81R7151 TJS-F
By: Hopson H.B. No. 1408
A BILL TO BE ENTITLED
AN ACT
relating to the state contribution to and certain annuities under
the Teacher Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 824.203(a), Government Code, is amended
to read as follows:
(a) Except as provided by Subsections (c) and (d), the
standard service retirement annuity is an amount computed on the
basis of the member's average annual compensation for the three
[five] years of service, whether or not consecutive, in which the
member received the highest annual compensation, times 2.3 percent
for each year of service credit in the retirement system.
SECTION 2. Section 825.404(a), Government Code, is amended
to read as follows:
(a) During each fiscal year, the state shall contribute to
the retirement system an amount equal to at least seven [six and not
more than 10] percent of the aggregate annual compensation of all
members of the retirement system during that fiscal year. The
amount of the state contribution made under this section may not be
less than the amount contributed by members during that fiscal year
in accordance with Section 825.402. The state may contribute a
higher amount specified in the General Appropriations Act but may
not contribute more than 10 percent of the aggregate annual
compensation of all members of the retirement system during that
fiscal year.
SECTION 3. (a) Notwithstanding Sections 824.203(a) and
(b), Government Code, and subject to Section 821.006, Government
Code, the board of trustees of the Teacher Retirement System of
Texas shall recompute the amount of a standard service retirement
annuity under Chapter 824, Government Code, by applying a one-time
four percent increase to the monthly amount otherwise required to
be paid as determined in accordance with Chapter 824, Government
Code, including the amount of any previous increase made under
other law.
(b) An increase under Subsection (a) of this section is
payable beginning on September 1, 2009.
(c) An increase under Subsection (a) of this section is
payable without regard to any forfeiture of benefits under Section
824.601, Government Code.
(d) To be eligible for an increase under Subsection (a) of
this section, a person must be, for the month of August 2009, and
disregarding any forfeiture of benefits under Section 824.601,
Government Code, an annuitant eligible to receive:
(1) a standard retirement annuity payment; or
(2) an optional retirement annuity payment as either a
retiree or beneficiary.
(e) Except as provided by this section, the board of
trustees of the Teacher Retirement System of Texas shall determine
the eligibility for an increase under Subsection (a) of this
section.
SECTION 4. Section 824.203(a), Government Code, as amended
by this Act, applies only to a person who retires from the Teacher
Retirement System of Texas on or after the effective date of this
Act. A person who retires from the Teacher Retirement System of
Texas before the effective date of this Act is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 5. Section 825.404(a), Government Code, as amended
by this Act, applies beginning with the fiscal year that begins
September 1, 2009.
SECTION 6. This Act takes effect September 1, 2009.