Texas 2019 - 86th Regular

Texas House Bill HB9 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R17151 TSR-F
2		-	By: Bonnen of Galveston, Murphy, H.B. No. 9
3		-	González of El Paso, Meyer, Walle,
4		-	et al.
5		-	Substitute the following for H.B.
	1	+	86R16951 TSR-F
	2	+	By: Bonnen of Galveston H.B. No. 9
6	3
7	4
8	5		A BILL TO BE ENTITLED
9	6		AN ACT
10	7		relating to the contributions to and benefits under the Teacher
11	8		Retirement System of Texas.
12	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	10		SECTION 1. Section 825.402, Government Code, is amended to
14	11		read as follows:
15	12		Sec. 825.402. RATE OF MEMBER CONTRIBUTIONS. The rate of
16	13		contributions for each member of the retirement system is:
17	14		(1) five percent of the member's annual compensation
18	15		or $180, whichever is less, for service rendered after August 31,
19	16		1937, and before September 1, 1957;
20	17		(2) six percent of the first $8,400 of the member's
21	18		annual compensation for service rendered after August 31, 1957, and
22	19		before September 1, 1969;
23	20		(3) six percent of the member's annual compensation
24	21		for service rendered after August 31, 1969, and before the first day
25	22		of the 1977-78 school year;
26	23		(4) 6.65 percent of the member's annual compensation
27	24		for service rendered after the last day of the period described by
28	25		Subdivision (3) and before September 1, 1985;
29	26		(5) 6.4 percent of the member's annual compensation
30	27		for service rendered after August 31, 1985, and before September 1,
31	28		2014;
32	29		(6) 6.7 percent of the member's annual compensation
33	30		for service rendered after August 31, 2014, and before September 1,
34	31		2015;
35	32		(7) 7.2 percent of the member's annual compensation
36	33		for service rendered after August 31, 2015, and before September 1,
37	34		2016;
38	35		(8) 7.7 percent of the member's annual compensation
39	36		for service rendered after August 31, 2016, and before September 1,
40	37		2017; [and]
41		-	(9) for compensation paid [service rendered] on or
42		-	after September 1, 2017, and before September 1, 2019, the lesser
43		-	of:
	38	+	(9) for service rendered on or after September 1,
	39	+	2017, and before September 1, 2020, the lesser of:
44	40		(A) 7.7 percent of the member's annual
45	41		compensation; or
46	42		(B) a percentage of the member's annual
47	43		compensation equal to 7.7 percent reduced by one-tenth of one
48	44		percent for each one-tenth of one percent that the state
49	45		contribution rate for the fiscal year to which the compensation
50	46		[service] relates is less than the state contribution rate
51	47		established for the 2015 fiscal year; and
52	48		(10) for compensation paid on or after September 1,
53		-	~~2019~~, the lesser of:
	49	+	2020, the lesser of:
54	50		(A) 7.7 percent of the member's annual
55	51		compensation; or
56	52		(B) a percentage of the member's annual
57	53		compensation equal to 7.7 percent reduced by one-tenth of one
58	54		percent for each one-tenth of one percent that the state
59	55		contribution rate for the fiscal year to which the compensation
60		-	relates is less than the state contribution rate established ~~for~~
61		-	~~that fiscal year under~~ Section 825.404(a-2).
	56	+	relates is less than the state contribution rate established under
	57	+	Section 825.404(a-2) for the applicable fiscal year.
62	58		SECTION 2. Section 825.404, Government Code, is amended by
63	59		amending Subsections (a) and (a-1) and adding Subsection (a-2) to
64	60		read as follows:
65	61		(a) Except as provided by Subsection (a-1) and subject to
66	62		Subsection (a-2), during each fiscal year, the state shall
67	63		contribute to the retirement system an amount equal to at least six
68	64		and not more than 10 percent of the aggregate annual compensation of
69	65		all members of the retirement system during that fiscal year.
