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A BILL TO BE ENTITLED
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AN ACT
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relating to certain benefits paid by the Teacher Retirement System |
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of Texas. |
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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. COST-OF-LIVING ADJUSTMENT: SEPTEMBER 2023. |
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(a) The retirement system shall make an additional one-time |
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cost-of-living adjustment payable to annuitants receiving a |
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monthly death or retirement benefit annuity, as provided by this |
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section. |
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(b) Subject to Subsection (c) and except as provided by |
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Subsection (d), to be eligible for the adjustment, a person must be, |
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on the effective date of the adjustment and disregarding any |
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forfeiture of benefits under Section 824.601, an annuitant eligible |
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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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service or disability retirement payment plan, to be eligible for |
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the adjustment under 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 on whose service the annuity is |
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based must have been on or before December 31, 2021; |
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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 on whose service the annuity is based must have |
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been on or before December 31, 2021; 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 on or before |
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December 31, 2021. |
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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 must be made beginning |
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with an annuity payable for the month of September 2023. |
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(f) The amount of the adjustment provided under this section |
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is calculated by multiplying the amount of the monthly benefit |
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subject to the adjustment by the following percentage rate, as |
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applicable: |
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(1) for annuitants described by Subsection (c)(1): |
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(A) if the retiree's effective date of retirement |
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was before September 1, 2013, four percent; and |
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(B) if the retiree's effective date of retirement |
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was on or after September 1, 2013, but before January 1, 2022, two |
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percent; |
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(2) for annuitants described by Subsection (c)(2): |
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(A) if the member's date of death was before |
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September 1, 2013, four percent; and |
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(B) if the member's date of death was on or after |
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September 1, 2013, but before January 1, 2022, two percent; and |
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(3) for annuitants described by Subsection (c)(3): |
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(A) if the annuitant's date of election was |
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before September 1, 2013, four percent; and |
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(B) if the annuitant's date of election was on or |
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after September 1, 2013, but before January 1, 2022, two percent. |
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(g) 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) Subject to Subsections (e) and (i) of this |
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section and Section 821.006, Government Code, and except as |
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provided by Subsection (g) of this section, the Teacher Retirement |
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System of Texas shall make a one-time supplemental payment of a |
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retirement or death benefit, as provided by this section. |
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(b) The supplemental payment is payable not later than |
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February 2024 and, to the extent practicable, on a date or dates |
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that coincide with the regular annuity payment payable to each |
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eligible annuitant. |
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(c) The amount of the supplemental payment is equal to |
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$7,500. |
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(d) The supplemental payment is payable without regard to |
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any forfeiture of benefits under Section 824.601, Government Code. |
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The Teacher Retirement System of Texas shall make applicable tax |
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withholding and other legally required deductions before |
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disbursing the supplemental payment. A supplemental payment under |
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this section is in addition to and not in lieu of the regular |
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monthly annuity payment to which the eligible annuitant is |
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otherwise entitled. |
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(e) To be eligible for the supplemental payment, a person |
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must be, for the calendar month immediately prior to the calendar |
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month in which the Teacher Retirement System of Texas issues the |
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one-time supplemental payment in accordance with Subsection (b) of |
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this section, an annuitant who is: |
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(1) at least 75 years of age; and |
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(2) eligible to receive: |
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(A) a standard retirement annuity payment; |
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(B) an optional retirement annuity payment as |
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either a retiree or beneficiary; |
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(C) a life annuity payment under Section |
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824.402(a)(4), Government Code; |
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(D) an annuity for a guaranteed period of 60 |
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months under Section 824.402(a)(3), Government Code; or |
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(E) an alternate payee annuity payment under |
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Section 804.005, Government Code. |
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(f) The supplemental payment is in addition to the |
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guaranteed number of payments under Section 824.204(c)(3) or (4), |
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Section 824.308(c)(3) or (4), or Section 824.402(a)(3), Government |
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Code, and may not be counted as one of the guaranteed monthly |
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payments. |
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(g) The supplemental payment does not apply to payments |
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under: |
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(1) Section 824.304(a), Government Code, relating to |
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disability retirees with less than 10 years of service credit; |
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(2) Section 824.804(b), Government Code, relating to |
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participants in the deferred retirement option plan with regard to |
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payments from their deferred retirement option plan accounts; |
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(3) Section 824.501(a), Government Code, relating to |
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retiree survivor beneficiaries who receive a survivor annuity in an |
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amount fixed by statute; or |
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(4) Section 824.404(a), Government Code, relating to |
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active member survivor beneficiaries who receive a survivor annuity |
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in an amount fixed by statute. |
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(h) The board of trustees of the Teacher Retirement System |
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of Texas shall determine the eligibility for and the amount and |
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timing of a supplemental payment and the manner in which the payment |
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is made. |
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(i) The Teacher Retirement System of Texas is required to |
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make a one-time supplemental payment of benefits under this section |
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only if the board of trustees of the Teacher Retirement System of |
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Texas finds that the legislature appropriated money to the |
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retirement system in an amount sufficient to provide the |
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supplemental payment. The amount appropriated by the legislature |
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to provide the supplemental payment must be in addition to the |
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amount the state is required to contribute to the retirement system |
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under Section 825.404, Government Code. |
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(j) If the board of trustees of the Teacher Retirement |
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System of Texas determines that the appropriation provided by the |
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legislature for the one-time supplemental payment of benefits under |
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this section is different from the amount required to issue the |
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supplemental payment, the comptroller, after the end of the fiscal |
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year, shall make adjustments in the teacher retirement fund and the |
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general revenue fund so that the total transfers during the year |
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equal the total amount of the funds required for the supplemental |
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payment. This transfer of funds is in addition to and separate from |
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the amount the state is required to contribute to the retirement |
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system under Section 825.404, Government Code. |
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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, 2023. |
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