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A BILL TO BE ENTITLED
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AN ACT
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relating to certain benefits paid by the Teacher Retirement System |
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of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) Subchapter H, Chapter 824, Government Code, |
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is amended by adding Section 824.703 to read as follows: |
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Sec. 824.703. COST-OF-LIVING ADJUSTMENTS FOR INFLATION; |
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ANNUAL DETERMINATION. (a) Notwithstanding any other law, the |
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amount of a service retirement benefit, disability retirement |
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benefit, or death benefit paid under this chapter is adjusted in |
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accordance with this section as necessary to reflect inflation. |
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(b) Each year, during the last seven days of October, the |
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board of trustees shall set the rate of the adjustment for the next |
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calendar year to equal the annual percentage increase, if any, in |
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the Consumer Price Index for Urban Wage Earners and Clerical |
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Workers (CPI-W) published by the Bureau of Labor Statistics of the |
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United States Department of Labor as determined by the commissioner |
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of social security under 42 U.S.C. Section 415(i) for purposes of |
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providing an annual cost-of-living increase to social security |
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benefit payments payable in the next calendar year. |
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(c) Subject to Subsection (d), the board of trustees shall |
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increase the amount of a benefit payable under this chapter by |
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applying the adjustment rate set by the board of trustees under |
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Subsection (b) to the amount otherwise required to be paid as |
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determined in accordance with the other applicable provisions of |
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this chapter. |
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(d) The board of trustees may not pay a benefit increase |
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under this section in any calendar year unless the board finds that |
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the retirement system is actuarially sound and has money available |
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to pay increased benefits in that year. If the board of trustees |
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finds that the retirement system is actuarially sound, but that the |
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amount of money available is not sufficient to pay the full amount |
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of the adjustment under Subsection (b), the board shall compute the |
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largest rate of adjustment possible for the amount of money |
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available while maintaining the actuarial soundness of the system |
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and shall use that rate in increasing benefits under Subsection (c) |
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for that calendar year. |
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(b) This section applies only to a benefit paid by the |
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Teacher Retirement System of Texas on or after January 1, 2023. |
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SECTION 2. (a) Subject to Section 821.006, Government |
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Code, the Teacher Retirement System of Texas shall make a one-time |
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supplemental payment of a retirement or death benefit, as provided |
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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 July 31, 2021. If the annuitant is a beneficiary under |
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Section 824.402(a)(3) or (4), Government Code, to be eligible for |
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the supplemental payment, the date of death of the member of the |
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retirement system must have been on or before July 31, 2021. The |
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supplemental payment shall be made to an alternate payee who is an |
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annuitant under Section 804.005, Government Code, only if the |
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annuity payment to the alternate payee commenced on or before July |
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31, 2021. The supplemental payment is in addition to the guaranteed |
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number of payments under Section 824.204(c)(3) or (4), Section |
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824.308(c)(3) or (4), or Section 824.402(a)(3), Government Code, |
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and may not be counted as one of the guaranteed monthly 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) Except as provided by this section, the board of |
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trustees of the Teacher Retirement System of Texas shall determine |
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the eligibility for and the amount and timing of a supplemental |
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payment and the manner in which the payment is made. |
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SECTION 3. 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. |