled in the Texas Public School
Employees Group Benefits Program under Chapter 1575, Insurance
Code, the employer who reports the employment of a retiree shall
contribute to the trust fund established under that chapter any
difference between the amount the retiree is required to pay for the
retiree and any enrolled dependents to participate in the group
program and the full cost of the retiree's and enrolled dependents'
participation in the group program, as determined by the retirement
system. If more than one employer reports the retiree to the
retirement system during a month, the amount of the required
payment shall be prorated among the employers.
(d) Contributions under this section are subject to the
requirements of Section 825.408.
(e) The amounts required to be paid under Subsections (b)
and (c) are not required to be paid by a reporting employer for a
retiree who was reported by that employer under retirement system
rules in effect for the report month of January 2005.
(f) This section does not prevent an employer and a retiree
from negotiating and entering into a contract that allows both
parties to contribute to the amounts the employer must contribute
to the retirement system under Subsections (b) and (c).
SECTION 5. Section 1575.204, Insurance Code, is amended to
read as follows:
Sec. 1575.204. PUBLIC SCHOOL CONTRIBUTION. (a) Each state
fiscal year, each public school shall contribute to the fund the
amount prescribed by the General Appropriations Act, which may not
be less than 0.25 percent or greater than 0.75 percent of the salary
of each active employee of the public school. The public school
shall make the contributions on a monthly basis and as otherwise
prescribed by the trustee.
(b) Each state fiscal year, each employer who reports to the
retirement system under Section 824.6022, Government Code, the
employment of a retiree who is enrolled in the group program shall
contribute to the fund the difference, if any, between the
contribution amount that the reported retiree is required to pay
for the retiree and any enrolled dependents to participate in the
group program and the full cost of the retiree's and enrolled
dependents' participation in the group program, as determined by
the trustee.
SECTION 6. (a) Section 824.602, Government Code, as
amended by this Act, applies only to a person who retires from the
Teacher Retirement System of Texas on or after the effective date of
this Act. A person who retires from the Teacher Retirement System of
Texas before the effective date of this Act is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
(b) The changes in law made by this Act to the laws that
affect employer contributions apply to any retiree of the Teacher
Retirement System of Texas employed by an employer as defined by
Section 821.001, Government Code, during any month after the
effective date of this Act.
SECTION 7. This Act takes effect September 1, 2005.