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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 payment of benefits under the |
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Teacher Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) Subject to Subsection (i) of this section |
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and Section 821.006, Government Code, the Teacher Retirement System |
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of Texas shall make a one-time supplemental payment of a retirement |
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or death benefit, as provided by this section. |
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(b) The supplemental payment is payable not later than |
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January 2022 and, to the extent practicable, on a date or dates that |
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coincide with the regular annuity payment payable to each eligible |
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annuitant. |
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(c) The amount of the supplemental payment is equal to the |
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lesser of: |
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(1) the gross amount of the regular annuity payment to |
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which the eligible annuitant is otherwise entitled for the calendar |
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month immediately prior to the calendar month in which the Teacher |
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Retirement System of Texas issues the one-time supplemental payment |
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in accordance with Subsection (b) of this section; or |
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(2) $2,400. |
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(d) The supplemental payment is payable without regard to |
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any forfeiture of benefits under Section 824.601, Government Code. |
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The Teacher Retirement System of Texas shall make applicable tax |
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withholding and other legally required deductions before |
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disbursing the supplemental payment. A supplemental payment under |
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this section is in addition to and not in lieu of the regular |
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monthly annuity payment to which the eligible annuitant is |
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otherwise entitled. |
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(e) Subject to Subsection (f) of this section, to be |
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eligible for the supplemental payment, a person must be, for the |
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calendar month immediately prior to the calendar month in which the |
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Teacher Retirement System of Texas issues the one-time supplemental |
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payment in accordance with Subsection (b) of this section, and |
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disregarding any forfeiture of benefits under Section 824.601, |
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Government Code, an annuitant eligible to receive: |
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(1) a standard retirement annuity payment; |
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(2) an optional retirement annuity payment as either a |
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retiree or beneficiary; |
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(3) a life annuity payment under Section |
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824.402(a)(4), Government Code; |
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(4) an annuity for a guaranteed period of 60 months |
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under Section 824.402(a)(3), Government Code; or |
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(5) an alternate payee annuity payment under Section |
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804.005, Government Code. |
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(f) If the annuitant is a retiree or a beneficiary under an |
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optional retirement payment plan, to be eligible for the |
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supplemental payment, the effective date of the retirement of the |
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member of the Teacher Retirement System of Texas must have been on |
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or before December 31, 2020. If the annuitant is a beneficiary |
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under Section 824.402(a)(3) or (4), Government Code, to be eligible |
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for the supplemental payment, the date of death of the member of the |
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retirement system must have been on or before December 31, 2020. |
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The supplemental payment shall be made to an alternate payee who is |
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an annuitant under Section 804.005, Government Code, only if the |
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annuity payment to the alternate payee commenced on or before |
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December 31, 2020. The supplemental payment is in addition to the |
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guaranteed number of payments under Section 824.204(c)(3) or (4), |
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Section 824.308(c)(3) or (4), or Section 824.402(a)(3), Government |
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Code, and may not be counted as one of the guaranteed monthly |
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payments. |
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(g) The supplemental payment does not apply to payments |
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under: |
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(1) Section 824.304(a), Government Code, relating to |
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disability retirees with less than 10 years of service credit; |
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(2) Section 824.804(b), Government Code, relating to |
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participants in the deferred retirement option plan with regard to |
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payments from their deferred retirement option plan accounts; |
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(3) Section 824.501(a), Government Code, relating to |
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retiree survivor beneficiaries who receive a survivor annuity in an |
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amount fixed by statute; or |
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(4) Section 824.404(a), Government Code, relating to |
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active member survivor beneficiaries who receive a survivor annuity |
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in an amount fixed by statute. |
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(h) The board of trustees of the Teacher Retirement System |
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of Texas shall determine the eligibility for and the amount and |
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timing of a supplemental payment and the manner in which the payment |
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is made. |
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(i) The Teacher Retirement System of Texas is required to |
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make a one-time supplemental payment of benefits under this section |
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only if the board of trustees of the Teacher Retirement System of |
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Texas finds that the legislature appropriated money to the |
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retirement system in an amount sufficient to provide the payment. |
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If the board of trustees of the Teacher Retirement System of Texas |
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finds that the legislature did not appropriate money in an amount |
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sufficient to provide a one-time supplemental payment of benefits |
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under this section, the retirement system shall not make the |
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payment. This amount must be in addition to the amount the state is |
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required to contribute to the Teacher Retirement System of Texas |
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under Section 825.404, Government Code. |
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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 on the 91st day after the last day of the |
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legislative session. |