70	66		(a-1) In computing the amount owed by the state under this
71	67		section [Subsection (a)], the compensation of members who are
72	68		employed by public junior colleges or public junior college
73	69		districts shall be included in the aggregate annual compensation as
74	70		follows:
75	71		(1) 50 percent of the eligible creditable compensation
76	72		of employees who:
77	73		(A) otherwise are eligible for membership in the
78	74		retirement system; and
79	75		(B) are instructional or administrative
80	76		employees whose salaries may be fully paid from funds appropriated
81	77		under the General Appropriations Act, regardless of whether such
82	78		salaries are actually paid from appropriated funds; and
83	79		(2) none of the eligible creditable compensation of
84	80		all other employees who:
85	81		(A) do not meet the requirements of Subdivision
86	82		(1)(B) but are otherwise eligible for membership in the retirement
87	83		system; or
88	84		(B) cannot be included as a qualifying employee
89	85		under Subdivision (1) by application of Subsection (b-1).
90	86		(a-2) The state contribution required by Subsection (a) is:
91	87		(1) for the fiscal year beginning on September 1,
92		-	~~2019~~, 7.8 percent of the aggregate annual compensation of all
	88	+	2020, 6.8 percent of the aggregate annual compensation of all
93	89		members of the retirement system during that fiscal year;
94	90		(2) for the fiscal year beginning on September 1,
95		-	~~2020~~, 8~~.05~~ percent of the aggregate annual compensation of all
	91	+	2021, 7.8 percent of the aggregate annual compensation of all
96	92		members of the retirement system during that fiscal year;
97	93		(3) for the fiscal year beginning on September 1,
98		-	~~2021~~, 8.3 percent of the aggregate annual compensation of all
	94	+	2022, 8.05 percent of the aggregate annual compensation of all
99	95		members of the retirement system during that fiscal year;
100	96		(4) for the fiscal year beginning on September 1,
101		-	2022, 8.55 percent of the aggregate annual compensation of all
	97	+	2023, 8.3 percent of the aggregate annual compensation of all
	98	+	members of the retirement system during that fiscal year;
	99	+	(5) for the fiscal year beginning on September 1,
	100	+	2024, 8.55 percent of the aggregate annual compensation of all
102	101		members of the retirement system during that fiscal year; and
103		-	(5) for the fiscal year beginning on September 1,
104		-	~~2023~~, and each subsequent fiscal year, 8.8 percent of the aggregate
	102	+	(6) for the fiscal year beginning on September 1,
	103	+	2025, and each subsequent fiscal year, 8.8 percent of the aggregate
105	104		annual compensation of all members of the retirement system during
106	105		that fiscal year.
107	106		SECTION 3. (a) The Teacher Retirement System of Texas
108	107		shall make a one-time supplemental payment of a retirement or death
109	108		benefit, as provided by this section.
110	109		(b) Subject to Subsection (i) of this section, the
111		-	supplemental payment is payable not later than September ~~2020~~ and,
	110	+	supplemental payment is payable not later than September 2021 and,
112	111		to the extent practicable, on a date or dates that coincide with the
113	112		regular annuity payment payable to each eligible annuitant.
114	113		(c) The amount of the supplemental payment is equal to the
115	114		lesser of:
116	115		(1) the gross amount of the regular annuity payment to
117	116		which the eligible annuitant is otherwise entitled for the calendar
118	117		month immediately prior to the calendar month in which the Teacher
119	118		Retirement System of Texas issues the one-time supplemental payment
120	119		in accordance with Subsection (b) of this section; or
121	120		(2) $2,400.
122	121		(d) The supplemental payment is payable without regard to
123	122		any forfeiture of benefits under Section 824.601, Government Code.
124	123		The Teacher Retirement System of Texas shall make applicable tax
125	124		withholding and other legally required deductions before
126	125		disbursing the supplemental payment. A supplemental payment under
127	126		this section is in addition to and not in lieu of the regular
128	127		monthly annuity payment to which the eligible annuitant is
129	128		otherwise entitled.
