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A BILL TO BE ENTITLED
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AN ACT
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relating to funding for, and benefits provided under, the Teacher |
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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 825.308, Government Code, is amended to |
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read as follows: |
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Sec. 825.308. STATE CONTRIBUTION ACCOUNT. The retirement |
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system shall deposit in the state contribution account: |
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(1) all state contributions to the retirement system |
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required by Section 825.404; |
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(2) amounts from the interest account as provided by |
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Section 825.313(b)(2); |
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(3) retirement annuities waived or forfeited in |
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accordance with Section 824.601 or 824.004; |
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(4) fees collected under Section 825.403(h); |
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(5) fees and interest for reinstatement of service |
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credit or establishment of membership service credit as provided by |
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Section 823.501; |
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(6) the portion of a deposit required by Section |
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823.302 to establish military service credit that represents a fee; |
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[and] |
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(7) contributions collected by employers from federal |
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or private sources under Section 825.406; |
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(8) contributions collected by a general academic |
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teaching institution or a medical and dental unit under Section |
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825.407; and |
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(9) employer contributions required under Section |
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825.4092. |
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SECTION 2. Section 825.402, Government Code, is amended to |
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read as follows: |
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Sec. 825.402. RATE OF MEMBER CONTRIBUTIONS. The rate of |
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contributions for each member of the retirement system is: |
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(1) five percent of the member's annual compensation |
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or $180, whichever is less, for service rendered after August 31, |
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1937, and before September 1, 1957; |
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(2) six percent of the first $8,400 of the member's |
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annual compensation for service rendered after August 31, 1957, and |
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before September 1, 1969; |
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(3) six percent of the member's annual compensation |
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for service rendered after August 31, 1969, and before the first day |
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of the 1977-78 school year; |
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(4) 6.65 percent of the member's annual compensation |
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for service rendered after the last day of the period described by |
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Subdivision (3) and before September 1, 1985; and |
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(5) 6.58 [6.4] percent of the member's annual |
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compensation for service rendered after August 31, 1985. |
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SECTION 3. Subsection (a), Section 825.404, Government |
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Code, is amended 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 six and not more |
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than 10 percent of the aggregate annual compensation of all members |
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of the retirement system during that fiscal year. The amount of the |
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state contribution made under this section may not be less than the |
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amount contributed by members during that fiscal year in accordance |
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with Section 825.402. |
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SECTION 4. Subsection (b), Section 825.406, Government |
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Code, is amended to read as follows: |
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(b) When an employer receives money for state contributions |
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from an application made in accordance with Subsection (a), the |
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employer shall immediately send the money to the retirement system |
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for deposit in the state contribution account [general revenue fund
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of the state treasury]. |
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SECTION 5. Subsection (g), Section 825.407, Government |
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Code, is amended to read as follows: |
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(g) The retirement system shall deposit [submit] all money |
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it receives under this section in the state contribution account |
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[to the comptroller of public accounts for deposit in the general
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revenue fund]. |
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SECTION 6. Subsection (e), Section 825.4092, Government |
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Code, is amended to read as follows: |
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(e) 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 for a |
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retiree who retired from [was reported under] the retirement system |
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[rules in 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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SECTION 7. Subsection (b), Section 1575.204, Insurance |
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Code, is amended 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 retired from the [was reported by that employer under] |
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retirement system before September 1, [rules in effect for the
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report month of January] 2005. |
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SECTION 8. Section 1575.252, Insurance Code, is amended to |
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read as follows: |
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Sec. 1575.252. APPLICATION BY EMPLOYER FOR MONEY TO PAY |
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STATE CONTRIBUTIONS. An employer who applies for money provided by |
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the United States or a privately sponsored source shall: |
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(1) if any of the money will pay part or all of an |
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active employee's salary, also apply for any legally available |
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money to pay state contributions required by Subchapter E; and |
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(2) immediately send any money received for state |
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contributions as a result of the application to the trustee for |
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deposit in the [general revenue] fund. |
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SECTION 9. (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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lesser of: |
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(1) the gross amount of the regular annuity payment to |
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which the eligible annuitant is otherwise entitled for the month of |
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August 2007; or |
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(2) $2,400. |
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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), |
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824.204(c)(3) or (4), or Section 824.308(c)(3) or (4), Government |
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Code, and may not be counted as one of the guaranteed monthly |
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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 10. 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 11. Section 825.4092, Government Code, as amended |
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by this Act, applies only to an employer contribution required to be |
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made under that section on or after September 1, 2007. An employer |
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contribution required to be made before September 1, 2007, is |
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governed by the law as it existed at the time the contribution was |
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required to be made, and that law is continued in effect for that |
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purpose. |
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SECTION 12. This Act takes effect September 1, 2007. |