By: Bonnen, Capriglione, Burns, et al. H.J.R. No. 2
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment limiting the contribution
  rate of the members of the Teacher Retirement System of Texas,
  authorizing the legislature to provide cost-of-living adjustments
  or other benefit enhancements to eligible annuitants of the system,
  and providing a one-time transfer of funds for benefit enhancements
  and for contributions and actuarially determined payments to
  eliminate the unfunded actuarial liabilities of the system.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 67(b)(3), Article XVI, Texas
  Constitution, is amended to read as follows:
               (3)  The amount contributed by a person participating
  in the Employees Retirement System of Texas or the Teacher
  Retirement System of Texas shall be established by the legislature
  but may not be less than six percent of current compensation nor for
  a person participating in the Teacher Retirement System of Texas
  more than nine percent of current compensation.  The amount
  contributed by the state may not be less than six percent nor more
  than 10 percent of the aggregate compensation paid to individuals
  participating in the system.  In an emergency, as determined by the
  governor, the legislature may appropriate such additional sums as
  are actuarially determined to be required to fund benefits
  authorized by law.
         SECTION 2.  Article XVI, Texas Constitution, is amended by
  adding Section 67-a to read as follows:
         Sec. 67-a.  (a) Only as authorized by this section, the
  legislature by general law may provide one or more cost-of-living
  adjustments or supplemental payments as benefit enhancements to
  annuitants of the Teacher Retirement System of Texas who are
  eligible for the enhancements, as determined by that law.
         (b)  The legislature may provide a benefit enhancement as
  described by this section and, as necessary, direct the comptroller
  of public accounts to transfer funds to the Teacher Retirement
  System of Texas for the payment of the benefit enhancement only if:
               (1)  the retirement system is actuarially sound, as
  determined by general law; and
               (2)  except as provided by Subsection (c) of this
  section and subject to Subsection (d) of this section, the
  legislature appropriates money in an amount sufficient to fully pay
  for the benefit enhancement, as determined by the board of trustees
  of the retirement system.
         (c)  Subsection (b)(2) of this section does not apply to a
  continuing cost-of-living adjustment that is:
               (1)  authorized by general law; and
               (2)  payable only:
                     (A)  if the return on the investment of the assets
  of the Teacher Retirement System of Texas meets or exceeds a minimum
  threshold prescribed by general law; and
                     (B)  out of the return.
         (d)  In determining the amount that is sufficient to fully
  pay for the benefit enhancement under Subsection (b)(2) of this
  section, the board of trustees of the Teacher Retirement System of
  Texas shall reduce that amount by the amount by which the actuarial
  value of the system's assets exceeds the actuarial accrued
  liability of the system.
         SECTION 3.  The following temporary provision is added to
  the Texas Constitution:
         TEMPORARY PROVISION. (a) This temporary provision applies
  to the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, authorizing the legislature to provide
  cost-of-living adjustments or other benefit enhancements to
  eligible annuitants of the Teacher Retirement System of Texas and
  providing a one-time transfer of funds for contributions,
  actuarially determined payments, and benefit enhancements.
         (b)  As soon as practicable after the effective date of the
  amendment to which this temporary provision applies, the
  comptroller of public accounts shall transfer $1.9 billion from the
  general revenue fund to the trust fund of the Teacher Retirement
  System of Texas. Money transferred to the trust fund under this
  temporary provision may be spent by the system only for the purposes
  of providing contributions, actuarially determined payments, and
  benefit enhancements to the system's annuitants, as provided by
  general law. The transfer made under this temporary provision is
  not an appropriation of state tax revenues for the purposes of
  Section 22, Article VIII, of this constitution.
         (c)  This temporary provision expires January 1, 2056.
         SECTION 4.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 7, 2023.
  The ballot shall be printed to permit voting for or against the
  proposition: "The constitutional amendment authorizing the
  legislature to provide cost-of-living adjustments or other benefit
  enhancements to eligible annuitants of the Teacher Retirement
  System of Texas and providing a one-time transfer of $1.9 billion to
  the retirement system for benefit enhancements and for
  contributions and actuarially determined payments to eliminate the
  unfunded accrued actuarial liabilities of the retirement system."