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A BILL TO BE ENTITLED
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AN ACT
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relating to employer and retiree contributions for certain employed |
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retirees under the Teacher Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 824.603, Government Code, is amended to |
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read as follows: |
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Sec. 824.603. EXCLUSION FROM CREDIT. Employment of a |
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retiree described by Section 824.602(a) does not entitle a retiree |
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to additional service credit, and, except as provided by Section |
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825.4092, the retiree so employed is not required to make |
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contributions to the system from compensation for that employment. |
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SECTION 2. Section 825.4092, Government Code, is amended by |
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amending Subsections (b) and (e) and adding Subsections (b-1) and |
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(f) to read as follows: |
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(b) Except as provided by Subsection (e), during each |
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payroll period for which a retiree is reported: |
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(1) [,] the employer shall contribute to the retirement |
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system for each retiree reported an amount based on the retiree's |
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salary equal to [the sum 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 |
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the General Appropriations Act that the state would contribute for |
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that retiree if the retiree were an active, contributing member; |
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and |
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(2) each retiree reported shall contribute to the |
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retirement system an amount based on the retiree's salary equal to |
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the current contribution amount that would be contributed by the |
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retiree if the retiree were an active, contributing member. |
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(b-1) In addition to the amounts contributed under |
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Subsection (b) and except as provided by Subsection (e), during |
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each payroll period for which an employer reports a retiree |
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employed in a position other than as a full-time librarian, a |
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full-time counselor, a full-time school nurse, or a classroom |
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teacher described by Section 5.001, Education Code, the employer |
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shall contribute to the retirement system for the retiree an amount |
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based on the retiree's salary equal to the current contribution |
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amount that would be contributed by the retiree if the retiree were |
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an active, contributing member. |
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(e) The amounts required to be paid under Subsections (b), |
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(b-1), and (c) are not required to be paid by a reporting employer |
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for a retiree who was reported under the retirement system rules in |
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effect for the report month of January 2005 by: |
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(1) that reporting employer; or |
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(2) another employer, if both employers are school |
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districts that consolidated into a consolidated school district on |
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or before September 1, 2005. |
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(f) A retiree's contribution under this section shall be |
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made in the same manner as a member's contribution is collected |
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under Section 825.403. Except as provided by Section 824.602, a |
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retiree who makes contributions as required by this section is not |
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entitled to receive a monthly benefit payment during the period the |
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retiree is employed in a Texas public education institution. The |
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retiree is not entitled to additional service credit for the period |
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the retiree is employed as described by this section. |
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SECTION 3. The changes in law made by this Act apply |
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beginning with the 2007-2008 school year. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |