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