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A BILL TO BE ENTITLED
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AN ACT
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relating to the state contributions to the Teacher Retirement |
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System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 825.404, Government Code, is amended by |
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amending Subsections (a) and (a-1) and adding Subsection (a-2) to |
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read as follows: |
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(a) Except as provided by Subsection (a-1) and subject to |
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Subsection (a-2), during each fiscal year, the state shall |
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contribute to the retirement system an amount equal to at least six |
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and not more than 10 percent of the aggregate annual compensation of |
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all members of the retirement system during that fiscal year. |
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(a-1) In computing the amount owed by the state under this |
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section [Subsection (a)], the compensation of members who are |
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employed by public junior colleges or public junior college |
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districts shall be included in the aggregate annual compensation as |
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follows: |
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(1) 50 percent of the eligible creditable compensation |
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of employees who: |
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(A) otherwise are eligible for membership in the |
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retirement system; and |
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(B) are instructional or administrative |
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employees whose salaries may be fully paid from funds appropriated |
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under the General Appropriations Act, regardless of whether such |
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salaries are actually paid from appropriated funds; and |
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(2) none of the eligible creditable compensation of |
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all other employees who: |
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(A) do not meet the requirements of Subdivision |
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(1)(B) but are otherwise eligible for membership in the retirement |
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system; or |
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(B) cannot be included as a qualifying employee |
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under Subdivision (1) by application of Subsection (b-1). |
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(a-2) The state contribution required by Subsection (a) is: |
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(1) for the fiscal year beginning on September 1, |
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2019, seven percent of the aggregate annual compensation of all |
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members of the retirement system during that fiscal year; |
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(2) for the fiscal year beginning on September 1, |
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2020, 7.2 percent of the aggregate annual compensation of all |
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members of the retirement system during that fiscal year; |
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(3) for the fiscal year beginning on September 1, |
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2021, 7.4 percent of the aggregate annual compensation of all |
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members of the retirement system during that fiscal year; |
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(4) for the fiscal year beginning on September 1, |
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2022, 7.6 percent of the aggregate annual compensation of all |
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members of the retirement system during that fiscal year; |
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(5) for the fiscal year beginning on September 1, |
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2023, 7.8 percent of the aggregate annual compensation of all |
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members of the retirement system during that fiscal year; and |
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(6) for the fiscal year beginning on September 1, |
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2024, and each subsequent fiscal year, eight percent of the |
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aggregate annual compensation of all members of the retirement |
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system during that fiscal year. |
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SECTION 2. This Act takes effect September 1, 2019. |