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A BILL TO BE ENTITLED
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AN ACT
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relating to optional annuity increases for certain retirees and |
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beneficiaries of the Texas Municipal Retirement System. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (c), Section 853.404, Government |
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Code, is amended to read as follows: |
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(c) The governing body of a participating municipality that |
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adopts an ordinance under Section 854.203 providing for increased |
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annuities effective January 1 of a designated year may further |
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provide in the ordinance that increases in annuities will be |
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credited effective January 1 of each year following the designated |
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year based on recomputations made as provided by Section 854.203(b) |
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[854.203(b)(1)] for each year following the initial computation, |
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and using the fraction specified in the ordinance as required under |
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Section 854.203(b) [854.203(b)(2)] in the recomputations. |
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SECTION 2. Section 854.203, Government Code, is amended by |
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amending Subsections (b) and (f) and adding Subsection (b-1) to |
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read as follows: |
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(b) The amount of annuity increase under this section is |
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computed by one of the following methods: |
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(1) as the sum of the prior and current service |
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annuities on the effective date of retirement of the person on whose |
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service the annuities are based, multiplied by: |
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(A) [(1)] the percentage change in the Consumer |
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Price Index for All Urban Consumers, published by the Bureau of |
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Labor Statistics of the United States Department of Labor, from |
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December of the year immediately preceding the effective date of |
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the person's retirement to the December that is 13 months before the |
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effective date of the ordinance providing the increase; and |
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(B) [(2)] 30 percent, 50 percent, or 70 percent, |
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as specified by the governing body in the ordinance, except that if |
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the governing body has specified a different percentage in an |
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ordinance adopted under Section 853.404(c) and in effect on |
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December 31, 1999, the percentage used in computing annuity |
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increases for retirees of that municipality remains in effect until |
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changed or discontinued under Section 853.404; or |
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(2) as the sum of the prior and current service |
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annuities on the effective date of retirement of the person on whose |
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service the annuities are based, plus any previously granted |
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annuity increases under this subsection, multiplied by: |
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(A) the percentage change in the Consumer Price |
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Index for All Urban Consumers, published by the Bureau of Labor |
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Statistics of the United States Department of Labor, for the |
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12-month period, from December to December, ending in the December |
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that is 13 months before the effective date of the ordinance |
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providing for the increase; and |
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(B) 30 percent, 50 percent, or 70 percent, as |
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specified by the governing body in the ordinance. |
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(b-1) An annuity is not eligible to have an increase |
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computed under the method described by Subsection (b)(2) if the |
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person on whose service the annuity is based retired after the |
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December that is 13 months before the effective date of the annuity |
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increase. |
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(f) An increase granted to an annuitant under Subsection |
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(b)(2), or the [The] amount by which an increase under Subsection |
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(b)(1) [this section] exceeds all previously granted increases to |
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an annuitant is payable as a prior service annuity, is an obligation |
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of the municipality's account in the municipality accumulation |
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fund, and is subject to reduction under Section 855.308(f). |
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SECTION 3. 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, 2009. |
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