Texas 2021 - 87th 1st C.S.

Texas House Bill HB160 Compare Versions

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1	1	By: Lozano H.B. No. 160
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to a supplemental payment for retirees of the Teacher
7	7	Retirement System of Texas and the unfunded actuarial liabilities
8	8	allowed under that system.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 821.006, Government Code, is amended by
11	11	adding Subsections (c), (d), and (e) to read as follows:
12	12	(c) Notwithstanding Subsections (a) and (b), the retirement
13	13	system may provide a one-time supplemental payment to an annuitant
14	14	eligible to receive:
15	15	(1) a standard retirement annuity payment;
16	16	(2) an optional retirement annuity payment as either a
17	17	retiree or beneficiary;
18	18	(3) a life annuity payment under Section
19	19	824.402(a)(4);
20	20	(4) an annuity for a guaranteed period of 60 months
21	21	under Section 824.402(a)(3); or
22	22	(5) an alternate payee annuity payment under Section
23	23	804.005.
24	24	(d) A one-time supplemental payment under Subsection (c) is
25	25	authorized, even if the amortization period for the unfunded
26	26	actuarial liabilities of the retirement system exceeds 30 years by
27	27	one or more years, only if the board of trustees determines that at
28	28	the time of the supplemental payment the payment can be made while
29	29	preserving the ability of the retirement system to meet at least 70
30	30	percent of the system's pension obligations.
31	31	(e) The funding for a supplemental payment under Subsection
32	32	(c) must come from the earnings the retirement system makes on its
33	33	investments as provided by this subsection. A supplemental payment
34	34	may be made at any time during the period beginning on September 1
35	35	and ending on December 31 only if, during the preceding fiscal year,
36	36	the return on investments, as provided by the actuarial valuation
37	37	on August 31 of that year, exceeds two percent by an amount
38	38	sufficient to pay for the supplemental payment. Subsections (c)
39	39	and (d) and this subsection expire January 1, 2024.
40	40	SECTION 2. (a) The Teacher Retirement System of Texas shall
41	41	make a one-time supplemental payment of a retirement or death
42	42	benefit, as provided by Section 821.006, Government Code, as
43	43	amended by this Act, and this section.
44	44	(b) The supplemental payment is payable not later than
45	45	December 31, 2023, and, to the extent practicable, on a date or
46	46	dates that coincide with the regular annuity payment payable to
47	47	each eligible annuitant.
48	48	(c) The amount of the supplemental payment is equal to the
49	49	lesser of:
50	50	(1) the gross amount of the regular annuity payment to
51	51	which the eligible annuitant is otherwise entitled for the month of
52	52	August 2021; or
53	53	(2) $2,400.
54	54	(d) The supplemental payment is payable without regard to
55	55	any forfeiture of benefits under Section 824.601, Government Code.
56	56	The Teacher Retirement System of Texas shall make applicable tax
57	57	withholding and other legally required deductions before
58	58	disbursing the supplemental payment. A supplemental payment under
59	59	this section is in addition to and not in lieu of the regular
60	60	monthly annuity payment to which the eligible annuitant is
61	61	otherwise entitled.
62	62	(e) Subject to Subsection (f) of this section, to be
63	63	eligible for the supplemental payment, a person must be, for the
64	64	month of August 2021, and disregarding any forfeiture of benefits
65	65	under Section 824.601, Government Code, an annuitant eligible to
66	66	receive:
67	67	(1) a standard retirement annuity payment;
68	68	(2) an optional retirement annuity payment as either a
69	69	retiree or beneficiary;
70	70	(3) a life annuity payment under Section
71	71	824.402(a)(4), Government Code;
72	72	(4) an annuity for a guaranteed period of 60 months
73	73	under Section 824.402(a)(3), Government Code; or
74	74	(5) an alternate payee annuity payment under Section
75	75	804.005, Government Code.
76	76	(f) If the annuitant is a retiree or a beneficiary under an
77	77	optional retirement payment plan, to be eligible for the
78	78	supplemental payment, the effective date of the retirement of the
79	79	member of the Teacher Retirement System of Texas must have been on
80	80	or before December 31, 2020. If the annuitant is a beneficiary
81	81	under Section 824.402(a)(3) or (4), Government Code, to be eligible
82	82	for the supplemental payment, the date of death of the member of the
83	83	retirement system must have been on or before December 31, 2020.
84	84	The supplemental payment shall be made to an alternate payee who is
85	85	an annuitant under Section 804.005, Government Code, only if the
86	86	annuity payment to the alternate payee commenced on or before
87	87	December 31, 2020. The supplemental payment is in addition to the
88	88	guaranteed number of payments under Section 824.402(a)(3),
89	89	824.204(c)(3) or (4), or 824.308(c)(3) or (4), Government Code, and
90	90	may not be counted as one of the guaranteed monthly payments.
91	91	(g) The supplemental payment does not apply to payments
92	92	under:
93	93	(1) Section 824.304(a), Government Code, relating to
94	94	disability retirees with less than 10 years of service credit;
95	95	(2) Section 824.804(b), Government Code, relating to
96	96	participants in the deferred retirement option plan with regard to
97	97	payments from their deferred retirement option plan accounts;
98	98	(3) Section 824.501(a), Government Code, relating to
99	99	retiree survivor beneficiaries who receive a survivor annuity in an
100	100	amount fixed by statute; or
101	101	(4) Section 824.404(a), Government Code, relating to
102	102	active member survivor beneficiaries who receive a survivor annuity
103	103	in an amount fixed by statute.
104	104	(h) Except as provided by this section, the board of
105	105	trustees of the Teacher Retirement System of Texas shall determine
106	106	the eligibility for and the amount and timing of a supplemental
107	107	payment and the manner in which the payment is made.
108	108	SECTION 3. This Act takes effect September 1, 2021.