Texas 2019 - 86th Regular

Texas House Bill HB4491 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R13746 LED-F
2	2	By: Herrero H.B. No. 4491
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to contributions to, benefits from, and the administration
8	8	of systems and programs administered by the Teacher Retirement
9	9	System of Texas, including a one-time supplemental payment for
10	10	retirees.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. (a) Section 821.006, Government Code, is
13	13	amended by adding Subsections (c) and (d) to read as follows:
14	14	(c) Notwithstanding Subsections (a) and (b), the retirement
15	15	system may provide a one-time supplemental payment to an annuitant
16	16	eligible to receive:
17	17	(1) a standard retirement annuity payment;
18	18	(2) an optional retirement annuity payment as either a
19	19	retiree or beneficiary;
20	20	(3) a life annuity payment under Section
21	21	824.402(a)(4);
22	22	(4) an annuity for a guaranteed period of 60 months
23	23	under Section 824.402(a)(3); or
24	24	(5) an alternate payee annuity payment under Section
25	25	804.005.
26	26	(d) A one-time supplemental payment under Subsection (c) is
27	27	authorized if the amortization period for the unfunded actuarial
28	28	liabilities of the retirement system does not exceed 30 years by one
29	29	or more years after payment of the supplemental payment.
30	30	(b) The Teacher Retirement System of Texas shall make a
31	31	one-time supplemental payment of a retirement or death benefit, as
32	32	provided by Section 821.006, Government Code, as amended by this
33	33	Act, and this section.
34	34	(c) The supplemental payment is payable not later than
35	35	September 2019 and, to the extent practicable, on a date or dates
36	36	that coincide with the regular annuity payment payable to each
37	37	eligible annuitant.
38	38	(d) The amount of the supplemental payment is equal to the
39	39	lesser of:
40	40	(1) the gross amount of the regular annuity payment to
41	41	which the eligible annuitant is otherwise entitled for the month of
42	42	August 2019; or
43	43	(2) $2,400.
44	44	(e) The supplemental payment is payable without regard to
45	45	any forfeiture of benefits under Section 824.601, Government Code.
46	46	The Teacher Retirement System of Texas shall make applicable tax
47	47	withholding and other legally required deductions before
48	48	disbursing the supplemental payment. A supplemental payment under
49	49	this section is in addition to and not in lieu of the regular
50	50	monthly annuity payment to which the eligible annuitant is
51	51	otherwise entitled.
52	52	(f) Subject to Subsection (g) of this section, to be
53	53	eligible for the supplemental payment, a person must be, for the
54	54	month of August 2019, and disregarding any forfeiture of benefits
55	55	under Section 824.601, Government Code, an annuitant eligible to
56	56	receive:
57	57	(1) a standard retirement annuity payment;
58	58	(2) an optional retirement annuity payment as either a
59	59	retiree or beneficiary;
60	60	(3) a life annuity payment under Section
61	61	824.402(a)(4), Government Code;
62	62	(4) an annuity for a guaranteed period of 60 months
63	63	under Section 824.402(a)(3), Government Code; or
64	64	(5) an alternate payee annuity payment under Section
65	65	804.005, Government Code.
66	66	(g) If the annuitant is a retiree or a beneficiary under an
67	67	optional retirement payment plan, to be eligible for the
68	68	supplemental payment, the effective date of the retirement of the
69	69	member of the Teacher Retirement System of Texas must have been on
70	70	or before August 31, 2015. If the annuitant is a beneficiary under
71	71	Section 824.402(a)(3) or (4), Government Code, to be eligible for
72	72	the supplemental payment, the date of death of the member of the
73	73	retirement system must have been on or before August 31, 2015. The
74	74	supplemental payment shall be made to an alternate payee who is an
75	75	annuitant under Section 804.005, Government Code, only if the
76	76	annuity payment to the alternate payee commenced on or before
77	77	August 31, 2015. The supplemental payment is in addition to the
78	78	guaranteed number of payments under Section 824.402(a)(3),
79	79	824.204(c)(3) or (4), or 824.308(c)(3) or (4), Government Code, and
80	80	may not be counted as one of the guaranteed monthly payments.
