81R11601 KFF-D
By: Kent H.B. No. 4199
A BILL TO BE ENTITLED
AN ACT
relating to public financing of the public education employee
retirement system and an annual cost-of-living adjustment for
certain retirement benefits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 824, Government Code, is
amended by adding Section 824.007 to read as follows:
Sec. 824.007. ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The
amount of a monthly service retirement benefit, disability
retirement benefit, or death benefit paid under this chapter is
increased to include an annual cost-of-living adjustment in
accordance with this section.
(b) Effective September 1 of each year, the board of
trustees shall recompute the amount of a benefit paid monthly under
this chapter by applying the cost-of-living adjustment to the
monthly amount otherwise required to be paid as determined in
accordance with this chapter, including the amount of any previous
cost-of-living adjustment made under this section or other increase
required by law.
(c) The amount of a cost-of-living adjustment made under
this section is equal to the automatic cost-of-living adjustment
made by the United States Social Security Administration and
applicable to social security benefits in December of the year
preceding the year in which the adjustment under Subsection (b) is
made.
SECTION 2. Sections 825.404(a) and (b), Government Code,
are amended to read as follows:
(a) During each fiscal year, the state shall contribute to
the retirement system an amount sufficient to amortize, within a
30-year funding period, the actuarial liability of the retirement
system for service retirement benefits, disability retirement
benefits, and death benefits, including the amount of the annual
cost-of-living adjustment applied under Section 824.007, provided
under this subtitle for members, retirees, and beneficiaries. The
amount must be determined based on the annual August 31 actuarial
valuation and must be equal to at least 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.
(b) Before November 2 of each even-numbered year, the board
of trustees shall certify to the comptroller of public accounts for
review and adoption an estimate of the amount necessary to pay the
state's contributions to the retirement system for the following
biennium. At the time the board of trustees makes the certification
under this subsection, the board of trustees shall report the
amount certified to the lieutenant governor, the speaker of the
house of representatives, and the presiding officers of the
appropriate committees of the house and the senate.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.