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A BILL TO BE ENTITLED
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AN ACT
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relating to the state contribution to and certain annuities under |
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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 824.203(a), Government Code, is amended |
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to read as follows: |
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(a) Except as provided by Subsections (c) and (d), the |
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standard service retirement annuity is an amount computed on the |
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basis of the member's average annual compensation for the three |
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[five] years of service, whether or not consecutive, in which the |
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member received the highest annual compensation, times 2.3 percent |
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for each year of service credit in the retirement system. |
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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 |
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amount of the state contribution made under this section may not be |
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less than the amount contributed by members during that fiscal year |
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in accordance with Section 825.402. The state may contribute a |
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higher amount specified in the General Appropriations Act but may |
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not contribute more than 10 percent of the aggregate annual |
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compensation of all members of the retirement system during that |
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fiscal year. |
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SECTION 3. (a) Notwithstanding Sections 824.203(a) and |
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(b), Government Code, and subject to Section 821.006, Government |
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Code, the board of trustees of the Teacher Retirement System of |
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Texas shall recompute the amount of a standard service retirement |
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annuity under Chapter 824, Government Code, by applying a one-time |
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four percent increase to the monthly amount otherwise required to |
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be paid as determined in accordance with Chapter 824, Government |
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Code, including the amount of any previous increase made under |
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other law. |
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(b) An increase under Subsection (a) of this section is |
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payable beginning on September 1, 2011. |
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(c) An increase under Subsection (a) of this section is |
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payable without regard to any forfeiture of benefits under Section |
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824.601, Government Code. |
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(d) To be eligible for an increase under Subsection (a) of |
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this section, a person must be, for the month of August 2011, and |
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disregarding any forfeiture of benefits under Section 824.601, |
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Government Code, an annuitant eligible to receive: |
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(1) a standard retirement annuity payment; or |
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(2) an optional retirement annuity payment as either a |
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retiree or beneficiary. |
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(e) 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 an increase under Subsection (a) of this |
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section. |
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SECTION 4. Section 824.203(a), Government Code, as amended |
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by this Act, applies only to a person who retires from the Teacher |
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Retirement System of Texas on or after the effective date of this |
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Act. A person who retires from the Teacher Retirement System of |
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Texas before the effective date of this Act is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 5. 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, 2011. |
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SECTION 6. This Act takes effect September 1, 2011. |