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A BILL TO BE ENTITLED
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AN ACT
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relating to the state contribution to the Teacher Retirement System |
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of Texas, including a one-time supplemental annuity payment. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 825.404(a), Government Code, is amended |
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to read as follows: |
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(a) During each fiscal year, the state shall contribute to |
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the retirement system an amount equal to at least 6.7 [six] and not |
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more than 10 percent of the aggregate annual compensation of all |
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members of the retirement system during that fiscal year. |
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SECTION 2. (a) The Teacher Retirement System of Texas shall |
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make a one-time supplemental payment of a retirement or death |
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benefit, as provided by this section. |
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(b) The supplemental payment is payable not later than |
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September of 2007 and, to the extent practicable, on a date or dates |
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that coincide with the regular annuity payment payable to each |
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eligible annuitant. |
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(c) The amount of the supplemental payment is equal to the |
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gross amount of the regular annuity payment to which the eligible |
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annuitant is otherwise entitled for the month of August 2007. |
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(d) The supplemental payment is payable without regard to |
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any forfeiture of benefits under Section 824.601, Government Code. |
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The Teacher Retirement System of Texas shall make applicable tax |
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withholding and other legally required deductions before |
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disbursing the supplemental payment. A supplemental payment under |
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this section is in addition to and not in lieu of the regular |
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monthly annuity payment to which the eligible annuitant is |
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otherwise entitled. |
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(e) Subject to Subsection (f) of this section, to be |
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eligible for the supplemental payment, a person must be, for the |
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month of August 2007, and disregarding any forfeiture of benefits |
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under Section 824.601, Government Code, an annuitant eligible to |
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receive: |
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(1) a standard retirement annuity payment; |
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(2) an optional retirement annuity payment as either a |
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retiree or beneficiary; |
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(3) a life annuity payment under Section |
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824.402(a)(4), Government Code; |
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(4) an annuity for a guaranteed period of 60 months |
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under Section 824.402(a)(3), Government Code; or |
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(5) an alternate payee annuity payment under Section |
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804.005, Government Code. |
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(f) If the annuitant is a retiree or a beneficiary under an |
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optional retirement payment plan, to be eligible for the |
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supplemental payment, the effective date of the retirement of the |
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member of the Teacher Retirement System of Texas must have been on |
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or before December 31, 2006. If the annuitant is a beneficiary |
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under Section 824.402(a)(3) or (4), Government Code, to be eligible |
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for the supplemental payment, the date of death of the member of the |
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retirement system must have been on or before December 31, 2006. |
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The supplemental payment shall be made to an alternate payee who is |
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an annuitant under Section 804.005, Government Code, only if the |
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annuity payment to the alternate payee commenced on or before |
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December 31, 2006. The supplemental payment is in addition to the |
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guaranteed number of payments under Section 824.402(a)(3) or |
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824.204(c)(3) or (4), Government Code, and may not be counted as one |
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of the guaranteed monthly payments. |
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(g) The supplemental payment does not apply to payments |
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under: |
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(1) Section 824.304(a), Government Code, relating to |
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disability retirees with less than 10 years of service credit; |
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(2) Section 824.804(b), Government Code, relating to |
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participants in the deferred retirement option plan with regard to |
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payments from their deferred retirement option plan accounts; |
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(3) Section 824.501(a), Government Code, relating to |
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retiree survivor beneficiaries who receive a survivor annuity in an |
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amount fixed by statute; or |
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(4) Section 824.404(a), Government Code, relating to |
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active member survivor beneficiaries who receive a survivor annuity |
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in an amount fixed by statute. |
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(h) Except as provided by this section, the board of |
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trustees of the Teacher Retirement System of Texas shall determine |
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the eligibility for and the amount and timing of a supplemental |
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payment and the manner in which the payment is made. |
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SECTION 3. Section 825.404(a), Government Code, as amended |
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by this Act, applies beginning with the fiscal year that begins |
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September 1, 2007. |
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SECTION 4. This Act takes effect September 1, 2007. |