Texas 2015 - 84th Regular

Texas Senate Bill SB1381 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Estes S.B. No. 1381
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. Section 853.404, Government Code, is amended by
10	10	amending Subsection (c) and adding Subsection (f) to read as
11	11	follows:
12	12	(c) The governing body of a participating municipality that
13	13	adopts an ordinance under Section 854.203 providing for increased
14	14	annuities effective January 1 of a designated year may further
15	15	provide in the ordinance that increases in annuities will be
16	16	credited effective January 1 of each year following the designated
17	17	year based on recomputations made as provided by Section 854.203(b)
18	18	[854.203(b)(1)] for each year following the initial computation,
19	19	and using the fraction specified in the ordinance as required under
20	20	Section 854.203(b) [854.203(b)(2)] in the recomputations.
21	21	(f) If an ordinance described by Subsection (c) will cease
22	22	to be in effect for a future year, or if an increase in annuities
23	23	specified in an ordinance described by Subsection (c) will be
24	24	changed or discontinued as provided by this section, the governing
25	25	body of the participating municipality shall provide notice to
26	26	members and annuitants by regular mail not later than the 60th day
27	27	before the date on which the ordinance will cease to be in effect or
28	28	the increase will be changed or discontinued. For an annuitant who
29	29	receives a periodic check or advice of deposit from the retirement
30	30	system by regular mail, the notice required by this subsection must
31	31	be included with the annuitant's check or advice of deposit.
32	32	SECTION 2. Section 854.203, Government Code, is amended by
33	33	amending Subsections (b) and (f) and adding Subsection (b-1) to
34	34	read as follows:
35	35	(b) The amount of annuity increase under this section is
36	36	computed by one of the following methods:
37	37	(1) as the sum of the prior and current service
38	38	annuities on the effective date of retirement of the person on whose
39	39	service the annuities are based, multiplied by:
40	40	(A) [(1)] the percentage change in the Consumer
41	41	Price Index for All Urban Consumers, published by the Bureau of
42	42	Labor Statistics of the United States Department of Labor, from
43	43	December of the year immediately preceding the effective date of
44	44	the person's retirement to the December that is 13 months before the
45	45	effective date of the ordinance providing the increase; and
46	46	(B) [(2)] 30 percent, 50 percent, or 70 percent,
47	47	as specified by the governing body in the ordinance, except that if
48	48	the governing body has specified a different percentage in an
49	49	ordinance adopted under Section 853.404(c) and in effect on
50	50	December 31, 1999, the percentage used in computing annuity
51	51	increases for retirees of that municipality remains in effect until
52	52	changed or discontinued under Section 853.404; or
53	53	(2) as the sum of the prior and current service
54	54	annuities of the person on whose service the annuities are based on
55	55	the effective date of the annuity increase multiplied by the
56	56	percentage increase specified in the ordinance adopted by the
57	57	governing body, except that an adjustment to an annuity after the
58	58	annuity starting date for annuity increases under this subdivision
59	59	may not cause an annuitant's annuity to exceed the amount that the
60	60	annuitant would be entitled to had the maximum amount of the annuity
61	61	increase allowed under Subdivision (1) been applied to the
62	62	annuitant's annuity.
63	63	(b-1) An increase under Subsection (b)(2) applies to all
64	64	annuities for which the effective date of retirement of the person
65	65	on whose service the annuity is based is at least 12 months before
66	66	the effective date of the increase. Notwithstanding any other
67	67	provision of this subtitle, each distribution of a benefit under
68	68	this subtitle must be determined and made in accordance with
69	69	Section 401(a)(9), Internal Revenue Code of 1986. The board of
70	70	trustees may adopt rules it considers necessary to comply with the
71	71	distribution requirements.
72	72	(f) An increase granted to an annuitant under Subsection
73	73	(b)(2), or the [The] amount by which an increase under Subsection
74	74	(b)(1) [this section] exceeds all previously granted increases to
75	75	an annuitant, is:
76	76	(1) payable as a prior service annuity;
77	77	(2) [, is] an obligation of the municipality's account
78	78	in the benefit accumulation fund; [,] and
79	79	(3) [is] subject to reduction under Section
80	80	855.308(f).
81	81	SECTION 3. This Act takes effect immediately if it receives
82	82	a vote of two-thirds of all the members elected to each house, as
83	83	provided by Section 39, Article III, Texas Constitution. If this
84	84	Act does not receive the vote necessary for immediate effect, this
85	85	Act takes effect September 1, 2015.