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A BILL TO BE ENTITLED
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AN ACT
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relating to a cost-of-living adjustment applicable to certain |
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benefits paid by the Teacher Retirement System of Texas, including |
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a related study. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 824, Government Code, is |
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amended by adding Section 824.703 to read as follows: |
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Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT. (a) |
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Notwithstanding Section 824.702 and subject to Section 821.006, the |
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retirement system shall make a one-time cost-of-living adjustment |
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payable to annuitants receiving a monthly death or retirement |
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benefit annuity, as provided by this section. |
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(b) Subject to Subsections (c) and (d), to be eligible for |
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the adjustment, a person must be, on the effective date of the |
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adjustment and disregarding any forfeiture of benefits under |
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Section 824.601, an annuitant eligible to receive: |
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(1) a standard service or disability retirement |
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annuity payment; |
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(2) an optional service or disability retirement |
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annuity payment as either a retiree or beneficiary; |
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(3) an annuity payment under Section 824.402(a)(3) or |
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(4); |
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(4) an annuity payment under Section 824.502; or |
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(5) an alternate payee annuity payment under Section |
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804.005. |
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(c) If the annuitant: |
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(1) is a retiree or is a beneficiary under an optional |
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retirement payment plan, to be eligible for the adjustment under |
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this section: |
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(A) the annuitant must be living on the effective |
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date of the adjustment; and |
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(B) the effective date of the retirement of the |
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member of the retirement system must have been after August 31, |
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2004, and on or before August 31, 2015; |
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(2) is a beneficiary under Section 824.402(a)(3) or |
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(4) or 824.502, to be eligible for the adjustment: |
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(A) the annuitant must be living on the effective |
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date of the adjustment; and |
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(B) the date of death of the member of the |
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retirement system must have been after August 31, 2004, and on or |
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before August 31, 2015; or |
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(3) is an alternate payee under Section 804.005, the |
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annuitant is eligible for the adjustment only if the effective date |
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of the election to receive the annuity payment was after August 31, |
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2004, and on or before August 31, 2015. |
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(d) An adjustment made under this section does not apply to |
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payments under: |
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(1) Section 824.203(d), relating to retirees who |
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receive a standard service retirement annuity in an amount fixed by |
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statute; |
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(2) Section 824.304(a), relating to disability |
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retirees with less than 10 years of service credit; |
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(3) Section 824.304(b)(2), relating to disability |
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retirees who receive a disability annuity in an amount fixed by |
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statute; |
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(4) Section 824.404(a), relating to active member |
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survivor beneficiaries who receive a survivor annuity in an amount |
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fixed by statute; |
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(5) Section 824.501(a), relating to retiree survivor |
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beneficiaries who receive a survivor annuity in an amount fixed by |
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statute; or |
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(6) Section 824.804(b), relating to participants in |
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the deferred retirement option plan with regard to payments from |
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their deferred retirement option plan accounts. |
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(e) An adjustment under this section: |
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(1) must be made as soon as practicable after the board |
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of trustees finds that payment of the adjustment would not violate |
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Section 821.006; and |
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(2) is limited to the lesser of: |
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(A) an amount equal to three percent of the |
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monthly benefit subject to the increase; or |
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(B) $100 a month. |
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(f) The board of trustees shall determine the eligibility |
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for and the amount of any adjustment in monthly annuities in |
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accordance with this section. |
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SECTION 2. (a) Using existing resources, the Teacher |
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Retirement System of Texas shall conduct a study on the possibility |
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of providing future cost-of-living adjustments payable to an |
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annuitant receiving a monthly death or retirement annuity, |
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including projections on future cost-of-living adjustments, a |
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review of structural changes affecting cost-of-living adjustments, |
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and the feasibility of offering an alternative annuity payment |
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option to retirees under which the standard service retirement |
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annuity provided under Subchapter C, Chapter 824, Government Code, |
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is payable on a graduated scale with annuity payments increasing on |
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an annual basis. In conducting a study under this section, the |
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retirement system shall only consider alternative annuity payment |
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options that are projected by the retirement system's actuary to |
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have no fiscal impact to the state. |
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(b) Not later than September 1, 2022, the Teacher Retirement |
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System of Texas shall submit to the legislature a written report on |
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the results of the study and any recommendations for legislative or |
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other action. |
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(c) This section expires September 1, 2023. |
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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 September 1, 2021. |