Texas 2009 - 81st Regular

Texas Senate Bill SB1358 Compare Versions

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1	1	By: Seliger S.B. No. 1358
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to optional annuity increases for certain retirees and
7	7	beneficiaries of the Texas Municipal Retirement System.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subsection (c), Section 853.404, Government
10	10	Code, is amended to read as follows:
11	11	(c) The governing body of a participating municipality that
12	12	adopts an ordinance under Section 854.203 providing for increased
13	13	annuities effective January 1 of a designated year may further
14	14	provide in the ordinance that increases in annuities will be
15	15	credited effective January 1 of each year following the designated
16	16	year based on recomputations made as provided by Section 854.203(b)
17	17	[854.203(b)(1)] for each year following the initial computation,
18	18	and using the fraction specified in the ordinance as required under
19	19	Section 854.203(b) [854.203(b)(2)] in the recomputations.
20	20	SECTION 2. Section 854.203, Government Code, is amended by
21	21	amending Subsections (b) and (f) and adding Subsection (b-1) to
22	22	read as follows:
23	23	(b) The amount of annuity increase under this section is
24	24	computed by one of the following methods:
25	25	(1) as the sum of the prior and current service
26	26	annuities on the effective date of retirement of the person on whose
27	27	service the annuities are based, multiplied by:
28	28	(A) [(1)] the percentage change in the Consumer
29	29	Price Index for All Urban Consumers, published by the Bureau of
30	30	Labor Statistics of the United States Department of Labor, from
31	31	December of the year immediately preceding the effective date of
32	32	the person's retirement to the December that is 13 months before the
33	33	effective date of the ordinance providing the increase; and
34	34	(B) [(2)] 30 percent, 50 percent, or 70 percent,
35	35	as specified by the governing body in the ordinance, except that if
36	36	the governing body has specified a different percentage in an
37	37	ordinance adopted under Section 853.404(c) and in effect on
38	38	December 31, 1999, the percentage used in computing annuity
39	39	increases for retirees of that municipality remains in effect until
40	40	changed or discontinued under Section 853.404; or
41	41	(2) as the sum of the prior and current service
42	42	annuities on the effective date of the increase multiplied by the
43	43	integer percentage increase specified in the ordinance adopted by
44	44	the governing body.
45	45	(b-1) An increase under Subsection (b)(2) applies to all
46	46	annuities for which the effective date is at least 12 months before
47	47	the effective date of the increase.
48	48	(f) An increase granted to an annuitant under Subsection
49	49	(b)(2), or the [The] amount by which an increase under Subsection
50	50	(b)(1) [this section] exceeds all previously granted increases to
51	51	an annuitant is payable as a prior service annuity, is an obligation
52	52	of the municipality's account in the municipality accumulation
53	53	fund, and is subject to reduction under Section 855.308(f).
54	54	SECTION 3. This Act takes effect immediately if it receives
55	55	a vote of two-thirds of all the members elected to each house, as
56	56	provided by Section 39, Article III, Texas Constitution. If this
57	57	Act does not receive the vote necessary for immediate effect, this
58	58	Act takes effect September 1, 2009.