Amend Floor Amendment No. 1 to CSSB 1458 by striking subdivision (3) (page 5, line 15 through page 7, line 14) that was substituting SECTION 5 of C.S.S.B. 1458, and replace with the following:

(3)  Strike SECTION 5 of the bill, amending Section 825.402, Government Code (page 3, line 39 through page 4, line 19), and substitute the following appropriately numbered SECTION:

SECTION 5.  Section 825.402, Government Code, is amended to read as follows:

Sec. 825.402.  RATE OF MEMBER CONTRIBUTIONS. [(a)] The rate of contributions for each member of the retirement system is:

(1)  five percent of the member's annual compensation or $180, whichever is less, for service rendered after August 31, 1937, and before September 1, 1957;

(2)  six percent of the first $8,400 of the member's annual compensation for service rendered after August 31, 1957, and before September 1, 1969;

(3)  six percent of the member's annual compensation for service rendered after August 31, 1969, and before the first day of the 1977-78 school year;

(4)  6.65 percent of the member's annual compensation for service rendered after the last day of the period described by Subdivision (3) and before September 1, 1985[; and]

(5)  6.4 percent of the member's annual compensation for service rendered after August 31, 1985, and before September 1, 2014;

(B)  a percentage of the member's annual compensation equal to 7.7 percent reduced by one-tenth of one percent for each one-tenth of one percent that the state contribution rate for the fiscal year to which the service relates, is less than the state contribution rate established for the 2015 fiscal year [, subject to Subsection (b)].

[(b)     Subject to Subsection (c), the board of trustees may by order require that the rate of contributions for each member of the retirement system under Subsection (a) is increased to not more than 6.58 percent of the member's annual compensation for service rendered after the date of the order if:

(1)     the legislature by law requires or authorizes the board of trustees to pay a supplemental payment to specified annuitants; and

(2)     the board of trustees finds, as of the time the payment is to be made, that after the payment is made the amortization period for the unfunded actuarial liabilities of the retirement system would exceed 30 years by one or more years.

(c)     Notwithstanding any other law, the board of trustees may not make a supplemental payment required or authorized by the legislature by law, and may not impose an increase in the rate of contributions under Subsection (b), if the board of trustees finds that after making the payment and imposing the increase the amortization period for the unfunded actuarial liabilities of the retirement system would exceed 30 years by one or more years.

(d)     Notwithstanding any other law, the board of trustees may delay making a supplemental payment required or authorized by the legislature by law as necessary to make the determinations required under Subsections (b) and (c).]

WATSON

DAVIS

WEST