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A BILL TO BE ENTITLED
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AN ACT
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relating to a moratorium on increases paid to certain employees of |
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and investment managers for 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. Subchapter D, Chapter 825, Government Code, is |
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amended by adding Section 825.3013 to read as follows: |
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Sec. 825.3013. MORATORIUM ON CERTAIN COMPENSATION |
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INCREASES AND BONUSES. (a) This section applies only to a person |
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who is the executive director of the retirement system, the chief |
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investment officer of the retirement system, an investment manager |
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in the investment management division of the retirement system, or |
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a private professional investment manager to whom the retirement |
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system has delegated or may delegate authority under Section |
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825.301 to invest and manage assets of the retirement system. |
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(b) Notwithstanding a compensation provision for retirement |
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system employees to the contrary, the retirement system may not |
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provide a salary increase or bonus of any type to an employee of the |
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retirement system described by Subsection (a). |
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(c) The retirement system may not renew or enter into a |
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contract with a private professional investment manager if the |
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contract provides for a bonus or other pay increase based on the |
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performance of the investments managed by that person. |
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(d) Before this section expires under Subsection (e), the |
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retirement system must produce a written report on the amount of the |
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cost of living adjustment and the date of the first annuity payments |
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that include the adjustment. The report shall be submitted to the |
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governor, the lieutenant governor, the speaker of the house of |
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representatives, and the standing legislative committees with |
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primary jurisdiction over public pension systems. |
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(e) This section expires on the 30th day after the date the |
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retirement system provides a cost of living adjustment for benefits |
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paid under Chapter 824. |
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SECTION 2. 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, 2013. |