Texas 2021 - 87th Regular

Texas House Bill HB1124 Compare Versions

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1	1	By: Muñoz, Jr. H.B. No. 1124
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to a cost-of-living adjustment applicable to certain
7	7	benefits paid by the Teacher Retirement System of Texas, including
8	8	a related study.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter H, Chapter 824, Government Code, is
11	11	amended by adding Section 824.703 to read as follows:
12	12	Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT. (a)
13	13	Notwithstanding Section 824.702 and subject to Section 821.006, the
14	14	retirement system shall make a one-time cost-of-living adjustment
15	15	payable to annuitants receiving a monthly death or retirement
16	16	benefit annuity, as provided by this section.
17	17	(b) Subject to Subsections (c) and (d), to be eligible for
18	18	the adjustment, a person must be, on the effective date of the
19	19	adjustment and disregarding any forfeiture of benefits under
20	20	Section 824.601, an annuitant eligible to receive:
21	21	(1) a standard service or disability retirement
22	22	annuity payment;
23	23	(2) an optional service or disability retirement
24	24	annuity payment as either a retiree or beneficiary;
25	25	(3) an annuity payment under Section 824.402(a)(3) or
26	26	(4);
27	27	(4) an annuity payment under Section 824.502; or
28	28	(5) an alternate payee annuity payment under Section
29	29	804.005.
30	30	(c) If the annuitant:
31	31	(1) is a retiree or is a beneficiary under an optional
32	32	retirement payment plan, to be eligible for the adjustment under
33	33	this section:
34	34	(A) the annuitant must be living on the effective
35	35	date of the adjustment; and
36	36	(B) the effective date of the retirement of the
37	37	member of the retirement system must have been after August 31,
38	38	2004, and on or before August 31, 2015;
39	39	(2) is a beneficiary under Section 824.402(a)(3) or
40	40	(4) or 824.502, to be eligible for the adjustment:
41	41	(A) the annuitant must be living on the effective
42	42	date of the adjustment; and
43	43	(B) the date of death of the member of the
44	44	retirement system must have been after August 31, 2004, and on or
45	45	before August 31, 2015; or
46	46	(3) is an alternate payee under Section 804.005, the
47	47	annuitant is eligible for the adjustment only if the effective date
48	48	of the election to receive the annuity payment was after August 31,
49	49	2004, and on or before August 31, 2015.
50	50	(d) An adjustment made under this section does not apply to
51	51	payments under:
52	52	(1) Section 824.203(d), relating to retirees who
53	53	receive a standard service retirement annuity in an amount fixed by
54	54	statute;
55	55	(2) Section 824.304(a), relating to disability
56	56	retirees with less than 10 years of service credit;
57	57	(3) Section 824.304(b)(2), relating to disability
58	58	retirees who receive a disability annuity in an amount fixed by
59	59	statute;
60	60	(4) Section 824.404(a), relating to active member
61	61	survivor beneficiaries who receive a survivor annuity in an amount
62	62	fixed by statute;
63	63	(5) Section 824.501(a), relating to retiree survivor
64	64	beneficiaries who receive a survivor annuity in an amount fixed by
65	65	statute; or
66	66	(6) Section 824.804(b), relating to participants in
67	67	the deferred retirement option plan with regard to payments from
68	68	their deferred retirement option plan accounts.
69	69	(e) An adjustment under this section:
70	70	(1) must be made as soon as practicable after the board
71	71	of trustees finds that payment of the adjustment would not violate
72	72	Section 821.006; and
73	73	(2) is limited to the lesser of:
74	74	(A) an amount equal to three percent of the
75	75	monthly benefit subject to the increase; or
76	76	(B) $100 a month.
77	77	(f) The board of trustees shall determine the eligibility
78	78	for and the amount of any adjustment in monthly annuities in
79	79	accordance with this section.
80	80	SECTION 2. (a) Using existing resources, the Teacher
81	81	Retirement System of Texas shall conduct a study on the possibility
82	82	of providing future cost-of-living adjustments payable to an
83	83	annuitant receiving a monthly death or retirement annuity,
84	84	including projections on future cost-of-living adjustments, a
85	85	review of structural changes affecting cost-of-living adjustments,
86	86	and the feasibility of offering an alternative annuity payment
87	87	option to retirees under which the standard service retirement
88	88	annuity provided under Subchapter C, Chapter 824, Government Code,
89	89	is payable on a graduated scale with annuity payments increasing on
90	90	an annual basis. In conducting a study under this section, the
91	91	retirement system shall only consider alternative annuity payment
92	92	options that are projected by the retirement system's actuary to
93	93	have no fiscal impact to the state.
94	94	(b) Not later than September 1, 2022, the Teacher Retirement
95	95	System of Texas shall submit to the legislature a written report on
96	96	the results of the study and any recommendations for legislative or
97	97	other action.
98	98	(c) This section expires September 1, 2023.
99	99	SECTION 3. This Act takes effect immediately if it receives
100	100	a vote of two-thirds of all the members elected to each house, as
101	101	provided by Section 39, Article III, Texas Constitution. If this
102	102	Act does not receive the vote necessary for immediate effect, this
103	103	Act takes effect September 1, 2021.