85S11283 TSR-D
By: Muñoz, Jr. H.B. No. 388
A BILL TO BE ENTITLED
AN ACT
relating to the computation of the standard service retirement
annuity for members of the Teacher Retirement System of Texas
enrolled in the Texas Public School Employees Group Insurance
Program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 824.203(a), Government Code, is amended
to read as follows:
(a) Except as provided by Subsections (c) and (d), and
subject to Section 824.2035, the standard service retirement
annuity is an amount computed on the basis of the member's average
annual compensation for the five years of service, whether or not
consecutive, in which the member received the highest annual
compensation, times 2.3 percent for each year of service credit in
the retirement system.
SECTION 2. Subchapter C, Chapter 824, Government Code, is
amended by adding Section 824.2035 to read as follows:
Sec. 824.2035. STANDARD SERVICE RETIREMENT BENEFITS:
ADJUSTMENT OF PERCENTAGE FACTOR. (a) In this section, "group
program" and "health benefit plan" have the meanings assigned by
Section 1575.002, Insurance Code.
(b) The board of trustees shall:
(1) study the out-of-pocket costs paid and projected
to be paid by annuitants for health benefit plan coverage provided
under the group program, including premiums, deductibles, and
prescription drug costs; and
(2) based on the board's findings under Subdivision
(1) and notwithstanding any other law, by rule adopt a method or
formula for increasing the percentage factor used in the
computation of the standard service retirement annuity under
Section 824.203(a) for annuitants enrolled in the group program in
order to mitigate the impact projected out-of-pocket costs have on
the annuitants' service retirement annuities.
SECTION 3. Not later than December 31, 2018, the board of
trustees of the Teacher Retirement System of Texas shall complete
the study and adopt the rule required by Section 824.2035,
Government Code, as added by this Act.
SECTION 4. The changes in law made by this Act apply:
(1) to a person who is an annuitant of the Teacher
Retirement System of Texas on or after September 1, 2019,
regardless of whether the person became an annuitant before, on, or
after that date; and
(2) beginning with the first annuity payable on or
after September 1, 2019.
SECTION 5. This Act takes effect December 1, 2017.