| 1 | 1 | | By: Longoria H.B. No. 3588 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to annuities of certain annuitants of the Judicial |
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| 7 | 7 | | Retirement System Plan Two. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 839.102(a), Government Code, as amended |
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| 10 | 10 | | by Acts 2005, 79th Leg., R.S., Ch. 1033 (H.B. 1114), Sec. 6, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (a) Except as provided by Subsections (b), (c), [and] (d), |
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| 13 | 13 | | (f), and (g), the standard service retirement annuity is an amount |
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| 14 | 14 | | equal to 50 percent of the state salary being paid at the time the |
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| 15 | 15 | | member retires to a judge of a court of the same classification as |
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| 16 | 16 | | the last court to which the retiring member was elected or |
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| 17 | 17 | | appointed. |
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| 18 | 18 | | SECTION 2. Section 839.102, Government Code, is amended by |
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| 19 | 19 | | adding Subsection (g) to read as follows. |
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| 20 | 20 | | (g) A person earning a service retirement annuity based on |
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| 21 | 21 | | the state salary being paid at the time the member retired is |
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| 22 | 22 | | entitled to have the person’s annuity recalculated based on the |
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| 23 | 23 | | state salary, as it existed on January 1, 2017, being paid to a |
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| 24 | 24 | | judge of a court of the same classification as the last court to |
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| 25 | 25 | | which the retiring member was elected or appointed. After including |
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| 26 | 26 | | any increase under this subsection, the recalculated service |
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| 27 | 27 | | retirement annuity may not be an amount that is greater than 90 |
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| 28 | 28 | | percent of that state salary being paid on January 1, 2017. An |
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| 29 | 29 | | annuitant is only entitled to an adjustment under this subsection |
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| 30 | 30 | | on a finding by the board of trustees that, as determined by an |
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| 31 | 31 | | actuarial valuation: |
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| 32 | 32 | | (1) the amortization period for the unfunded actuarial |
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| 33 | 33 | | liabilities of the retirement system does not exceed 30 years by one |
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| 34 | 34 | | or more years; and |
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| 35 | 35 | | (2) as a result of paying the adjustment, the time |
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| 36 | 36 | | required to amortize the unfunded actuarial liabilities of the |
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| 37 | 37 | | retirement system would not be increased to a period that exceeds 30 |
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| 38 | 38 | | years by one or more years. |
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| 39 | 39 | | SECTION 3. Section 839.102(a), Government Code, as amended |
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| 40 | 40 | | by Acts 2005, 79th Leg., |
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| 41 | 41 | | R.S., Ch. 1203 (H.B. 617), Sec. 3, is |
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| 42 | 42 | | repealed. |
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| 43 | 43 | | SECTION 4. This Act takes effect September 1, 2017. |
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