Honorable Joan Huffman, Chair, Senate Committee on State Affairs
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB1663 by Huffman (Relating to contributions to, benefits from, late fees imposed by, and the administration of systems and programs administered by the Teacher Retirement System of Texas.), Committee Report 1st House, Substituted
The bill would amend the Insurance Code and various sections of the Government Code to make clarifications and updates to the Teacher Retirement System of Texas (TRS) statute. The bill would clarify that certain student employment is not eligible for TRS service credit. The bill would also make administrative changes, which include the protection of key employees' personal information from public disclosure and prohibiting TRS employees from receiving "double" benefits while working outside the country.
The bill would provide that a retiree working during the first 12 months following retirement as an independent contractor, volunteer, or who waives compensation is considered an employee of the public school or higher education employer. The bill would also allow the TRS board to go into executive session to discuss particular investment strategies; would allow TRS to charge late fees not to exceed $1,000 for each business day and $25,000 per reporting period if employer reports are filed after statutory deadlines; and would allow TRS to send information to members electronically. The bill would remove the auxiliary personnel positions from the TRS Retiree Advisory Committee and remove the prohibition on members who do not complete a purchase of service credit using an installment payment method from using the method for the next three years.
This bill would take effect September 1, 2017, except for Section 825.212, Government Code, which would take effect immediately if received a two-thirds vote of all members elected to each chamber of the legislature. If the Act does not receive the vote necessary for immediate effect, Section 825.212 would take effect September 1, 2017.
The bill, if enacted, would not have a significant actuarial effect because it does not propose to change the funding or obligations of any public retirement system.