Texas 2017 - 85th 1st C.S.

Texas House Bill HB80 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Darby, Guillen, Oliveira, Guerra, et al. H.B. No. 80
	1	+	85S10290 TSR-F
	2	+	By: Darby, Guillen, Oliveira, et al. H.B. No. 80
2	3
3	4
4	5		A BILL TO BE ENTITLED
5	6		AN ACT
6	7		relating to a cost-of-living adjustment applicable to certain
7		-	benefits paid by the Teacher Retirement System of Texas, including
8		-	a related study.
	8	+	benefits paid by the Teacher Retirement System of Texas.
9	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10		SECTION 1. Subchapter H, Chapter 824, Government Code, is
11	11		amended by adding Section 824.703 to read as follows:
12	12		Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT.
13		-	(a) Notwithstanding Section 824.702 ~~and subject to Section~~
14		-	~~821.006, the retirement system shall~~ make a one-time cost-of-living
15		-	~~adjustment payable to annuitants~~ receiving a monthly death or
16		-	~~retirement benefit annuity, as~~ provided by this section.
	13	+	(a) Notwithstanding Section 824.702, the retirement system shall
	14	+	make a one-time cost-of-living adjustment payable to annuitants
	15	+	receiving a monthly death or retirement benefit annuity, as
	16	+	provided by this section.
17	17		(b) Subject to Subsections (c) and (d), to be eligible for
18	18		the adjustment, a person must be, on the effective date of the
19	19		adjustment and disregarding any forfeiture of benefits under
20	20		Section 824.601, an annuitant eligible to receive:
21	21		(1) a standard service or disability retirement
22	22		annuity payment;
23	23		(2) an optional service or disability retirement
24	24		annuity payment as either a retiree or beneficiary;
25	25		(3) an annuity payment under Section 824.402(a)(3) or
26	26		(4);
27	27		(4) an annuity payment under Section 824.502; or
28	28		(5) an alternate payee annuity payment under Section
29	29		804.005.
30	30		(c) If the annuitant:
31	31		(1) is a retiree or is a beneficiary under an optional
32	32		retirement payment plan, to be eligible for the adjustment under
33	33		this section:
34	34		(A) the annuitant must be living on the effective
35	35		date of the adjustment; and
36	36		(B) the effective date of the retirement of the
37	37		member of the retirement system must have been after August 31,
38	38		2004, and on or before August 31, 2015;
39	39		(2) is a beneficiary under Section 824.402(a)(3) or
40	40		(4) or 824.502, to be eligible for the adjustment:
41	41		(A) the annuitant must be living on the effective
42	42		date of the adjustment; and
43	43		(B) the date of death of the member of the
44	44		retirement system must have been after August 31, 2004, and on or
45	45		before August 31, 2015; or
46	46		(3) is an alternate payee under Section 804.005, the
47	47		annuitant is eligible for the adjustment only if the effective date
48	48		of the election to receive the annuity payment was after August 31,
49	49		2004, and on or before August 31, 2015.
50	50		(d) An adjustment made under this section does not apply to
51	51		payments under:
52	52		(1) Section 824.203(d), relating to retirees who
53	53		receive a standard service retirement annuity in an amount fixed by
54	54		statute;
55	55		(2) Section 824.304(a), relating to disability
56	56		retirees with less than 10 years of service credit;
57	57		(3) Section 824.304(b)(2), relating to disability
58	58		retirees who receive a disability annuity in an amount fixed by
59	59		statute;
60	60		(4) Section 824.404(a), relating to active member
61	61		survivor beneficiaries who receive a survivor annuity in an amount
62	62		fixed by statute;
63	63		(5) Section 824.501(a), relating to retiree survivor
64	64		beneficiaries who receive a survivor annuity in an amount fixed by
65	65		statute; or
66	66		(6) Section 824.804(b), relating to participants in
67	67		the deferred retirement option plan with regard to payments from
68	68		their deferred retirement option plan accounts.
69	69		(e) An adjustment under this section:
70		-	(1) must be made as soon as practicable after the board
71		-	of trustees finds that payment of the adjustment would not violate
72		-	Section 821.006; and
	70	+	(1) must be made beginning with an annuity payable for
	71	+	the month of December 2017; and
73	72		(2) is limited to the lesser of:
74	73		(A) an amount equal to three percent of the
75	74		monthly benefit subject to the increase; or
76	75		(B) $100 a month.
77	76		(f) The board of trustees shall determine the eligibility
78	77		for and the amount of any adjustment in monthly annuities in
79	78		accordance with this section.
80		-	SECTION 2. (a) Using existing resources, the Teacher
81		-	Retirement System of Texas shall conduct a study on future
82		-	cost-of-living adjustments payable to an annuitant receiving a
83		-	monthly death or retirement annuity, including projections on
84		-	future cost-of-living adjustments
85		-	and a review of structural
86		-	changes affecting cost-of-living adjustments, including the
87		-	feasibility of offering an alternative annuity payment option to
88		-	retirees under which the standard service retirement annuity
89		-	provided under Subchapter C, Chapter 824, Government Code, is
90		-	payable on a graduated scale with annuity payments increasing on an
91		-	annual basis. In conducting a study under this section, the
92		-	retirement system shall only consider alternative annuity payment
93		-	options that are projected by the retirement system's actuary to
94		-	have no fiscal impact to the state.
95		-	(b) Not later than September 1, 2018, the Teacher Retirement
96		-	System of Texas shall submit to the legislature a written report on
97		-	the results of the study and any recommendations for legislative or
98		-	other action.
99		-	(c) This section expires September 1, 2019.
100		-	SECTION 3. This Act takes effect immediately if it receives
	79	+	SECTION 2. This Act takes effect immediately if it receives
101	80		a vote of two-thirds of all the members elected to each house, as
102	81		provided by Section 39, Article III, Texas Constitution. If this
103	82		Act does not receive the vote necessary for immediate effect, this
104	83		Act takes effect December 1, 2017.