81	81	(h) The supplemental payment does not apply to payments
82	82	under:
83	83	(1) Section 824.304(a), Government Code, relating to
84	84	disability retirees with less than 10 years of service credit;
85	85	(2) Section 824.804(b), Government Code, relating to
86	86	participants in the deferred retirement option plan with regard to
87	87	payments from their deferred retirement option plan accounts;
88	88	(3) Section 824.501(a), Government Code, relating to
89	89	retiree survivor beneficiaries who receive a survivor annuity in an
90	90	amount fixed by statute; or
91	91	(4) Section 824.404(a), Government Code, relating to
92	92	active member survivor beneficiaries who receive a survivor annuity
93	93	in an amount fixed by statute.
94	94	(i) Except as provided by this section, the board of
95	95	trustees of the Teacher Retirement System of Texas shall determine
96	96	the eligibility for and the amount and timing of a supplemental
97	97	payment and the manner in which the payment is made.
98	98	SECTION 2. (a) Sections 824.601(b-1) and (f), Government
99	99	Code, are amended to read as follows:
100	100	(b-1) Subsection (b) does not apply to a retiree:
101	101	(1) under Section 824.202 whose effective date of
102	102	retirement is on or before August 31, 2018; or
103	103	(2) who commits a minor violation of a provision of
104	104	this subchapter, including a minor violation of an exception
105	105	provided by Section 824.602, unless the violation occurs frequently
106	106	[January 1, 2011].
107	107	(f) The system shall [may] adopt rules necessary for
108	108	administering this subchapter, including rules necessary to
109	109	implement Subsection (b-1)(2).
110	110	(b) A person who resumed employment after retirement and
111	111	whose benefit payments were suspended under Section 824.601,
112	112	Government Code, as that section existed before amendment by this
113	113	Act, is entitled to the resumption of monthly benefit payments if
114	114	the person meets the requirements of Section 824.601(b-1),
115	115	Government Code, as amended by this Act.
116	116	(c) The Teacher Retirement System of Texas shall resume
117	117	making monthly benefit payments to a person described by Subsection
118	118	(b) of this section on the first payment date occurring on or after
119	119	the effective date of this Act.
120	120	(d) A person who is entitled to the resumption of monthly
121	121	benefit payments under this section is not entitled to recover
122	122	benefit payments not made during the period the person's benefit
123	123	was suspended under Section 824.601, Government Code, as that
124	124	section existed before amendment by this Act.
125	125	SECTION 3. (a) Section 824.602, Government Code, is
126	126	amended by amending Subsection (a) and adding Subsection (c) to
127	127	read as follows:
128	128	(a) Subject to Subsection (c) and Section 825.506, the
129	129	retirement system may not, under Section 824.601, withhold a
130	130	monthly benefit payment if the retiree is employed in a Texas public
131	131	educational institution:
132	132	(1) as a substitute only with pay not more than the
133	133	daily rate of substitute pay established by the employer and, if the
134	134	retiree is a disability retiree, the employment has not exceeded a
135	135	total of 90 days in the school year;
136	136	(2) in a position, other than as a substitute, on no
137	137	more than a one-half time basis for the month;
138	138	(3) in one or more positions on as much as a full-time
139	139	basis, if the retiree has been separated from service with all Texas
140	140	public educational institutions for at least 12 full consecutive
141	141	months after the retiree's effective date of retirement; or
142	142	(4) in a position, other than as a substitute, on no
143	143	more than a one-half time basis for no more than 90 days in the
144	144	school year, if the retiree is a disability retiree.
145	145	(c) An exception provided by Subsection (a)(2) or (4)
146	146	continues to apply to a retiree who exceeds a limitation prescribed
147	147	by the subsection because of an event or other circumstance that is
148	148	beyond the retiree's control, including a weather-related event.
149	149	The board of trustees shall adopt rules necessary to implement this
150	150	subsection.
151	151	(b) Section 824.602, Government Code, as amended by this
152	152	Act, applies only to a benefit payment made by the Teacher
153	153	Retirement System of Texas that becomes payable on or after the
154	154	effective date of this Act.
