| 1 | 1 | | 86R6145 TSR-F |
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| 2 | 2 | | By: Huberty H.B. No. 2795 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a one-time supplemental annuity payment to certain |
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| 8 | 8 | | retirees and beneficiaries of the Teacher Retirement System of |
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| 9 | 9 | | Texas. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter A, Chapter 824, Government Code, is |
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| 12 | 12 | | amended by adding Section 824.010 to read as follows: |
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| 13 | 13 | | Sec. 824.010. SUPPLEMENTAL PAYMENT. (a) Notwithstanding |
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| 14 | 14 | | Section 821.006, the retirement system may make a one-time |
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| 15 | 15 | | supplemental payment as provided by this section to an annuitant |
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| 16 | 16 | | eligible to receive a monthly retirement, disability, or death |
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| 17 | 17 | | benefit annuity under this subchapter. A supplemental payment made |
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| 18 | 18 | | under this section: |
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| 19 | 19 | | (1) is in addition to the regular monthly annuity |
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| 20 | 20 | | payment; and |
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| 21 | 21 | | (2) must be made using earnings the system makes on |
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| 22 | 22 | | investments as provided by this section. |
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| 23 | 23 | | (b) The retirement system shall pay the supplemental |
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| 24 | 24 | | payment in January following the fiscal year in which the actual |
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| 25 | 25 | | rate of return on the investment of the system's cash and securities |
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| 26 | 26 | | exceeds the assumed rate of return used in the actuarial valuation |
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| 27 | 27 | | prepared by the system for that fiscal year. |
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| 28 | 28 | | (c) The retirement system shall determine the aggregate |
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| 29 | 29 | | supplemental payment amount available for making supplemental |
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| 30 | 30 | | payments under this section by: |
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| 31 | 31 | | (1) requiring the system's actuary to determine the |
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| 32 | 32 | | value of the system's investment returns that represent the amount |
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| 33 | 33 | | by which the actual rate of return exceeds the assumed rate of |
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| 34 | 34 | | return under Subsection (d); and |
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| 35 | 35 | | (2) multiplying that value by 50 percent. |
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| 36 | 36 | | (d) The board of trustees shall, based on the aggregate |
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| 37 | 37 | | supplemental payment amount, determine: |
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| 38 | 38 | | (1) who is eligible to receive the supplemental |
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| 39 | 39 | | payment based on years of service, effective date of retirement or |
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| 40 | 40 | | death, as applicable, and other reasonable criteria; |
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| 41 | 41 | | (2) the amount of each annuitant's supplemental |
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| 42 | 42 | | payment; and |
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| 43 | 43 | | (3) the manner in which the payment is made. |
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| 44 | 44 | | (e) This section expires on the second anniversary of the |
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| 45 | 45 | | date on which the supplemental payment authorized under this |
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| 46 | 46 | | section is made. |
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| 47 | 47 | | SECTION 2. This Act takes effect immediately if it receives |
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| 48 | 48 | | a vote of two-thirds of all the members elected to each house, as |
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| 49 | 49 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 50 | 50 | | Act does not receive the vote necessary for immediate effect, this |
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| 51 | 51 | | Act takes effect September 1, 2019. |
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