130	129		(e) Subject to Subsection (f) of this section, to be
131	130		eligible for the supplemental payment, a person must be, for the
132	131		calendar month immediately prior to the calendar month in which the
133	132		Teacher Retirement System of Texas issues the one-time supplemental
134	133		payment in accordance with Subsection (b) of this section, and
135	134		disregarding any forfeiture of benefits under Section 824.601,
136	135		Government Code, an annuitant eligible to receive:
137	136		(1) a standard retirement annuity payment;
138	137		(2) an optional retirement annuity payment as either a
139	138		retiree or beneficiary;
140	139		(3) a life annuity payment under Section
141	140		824.402(a)(4), Government Code;
142	141		(4) an annuity for a guaranteed period of 60 months
143	142		under Section 824.402(a)(3), Government Code; or
144	143		(5) an alternate payee annuity payment under Section
145	144		804.005, Government Code.
146	145		(f) If the annuitant is a retiree or a beneficiary under an
147	146		optional retirement payment plan, to be eligible for the
148	147		supplemental payment, the effective date of the retirement of the
149	148		member of the Teacher Retirement System of Texas must have been on
150	149		or before December 31, 2018. If the annuitant is a beneficiary
151	150		under Section 824.402(a)(3) or (4), Government Code, to be eligible
152	151		for the supplemental payment, the date of death of the member of the
153	152		retirement system must have been on or before December 31, 2018.
154	153		The supplemental payment shall be made to an alternate payee who is
155	154		an annuitant under Section 804.005, Government Code, only if the
156	155		annuity payment to the alternate payee commenced on or before
157	156		December 31, 2018. The supplemental payment is in addition to the
158		-	guaranteed number of payments under Section 824.~~204~~(c)(3) ~~or (4)~~,
159		-	Section 824.~~308~~(c)(3) or (4), ~~or Section 824.402(a)(3)~~, ~~Government~~
160		-	Code, and may not be counted as one ~~of the guaranteed monthly~~
161		-	payments.
	157	+	guaranteed number of payments under Section 824.402(a)(3),
	158	+	Government Code, Section 824.204(c)(3) or (4), Government Code, or
	159	+	Section 824.308(c), Government Code, and may not be counted as one
	160	+	of the guaranteed monthly payments.
162	161		(g) The supplemental payment does not apply to payments
163	162		under:
164	163		(1) Section 824.304(a), Government Code, relating to
165	164		disability retirees with less than 10 years of service credit;
166	165		(2) Section 824.804(b), Government Code, relating to
167	166		participants in the deferred retirement option plan with regard to
168	167		payments from their deferred retirement option plan accounts;
169	168		(3) Section 824.501(a), Government Code, relating to
170	169		retiree survivor beneficiaries who receive a survivor annuity in an
171	170		amount fixed by statute; or
172	171		(4) Section 824.404(a), Government Code, relating to
173	172		active member survivor beneficiaries who receive a survivor annuity
174	173		in an amount fixed by statute.
175	174		(h) The board of trustees of the Teacher Retirement System
176	175		of Texas shall determine the eligibility for and the amount and
177	176		timing of a supplemental payment and the manner in which the payment
178	177		is made.
179	178		(i) The state shall appropriate to the Teacher Retirement
180	179		System of Texas an amount equal to the cost of the one-time
181	180		supplemental payment required by this section. This amount is in
182	181		addition to the amount the state is required to contribute to the
183	182		Teacher Retirement System of Texas under Section 825.404,
184	183		Government Code. If the state does not transfer the appropriated
185	184		amount described by this subsection, the Teacher Retirement System
186	185		of Texas shall not issue the one-time supplemental payment required
187	186		by this section.
188	187		SECTION 4. This Act takes effect September 1, 2019.