Texas 2017 - 85th Regular

Texas Senate Bill SB217 Compare Versions

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1	1	By: Menéndez S.B. No. 217
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to a supplemental payment for retirees of the Teacher
7	7	Retirement System of Texas and the unfunded actuarial liabilities
8	8	allowed under that system.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 821.006, Government Code, is amended by
11	11	adding Subsections (c) and (d) to read as follows:
12	12	(c) Notwithstanding Subsections (a) and (b), the retirement
13	13	system may provide a one-time supplemental payment to an annuitant
14	14	eligible to receive:
15	15	(1) a standard retirement annuity payment;
16	16	(2) an optional retirement annuity payment as either a
17	17	retiree or beneficiary;
18	18	(3) a life annuity payment under Section
19	19	824.402(a)(4);
20	20	(4) an annuity for a guaranteed period of 60 months
21	21	under Section 824.402(a)(3); or
22	22	(5) an alternate payee annuity payment under Section
23	23	804.005.
24	24	(d) A one-time supplemental payment under Subsection (c) is
25	25	authorized if the amortization period for the unfunded actuarial
26	26	liabilities of the retirement system does not exceed 30 years by one
27	27	or more years after payment of the supplemental payment.
28	28	SECTION 2. (a) The Teacher Retirement System of Texas
29	29	shall make a one-time supplemental payment of a retirement or death
30	30	benefit, as provided by Section 821.006, Government Code, as
31	31	amended by this Act, and this section.
32	32	(b) The supplemental payment is payable not later than
33	33	September 2017 and, to the extent practicable, on a date or dates
34	34	that coincide with the regular annuity payment payable to each
35	35	eligible annuitant.
36	36	(c) The amount of the supplemental payment is equal to the
37	37	lesser of:
38	38	(1) the gross amount of the regular annuity payment to
39	39	which the eligible annuitant is otherwise entitled for the month of
40	40	August 2017; or
41	41	(2) $2,400.
42	42	(d) The supplemental payment is payable without regard to
43	43	any forfeiture of benefits under Section 824.601, Government Code.
44	44	The Teacher Retirement System of Texas shall make applicable tax
45	45	withholding and other legally required deductions before
46	46	disbursing the supplemental payment. A supplemental payment under
47	47	this section is in addition to and not in lieu of the regular
48	48	monthly annuity payment to which the eligible annuitant is
49	49	otherwise entitled.
50	50	(e) Subject to Subsection (f) of this section, to be
51	51	eligible for the supplemental payment, a person must be, for the
52	52	month of August 2017, and disregarding any forfeiture of benefits
53	53	under Section 824.601, Government Code, an annuitant eligible to
54	54	receive:
55	55	(1) a standard retirement annuity payment;
56	56	(2) an optional retirement annuity payment as either a
57	57	retiree or beneficiary;
58	58	(3) a life annuity payment under Section
59	59	824.402(a)(4), Government Code;
60	60	(4) an annuity for a guaranteed period of 60 months
61	61	under Section 824.402(a)(3), Government Code; or
62	62	(5) an alternate payee annuity payment under Section
63	63	804.005, Government Code.
64	64	(f) If the annuitant is a retiree or a beneficiary under an
65	65	optional retirement payment plan, to be eligible for the
66	66	supplemental payment, the effective date of the retirement of the
67	67	member of the Teacher Retirement System of Texas must have been on
68	68	or before August 31, 2013. If the annuitant is a beneficiary under
69	69	Section 824.402(a)(3) or (4), Government Code, to be eligible for
70	70	the supplemental payment, the date of death of the member of the
71	71	retirement system must have been on or before August 31, 2013. The
72	72	supplemental payment shall be made to an alternate payee who is an
73	73	annuitant under Section 804.005, Government Code, only if the
74	74	annuity payment to the alternate payee commenced on or before
75	75	August 31, 2013. The supplemental payment is in addition to the
76	76	guaranteed number of payments under Section 824.402(a)(3),
77	77	824.204(c)(3) or (4), or 824.308(c)(3) or (4), Government Code, and
78	78	may not be counted as one of the guaranteed monthly payments.
79	79	(g) The supplemental payment does not apply to payments
80	80	under:
81	81	(1) Section 824.304(a), Government Code, relating to
82	82	disability retirees with less than 10 years of service credit;
83	83	(2) Section 824.804(b), Government Code, relating to
84	84	participants in the deferred retirement option plan with regard to
85	85	payments from their deferred retirement option plan accounts;
86	86	(3) Section 824.501(a), Government Code, relating to
87	87	retiree survivor beneficiaries who receive a survivor annuity in an
88	88	amount fixed by statute; or
89	89	(4) Section 824.404(a), Government Code, relating to
90	90	active member survivor beneficiaries who receive a survivor annuity
91	91	in an amount fixed by statute.
92	92	(h) Except as provided by this section, the board of
93	93	trustees of the Teacher Retirement System of Texas shall determine
94	94	the eligibility for and the amount and timing of a supplemental
95	95	payment and the manner in which the payment is made.
96	96	SECTION 3. This Act takes effect September 1, 2017.