Texas 2019 - 86th Regular

Texas House Bill HB4587 Compare Versions

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

Old	New	Differences
1	1	86R8952 TSR-F
2	2	By: Smithee H.B. No. 4587
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to optional annuity increases for certain retirees and
8	8	beneficiaries of the Texas Municipal Retirement System and related
9	9	distribution requirements.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 853.404, Government Code, is amended by
12	12	amending Subsection (c) and adding Subsection (f) to read as
13	13	follows:
14	14	(c) The governing body of a participating municipality that
15	15	adopts an ordinance under Section 854.203 providing for increased
16	16	annuities effective January 1 of a designated year may further
17	17	provide in the ordinance that increases in annuities will be
18	18	credited effective January 1 of each year following the designated
19	19	year based on recomputations made as provided by Section 854.203(b)
20	20	[854.203(b)(1)] for each year following the initial computation,
21	21	and using the fraction specified in the ordinance as required under
22	22	Section 854.203(b) [854.203(b)(2)] in the recomputations.
23	23	(f) If an ordinance described by Subsection (c) will cease
24	24	to be in effect for a future year, or if an increase in annuities
25	25	specified in an ordinance described by Subsection (c) will be
26	26	changed or discontinued as provided by this section, the governing
27	27	body of the participating municipality shall notify members and
28	28	annuitants by regular mail not later than the 60th day before the
29	29	date on which the ordinance will cease to be in effect or the
30	30	increase will be changed or discontinued. For an annuitant who
31	31	receives a periodic check or advice of deposit from the retirement
32	32	system by regular mail, the notice required by this subsection must
33	33	be included with the annuitant's check or advice of deposit.
34	34	SECTION 2. Section 854.203, Government Code, is amended by
35	35	amending Subsections (b) and (f) and adding Subsection (b-1) to
36	36	read as follows:
37	37	(b) The amount of annuity increase under this section is
38	38	computed by one of the following methods:
39	39	(1) as the sum of the prior and current service
40	40	annuities on the effective date of retirement of the person on whose
41	41	service the annuities are based, multiplied by:
42	42	(A) [(1)] the percentage change in the Consumer
43	43	Price Index for All Urban Consumers, published by the Bureau of
44	44	Labor Statistics of the United States Department of Labor, from
45	45	December of the year immediately preceding the effective date of
46	46	the person's retirement to the December that is 13 months before the
47	47	effective date of the ordinance providing the increase; and
48	48	(B) [(2)] 30 percent, 50 percent, or 70 percent,
49	49	as specified by the governing body in the ordinance, except that if
50	50	the governing body has specified a different percentage in an
51	51	ordinance adopted under Section 853.404(c) and in effect on
52	52	December 31, 1999, the percentage used in computing annuity
53	53	increases for retirees of that municipality remains in effect until
54	54	changed or discontinued under Section 853.404; or
55	55	(2) as the sum of the prior and current service
56	56	annuities of the person on whose service the annuities are based on
57	57	the effective date of the annuity increase multiplied by the
58	58	percentage increase specified in the ordinance adopted by the
59	59	governing body, except that an adjustment to an annuity after the
60	60	annuity starting date for an increase under this subdivision may
61	61	not cause an annuitant's annuity to exceed the amount to which the
62	62	annuitant would have been entitled to had the maximum amount of the
63	63	increase allowed under Subdivision (1) been applied to the
64	64	annuitant's annuity.
65	65	(b-1) An increase under Subsection (b)(2) applies to all
66	66	annuities for which the effective date of retirement of the person
67	67	on whose service the annuity is based is at least 12 months before
68	68	the effective date of the increase. Notwithstanding any other
69	69	provision of this subtitle, each distribution of a benefit under
70	70	this subtitle must be determined and made in accordance with
71	71	Section 401(a)(9), Internal Revenue Code of 1986. The board of
72	72	trustees may adopt rules it considers necessary to comply with the
73	73	distribution requirements.
74	74	(f) An increase granted to an annuitant under Subsection
75	75	(b)(2), or the [The] amount by which an increase under Subsection
76	76	(b)(1) [this section] exceeds all previously granted increases to
77	77	an annuitant, is:
78	78	(1) payable as a prior service annuity;
79	79	(2) [, is] an obligation of the municipality's account
80	80	in the benefit accumulation fund; [,] and
81	81	(3) [is] subject to reduction under Section
82	82	855.308(f).
83	83	SECTION 3. This Act takes effect immediately if it receives
84	84	a vote of two-thirds of all the members elected to each house, as
85	85	provided by Section 39, Article III, Texas Constitution. If this
86	86	Act does not receive the vote necessary for immediate effect, this
87	87	Act takes effect September 1, 2019.