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A BILL TO BE ENTITLED
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AN ACT
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relating to a pension increase for retired teachers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 824, Government Code, is |
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amended by adding Section 824.007 to read as follows: |
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Sec. 824.007. ADJUSTMENT FOR COST OF LIVING. (a) The |
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amount of a monthly service retirement benefit, disability |
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retirement benefit, or death benefit paid under this chapter is |
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increased to include a three percent cost-of-living adjustment in |
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accordance with this section. |
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(b) The board of trustees shall recompute the amount of a |
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benefit paid monthly under this chapter by applying the three |
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percent adjustment to the monthly amount otherwise required to be |
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paid as determined in accordance with the other applicable |
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provisions of this chapter. |
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SECTION 2. 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 seven [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. The state |
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shall contribute a higher amount specified in the General |
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Appropriations Act but may not contribute more than 10 percent of |
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the aggregate annual compensation of all members of the retirement |
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system during that fiscal year. |
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SECTION 3. This Act applies only to a benefit paid by the |
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Teacher Retirement System of Texas on or after January 1, 2008. |
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SECTION 4. This Act takes effect September 1, 2007. |