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A BILL TO BE ENTITLED
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AN ACT
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relating to employer contributions for certain retirees under the |
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Teacher Retirement System of Texas who are employed by an |
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institution of higher education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 825.4092, Government Code, is amended by |
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amending Subsections (b) and (c) and adding Subsection (f) to read |
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as follows: |
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(b) Except as provided by Subsections [Subsection] (e) and |
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(f), during each payroll period for which a retiree is reported, the |
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employer shall contribute to the retirement system for each retiree |
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reported an amount based on the retiree's salary equal to the sum |
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of: |
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(1) the current contribution amount that would be |
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contributed by the retiree if the retiree were an active, |
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contributing member; and |
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(2) the current contribution amount authorized by the |
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General Appropriations Act that the state would contribute for that |
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retiree if the retiree were an active, contributing member. |
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(c) Except as provided by Subsections [Subsection] (e) and |
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(f), each payroll period, for each retiree who is enrolled in the |
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Texas Public School Employees Group Insurance Program under Chapter |
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1575, Insurance Code, the employer who reports the employment of a |
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retiree shall contribute to the trust fund established under that |
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chapter any difference between the amount the retiree is required |
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to pay for the retiree and any enrolled dependents to participate in |
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the group program and the full cost of the retiree's and enrolled |
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dependents' participation in the group program, as determined by |
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the retirement system. If more than one employer reports the |
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retiree to the retirement system during a month, the amount of the |
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required payment shall be prorated among the employers. |
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(f) The amounts required to be paid under Subsections (b) |
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and (c) are not required to be paid by a reporting employer that is |
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an institution of higher education, as that term is defined by |
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Section 61.003, Education Code. |
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SECTION 2. Section 1575.204(b), Insurance Code, is amended |
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to read as follows: |
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(b) Each state fiscal year, each employer who reports to the |
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retirement system under Section 824.6022, Government Code, the |
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employment of a retiree who is enrolled in the group program shall |
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contribute to the fund the difference, if any, between the |
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contribution amount that the reported retiree is required to pay |
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for the retiree and any enrolled dependents to participate in the |
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group program and the full cost of the retiree's and enrolled |
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dependents' participation in the group program, as determined by |
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the trustee. The amounts required to be paid under this subsection |
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are not required to be paid by a reporting employer for a retiree |
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who was reported by that employer under retirement system rules in |
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effect for the report month of January 2005. The amounts required to |
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be paid under this subsection are not required to be paid by a |
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reporting employer that is an institution of higher education, as |
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that term is defined by Section 61.003, Education Code. |
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SECTION 3. This Act takes effect September 1, 2007. |