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A BILL TO BE ENTITLED
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AN ACT
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relating to the service retirement eligibility and benefits of and |
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contributions to the Employees 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. Section 814.104, Government Code, is amended by |
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amending Subsections (a) and (d) and adding Subsection (d-1) to |
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read as follows: |
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(a) Except as provided by Subsections (d), (d-1), and (e) of |
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this section, Section 814.102, or by rule adopted under Section |
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813.304(d) or 803.202(a)(2), a member who has service credit in the |
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retirement system is eligible to retire and receive a service |
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retirement annuity if the member: |
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(1) is at least 60 years old and has at least 5 years of |
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service credit in the employee class; or |
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(2) has at least 5 years of service credit in the |
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employee class and the sum of the member's age and amount of service |
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credit in the employee class, including months of age and credit, |
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equals or exceeds the number 80. |
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(d) Except as provided by Subsection (e) of this section, |
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Section 814.102, or by rule adopted under Section 813.304(d) or |
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803.202(a)(2), a member who was not a member on the date hired, was |
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hired on or after September 1, 2009, and before September 1, 2021, |
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and has service credit in the retirement system is eligible to |
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retire and receive a service retirement annuity if the member: |
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(1) is at least 65 years old and has at least 10 years |
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of service credit in the employee class; or |
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(2) has at least 10 years of service credit in the |
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employee class and the sum of the member's age and amount of service |
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credit in the employee class, including months of age and credit, |
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equals or exceeds the number 80. |
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(d-1) Except as provided by Subsection (e) of this section, |
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Section 814.102, or by rule adopted under Section 813.304(d) or |
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803.202(a)(2), a member who was not a member on the date hired, was |
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hired on or after September 1, 2021, and has service credit in the |
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retirement system is eligible to retire and receive a service |
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retirement annuity if the member: |
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(1) is at least 62 years old and has at least 7 years of |
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service credit in the employee class; or |
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(2) has at least 7 years of service credit in the |
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employee class and the sum of the member's age and amount of service |
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credit in the employee class, including months of age and credit, |
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equals or exceeds the number 80. |
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SECTION 2. Sections 814.105(a) and (d), Government Code, |
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are amended to read as follows: |
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(a) The standard service retirement annuity for service |
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credited in the employee class of membership is an amount computed |
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as the member's average monthly compensation for service in that |
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class for the 72 [60] highest months of compensation multiplied by |
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2.1 [2.3] percent for each year of service credit in that class. |
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(d) The standard service retirement annuity computed under |
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this section is reduced by five percent for each year the member |
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retires before the member reaches age 64 [62]. |
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SECTION 3. Section 815.402(a), Government Code, is amended |
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to read as follows: |
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(a) Except as provided by Section 813.201, each payroll |
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period, each department or agency of the state shall cause to be |
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deducted from each member's compensation a contribution of: |
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(1) 9.5 percent of the compensation if the member is |
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not a member of the legislature, for service rendered after August |
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31, 2015, and before September 1, 2017; |
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(2) for service by a member who is not a member of the |
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legislature rendered on or after September 1, 2017, and before |
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September 1, 2021, 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 2017 |
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fiscal year; [or] |
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(3) for service by a member who is not a member of the |
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legislature rendered on or after September 1, 2021, the lesser of: |
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(A) 10.5 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 10.5 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 2021 |
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fiscal year; or |
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(4) 10.5 [9.5] percent of the compensation if the |
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member is a member of the legislature. |
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SECTION 4. Section 815.4035(a), Government Code, is amended |
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to read as follows: |
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(a) Except as provided by Section 813.201, the board of |
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trustees shall assess each employer whose employees are members of |
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the retirement system a state retirement contribution in an amount |
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equal to one [0.5] percent of the employer's total payroll, as |
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determined by the General Appropriations Act. |
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SECTION 5. The changes in law made by this Act to Section |
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814.105, Government Code, apply only to a person who is hired on or |
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after September 1, 2021, to work in a position that requires |
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membership in the Employees Retirement System of Texas. A person |
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hired before September 1, 2021, to work in a position that requires |
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membership in the Employees Retirement System of Texas is subject |
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to the law as it existed immediately before that date, and the |
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former law is continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2021. |