Texas 2011 - 82nd Regular

Texas House Bill HB3542 Compare Versions

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1	1	82R23984 SGA-D
2	2	By: Gonzales of Williamson, Huberty, H.B. No. 3542
3	3	McClendon, Strama, Veasey, et al.
4	4	Substitute the following for H.B. No. 3542:
5	5	By: Anderson of McLennan C.S.H.B. No. 3542
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to a supplemental payment for retirees of the Teacher
11	11	Retirement System of Texas and the unfunded actuarial liabilities
12	12	allowed under that system.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. This Act is not intended to supplant the power or
15	15	discretion of the legislature to provide supplemental payments to
16	16	annuitants of the Teacher Retirement System of Texas. This Act
17	17	provides an additional tool by which the legislature, in enacting
18	18	this law, may provide those annuitants with a much-needed one-time
19	19	supplemental payment without requesting additional funds from
20	20	general revenue.
21	21	SECTION 2. Section 821.006, Government Code, is amended by
22	22	adding Subsections (c), (d), and (e) to read as follows:
23	23	(c) Notwithstanding Subsections (a) and (b), the retirement
24	24	system may provide a one-time supplemental payment to an annuitant
25	25	eligible to receive:
26	26	(1) a standard retirement annuity payment;
27	27	(2) an optional retirement annuity payment as either a
28	28	retiree or beneficiary;
29	29	(3) a life annuity payment under Section
30	30	824.402(a)(4);
31	31	(4) an annuity for a guaranteed period of 60 months
32	32	under Section 824.402(a)(3); or
33	33	(5) an alternate payee annuity payment under Section
34	34	804.005.
35	35	(d) A one-time supplemental payment under Subsection (c) is
36	36	authorized, even if the amortization period for the unfunded
37	37	actuarial liabilities of the retirement system exceeds 30 years by
38	38	one or more years, only if the board of trustees determines that at
39	39	the time of the supplemental payment the payment can be made while
40	40	preserving the ability of the retirement system to meet at least 80
41	41	percent of the system's pension obligations.
42	42	(e) The funding for a one-time supplemental payment under
43	43	Subsection (c) must come from the earnings the retirement system
44	44	makes on its investments as provided by this subsection. The
45	45	supplemental payment may be made at any time during the period
46	46	beginning September 1, 2011, and ending December 31, 2013, only if,
47	47	during the preceding fiscal year, the return on investments, as
48	48	provided by the actuarial valuation on August 31 of that year,
49	49	exceeds eight percent by an amount sufficient to pay for the
50	50	supplemental payment. Subsections (c) and (d) and this subsection
51	51	expire January 1, 2014.
52	52	SECTION 3. Section 825.402, Government Code, is amended by
53	53	adding Subsection (c-1) to read as follows:
54	54	(c-1) Subsection (c) does not apply to a supplemental
55	55	payment authorized by Sections 821.006(c), (d), and (e). This
56	56	subsection expires January 1, 2014.
57	57	SECTION 4. (a) The Teacher Retirement System of Texas shall
58	58	make a one-time supplemental payment of a retirement or death
59	59	benefit, as provided by Section 821.006, Government Code, as
60	60	amended by this Act, and this section.
61	61	(b) The supplemental payment is payable not later than
62	62	December 31, 2013, and, to the extent practicable, on a date or
63	63	dates that coincide with the regular annuity payment payable to
64	64	each eligible annuitant.
65	65	(c) The amount of the supplemental payment is equal to the
66	66	lesser of:
67	67	(1) the gross amount of the regular annuity payment to
68	68	which the eligible annuitant is otherwise entitled for the month of
69	69	August 2011; or
70	70	(2) $2,400.
71	71	(d) The supplemental payment is payable without regard to
72	72	any forfeiture of benefits under Section 824.601, Government Code.
73	73	The Teacher Retirement System of Texas shall make applicable tax
74	74	withholding and other legally required deductions before
75	75	disbursing the supplemental payment. A supplemental payment under
76	76	this section is in addition to and not in lieu of the regular
77	77	monthly annuity payment to which the eligible annuitant is
78	78	otherwise entitled.
79	79	(e) Subject to Subsection (f) of this section, to be
80	80	eligible for the supplemental payment, a person must be, for the
81	81	month of August 2011, and disregarding any forfeiture of benefits
82	82	under Section 824.601, Government Code, an annuitant eligible to
83	83	receive:
84	84	(1) a standard retirement annuity payment;
85	85	(2) an optional retirement annuity payment as either a
86	86	retiree or beneficiary;
87	87	(3) a life annuity payment under Section
88	88	824.402(a)(4), Government Code;
89	89	(4) an annuity for a guaranteed period of 60 months
90	90	under Section 824.402(a)(3), Government Code; or
91	91	(5) an alternate payee annuity payment under Section
92	92	804.005, Government Code.
93	93	(f) If the annuitant is a retiree or a beneficiary under an
94	94	optional retirement payment plan, to be eligible for the
95	95	supplemental payment, the effective date of the retirement of the
96	96	member of the Teacher Retirement System of Texas must have been on
97	97	or before December 31, 2008. If the annuitant is a beneficiary
98	98	under Section 824.402(a)(3) or (4), Government Code, to be eligible
99	99	for the supplemental payment, the date of death of the member of the
100	100	retirement system must have been on or before December 31, 2008.
101	101	The supplemental payment shall be made to an alternate payee who is
102	102	an annuitant under Section 804.005, Government Code, only if the
103	103	annuity payment to the alternate payee commenced on or before
104	104	December 31, 2008. The supplemental payment is in addition to the
105	105	guaranteed number of payments under Section 824.402(a)(3),
106	106	824.204(c)(3) or (4), or 824.308(c)(3) or (4), Government Code, and
107	107	may not be counted as one of the guaranteed monthly payments.
108	108	(g) The supplemental payment does not apply to payments
109	109	under:
110	110	(1) Section 824.304(a), Government Code, relating to
111	111	disability retirees with less than 10 years of service credit;
112	112	(2) Section 824.804(b), Government Code, relating to
113	113	participants in the deferred retirement option plan with regard to
114	114	payments from their deferred retirement option plan accounts;
115	115	(3) Section 824.501(a), Government Code, relating to
116	116	retiree survivor beneficiaries who receive a survivor annuity in an
117	117	amount fixed by statute; or
118	118	(4) Section 824.404(a), Government Code, relating to
119	119	active member survivor beneficiaries who receive a survivor annuity
120	120	in an amount fixed by statute.
121	121	(h) Except as provided by this section, the board of
122	122	trustees of the Teacher Retirement System of Texas shall determine
123	123	the eligibility for and the amount and timing of a supplemental
124	124	payment and the manner in which the payment is made.
125	125	SECTION 5. This Act takes effect September 1, 2011.