Texas Senate Bill SB1436

Texas 2013 - 83rd Regular

Caption

Relating to the service retirement annuity of certain members of the Judicial Retirement System of Texas Plan One.

Impact

The legislative change brought forth by SB1436 specifically impacts the retirement benefits structure for members of the Judicial Retirement System who qualify under Section 834.101(a). The adjustments in the law will not apply retroactively; instead, they will only benefit members who retire after the bill's effective date, thus maintaining the previous calculation standard for prior retirees. This delineation preserves benefits for those who have already retired while allowing future retirees to benefit from enhanced annuities based on their years of service.

Summary

SB1436 aims to amend the service retirement annuity calculations for certain members of the Judicial Retirement System of Texas Plan One. The bill proposes changes to the formula used to determine the retirement annuity by setting it at an applicable state salary multiplied by a percentage that sums to 50 percent plus an additional 2.3 percent for each year of service credit accrued post-retirement eligibility. Notably, the maximum allowable annuity is being increased from 90 percent to 100 percent of the applicable salary, which can significantly enhance retirement benefits for eligible members.

Contention

The bill's impact on state laws raises questions about fiscal sustainability and equity among other state retirement systems. Critics might argue that increasing the retirement annuity cap could create budgetary pressures and could be seen as preferential treatment for judicial members compared to other state employees. Proponents argue that these changes are necessary to properly compensate judicial members for their service and ensure a competitive retirement package that recognizes their important role in the state.