87R4807 BDP-D
By: Allen H.B. No. 1846
A BILL TO BE ENTITLED
AN ACT
relating to benefits paid by the Teacher Retirement System of
Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 824, Government Code, is
amended by adding Sections 824.7015 and 824.703 to read as follows:
Sec. 824.7015. ADJUSTMENT TO BENEFITS. (a)
Notwithstanding Section 824.702, the amount of a monthly service
retirement benefit, disability retirement benefit, or death
benefit paid under this chapter is increased to include a 10 percent
adjustment in accordance with this section.
(b) The board of trustees shall recompute the amount of a
benefit paid monthly under this chapter by applying the 10 percent
adjustment to the monthly amount otherwise required to be paid as
determined in accordance with the other applicable provisions of
this chapter and other law.
Sec. 824.703. ANNUAL ADJUSTMENT FOR COST OF LIVING. (a)
Notwithstanding Section 824.702, the amount of a monthly service
retirement benefit, disability retirement benefit, or death
benefit paid under this chapter is increased to include a four
percent annual cost-of-living adjustment in accordance with this
section.
(b) The board of trustees shall recompute the amount of a
benefit paid monthly under this chapter by applying the four
percent adjustment to the monthly amount otherwise required to be
paid as determined in accordance with the other applicable
provisions of this chapter.
SECTION 2. (a) The Teacher Retirement System of Texas
shall make a one-time supplemental payment of a retirement or death
benefit, as provided by this section.
(b) The supplemental payment is payable in January 2022 and,
to the extent practicable, on a date or dates that coincide with the
regular annuity payment payable to each eligible annuitant.
(c) The amount of the supplemental payment is equal to the
greater of:
(1) $2,000; or
(2) the gross amount of the regular annuity payment to
which the eligible annuitant is otherwise entitled for the month of
December 2021.
(d) The supplemental payment is payable without regard to
any forfeiture of benefits under Section 824.601, Government Code.
The Teacher Retirement System of Texas shall make applicable tax
withholding and other legally required deductions before
disbursing the supplemental payment. A supplemental payment under
this section is in addition to and not in lieu of the regular
monthly annuity payment to which the eligible annuitant is
otherwise entitled.
(e) Subject to Subsection (f) of this section, to be
eligible for the supplemental payment, a person must be, for the
month of December 2021, and disregarding any forfeiture of benefits
under Section 824.601, Government Code, an annuitant eligible to
receive:
(1) a standard retirement annuity payment;
(2) an optional retirement annuity payment as either a
retiree or beneficiary;
(3) a life annuity payment under Section
824.402(a)(4), Government Code;
(4) an annuity for a guaranteed period of 60 months
under Section 824.402(a)(3), Government Code; or
(5) an alternate payee annuity payment under Section
804.005, Government Code.
(f) If the annuitant is a retiree or a beneficiary under an
optional retirement payment plan, to be eligible for the
supplemental payment, the effective date of the retirement of the
member of the Teacher Retirement System of Texas must have been
before September 1, 2020. If the annuitant is a beneficiary under
Section 824.402(a)(3) or (4), Government Code, to be eligible for
the supplemental payment, the date of death of the member of the
retirement system must have been before September 1, 2020. The
supplemental payment shall be made to an alternate payee who is an
annuitant under Section 804.005, Government Code, only if the
annuity payment to the alternate payee commenced before September
1, 2020. The supplemental payment is in addition to the guaranteed
number of payments under Section 824.402(a)(3) or 824.204(c)(3) or
(4), Government Code, and may not be counted as one of the
guaranteed monthly payments.
(g) The supplemental payment does not apply to payments
under:
(1) Section 824.304(a), Government Code, relating to
disability retirees with less than 10 years of service credit;
(2) Section 824.804(b), Government Code, relating to
participants in the deferred retirement option plan with regard to
payments from their deferred retirement option plan accounts;
(3) Section 824.501(a), Government Code, relating to
retiree survivor beneficiaries who receive a survivor annuity in an
amount fixed by statute; or
(4) Section 824.404(a), Government Code, relating to
active member survivor beneficiaries who receive a survivor annuity
in an amount fixed by statute.
(h) Except as provided by this section, the board of
trustees of the Teacher Retirement System of Texas shall determine
the eligibility for and the amount and timing of a supplemental
payment and the manner in which the payment is made.
(i) The Teacher Retirement System of Texas shall pay the
supplemental payment made under this section from the retired
reserve account and may transfer to that account from the state
contribution account any portion of the amount that exceeds the
amount in the retired reserve account available to finance the
supplemental payment and that is actuarially determined to be
necessary to finance the supplemental payment. The supplemental
payment under this section must comply with Section 821.006,
Government Code.
SECTION 3. Sections 824.7015 and 824.703, Government Code,
as added by this Act, apply only to a monthly benefit payment made
by the Teacher Retirement System of Texas on or after September 1,
2021.
SECTION 4. This Act takes effect September 1, 2021.