155	155	SECTION 4. The heading to Section 825.4035, Government
156	156	Code, is amended to read as follows:
157	157	Sec. 825.4035. EMPLOYER CONTRIBUTIONS [FOR CERTAIN
158	158	EMPLOYED MEMBERS FOR WHOM THE EMPLOYER IS NOT MAKING CONTRIBUTIONS
159	159	TO THE FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE
160	160	PROGRAM].
161	161	SECTION 5. Sections 825.4035(a) and (b), Government Code,
162	162	are amended to read as follows:
163	163	(a) This section[:
164	164	[(1)] applies to an employer who reports to the
165	165	retirement system under Section 825.403 the employment of a member
166	166	[for whom the employer is not making contributions to the federal
167	167	Old-Age, Survivors, and Disability Insurance program; and
168	168	[(2) does not apply to an employer that is an
169	169	institution of higher education].
170	170	(b) Except as provided in Subsection (c), for each member
171	171	an [the] employer reports to the retirement system [and for whom the
172	172	employer is not making contributions to the federal Old-Age,
173	173	Survivors, and Disability Insurance program], the employer shall
174	174	contribute monthly to the retirement system for each such member[:
175	175	[(1) for the period beginning with the report month of
176	176	September 2014 and ending with the report month of August 2015, an
177	177	amount equal to 1.5 percent of the member's compensation; and
178	178	[(2) beginning with the report month for September
179	179	2015,] an amount equal to the lesser of:
180	180	(1) [(A)] 1.5 percent of the member's compensation; or
181	181	(2) [(B)] a percentage of the member's compensation
182	182	equal to 1.5 percent reduced by one-tenth of one percent for each
183	183	one-tenth of one percent that the state contribution rate for the
184	184	fiscal year to which the report month relates is less than the state
185	185	contribution rate established for the 2015 fiscal year.
186	186	SECTION 6. (a) Subchapter F, Chapter 825, Government Code,
187	187	is amended by adding Section 825.521 to read as follows:
188	188	Sec. 825.521. DEADLINE TO APPEAL. A period established by
189	189	law or rule during which a member or retiree may appeal an
190	190	administrative decision of an employee of the retirement system,
191	191	including the executive director, may not begin before the eighth
192	192	day after the date the employee notifies the member or retiree of
193	193	the decision. The notice required by this section must be made in
194	194	accordance with rules of the board of trustees.
195	195	(b) As soon as practicable after the effective date of this
196	196	Act, the board of trustees of the Teacher Retirement System of Texas
197	197	shall adopt rules necessary to implement the change in law made by
198	198	Section 825.521, Government Code, as added by this Act.
199	199	(c) The change in law made by Section 825.521, Government
200	200	Code, as added by this Act, applies only to the appeal of an
201	201	administrative decision of an employee of the Teacher Retirement
202	202	System of Texas made on or after January 1, 2020. An appeal of a
203	203	decision made before January 1, 2020, is governed by the law as it
204	204	existed immediately before the effective date of this Act and that
205	205	law is continued in effect for that purpose.
206	206	SECTION 7. Section 1575.202(a), Insurance Code, is amended
207	207	to read as follows:
208	208	(a) Each state fiscal year, the state shall contribute to
209	209	the fund an amount equal to a percentage [1.25 percent] of the
210	210	salary of each active employee as follows:
211	211	(1) for the 2020 and 2021 fiscal years, 2.25 percent;
212	212	(2) for the 2022 fiscal year, 2.5 percent;
213	213	(3) for the 2023 fiscal year, 2.75 percent;
214	214	(4) for the 2024 fiscal year, three percent;
215	215	(5) for the 2025 fiscal year, 3.25 percent;
216	216	(6) for the 2026 fiscal year, 3.5 percent;
217	217	(7) for the 2027 fiscal year, 3.75 percent;
218	218	(8) for the 2028 fiscal year, four percent; and
219	219	(9) for the 2029 fiscal year, and each subsequent
220	220	fiscal year, 4.25 percent.
221	221	SECTION 8. This Act takes effect September 1, 2019.