Texas 2021 - 87th Regular

Texas House Bill HB1846 Compare Versions

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

Old	New	Differences
1	1	87R4807 BDP-D
2	2	By: Allen H.B. No. 1846
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to benefits paid by the Teacher Retirement System of
8	8	Texas.
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 Sections 824.7015 and 824.703 to read as follows:
12	12	Sec. 824.7015. ADJUSTMENT TO BENEFITS. (a)
13	13	Notwithstanding Section 824.702, the amount of a monthly service
14	14	retirement benefit, disability retirement benefit, or death
15	15	benefit paid under this chapter is increased to include a 10 percent
16	16	adjustment in accordance with this section.
17	17	(b) The board of trustees shall recompute the amount of a
18	18	benefit paid monthly under this chapter by applying the 10 percent
19	19	adjustment to the monthly amount otherwise required to be paid as
20	20	determined in accordance with the other applicable provisions of
21	21	this chapter and other law.
22	22	Sec. 824.703. ANNUAL ADJUSTMENT FOR COST OF LIVING. (a)
23	23	Notwithstanding Section 824.702, the amount of a monthly service
24	24	retirement benefit, disability retirement benefit, or death
25	25	benefit paid under this chapter is increased to include a four
26	26	percent annual cost-of-living adjustment in accordance with this
27	27	section.
28	28	(b) The board of trustees shall recompute the amount of a
29	29	benefit paid monthly under this chapter by applying the four
30	30	percent adjustment to the monthly amount otherwise required to be
31	31	paid as determined in accordance with the other applicable
32	32	provisions of this chapter.
33	33	SECTION 2. (a) The Teacher Retirement System of Texas
34	34	shall make a one-time supplemental payment of a retirement or death
35	35	benefit, as provided by this section.
36	36	(b) The supplemental payment is payable in January 2022 and,
37	37	to the extent practicable, on a date or dates that coincide with the
38	38	regular annuity payment payable to each eligible annuitant.
39	39	(c) The amount of the supplemental payment is equal to the
40	40	greater of:
41	41	(1) $2,000; or
42	42	(2) the gross amount of the regular annuity payment to
43	43	which the eligible annuitant is otherwise entitled for the month of
44	44	December 2021.
45	45	(d) The supplemental payment is payable without regard to
46	46	any forfeiture of benefits under Section 824.601, Government Code.
47	47	The Teacher Retirement System of Texas shall make applicable tax
48	48	withholding and other legally required deductions before
49	49	disbursing the supplemental payment. A supplemental payment under
50	50	this section is in addition to and not in lieu of the regular
51	51	monthly annuity payment to which the eligible annuitant is
52	52	otherwise entitled.
53	53	(e) Subject to Subsection (f) of this section, to be
54	54	eligible for the supplemental payment, a person must be, for the
55	55	month of December 2021, and disregarding any forfeiture of benefits
56	56	under Section 824.601, Government Code, an annuitant eligible to
57	57	receive:
58	58	(1) a standard retirement annuity payment;
59	59	(2) an optional retirement annuity payment as either a
60	60	retiree or beneficiary;
61	61	(3) a life annuity payment under Section
62	62	824.402(a)(4), Government Code;
63	63	(4) an annuity for a guaranteed period of 60 months
64	64	under Section 824.402(a)(3), Government Code; or
65	65	(5) an alternate payee annuity payment under Section
66	66	804.005, Government Code.
67	67	(f) If the annuitant is a retiree or a beneficiary under an
68	68	optional retirement payment plan, to be eligible for the
69	69	supplemental payment, the effective date of the retirement of the
70	70	member of the Teacher Retirement System of Texas must have been
71	71	before September 1, 2020. If the annuitant is a beneficiary under
72	72	Section 824.402(a)(3) or (4), Government Code, to be eligible for
73	73	the supplemental payment, the date of death of the member of the
74	74	retirement system must have been before September 1, 2020. The
75	75	supplemental payment shall be made to an alternate payee who is an
76	76	annuitant under Section 804.005, Government Code, only if the
77	77	annuity payment to the alternate payee commenced before September
78	78	1, 2020. The supplemental payment is in addition to the guaranteed
79	79	number of payments under Section 824.402(a)(3) or 824.204(c)(3) or
80	80	(4), Government Code, and may not be counted as one of the
81	81	guaranteed monthly payments.
82	82	(g) The supplemental payment does not apply to payments
83	83	under:
84	84	(1) Section 824.304(a), Government Code, relating to
85	85	disability retirees with less than 10 years of service credit;
86	86	(2) Section 824.804(b), Government Code, relating to
87	87	participants in the deferred retirement option plan with regard to
88	88	payments from their deferred retirement option plan accounts;
89	89	(3) Section 824.501(a), Government Code, relating to
90	90	retiree survivor beneficiaries who receive a survivor annuity in an
91	91	amount fixed by statute; or
92	92	(4) Section 824.404(a), Government Code, relating to
93	93	active member survivor beneficiaries who receive a survivor annuity
94	94	in an amount fixed by statute.
95	95	(h) Except as provided by this section, the board of
96	96	trustees of the Teacher Retirement System of Texas shall determine
97	97	the eligibility for and the amount and timing of a supplemental
98	98	payment and the manner in which the payment is made.
99	99	(i) The Teacher Retirement System of Texas shall pay the
100	100	supplemental payment made under this section from the retired
101	101	reserve account and may transfer to that account from the state
102	102	contribution account any portion of the amount that exceeds the
103	103	amount in the retired reserve account available to finance the
104	104	supplemental payment and that is actuarially determined to be
105	105	necessary to finance the supplemental payment. The supplemental
106	106	payment under this section must comply with Section 821.006,
107	107	Government Code.
108	108	SECTION 3. Sections 824.7015 and 824.703, Government Code,
109	109	as added by this Act, apply only to a monthly benefit payment made
110	110	by the Teacher Retirement System of Texas on or after September 1,
111	111	2021.
112	112	SECTION 4. This Act takes effect September 1, 2021.