84R11333 KFF-F
By: Flynn H.B. No. 2974
A BILL TO BE ENTITLED
AN ACT
relating to contributions to, benefits from, and the administration
of systems and programs administered by the Teacher Retirement
System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 822.201(b), Government Code, is amended
to read as follows:
(b) "Salary and wages" as used in Subsection (a) means:
(1) normal periodic payments of money for service the
right to which accrues on a regular basis in proportion to the
service performed;
(2) amounts by which the member's salary is reduced
under a salary reduction agreement authorized by Chapter 610;
(3) amounts that would otherwise qualify as salary and
wages under Subdivision (1) but are not received directly by the
member pursuant to a good faith, voluntary written salary reduction
agreement in order to finance payments to a deferred compensation
or tax sheltered annuity program specifically authorized by state
law or to finance benefit options under a cafeteria plan qualifying
under Section 125 of the Internal Revenue Code of 1986, if:
(A) the program or benefit options are made
available to all employees of the employer; and
(B) the benefit options in the cafeteria plan are
limited to one or more options that provide deferred compensation,
group health and disability insurance, group term life insurance,
dependent care assistance programs, or group legal services plans;
(4) performance pay awarded to an employee by a school
district as part of a total compensation plan approved by the board
of trustees of the district and meeting the requirements of
Subsection (e);
(5) the benefit replacement pay a person earns under
Subchapter H, Chapter 659, except as provided by Subsection (c);
(6) stipends paid to teachers in accordance with
Section 21.410, 21.411, 21.412, or 21.413, Education Code;
(7) amounts by which the member's salary is reduced or
that are deducted from the member's salary as authorized by
Subchapter J, Chapter 659;
(8) a merit salary increase made under Section 51.962,
Education Code;
(9) amounts received under the relevant parts of the
educator excellence awards program under Subchapter O, Chapter 21,
Education Code, or a mentoring program under Section 21.458,
Education Code, that authorize compensation for service;
(10) salary amounts designated as health care
supplementation by an employee under Subchapter D, Chapter 22,
Education Code; and
(11) to the extent required by Sections 3401(h) and
414(u)(12) [414(u)(2)], Internal Revenue Code of 1986,
differential wage payments received by an individual from an
employer on or after January 1, 2009, while the individual is
performing qualified military service as defined by Section 414(u),
Internal Revenue Code of 1986.
SECTION 2. Section 823.006, Government Code, is amended to
read as follows:
Sec. 823.006. LIMITS ON ANNUAL CONTRIBUTIONS FOR PURCHASE
OF SERVICE CREDIT. Notwithstanding any other provision of this
subtitle, the retirement system shall [may] limit the purchase of
service credit to the extent required by applicable limits on the
amount of annual contributions a participant may make to a
qualified plan under Sections 401(a) and 415(c), Internal Revenue
Code of 1986.
SECTION 3. Section 824.202(f), Government Code, is amended
to read as follows:
(f) Except as provided by Chapter 803 or 805, a member is not
eligible to receive service retirement benefits from the retirement
system unless the member has at least five years of service credit
in the retirement system for actual service in public schools or
other service the board by rule may prescribe.
SECTION 4. Sections 825.002(a), (d), and (e), Government
Code, are amended to read as follows:
(a) The governor shall appoint, with the advice and consent
of the senate and as provided by this section, nine [seven] members
of the board of trustees.
(d) The governor shall appoint two members [one member] of
the board from a slate of three former members of the retirement
system who have retired and are receiving benefits from the
retirement system and who have been nominated in accordance with
Subsections (f) and (g) by the persons who have retired and are
receiving benefits from the retirement system.
(e) The governor shall appoint two members [one member] of
the board from a slate of three persons who have been nominated in
accordance with Subsection (f) by the following groups
collectively:
(1) members of the retirement system whose most recent
credited service was performed for an institution of higher
education;
(2) members of the retirement system whose most recent
credited service was performed for a public school district,
charter school, or regional education service center; and
(3) persons who have retired and are receiving
benefits from the retirement system.
SECTION 5. Section 825.408(a), Government Code, is amended
to read as follows:
(a) An employer that fails to remit, before the 10th
[seventh] day after the last day of a month, all member and employer
deposits and documentation of the deposits required by this
subchapter to be remitted by the employer for the month shall pay to
the retirement system, in addition to the deposits, interest on the
unpaid or undocumented amounts at an annual rate compounded
monthly. The rate of interest is the rate established under
Section 825.313(b)(1), plus two percent. Interest required under
this section is creditable to the interest account. On request,
the retirement system may grant a waiver of the deadline imposed by
this subsection based on an employer's financial or technological
resources.
SECTION 6. Section 1579.255(a), Insurance Code, is amended
to read as follows:
(a) A participating entity that does not remit to the
trustee all contributions required by this subchapter before the
10th [seventh] day after the last day of the month shall pay to the
Texas school employees uniform group coverage trust fund:
(1) the contributions; and
(2) interest on the unpaid amounts at the annual rate
of six percent compounded monthly.
SECTION 7. Section 825.002, Government Code, as amended by
this Act, applies only to an election of a member of the board of
trustees of the Teacher Retirement System of Texas that occurs on or
after the effective date of this Act.
SECTION 8. The board of trustees of the Teacher Retirement
System of Texas shall study the benefits, funding, and
administration of the retirement system and adopt findings and
recommendations that will improve the administration and
performance of the retirement system. Not later than December 1,
2016, the board shall report the board's findings and
recommendations to the governor, lieutenant governor, speaker of
the house of representatives, and standing committees of the house
of representatives and senate that have primary jurisdiction over
state pension systems.
SECTION 9. This Act takes effect September 1, 2015.