| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to a cost-of-living adjustment applicable to certain |
|
|
benefits paid by the Teacher Retirement System of Texas, including |
|
|
a related study. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter H, Chapter 824, Government Code, is |
|
|
amended by adding Section 824.703 to read as follows: |
|
|
Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT. (a) |
|
|
Notwithstanding Section 824.702 and subject to Section 821.006, the |
|
|
retirement system shall make a one-time cost-of-living adjustment |
|
|
payable to annuitants receiving a monthly death or retirement |
|
|
benefit annuity, as provided by this section. |
|
|
(b) Subject to Subsections (c) and (d), to be eligible for |
|
|
the adjustment, a person must be, on the effective date of the |
|
|
adjustment and disregarding any forfeiture of benefits under |
|
|
Section 824.601, an annuitant eligible to receive: |
|
|
(1) a standard service or disability retirement |
|
|
annuity payment; |
|
|
(2) an optional service or disability retirement |
|
|
annuity payment as either a retiree or beneficiary; |
|
|
(3) an annuity payment under Section 824.402(a)(3) or |
|
|
(4); |
|
|
(4) an annuity payment under Section 824.502; or |
|
|
(5) an alternate payee annuity payment under Section |
|
|
804.005. |
|
|
(c) If the annuitant: |
|
|
(1) is a retiree or is a beneficiary under an optional |
|
|
retirement payment plan, to be eligible for the adjustment under |
|
|
this section: |
|
|
(A) the annuitant must be living on the effective |
|
|
date of the adjustment; and |
|
|
(B) the effective date of the retirement of the |
|
|
member of the retirement system must have been after August 31, |
|
|
2004, and on or before August 31, 2015; |
|
|
(2) is a beneficiary under Section 824.402(a)(3) or |
|
|
(4) or 824.502, to be eligible for the adjustment: |
|
|
(A) the annuitant must be living on the effective |
|
|
date of the adjustment; and |
|
|
(B) the date of death of the member of the |
|
|
retirement system must have been after August 31, 2004, and on or |
|
|
before August 31, 2015; or |
|
|
(3) is an alternate payee under Section 804.005, the |
|
|
annuitant is eligible for the adjustment only if the effective date |
|
|
of the election to receive the annuity payment was after August 31, |
|
|
2004, and on or before August 31, 2015. |
|
|
(d) An adjustment made under this section does not apply to |
|
|
payments under: |
|
|
(1) Section 824.203(d), relating to retirees who |
|
|
receive a standard service retirement annuity in an amount fixed by |
|
|
statute; |
|
|
(2) Section 824.304(a), relating to disability |
|
|
retirees with less than 10 years of service credit; |
|
|
(3) Section 824.304(b)(2), relating to disability |
|
|
retirees who receive a disability annuity in an amount fixed by |
|
|
statute; |
|
|
(4) Section 824.404(a), relating to active member |
|
|
survivor beneficiaries who receive a survivor annuity in an amount |
|
|
fixed by statute; |
|
|
(5) Section 824.501(a), relating to retiree survivor |
|
|
beneficiaries who receive a survivor annuity in an amount fixed by |
|
|
statute; or |
|
|
(6) Section 824.804(b), relating to participants in |
|
|
the deferred retirement option plan with regard to payments from |
|
|
their deferred retirement option plan accounts. |
|
|
(e) An adjustment under this section: |
|
|
(1) must be made as soon as practicable after the board |
|
|
of trustees finds that payment of the adjustment would not violate |
|
|
Section 821.006; and |
|
|
(2) is limited to the lesser of: |
|
|
(A) an amount equal to three percent of the |
|
|
monthly benefit subject to the increase; or |
|
|
(B) $100 a month. |
|
|
(f) The board of trustees shall determine the eligibility |
|
|
for and the amount of any adjustment in monthly annuities in |
|
|
accordance with this section. |
|
|
SECTION 2. (a) Using existing resources, the Teacher |
|
|
Retirement System of Texas shall conduct a study on the possibility |
|
|
of providing future cost-of-living adjustments payable to an |
|
|
annuitant receiving a monthly death or retirement annuity, |
|
|
including projections on future cost-of-living adjustments, a |
|
|
review of structural changes affecting cost-of-living adjustments, |
|
|
and the feasibility of offering an alternative annuity payment |
|
|
option to retirees under which the standard service retirement |
|
|
annuity provided under Subchapter C, Chapter 824, Government Code, |
|
|
is payable on a graduated scale with annuity payments increasing on |
|
|
an annual basis. In conducting a study under this section, the |
|
|
retirement system shall only consider alternative annuity payment |
|
|
options that are projected by the retirement system's actuary to |
|
|
have no fiscal impact to the state. |
|
|
(b) Not later than September 1, 2022, the Teacher Retirement |
|
|
System of Texas shall submit to the legislature a written report on |
|
|
the results of the study and any recommendations for legislative or |
|
|
other action. |
|
|
(c) This section expires September 1, 2023. |
|
|
SECTION 3. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect on the 91st day after the last day of the |
|
|
legislative session. |