87R3528 JCG-F
By: Gates H.B. No. 2187
A BILL TO BE ENTITLED
AN ACT
relating to the service retirement eligibility and benefits of and
contributions to the Employees Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 814.104, Government Code, is amended by
amending Subsections (a) and (d) and adding Subsection (d-1) to
read as follows:
(a) Except as provided by Subsections (d), (d-1), and (e) of
this section, Section 814.102, or by rule adopted under Section
813.304(d) or 803.202(a)(2), a member who has service credit in the
retirement system is eligible to retire and receive a service
retirement annuity if the member:
(1) is at least 60 years old and has at least 5 years of
service credit in the employee class; or
(2) has at least 5 years of service credit in the
employee class and the sum of the member's age and amount of service
credit in the employee class, including months of age and credit,
equals or exceeds the number 80.
(d) Except as provided by Subsection (e) of this section,
Section 814.102, or by rule adopted under Section 813.304(d) or
803.202(a)(2), a member who was not a member on the date hired, was
hired on or after September 1, 2009, and before September 1, 2021,
and has service credit in the retirement system is eligible to
retire and receive a service retirement annuity if the member:
(1) is at least 65 years old and has at least 10 years
of service credit in the employee class; or
(2) has at least 10 years of service credit in the
employee class and the sum of the member's age and amount of service
credit in the employee class, including months of age and credit,
equals or exceeds the number 80.
(d-1) Except as provided by Subsection (e) of this section,
Section 814.102, or by rule adopted under Section 813.304(d) or
803.202(a)(2), a member who was not a member on the date hired, was
hired on or after September 1, 2021, and has service credit in the
retirement system is eligible to retire and receive a service
retirement annuity if the member:
(1) is at least 62 years old and has at least 7 years of
service credit in the employee class; or
(2) has at least 7 years of service credit in the
employee class and the sum of the member's age and amount of service
credit in the employee class, including months of age and credit,
equals or exceeds the number 80.
SECTION 2. Sections 814.105(a) and (d), Government Code,
are amended to read as follows:
(a) The standard service retirement annuity for service
credited in the employee class of membership is an amount computed
as the member's average monthly compensation for service in that
class for the 72 [60] highest months of compensation multiplied by
2.1 [2.3] percent for each year of service credit in that class.
(d) The standard service retirement annuity computed under
this section is reduced by five percent for each year the member
retires before the member reaches age 64 [62].
SECTION 3. Section 815.402(a), Government Code, is amended
to read as follows:
(a) Except as provided by Section 813.201, each payroll
period, each department or agency of the state shall cause to be
deducted from each member's compensation a contribution of:
(1) 9.5 percent of the compensation if the member is
not a member of the legislature, for service rendered after August
31, 2015, and before September 1, 2017;
(2) for service by a member who is not a member of the
legislature rendered on or after September 1, 2017, and before
September 1, 2021, the lesser of:
(A) 9.5 percent of the member's annual
compensation; or
(B) a percentage of the member's annual
compensation equal to 9.5 percent reduced by one-tenth of one
percent for each one-tenth of one percent that the state
contribution rate for the fiscal year to which the service relates
is less than the state contribution rate established for the 2017
fiscal year; [or]
(3) for service by a member who is not a member of the
legislature rendered on or after September 1, 2021, the lesser of:
(A) 10.5 percent of the member's annual
compensation; or
(B) a percentage of the member's annual
compensation equal to 10.5 percent reduced by one-tenth of one
percent for each one-tenth of one percent that the state
contribution rate for the fiscal year to which the service relates
is less than the state contribution rate established for the 2021
fiscal year; or
(4) 10.5 [9.5] percent of the compensation if the
member is a member of the legislature.
SECTION 4. Section 815.4035(a), Government Code, is amended
to read as follows:
(a) Except as provided by Section 813.201, the board of
trustees shall assess each employer whose employees are members of
the retirement system a state retirement contribution in an amount
equal to one [0.5] percent of the employer's total payroll, as
determined by the General Appropriations Act.
SECTION 5. The changes in law made by this Act to Section
814.105, Government Code, apply only to a person who is hired on or
after September 1, 2021, to work in a position that requires
membership in the Employees Retirement System of Texas. A person
hired before September 1, 2021, to work in a position that requires
membership in the Employees Retirement System of Texas is subject
to the law as it existed immediately before that date, and the
former law is continued in effect for that purpose.
SECTION 6. This Act takes effect September 1, 2021.