81R9798 TJS-D
By: Seliger S.B. No. 1358
A BILL TO BE ENTITLED
AN ACT
relating to optional annuity increases for certain retirees and
beneficiaries of the Texas Municipal Retirement System.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 853.404(c), Government Code, is amended
to read as follows:
(c) The governing body of a participating municipality that
adopts an ordinance under Section 854.203 providing for increased
annuities effective January 1 of a designated year may further
provide in the ordinance that increases in annuities will be
credited effective January 1 of each year following the designated
year based on recomputations made as provided by Section 854.203(b)
[854.203(b)(1)] for each year following the initial computation,
and using the fraction specified in the ordinance as required under
Section 854.203(b) [854.203(b)(2)] in the recomputations.
SECTION 2. Section 854.203, Government Code, is amended by
amending Subsections (b) and (f) and adding Subsection (b-1) to
read as follows:
(b) The amount of annuity increase under this section is
computed by one of the following methods:
(1) as the sum of the prior and current service
annuities on the effective date of retirement of the person on whose
service the annuities are based, multiplied by:
(A) [(1)] the percentage change in the Consumer
Price Index for All Urban Consumers, published by the Bureau of
Labor Statistics of the United States Department of Labor, from
December of the year immediately preceding the effective date of
the person's retirement to the December that is 13 months before the
effective date of the ordinance providing the increase; and
(B) [(2)] 30 percent, 50 percent, or 70 percent,
as specified by the governing body in the ordinance, except that if
the governing body has specified a different percentage in an
ordinance adopted under Section 853.404(c) and in effect on
December 31, 1999, the percentage used in computing annuity
increases for retirees of that municipality remains in effect until
changed or discontinued under Section 853.404; or
(2) as the sum of the prior and current service
annuities on the effective date of retirement of the person on whose
service the annuities are based, plus any previously granted
annuity increases under this subdivision, multiplied by:
(A) the percentage change in the Consumer Price
Index for All Urban Consumers, published by the Bureau of Labor
Statistics of the United States Department of Labor, for the
12-month period, from December to December, ending in the December
that is 13 months before the effective date of the ordinance
providing for the increase; and
(B) 30 percent, 50 percent, or 70 percent, as
specified by the governing body in the ordinance.
(b-1) An annuity is not eligible to have an increase
computed under the method described by Subsection (b)(2) if the
person on whose service the annuity is based retired after the
December that is 13 months before the effective date of the annuity
increase.
(f) An increase granted to an annuitant under Subsection
(b)(2), or the [The] amount by which an increase under Subsection
(b)(1) [this section] exceeds all previously granted increases to
an annuitant is payable as a prior service annuity, is an obligation
of the municipality's account in the municipality accumulation
fund, and is subject to reduction under Section 855.308(f).
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.