Texas 2009 - 81st Regular

Texas House Bill HB4199 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R11601 KFF-D
2	2	By: Kent H.B. No. 4199
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to public financing of the public education employee
8	8	retirement system and an annual cost-of-living adjustment for
9	9	certain retirement benefits.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter A, Chapter 824, Government Code, is
12	12	amended by adding Section 824.007 to read as follows:
13	13	Sec. 824.007. ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The
14	14	amount of a monthly service retirement benefit, disability
15	15	retirement benefit, or death benefit paid under this chapter is
16	16	increased to include an annual cost-of-living adjustment in
17	17	accordance with this section.
18	18	(b) Effective September 1 of each year, the board of
19	19	trustees shall recompute the amount of a benefit paid monthly under
20	20	this chapter by applying the cost-of-living adjustment to the
21	21	monthly amount otherwise required to be paid as determined in
22	22	accordance with this chapter, including the amount of any previous
23	23	cost-of-living adjustment made under this section or other increase
24	24	required by law.
25	25	(c) The amount of a cost-of-living adjustment made under
26	26	this section is equal to the automatic cost-of-living adjustment
27	27	made by the United States Social Security Administration and
28	28	applicable to social security benefits in December of the year
29	29	preceding the year in which the adjustment under Subsection (b) is
30	30	made.
31	31	SECTION 2. Sections 825.404(a) and (b), Government Code,
32	32	are amended to read as follows:
33	33	(a) During each fiscal year, the state shall contribute to
34	34	the retirement system an amount sufficient to amortize, within a
35	35	30-year funding period, the actuarial liability of the retirement
36	36	system for service retirement benefits, disability retirement
37	37	benefits, and death benefits, including the amount of the annual
38	38	cost-of-living adjustment applied under Section 824.007, provided
39	39	under this subtitle for members, retirees, and beneficiaries. The
40	40	amount must be determined based on the annual August 31 actuarial
41	41	valuation and must be equal to at least six and not more than 10
42	42	percent of the aggregate annual compensation of all members of the
43	43	retirement system during that fiscal year. The amount of the state
44	44	contribution made under this section may not be less than the amount
45	45	contributed by members during that fiscal year in accordance with
46	46	Section 825.402.
47	47	(b) Before November 2 of each even-numbered year, the board
48	48	of trustees shall certify to the comptroller of public accounts for
49	49	review and adoption an estimate of the amount necessary to pay the
50	50	state's contributions to the retirement system for the following
51	51	biennium. At the time the board of trustees makes the certification
52	52	under this subsection, the board of trustees shall report the
53	53	amount certified to the lieutenant governor, the speaker of the
54	54	house of representatives, and the presiding officers of the
55	55	appropriate committees of the house and the senate.
56	56	SECTION 3. This Act takes effect immediately if it receives
57	57	a vote of two-thirds of all the members elected to each house, as
58	58	provided by Section 39, Article III, Texas Constitution. If this
59	59	Act does not receive the vote necessary for immediate effect, this
60	60	Act takes effect September 1, 2009.