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A BILL TO BE ENTITLED
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AN ACT
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relating to a one-time supplemental annuity payment to certain |
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retirees and beneficiaries of the Teacher Retirement System of |
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Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 824, Government Code, is |
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amended by adding Section 824.010 to read as follows: |
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Sec. 824.010. SUPPLEMENTAL PAYMENT. (a) Notwithstanding |
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Section 821.006, the retirement system may make a one-time |
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supplemental payment as provided by this section to an annuitant |
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eligible to receive a monthly retirement, disability, or death |
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benefit annuity under this subchapter. A supplemental payment made |
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under this section: |
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(1) is in addition to the regular monthly annuity |
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payment; and |
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(2) must be made using earnings the system makes on |
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investments as provided by this section. |
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(b) The retirement system shall pay the supplemental |
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payment in January following the fiscal year in which the actual |
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rate of return on the investment of the system's cash and securities |
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exceeds the assumed rate of return used in the actuarial valuation |
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prepared by the system for that fiscal year. |
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(c) The retirement system shall determine the aggregate |
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supplemental payment amount available for making supplemental |
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payments under this section by: |
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(1) requiring the system's actuary to determine the |
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value of the system's investment returns that represent the amount |
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by which the actual rate of return exceeds the assumed rate of |
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return under Subsection (d); and |
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(2) multiplying that value by 50 percent. |
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(d) The board of trustees shall, based on the aggregate |
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supplemental payment amount, determine: |
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(1) who is eligible to receive the supplemental |
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payment based on years of service, effective date of retirement or |
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death, as applicable, and other reasonable criteria; |
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(2) the amount of each annuitant's supplemental |
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payment; and |
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(3) the manner in which the payment is made. |
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(e) This section expires on the second anniversary of the |
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date on which the supplemental payment authorized under this |
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section is made. |
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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, 2019. |