86R13746 LED-F
By: Herrero H.B. No. 4491
A BILL TO BE ENTITLED
AN ACT
relating to contributions to, benefits from, and the administration
of systems and programs administered by the Teacher Retirement
System of Texas, including a one-time supplemental payment for
retirees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) Section 821.006, Government Code, is
amended by adding Subsections (c) and (d) to read as follows:
(c) Notwithstanding Subsections (a) and (b), the retirement
system may provide a one-time supplemental payment to an annuitant
eligible to receive:
(1) a standard retirement annuity payment;
(2) an optional retirement annuity payment as either a
retiree or beneficiary;
(3) a life annuity payment under Section
824.402(a)(4);
(4) an annuity for a guaranteed period of 60 months
under Section 824.402(a)(3); or
(5) an alternate payee annuity payment under Section
804.005.
(d) A one-time supplemental payment under Subsection (c) is
authorized if the amortization period for the unfunded actuarial
liabilities of the retirement system does not exceed 30 years by one
or more years after payment of the supplemental payment.
(b) The Teacher Retirement System of Texas shall make a
one-time supplemental payment of a retirement or death benefit, as
provided by Section 821.006, Government Code, as amended by this
Act, and this section.
(c) The supplemental payment is payable not later than
September 2019 and, to the extent practicable, on a date or dates
that coincide with the regular annuity payment payable to each
eligible annuitant.
(d) The amount of the supplemental payment is equal to the
lesser of:
(1) the gross amount of the regular annuity payment to
which the eligible annuitant is otherwise entitled for the month of
August 2019; or
(2) $2,400.
(e) The supplemental payment is payable without regard to
any forfeiture of benefits under Section 824.601, Government Code.
The Teacher Retirement System of Texas shall make applicable tax
withholding and other legally required deductions before
disbursing the supplemental payment. A supplemental payment under
this section is in addition to and not in lieu of the regular
monthly annuity payment to which the eligible annuitant is
otherwise entitled.
(f) Subject to Subsection (g) of this section, to be
eligible for the supplemental payment, a person must be, for the
month of August 2019, and disregarding any forfeiture of benefits
under Section 824.601, Government Code, an annuitant eligible to
receive:
(1) a standard retirement annuity payment;
(2) an optional retirement annuity payment as either a
retiree or beneficiary;
(3) a life annuity payment under Section
824.402(a)(4), Government Code;
(4) an annuity for a guaranteed period of 60 months
under Section 824.402(a)(3), Government Code; or
(5) an alternate payee annuity payment under Section
804.005, Government Code.
(g) If the annuitant is a retiree or a beneficiary under an
optional retirement payment plan, to be eligible for the
supplemental payment, the effective date of the retirement of the
member of the Teacher Retirement System of Texas must have been on
or before August 31, 2015. If the annuitant is a beneficiary under
Section 824.402(a)(3) or (4), Government Code, to be eligible for
the supplemental payment, the date of death of the member of the
retirement system must have been on or before August 31, 2015. The
supplemental payment shall be made to an alternate payee who is an
annuitant under Section 804.005, Government Code, only if the
annuity payment to the alternate payee commenced on or before
August 31, 2015. The supplemental payment is in addition to the
guaranteed number of payments under Section 824.402(a)(3),
824.204(c)(3) or (4), or 824.308(c)(3) or (4), Government Code, and
may not be counted as one of the guaranteed monthly payments.
(h) The supplemental payment does not apply to payments
under:
(1) Section 824.304(a), Government Code, relating to
disability retirees with less than 10 years of service credit;
(2) Section 824.804(b), Government Code, relating to
participants in the deferred retirement option plan with regard to
payments from their deferred retirement option plan accounts;
(3) Section 824.501(a), Government Code, relating to
retiree survivor beneficiaries who receive a survivor annuity in an
amount fixed by statute; or
(4) Section 824.404(a), Government Code, relating to
active member survivor beneficiaries who receive a survivor annuity
in an amount fixed by statute.
(i) Except as provided by this section, the board of
trustees of the Teacher Retirement System of Texas shall determine
the eligibility for and the amount and timing of a supplemental
payment and the manner in which the payment is made.
SECTION 2. (a) Sections 824.601(b-1) and (f), Government
Code, are amended to read as follows:
(b-1) Subsection (b) does not apply to a retiree:
(1) under Section 824.202 whose effective date of
retirement is on or before August 31, 2018; or
(2) who commits a minor violation of a provision of
this subchapter, including a minor violation of an exception
provided by Section 824.602, unless the violation occurs frequently
[January 1, 2011].
(f) The system shall [may] adopt rules necessary for
administering this subchapter, including rules necessary to
implement Subsection (b-1)(2).
(b) A person who resumed employment after retirement and
whose benefit payments were suspended under Section 824.601,
Government Code, as that section existed before amendment by this
Act, is entitled to the resumption of monthly benefit payments if
the person meets the requirements of Section 824.601(b-1),
Government Code, as amended by this Act.
