Texas 2021 - 87th Regular

Texas House Bill HB2187 Compare Versions

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

Old	New	Differences
1	1	87R3528 JCG-F
2	2	By: Gates H.B. No. 2187
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the service retirement eligibility and benefits of and
8	8	contributions to the Employees Retirement System of Texas.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 814.104, Government Code, is amended by
11	11	amending Subsections (a) and (d) and adding Subsection (d-1) to
12	12	read as follows:
13	13	(a) Except as provided by Subsections (d), (d-1), and (e) of
14	14	this section, Section 814.102, or by rule adopted under Section
15	15	813.304(d) or 803.202(a)(2), a member who has service credit in the
16	16	retirement system is eligible to retire and receive a service
17	17	retirement annuity if the member:
18	18	(1) is at least 60 years old and has at least 5 years of
19	19	service credit in the employee class; or
20	20	(2) has at least 5 years of service credit in the
21	21	employee class and the sum of the member's age and amount of service
22	22	credit in the employee class, including months of age and credit,
23	23	equals or exceeds the number 80.
24	24	(d) Except as provided by Subsection (e) of this section,
25	25	Section 814.102, or by rule adopted under Section 813.304(d) or
26	26	803.202(a)(2), a member who was not a member on the date hired, was
27	27	hired on or after September 1, 2009, and before September 1, 2021,
28	28	and has service credit in the retirement system is eligible to
29	29	retire and receive a service retirement annuity if the member:
30	30	(1) is at least 65 years old and has at least 10 years
31	31	of service credit in the employee class; or
32	32	(2) has at least 10 years of service credit in the
33	33	employee class and the sum of the member's age and amount of service
34	34	credit in the employee class, including months of age and credit,
35	35	equals or exceeds the number 80.
36	36	(d-1) Except as provided by Subsection (e) of this section,
37	37	Section 814.102, or by rule adopted under Section 813.304(d) or
38	38	803.202(a)(2), a member who was not a member on the date hired, was
39	39	hired on or after September 1, 2021, and has service credit in the
40	40	retirement system is eligible to retire and receive a service
41	41	retirement annuity if the member:
42	42	(1) is at least 62 years old and has at least 7 years of
43	43	service credit in the employee class; or
44	44	(2) has at least 7 years of service credit in the
45	45	employee class and the sum of the member's age and amount of service
46	46	credit in the employee class, including months of age and credit,
47	47	equals or exceeds the number 80.
48	48	SECTION 2. Sections 814.105(a) and (d), Government Code,
49	49	are amended to read as follows:
50	50	(a) The standard service retirement annuity for service
51	51	credited in the employee class of membership is an amount computed
52	52	as the member's average monthly compensation for service in that
53	53	class for the 72 [60] highest months of compensation multiplied by
54	54	2.1 [2.3] percent for each year of service credit in that class.
55	55	(d) The standard service retirement annuity computed under
56	56	this section is reduced by five percent for each year the member
57	57	retires before the member reaches age 64 [62].
58	58	SECTION 3. Section 815.402(a), Government Code, is amended
59	59	to read as follows:
60	60	(a) Except as provided by Section 813.201, each payroll
61	61	period, each department or agency of the state shall cause to be
62	62	deducted from each member's compensation a contribution of:
63	63	(1) 9.5 percent of the compensation if the member is
64	64	not a member of the legislature, for service rendered after August
65	65	31, 2015, and before September 1, 2017;
66	66	(2) for service by a member who is not a member of the
67	67	legislature rendered on or after September 1, 2017, and before
68	68	September 1, 2021, the lesser of:
69	69	(A) 9.5 percent of the member's annual
70	70	compensation; or
71	71	(B) a percentage of the member's annual
72	72	compensation equal to 9.5 percent reduced by one-tenth of one
73	73	percent for each one-tenth of one percent that the state
74	74	contribution rate for the fiscal year to which the service relates
75	75	is less than the state contribution rate established for the 2017
76	76	fiscal year; [or]
77	77	(3) for service by a member who is not a member of the
78	78	legislature rendered on or after September 1, 2021, the lesser of:
79	79	(A) 10.5 percent of the member's annual
80	80	compensation; or
81	81	(B) a percentage of the member's annual
82	82	compensation equal to 10.5 percent reduced by one-tenth of one
83	83	percent for each one-tenth of one percent that the state
84	84	contribution rate for the fiscal year to which the service relates
85	85	is less than the state contribution rate established for the 2021
86	86	fiscal year; or
87	87	(4) 10.5 [9.5] percent of the compensation if the
88	88	member is a member of the legislature.
89	89	SECTION 4. Section 815.4035(a), Government Code, is amended
90	90	to read as follows:
91	91	(a) Except as provided by Section 813.201, the board of
92	92	trustees shall assess each employer whose employees are members of
93	93	the retirement system a state retirement contribution in an amount
94	94	equal to one [0.5] percent of the employer's total payroll, as
95	95	determined by the General Appropriations Act.
96	96	SECTION 5. The changes in law made by this Act to Section
97	97	814.105, Government Code, apply only to a person who is hired on or
98	98	after September 1, 2021, to work in a position that requires
99	99	membership in the Employees Retirement System of Texas. A person
100	100	hired before September 1, 2021, to work in a position that requires
101	101	membership in the Employees Retirement System of Texas is subject
102	102	to the law as it existed immediately before that date, and the
103	103	former law is continued in effect for that purpose.
104	104	SECTION 6. This Act takes effect September 1, 2021.