Texas 2017 - 85th Regular

Texas House Bill HB398 Compare Versions

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

Old	New	Differences
1	1	85R2568 KFF-D
2	2	By: Allen H.B. No. 398
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certain benefits paid by the Employees Retirement
8	8	System of Texas.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter G, Chapter 814, Government Code, is
11	11	amended by adding Sections 814.605 and 814.606 to read as follows:
12	12	Sec. 814.605. ADJUSTMENT TO BENEFITS. (a) The amount of a
13	13	monthly service retirement benefit, disability retirement benefit,
14	14	or death benefit paid under this chapter to a retiree or beneficiary
15	15	for service credited in the employee class is increased to include a
16	16	10 percent adjustment in accordance with this section.
17	17	(b) The board of trustees shall recompute the amount of a
18	18	benefit paid monthly under this chapter by applying the 10 percent
19	19	adjustment to the monthly amount otherwise required to be paid as
20	20	determined in accordance with this chapter.
21	21	Sec. 814.606. ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The
22	22	amount of a monthly service retirement benefit, disability
23	23	retirement benefit, or death benefit paid under this chapter to a
24	24	retiree or beneficiary for service credited in the employee class
25	25	is increased to include a four percent annual cost-of-living
26	26	adjustment in accordance with this section.
27	27	(b) The board of trustees shall recompute the amount of a
28	28	benefit paid monthly under this chapter by applying the four
29	29	percent adjustment to the monthly amount otherwise required to be
30	30	paid as determined in accordance with this chapter.
31	31	SECTION 2. (a) The Employees Retirement System of Texas
32	32	shall make a one-time supplemental payment of a retirement or death
33	33	benefit, as provided by this section.
34	34	(b) A supplemental payment is payable in January 2018, and,
35	35	to the extent practicable, on a date or dates that coincide with the
36	36	regular annuity payment payable to each eligible annuitant.
37	37	(c) The amount of the supplemental payment is equal to the
38	38	lesser of:
39	39	(1) $2,000; or
40	40	(2) the gross amount of the regular annuity payment to
41	41	which the eligible annuitant is otherwise entitled for the month of
42	42	December 2017.
43	43	(d) The Employees Retirement System of Texas shall make
44	44	applicable tax withholding and other legally required deductions
45	45	before disbursing the supplemental payment. A supplemental payment
46	46	under this section is in addition to and not in lieu of the regular
47	47	monthly annuity payment to which the eligible annuitant is
48	48	otherwise entitled.
49	49	(e) Subject to Subsections (f) and (g) of this section, to
50	50	be eligible for the supplemental payment, a person must be, for the
51	51	month of December 2017, an annuitant eligible to receive:
52	52	(1) a standard retirement annuity payment;
53	53	(2) an optional service retirement annuity payment as
54	54	either a retiree or beneficiary under Section 814.108, Government
55	55	Code;
56	56	(3) a standard or occupational disability retirement
57	57	annuity payment;
58	58	(4) a death benefit annuity payment under Section
59	59	814.305, Government Code; or
60	60	(5) an alternate payee annuity payment under Section
61	61	804.005, Government Code.
62	62	(f) If the annuitant is a retiree or a beneficiary under an
63	63	optional retirement payment plan, to be eligible for the
64	64	supplemental payment, the effective date of the retirement of the
65	65	member of the Employees Retirement System of Texas must have been on
66	66	or before September 1, 2016. The supplemental payment shall be made
67	67	to an alternate payee who is an annuitant under Section 804.005,
68	68	Government Code, only if the annuity payment to the alternate payee
69	69	commenced on or before September 1, 2016. The supplemental payment
70	70	is in addition to the guaranteed number of payments under Section
71	71	814.108, Government Code, and may not be counted as one of the
72	72	guaranteed monthly payments.
73	73	(g) The supplemental payment does not apply to payments
74	74	under:
75	75	(1) Section 814.103 or 814.205, Government Code,
76	76	relating to retirees or disability retirees from the elected class
77	77	of membership;
78	78	(2) a subtitle other than Subtitle B, Title 8,
79	79	Government Code, except as provided by Subsection (e)(5) of this
80	80	section; or
81	81	(3) Section 814.304, Government Code, relating to
82	82	retiree survivor beneficiaries who receive a survivor annuity as
83	83	the surviving spouse of a member of the elected class.
84	84	(h) Except as provided by this section, the board of
85	85	trustees of the Employees Retirement System of Texas shall
86	86	determine the eligibility for and the amount and timing of a
87	87	supplemental payment and the manner in which the payment is made.
88	88	(i) The supplemental payment is subject solely to the
89	89	availability of appropriated funds. The supplemental payment must
90	90	comply with Section 811.006, Government Code.
91	91	SECTION 3. Section 814.604, Government Code, is repealed.
92	92	SECTION 4. Sections 814.605 and 814.606, Government Code,
93	93	as added by this Act, apply only to a monthly benefit payment made
94	94	by the Employees Retirement System of Texas on or after September 1,
95	95	2017.
96	96	SECTION 5. This Act takes effect September 1, 2017.