(c) The Teacher Retirement System of Texas shall resume
making monthly benefit payments to a person described by Subsection
(b) of this section on the first payment date occurring on or after
the effective date of this Act.
(d) A person who is entitled to the resumption of monthly
benefit payments under this section is not entitled to recover
benefit payments not made during the period the person's benefit
was suspended under Section 824.601, Government Code, as that
section existed before amendment by this Act.
SECTION 3. (a) Section 824.602, Government Code, is
amended by amending Subsection (a) and adding Subsection (c) to
read as follows:
(a) Subject to Subsection (c) and Section 825.506, the
retirement system may not, under Section 824.601, withhold a
monthly benefit payment if the retiree is employed in a Texas public
educational institution:
(1) as a substitute only with pay not more than the
daily rate of substitute pay established by the employer and, if the
retiree is a disability retiree, the employment has not exceeded a
total of 90 days in the school year;
(2) in a position, other than as a substitute, on no
more than a one-half time basis for the month;
(3) in one or more positions on as much as a full-time
basis, if the retiree has been separated from service with all Texas
public educational institutions for at least 12 full consecutive
months after the retiree's effective date of retirement; or
(4) in a position, other than as a substitute, on no
more than a one-half time basis for no more than 90 days in the
school year, if the retiree is a disability retiree.
(c) An exception provided by Subsection (a)(2) or (4)
continues to apply to a retiree who exceeds a limitation prescribed
by the subsection because of an event or other circumstance that is
beyond the retiree's control, including a weather-related event.
The board of trustees shall adopt rules necessary to implement this
subsection.
(b) Section 824.602, Government Code, as amended by this
Act, applies only to a benefit payment made by the Teacher
Retirement System of Texas that becomes payable on or after the
effective date of this Act.
SECTION 4. The heading to Section 825.4035, Government
Code, is amended to read as follows:
Sec. 825.4035. EMPLOYER CONTRIBUTIONS [FOR CERTAIN
EMPLOYED MEMBERS FOR WHOM THE EMPLOYER IS NOT MAKING CONTRIBUTIONS
TO THE FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE
PROGRAM].
SECTION 5. Sections 825.4035(a) and (b), Government Code,
are amended to read as follows:
(a) This section[:
[(1)] applies to an employer who reports to the
retirement system under Section 825.403 the employment of a member
[for whom the employer is not making contributions to the federal
Old-Age, Survivors, and Disability Insurance program; and
[(2) does not apply to an employer that is an
institution of higher education].
(b) Except as provided in Subsection (c), for each member
an [the] employer reports to the retirement system [and for whom the
employer is not making contributions to the federal Old-Age,
Survivors, and Disability Insurance program], the employer shall
contribute monthly to the retirement system for each such member[:
[(1) for the period beginning with the report month of
September 2014 and ending with the report month of August 2015, an
amount equal to 1.5 percent of the member's compensation; and
[(2) beginning with the report month for September
2015,] an amount equal to the lesser of:
(1) [(A)] 1.5 percent of the member's compensation; or
(2) [(B)] a percentage of the member's compensation
equal to 1.5 percent reduced by one-tenth of one percent for each
one-tenth of one percent that the state contribution rate for the
fiscal year to which the report month relates is less than the state
contribution rate established for the 2015 fiscal year.
SECTION 6. (a) Subchapter F, Chapter 825, Government Code,
is amended by adding Section 825.521 to read as follows:
Sec. 825.521. DEADLINE TO APPEAL. A period established by
law or rule during which a member or retiree may appeal an
administrative decision of an employee of the retirement system,
including the executive director, may not begin before the eighth
day after the date the employee notifies the member or retiree of
the decision. The notice required by this section must be made in
accordance with rules of the board of trustees.
(b) As soon as practicable after the effective date of this
Act, the board of trustees of the Teacher Retirement System of Texas
shall adopt rules necessary to implement the change in law made by
Section 825.521, Government Code, as added by this Act.
(c) The change in law made by Section 825.521, Government
Code, as added by this Act, applies only to the appeal of an
administrative decision of an employee of the Teacher Retirement
System of Texas made on or after January 1, 2020. An appeal of a
decision made before January 1, 2020, is governed by the law as it
existed immediately before the effective date of this Act and that
law is continued in effect for that purpose.
SECTION 7. Section 1575.202(a), Insurance Code, is amended
to read as follows:
(a) Each state fiscal year, the state shall contribute to
the fund an amount equal to a percentage [1.25 percent] of the
salary of each active employee as follows:
(1) for the 2020 and 2021 fiscal years, 2.25 percent;
(2) for the 2022 fiscal year, 2.5 percent;
(3) for the 2023 fiscal year, 2.75 percent;
(4) for the 2024 fiscal year, three percent;
(5) for the 2025 fiscal year, 3.25 percent;
(6) for the 2026 fiscal year, 3.5 percent;
(7) for the 2027 fiscal year, 3.75 percent;
(8) for the 2028 fiscal year, four percent; and
(9) for the 2029 fiscal year, and each subsequent
fiscal year, 4.25 percent.
SECTION 8. This Act takes effect September 1, 2019.