Texas House Bill HB1408

Texas 2009 - 81st Regular

Caption

Relating to the state contribution to and certain annuities under the Teacher Retirement System of Texas.

Impact

The bill stipulates that the state's contribution to the Teacher Retirement System will not fall below a certain percentage of the aggregate annual compensation. The proposed minimum state contribution is now set at no less than seven percent, ensuring a steady flow of financial support for the retirement system. Additionally, the bill includes a one-time four percent increase for those annuities determined under the new calculations, adding financial relief for retirees. The changes are intended to positively affect the financial security of retired educators and are expected to have a significant impact on the state budget and resources allocated to the Teacher Retirement System.

Summary

House Bill 1408 aims to modify specific provisions regarding the Teacher Retirement System of Texas. The bill proposes changes to the calculations of standard service retirement annuities to ensure that retired teachers receive a more favorable retirement benefit. Specifically, the legislation outlines an increase in the standard service retirement annuity calculation from the previous rate, thereby benefiting members who retire under these new provisions. This is particularly important for those retirees who had served within the system for several years, as their pensions are directly tied to these calculations.

Contention

Discussion surrounding HB 1408 may occur, particularly in how it balances the need for increases in retirement benefits while managing the state budget. There could be concerns raised regarding the sustainability of these increased contributions and benefits, especially in a context where state funding fluctuates. Additionally, retirees who were relying on prior calculations might have mixed feelings about the transition to new calculations, depending on their individual circumstances. Overall, there is a potential for debate concerning equitable treatment of retirees and the long-term implications for the Teacher Retirement System.