| 1 | 1 | | By: Muñoz, Jr. H.B. No. 593 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the computation of the standard service retirement |
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| 7 | 7 | | annuity for members of the Teacher Retirement System of Texas |
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| 8 | 8 | | enrolled in the Texas Public School Employees Group Insurance |
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| 9 | 9 | | Program. |
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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. Section 824.203(a), Government Code, is amended |
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| 12 | 12 | | to read as follows: |
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| 13 | 13 | | (a) Except as provided by Subsections (c) and (d), and |
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| 14 | 14 | | subject to Section 824.2035, the standard service retirement |
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| 15 | 15 | | annuity is an amount computed on the basis of the member's average |
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| 16 | 16 | | annual compensation for the five years of service, whether or not |
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| 17 | 17 | | consecutive, in which the member received the highest annual |
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| 18 | 18 | | compensation, times 2.3 percent for each year of service credit in |
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| 19 | 19 | | the retirement system. |
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| 20 | 20 | | SECTION 2. Subchapter C, Chapter 824, Government Code, is |
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| 21 | 21 | | amended by adding Section 824.2035 to read as follows: |
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| 22 | 22 | | Sec. 824.2035. STANDARD SERVICE RETIREMENT |
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| 23 | 23 | | BENEFITS: ADJUSTMENT OF PERCENTAGE FACTOR. (a) In this section, |
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| 24 | 24 | | "group program" and "health benefit plan" have the meanings |
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| 25 | 25 | | assigned by Section 1575.002, Insurance Code. |
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| 26 | 26 | | (b) The board of trustees shall: |
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| 27 | 27 | | (1) study the out-of-pocket costs paid and projected |
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| 28 | 28 | | to be paid by annuitants for health benefit plan coverage provided |
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| 29 | 29 | | under the group program, including premiums, deductibles, and |
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| 30 | 30 | | prescription drug costs; and |
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| 31 | 31 | | (2) based on the board's findings under Subdivision |
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| 32 | 32 | | (1) and notwithstanding any other law, by rule adopt a method or |
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| 33 | 33 | | formula for increasing the percentage factor used in the |
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| 34 | 34 | | computation of the standard service retirement annuity under |
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| 35 | 35 | | Section 824.203(a) for annuitants enrolled in the group program in |
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| 36 | 36 | | order to mitigate the impact projected out-of-pocket costs have on |
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| 37 | 37 | | the annuitants' service retirement annuities. |
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| 38 | 38 | | SECTION 3. Not later than December 31, 2020, the board of |
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| 39 | 39 | | trustees of the Teacher Retirement System of Texas shall complete |
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| 40 | 40 | | the study and adopt the rule required by Section 824.2035, |
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| 41 | 41 | | Government Code, as added by this Act. |
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| 42 | 42 | | SECTION 4. The changes in law made by this Act apply: |
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| 43 | 43 | | (1) to a person who is an annuitant of the Teacher |
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| 44 | 44 | | Retirement System of Texas on or after September 1, 2021, |
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| 45 | 45 | | regardless of whether the person became an annuitant before, on, or |
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| 46 | 46 | | after that date; and |
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| 47 | 47 | | (2) beginning with the first annuity payable on or |
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| 48 | 48 | | after September 1, 2021. |
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| 49 | 49 | | SECTION 5. This Act takes effect September 1, 2019. |
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