| 1 | 1 | | 81R9697 TJS-D |
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| 2 | 2 | | By: Eiland H.B. No. 2454 |
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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 a one-time supplemental annuity payment by the Teacher |
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| 8 | 8 | | 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. (a) Subject to the availability of funds under |
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| 11 | 11 | | the American Recovery and Reinvestment Act of 2009 (Pub. L. No. |
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| 12 | 12 | | 111-5) or other legislative appropriation, the Teacher Retirement |
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| 13 | 13 | | System of Texas shall make a one-time supplemental payment of a |
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| 14 | 14 | | retirement or death benefit as provided by this section. |
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| 15 | 15 | | (b) The supplemental payment is payable not later than |
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| 16 | 16 | | September 30, 2009, and, to the extent practicable, on a date or |
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| 17 | 17 | | dates that coincide with the regular annuity payment payable to |
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| 18 | 18 | | each eligible annuitant. |
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| 19 | 19 | | (c) The amount of the supplemental payment is equal to the |
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| 20 | 20 | | lesser of: |
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| 21 | 21 | | (1) the gross amount of the regular annuity payment to |
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| 22 | 22 | | which the eligible annuitant is otherwise entitled for the month of |
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| 23 | 23 | | August 2009; or |
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| 24 | 24 | | (2) $2,400. |
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| 25 | 25 | | (d) The supplemental payment is payable without regard to |
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| 26 | 26 | | any forfeiture of benefits under Section 824.601, Government Code. |
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| 27 | 27 | | The Teacher Retirement System of Texas shall make applicable tax |
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| 28 | 28 | | withholding and other legally required deductions before |
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| 29 | 29 | | disbursing the supplemental payment. A supplemental payment under |
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| 30 | 30 | | this section is in addition to and not in lieu of the regular |
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| 31 | 31 | | monthly annuity payment to which the eligible annuitant is |
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| 32 | 32 | | otherwise entitled. |
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| 33 | 33 | | (e) Subject to Subsection (f) of this section, to be |
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| 34 | 34 | | eligible for the supplemental payment, a person must be, for the |
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| 35 | 35 | | month of August 2009, and disregarding any forfeiture of benefits |
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| 36 | 36 | | under Section 824.601, Government Code, an annuitant eligible to |
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| 37 | 37 | | receive: |
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| 38 | 38 | | (1) a standard retirement annuity payment; |
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| 39 | 39 | | (2) an optional retirement annuity payment as either a |
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| 40 | 40 | | retiree or beneficiary; |
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| 41 | 41 | | (3) a life annuity payment under Section |
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| 42 | 42 | | 824.402(a)(4), Government Code; |
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| 43 | 43 | | (4) an annuity for a guaranteed period of 60 months |
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| 44 | 44 | | under Section 824.402(a)(3), Government Code; or |
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| 45 | 45 | | (5) an alternate payee annuity payment under Section |
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| 46 | 46 | | 804.005, Government Code. |
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| 47 | 47 | | (f) If the annuitant is a retiree or a beneficiary under an |
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| 48 | 48 | | optional retirement payment plan, to be eligible for the |
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| 49 | 49 | | supplemental payment, the effective date of the retirement of the |
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| 50 | 50 | | member of the Teacher Retirement System of Texas must have been on |
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| 51 | 51 | | or before December 31, 2008. If the annuitant is a beneficiary |
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| 52 | 52 | | under Section 824.402(a)(3) or (4), Government Code, to be eligible |
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| 53 | 53 | | for the supplemental payment, the date of death of the member of the |
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| 54 | 54 | | retirement system must have been on or before December 31, 2008. |
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| 55 | 55 | | The supplemental payment shall be made to an alternate payee who is |
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| 56 | 56 | | an annuitant under Section 804.005, Government Code, only if the |
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| 57 | 57 | | annuity payment to the alternate payee commenced on or before |
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| 58 | 58 | | December 31, 2008. The supplemental payment is in addition to the |
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| 59 | 59 | | guaranteed number of payments under Section 824.402(a)(3) or |
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| 60 | 60 | | 824.204(c)(3) or (4), Government Code, and may not be counted as one |
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| 61 | 61 | | of the guaranteed monthly payments. |
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| 62 | 62 | | (g) The supplemental payment does not apply to payments |
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| 63 | 63 | | under: |
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| 64 | 64 | | (1) Section 824.304(a), Government Code, relating to |
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| 65 | 65 | | disability retirees with less than 10 years of service credit; |
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| 66 | 66 | | (2) Section 824.804(b), Government Code, relating to |
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| 67 | 67 | | participants in the deferred retirement option plan with regard to |
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| 68 | 68 | | payments from their deferred retirement option plan accounts; |
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| 69 | 69 | | (3) Section 824.501(a), Government Code, relating to |
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| 70 | 70 | | retiree survivor beneficiaries who receive a survivor annuity in an |
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| 71 | 71 | | amount fixed by statute; or |
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| 72 | 72 | | (4) Section 824.404(a), Government Code, relating to |
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| 73 | 73 | | active member survivor beneficiaries who receive a survivor annuity |
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| 74 | 74 | | in an amount fixed by statute. |
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| 75 | 75 | | (h) Except as provided by this section, the board of |
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| 76 | 76 | | trustees of the Teacher Retirement System of Texas shall determine |
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| 77 | 77 | | the eligibility for and the amount and timing of a supplemental |
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| 78 | 78 | | payment and the manner in which the payment is made. |
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| 79 | 79 | | (i) The supplemental payment provided under this Act is |
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| 80 | 80 | | subject solely to the availability of funds appropriated for that |
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| 81 | 81 | | purpose, and does not depend on actuarial soundness of the fund or |
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| 82 | 82 | | any other condition provided by other law. |
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| 83 | 83 | | SECTION 2. This Act takes effect September 1, 2009. |
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