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A BILL TO BE ENTITLED
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AN ACT
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relating to the contributions to 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. Section 825.402, Government Code, is amended to |
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read as follows: |
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Sec. 825.402. RATE OF MEMBER CONTRIBUTIONS. The rate of |
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contributions for each member of the retirement system is: |
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(1) five percent of the member's annual compensation |
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or $180, whichever is less, for service rendered after August 31, |
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1937, and before September 1, 1957; |
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(2) six percent of the first $8,400 of the member's |
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annual compensation for service rendered after August 31, 1957, and |
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before September 1, 1969; |
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(3) six percent of the member's annual compensation |
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for service rendered after August 31, 1969, and before the first day |
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of the 1977-78 school year; |
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(4) 6.65 percent of the member's annual compensation |
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for service rendered after the last day of the period described by |
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Subdivision (3) and before September 1, 1985; |
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(5) 6.4 percent of the member's annual compensation |
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for service rendered after August 31, 1985, and before September 1, |
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2014; |
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(6) 6.7 percent of the member's annual compensation |
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for service rendered after August 31, 2014, and before September 1, |
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2015; |
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(7) 7.2 percent of the member's annual compensation |
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for service rendered after August 31, 2015, and before September 1, |
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2016; |
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(8) 7.7 percent of the member's annual compensation |
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for service rendered after August 31, 2016, and before September 1, |
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2017; [and] |
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(9) for compensation paid [service rendered] on or |
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after September 1, 2017, and before September 1, 2019, the lesser |
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of: |
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(A) 7.7 percent of the member's annual |
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compensation; or |
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(B) a percentage of the member's annual |
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compensation equal to 7.7 percent reduced by one-tenth of one |
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percent for each one-tenth of one percent that the state |
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contribution rate for the fiscal year to which the service relates |
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is less than the state contribution rate established for the 2015 |
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fiscal year; |
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(10) for compensation paid on or after September 1, |
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2019, and before September 1, 2020, the lesser of: |
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(A) 8.25 percent of the member's annual |
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compensation; or |
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(B) a percentage of the member's annual |
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compensation equal to 8.25 percent reduced by one-tenth of one |
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percent for each one-tenth of one percent that the state |
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contribution rate for the fiscal year to which the service relates |
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is less than the state contribution rate established for the 2015 |
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fiscal year; |
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(11) for compensation paid on or after September 1, |
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2020, and before September 1, 2021, the lesser of: |
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(A) 8.5 percent of the member's annual |
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compensation; or |
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(B) a percentage of the member's annual |
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compensation equal to 8.5 percent reduced by one-tenth of one |
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percent for each one-tenth of one percent that the state |
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contribution rate for the fiscal year to which the service relates |
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is less than the state contribution rate established for the 2015 |
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fiscal year; |
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(12) for compensation paid on or after September 1, |
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2021, and before September 1, 2022, the lesser of: |
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(A) 8.75 percent of the member's annual |
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compensation; or |
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(B) a percentage of the member's annual |
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compensation equal to 8.75 percent reduced by one-tenth of one |
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percent for each one-tenth of one percent that the state |
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contribution rate for the fiscal year to which the service relates |
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is less than the state contribution rate established for the 2015 |
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fiscal year; |
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(13) for compensation paid on or after September 1, |
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2022, and before September 1, 2023, the lesser of: |
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(A) nine percent of the member's annual |
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compensation; or |
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(B) a percentage of the member's annual |
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compensation equal to nine percent reduced by one-tenth of one |
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percent for each one-tenth of one percent that the state |
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contribution rate for the fiscal year to which the service relates |
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is less than the state contribution rate established for the 2015 |
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fiscal year; |
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(14) for compensation paid on or after September 1, |
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2023, and before September 1, 2024, the lesser of: |
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(A) 9.25 percent of the member's annual |
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compensation; or |
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(B) a percentage of the member's annual |
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compensation equal to 9.25 percent reduced by one-tenth of one |
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percent for each one-tenth of one percent that the state |
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contribution rate for the fiscal year to which the service relates |
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is less than the state contribution rate established for the 2015 |
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fiscal year; and |
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(15) for compensation paid on or after September 1, |
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2024, the lesser of: |
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(A) 9.5 percent of the member's annual |
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compensation; or |
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(B) a percentage of the member's annual |
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compensation equal to 9.5 percent reduced by one-tenth of one |
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percent for each one-tenth of one percent that the state |
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contribution rate for the fiscal year to which the service relates |
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is less than the state contribution rate established for the 2015 |
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fiscal year. |
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SECTION 2. Subchapter E, Chapter 825, Government Code, is |
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amended by adding Section 825.4021 to read as follows: |
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(a) All members of the retirement system excluding |
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full-time classroom teachers shall receive successive permanent |
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raises according to the following schedule: |
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(1) 0.55 percent of annual compensation paid on or |
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after September 1, 2019; |
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(2) 0.25 percent of annual compensation paid on or |
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after September 1, 2020; |
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(3) 0.25 percent of annual compensation paid on or |
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after September 1, 2021; |
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(4) 0.25 percent of annual compensation paid on or |
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after September 1, 2022; |
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(5) 0.25 percent of annual compensation paid on or |
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after September 1, 2023; and |
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(6) 0.25 percent of annual compensation paid on or |
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after September 1, 2024. |
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(b) The raises described in Subsection (a) are not |
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considered in determining whether the employer is paying the member |
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the applicable minimum monthly salary as set forth in the Education |
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Code, if any. |
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(c) The state shall increase its annual aid to each employer |
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in an amount sufficient to fund the raises described in Subsection |
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(a). |
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SECTION 3. Section 825.4035, Government Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) The 1.5 percent rate of contribution contained in this |
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section shall increase as follows: |
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(1) beginning with the report month for September |
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2020, the contribution rate shall increase to 1.6 percent; |
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(2) beginning with the report month for September |
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2021, the contribution rate shall increase to 1.7 percent; |
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(3) beginning with the report month for September |
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2022, the contribution rate shall increase to 1.8 percent; |
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(4) beginning with the report month for September |
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2023, the contribution rate shall increase to 1.9 percent; and |
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(5) beginning with the report month for September |
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2024, the contribution rate shall increase to two percent. |
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SECTION 4. Section 825.404(a), Government Code, is amended |
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to read as follows: |
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(a) Except as provided by Subsection (a-1), during each |
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fiscal year, the state shall contribute to the retirement system an |
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amount equal to at least six and not more than 10 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 according to Subsection (f). |
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SECTION 5. Section 825.404, Government Code, is amended by |
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adding Subsection (f) to read as follows: |
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(f) The state will make contributions to the retirement |
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system according to the following rates: |
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(1) seven percent beginning on September 1, 2019; |
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(2) 7.2 percent beginning on September 1, 2020; |
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(3) 7.4 percent beginning on September 1, 2021; |
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(4) 7.6 percent beginning on September 1, 2022; |
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(5) 7.8 percent beginning on September 1, 2023; and |
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(6) eight percent beginning on September 1, 2024. |
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SECTION 6. This Act takes effect September 1, 2019. |