88R2789 BDP-D
 
  By: Allen H.B. No. 775
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to benefits paid by the Teacher Retirement System of
  Texas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter H, Chapter 824, Government Code, is
  amended by adding Sections 824.7015 and 824.703 to read as follows:
         Sec. 824.7015.  ONE-TIME ADJUSTMENT TO BENEFITS.  (a)  
  Notwithstanding Section 824.702, the amount of a monthly service
  retirement benefit, disability retirement benefit, or death
  benefit paid under this chapter is increased to include a one-time
  10 percent adjustment in accordance with this section.
         (b)  The board of trustees shall recompute the amount of a
  benefit paid monthly under this chapter by applying the 10 percent
  adjustment to the monthly amount otherwise required to be paid as
  determined in accordance with the other applicable provisions of
  this chapter and other law.
         Sec. 824.703.  ANNUAL ADJUSTMENT FOR COST OF LIVING.  (a)  
  Notwithstanding Sections 824.7015 and 824.702, the amount of a
  monthly service retirement benefit, disability retirement benefit,
  or death benefit paid under this chapter is increased to include a
  four percent annual cost-of-living adjustment in accordance with
  this section.
         (b)  On January 1 of each year, the board of trustees shall
  recompute the amount of a benefit paid monthly under this chapter by
  applying the four percent adjustment to the monthly amount
  otherwise required to be paid as determined in accordance with the
  other applicable provisions of this chapter.
         SECTION 2.  (a)  The Teacher Retirement System of Texas
  shall make a one-time supplemental payment of a retirement or death
  benefit, as provided by this section.
         (b)  The supplemental payment is payable in January 2024 and,
  to the extent practicable, on a date or dates that coincide with the
  regular annuity payment payable to each eligible annuitant.
         (c)  The amount of the supplemental payment is equal to the
  greater of:
               (1)  $2,000; or
               (2)  the gross amount of the regular annuity payment to
  which the eligible annuitant is otherwise entitled for the month of
  December 2023.
         (d)  The supplemental payment is payable without regard to
  any forfeiture of benefits under Section 824.601, Government Code.
  The Teacher Retirement System of Texas shall make applicable tax
  withholding and other legally required deductions before
  disbursing the supplemental payment. A supplemental payment under
  this section is in addition to and not in lieu of the regular
  monthly annuity payment to which the eligible annuitant is
  otherwise entitled.
         (e)  Subject to Subsection (f) of this section, to be
  eligible for the supplemental payment, a person must be, for the
  month of December 2023, and disregarding any forfeiture of benefits
  under Section 824.601, Government Code, an annuitant eligible to
  receive:
               (1)  a standard retirement annuity payment;
               (2)  an optional retirement annuity payment as either a
  retiree or beneficiary;
               (3)  a life annuity payment under Section
  824.402(a)(4), Government Code;
               (4)  an annuity for a guaranteed period of 60 months
  under Section 824.402(a)(3), Government Code; or
               (5)  an alternate payee annuity payment under Section
  804.005, Government Code.
         (f)  If the annuitant is a retiree or a beneficiary under an
  optional retirement payment plan, to be eligible for the
  supplemental payment, the effective date of the retirement of the
  member of the Teacher Retirement System of Texas must have been
  before September 1, 2022. If the annuitant is a beneficiary under
  Section 824.402(a)(3) or (4), Government Code, to be eligible for
  the supplemental payment, the date of death of the member of the
  retirement system must have been before September 1, 2022. The
  supplemental payment shall be made to an alternate payee who is an
  annuitant under Section 804.005, Government Code, only if the
  annuity payment to the alternate payee commenced before September
  1, 2022. The supplemental payment is in addition to the guaranteed
  number of payments under Section 824.402(a)(3) or 824.204(c)(3) or
  (4), Government Code, and may not be counted as one of the
  guaranteed monthly payments.
         (g)  The supplemental payment does not apply to payments
  under:
               (1)  Section 824.304(a), Government Code, relating to
  disability retirees with less than 10 years of service credit;
               (2)  Section 824.804(b), Government Code, relating to
  participants in the deferred retirement option plan with regard to
  payments from their deferred retirement option plan accounts;
               (3)  Section 824.501(a), Government Code, relating to
  retiree survivor beneficiaries who receive a survivor annuity in an
  amount fixed by statute; or
               (4)  Section 824.404(a), Government Code, relating to
  active member survivor beneficiaries who receive a survivor annuity
  in an amount fixed by statute.
         (h)  Except as provided by this section, the board of
  trustees of the Teacher Retirement System of Texas shall determine
  the eligibility for and the amount and timing of a supplemental
  payment and the manner in which the payment is made.
         (i)  The Teacher Retirement System of Texas shall pay the
  supplemental payment made under this section from the retired
  reserve account and may transfer to that account from the state
  contribution account any portion of the amount that exceeds the
  amount in the retired reserve account available to finance the
  supplemental payment and that is actuarially determined to be
  necessary to finance the supplemental payment. The supplemental
  payment under this section must comply with Section 821.006,
  Government Code.
         SECTION 3.  Sections 824.7015 and 824.703, Government Code,
  as added by this Act, apply only to a monthly benefit payment made
  by the Teacher Retirement System of Texas on or after September 1,
  2023.
         SECTION 4.  This Act takes effect September 1, 2023.