| 1 | 1 | | 81R7151 TJS-F |
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| 2 | 2 | | By: Hopson H.B. No. 1408 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the state contribution to and certain annuities under |
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| 8 | 8 | | the Teacher Retirement System of Texas. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 824.203(a), Government Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (a) Except as provided by Subsections (c) and (d), the |
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| 13 | 13 | | standard service retirement annuity is an amount computed on the |
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| 14 | 14 | | basis of the member's average annual compensation for the three |
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| 15 | 15 | | [five] years of service, whether or not consecutive, in which the |
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| 16 | 16 | | member received the highest annual compensation, times 2.3 percent |
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| 17 | 17 | | for each year of service credit in the retirement system. |
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| 18 | 18 | | SECTION 2. Section 825.404(a), Government Code, is amended |
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| 19 | 19 | | to read as follows: |
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| 20 | 20 | | (a) During each fiscal year, the state shall contribute to |
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| 21 | 21 | | the retirement system an amount equal to at least seven [six and not |
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| 22 | 22 | | more than 10] percent of the aggregate annual compensation of all |
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| 23 | 23 | | members of the retirement system during that fiscal year. The |
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| 24 | 24 | | amount of the state contribution made under this section may not be |
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| 25 | 25 | | less than the amount contributed by members during that fiscal year |
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| 26 | 26 | | in accordance with Section 825.402. The state may contribute a |
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| 27 | 27 | | higher amount specified in the General Appropriations Act but may |
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| 28 | 28 | | not contribute more than 10 percent of the aggregate annual |
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| 29 | 29 | | compensation of all members of the retirement system during that |
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| 30 | 30 | | fiscal year. |
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| 31 | 31 | | SECTION 3. (a) Notwithstanding Sections 824.203(a) and |
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| 32 | 32 | | (b), Government Code, and subject to Section 821.006, Government |
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| 33 | 33 | | Code, the board of trustees of the Teacher Retirement System of |
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| 34 | 34 | | Texas shall recompute the amount of a standard service retirement |
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| 35 | 35 | | annuity under Chapter 824, Government Code, by applying a one-time |
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| 36 | 36 | | four percent increase to the monthly amount otherwise required to |
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| 37 | 37 | | be paid as determined in accordance with Chapter 824, Government |
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| 38 | 38 | | Code, including the amount of any previous increase made under |
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| 39 | 39 | | other law. |
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| 40 | 40 | | (b) An increase under Subsection (a) of this section is |
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| 41 | 41 | | payable beginning on September 1, 2009. |
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| 42 | 42 | | (c) An increase under Subsection (a) of this section is |
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| 43 | 43 | | payable without regard to any forfeiture of benefits under Section |
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| 44 | 44 | | 824.601, Government Code. |
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| 45 | 45 | | (d) To be eligible for an increase under Subsection (a) of |
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| 46 | 46 | | this section, a person must be, for the month of August 2009, and |
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| 47 | 47 | | disregarding any forfeiture of benefits under Section 824.601, |
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| 48 | 48 | | Government Code, an annuitant eligible to receive: |
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| 49 | 49 | | (1) a standard retirement annuity payment; or |
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| 50 | 50 | | (2) an optional retirement annuity payment as either a |
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| 51 | 51 | | retiree or beneficiary. |
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| 52 | 52 | | (e) Except as provided by this section, the board of |
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| 53 | 53 | | trustees of the Teacher Retirement System of Texas shall determine |
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| 54 | 54 | | the eligibility for an increase under Subsection (a) of this |
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| 55 | 55 | | section. |
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| 56 | 56 | | SECTION 4. Section 824.203(a), Government Code, as amended |
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| 57 | 57 | | by this Act, applies only to a person who retires from the Teacher |
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| 58 | 58 | | Retirement System of Texas on or after the effective date of this |
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| 59 | 59 | | Act. A person who retires from the Teacher Retirement System of |
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| 60 | 60 | | Texas before the effective date of this Act is governed by the law |
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| 61 | 61 | | as it existed immediately before the effective date of this Act, and |
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| 62 | 62 | | that law is continued in effect for that purpose. |
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| 63 | 63 | | SECTION 5. Section 825.404(a), Government Code, as amended |
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| 64 | 64 | | by this Act, applies beginning with the fiscal year that begins |
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| 65 | 65 | | September 1, 2009. |
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| 66 | 66 | | SECTION 6. This Act takes effect September 1, 2009. |
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