Relating to optional annuity increases for certain retirees and beneficiaries of the Texas Municipal Retirement System.
Impact
The bill amends Section 853.404 of the Government Code regarding annuity regulations, specifying that municipalities can adjust these increases based on computations linked to prior service annuities. Importantly, this allows municipalities to offer increases beyond standard computations if they choose to do so, which could lead to better financial outcomes for retirees.
Summary
SB1381 addresses optional annuity increases for certain retirees and beneficiaries of the Texas Municipal Retirement System. The bill allows municipal governing bodies to adopt ordinances that can provide for annuity increases effective January 1 of a designated year. This legislative change offers flexibility in how municipalities manage annuity increases, giving them the potential to credit increases annually based on specific parameters set forth in the bill.
Contention
One notable point of contention is the requirement for municipalities to notify members and annuitants if these increases will change or cease in the future. The bill mandates that such notice must be provided at least 60 days in advance, which could create administrative challenges for municipalities trying to manage budgets effectively while ensuring compliance with the notification requirements.