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A BILL TO BE ENTITLED
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AN ACT
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relating to the computation of the standard service retirement |
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annuity for members of the Teacher Retirement System of Texas |
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enrolled in the Texas Public School Employees Group Insurance |
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Program. |
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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), and |
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subject to Section 824.2035, the standard service retirement |
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annuity is an amount computed on the basis of the member's average |
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annual compensation for the five years of service, whether or not |
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consecutive, in which the member received the highest annual |
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compensation, times 2.3 percent for each year of service credit in |
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the retirement system. |
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SECTION 2. Subchapter C, Chapter 824, Government Code, is |
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amended by adding Section 824.2035 to read as follows: |
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Sec. 824.2035. STANDARD SERVICE RETIREMENT BENEFITS: |
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ADJUSTMENT OF PERCENTAGE FACTOR. (a) In this section, "group |
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program" and "health benefit plan" have the meanings assigned by |
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Section 1575.002, Insurance Code. |
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(b) The board of trustees shall: |
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(1) study the out-of-pocket costs paid and projected |
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to be paid by annuitants for health benefit plan coverage provided |
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under the group program, including premiums, deductibles, and |
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prescription drug costs; and |
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(2) based on the board's findings under Subdivision |
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(1) and notwithstanding any other law, by rule adopt a method or |
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formula for increasing the percentage factor used in the |
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computation of the standard service retirement annuity under |
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Section 824.203(a) for annuitants enrolled in the group program in |
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order to mitigate the impact projected out-of-pocket costs have on |
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the annuitants' service retirement annuities. |
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SECTION 3. Not later than December 31, 2018, the board of |
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trustees of the Teacher Retirement System of Texas shall complete |
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the study and adopt the rule required by Section 824.2035, |
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Government Code, as added by this Act. |
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SECTION 4. The changes in law made by this Act apply: |
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(1) to a person who is an annuitant of the Teacher |
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Retirement System of Texas on or after September 1, 2019, |
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regardless of whether the person became an annuitant before, on, or |
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after that date; and |
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(2) beginning with the first annuity payable on or |
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after September 1, 2019. |
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SECTION 5. This Act takes effect December 1, 2017. |