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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. Subchapter A, Chapter 824, Government Code, is |
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amended by adding Section 824.009 to read as follows: |
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Sec. 824.009. BENEFIT INCREASE. (a) The amount of a |
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service retirement benefit, disability retirement benefit, or |
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death benefit paid under this chapter may be increased only to the |
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extent authorized by the General Appropriations Act applicable to |
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the fiscal biennium in which the increase is paid. |
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(b) An increase made as provided by this section is subject |
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to Section 821.006. |
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SECTION 2. Section 824.2031, Government Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) An improvement in the plan of benefits is subject to |
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Section 824.009. |
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SECTION 3. 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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(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) [(7)] employer contributions required under |
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Sections 825.4042 and [Section] 825.4092. |
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SECTION 4. 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. (a) The rate |
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of 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) 6.4 percent of the member's annual compensation |
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for service rendered after August 31, 1985, subject to Subsection |
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(b). |
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(b) The rate of contributions for each member of the |
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retirement system may be increased to not more than 6.6 percent of |
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the member's annual compensation as directed by the General |
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Appropriations Act to ensure the actuarial soundness of the |
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retirement system. An increase made under this subsection applies |
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to annual compensation received for service rendered during the |
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school years that correspond to the fiscal biennium to which the |
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General Appropriations Act requiring the increase applies or a |
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shorter period specified by that Act. An increase may not be |
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required under this subsection to fund a benefit increase described |
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by Section 824.009. |
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SECTION 5. 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 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 6. The heading to Section 825.4041, Government |
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Code, is amended to read as follows: |
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Sec. 825.4041. EMPLOYER PAYMENTS FOR CERTAIN NEW MEMBERS. |
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SECTION 7. Subchapter E, Chapter 825, Government Code, is |
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amended by adding Section 825.4042 to read as follows: |
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Sec. 825.4042. EMPLOYER CONTRIBUTIONS. (a) During each |
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fiscal year, an employer shall contribute to the retirement system |
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an amount specified in the General Appropriations Act, which may |
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not be less than .25 percent or greater than .75 percent of the |
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aggregate annual compensation of contributing members of the |
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retirement system employed by that employer during that fiscal |
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year. |
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(b) An employer shall make the contributions required by |
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this section in 12 monthly payments and as required by the board of |
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trustees. |
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(c) A contribution made under this section is in addition to |
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other employer contributions required by this subchapter. |
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(d) An employer may deduct from the amount of the |
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contribution required under this section the amount of matching |
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contributions that are: |
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(1) made for contributing employees by the employer |
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under the Federal Insurance Contributions Act (26 U.S.C. Chapter |
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21); and |
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(2) paid by the employer from money other than money |
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appropriated by the state. |
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(e) Contributions made by employers under this section do |
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not affect the minimum state contribution required by Section |
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825.404(a). |
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(f) Contributions under this section are subject to the |
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requirements of Section 825.408. |
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SECTION 8. Section 825.406(b), Government Code, is amended |
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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 9. Section 825.407(g), Government Code, is amended |
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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 10. Section 825.4092(e), Government Code, is |
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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 11. Subchapter I, Chapter 21, Education Code, is |
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amended by adding Section 21.4031 to read as follows: |
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Sec. 21.4031. SALARY SUPPLEMENT FOR CERTAIN |
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RETIREMENT-ELIGIBLE CLASSROOM TEACHERS. (a) The amounts specified |
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by this section are in addition to amounts to which a classroom |
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teacher is entitled under Section 21.402. |
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(b) A classroom teacher, other than an employed retiree |
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reported as described by Section 825.4092, Government Code, is |
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entitled to an annual salary supplement equal to: |
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(1) $1,000 for a year in which the sum of the teacher's |
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age and years of service credit in the Teacher Retirement System of |
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Texas equals at least 80 but less than 85; |
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(2) $2,000 for a year in which the sum of the teacher's |
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age and years of service credit in the Teacher Retirement System of |
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Texas equals at least 85 but less than 90; |
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(3) $3,000 for a year in which the sum of the teacher's |
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age and years of service credit in the Teacher Retirement System of |
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Texas equals at least 90 but less than 95; and |
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(4) $4,000 for a year in which the sum of the teacher's |
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age and years of service credit in the Teacher Retirement System of |
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Texas equals at least 95. |
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(c) If a person is entitled to a salary supplement under a |
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provision of Subsection (b) for only part of a year, the amount of |
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the salary supplement shall be prorated accordingly. |
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(d) The Teacher Retirement System of Texas, at the request |
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of the agency, shall provide the agency information and assistance |
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necessary to determine a person's eligibility for a salary |
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supplement under this section. |
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(e) A school district is entitled to state funds in an |
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amount equal to the sum of the salary supplements to which classroom |
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teachers employed by the district are entitled under this section. |
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Funding a school district receives under this section is in |
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addition to any funding the district receives under Chapter 42. The |
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commissioner shall distribute funds under this section with the |
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Foundation School Program payment to which the district is entitled |
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as soon as practicable after the end of the school year as |
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determined by the commissioner. A district to which Chapter 41 |
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applies is entitled to funding under this section. The |
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commissioner shall determine the timing of the distribution of |
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funds to a district that does not receive Foundation School Program |
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payments. |
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SECTION 12. 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 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 13. 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 14. 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 15. Section 21.4031, Education Code, as added by |
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this Act, applies beginning with the 2006-2007 school year. |
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SECTION 16. This Act takes effect September 1, 2007. |