Texas 2023 - 88th Regular

Texas House Bill HB1116 Compare Versions

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1	1	88R3622 BDP-F
2	2	By: Muñoz, Jr. H.B. No. 1116
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a cost-of-living adjustment applicable to certain
8	8	benefits paid by the Teacher Retirement System of Texas, including
9	9	a related study.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter H, Chapter 824, Government Code, is
12	12	amended by adding Section 824.703 to read as follows:
13	13	Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT.
14	14	(a) Notwithstanding Section 824.702 and subject to Section
15	15	821.006, the retirement system shall make a one-time cost-of-living
16	16	adjustment payable to annuitants receiving a monthly death or
17	17	retirement benefit annuity, as provided by this section.
18	18	(b) Subject to Subsections (c) and (d), to be eligible for
19	19	the adjustment, a person must be, on the effective date of the
20	20	adjustment and disregarding any forfeiture of benefits under
21	21	Section 824.601, an annuitant eligible to receive:
22	22	(1) a standard service or disability retirement
23	23	annuity payment;
24	24	(2) an optional service or disability retirement
25	25	annuity payment as either a retiree or beneficiary;
26	26	(3) an annuity payment under Section 824.402(a)(3) or
27	27	(4);
28	28	(4) an annuity payment under Section 824.502; or
29	29	(5) an alternate payee annuity payment under Section
30	30	804.005.
31	31	(c) If the annuitant:
32	32	(1) is a retiree or is a beneficiary under an optional
33	33	retirement payment plan, to be eligible for the adjustment under
34	34	this section:
35	35	(A) the annuitant must be living on the effective
36	36	date of the adjustment; and
37	37	(B) the effective date of the retirement of the
38	38	member of the retirement system must have been on or before August
39	39	31, 2023;
40	40	(2) is a beneficiary under Section 824.402(a)(3) or
41	41	(4) or 824.502, to be eligible for the adjustment:
42	42	(A) the annuitant must be living on the effective
43	43	date of the adjustment; and
44	44	(B) the date of death of the member of the
45	45	retirement system must have been on or before August 31, 2023; or
46	46	(3) is an alternate payee under Section 804.005, the
47	47	annuitant is eligible for the adjustment only if the effective date
48	48	of the election to receive the annuity payment was on or before
49	49	August 31, 2023.
50	50	(d) An adjustment made under this section does not apply to
51	51	payments under:
52	52	(1) Section 824.203(d), relating to retirees who
53	53	receive a standard service retirement annuity in an amount fixed by
54	54	statute;
55	55	(2) Section 824.304(a), relating to disability
56	56	retirees with less than 10 years of service credit;
57	57	(3) Section 824.304(b)(2), relating to disability
58	58	retirees who receive a disability annuity in an amount fixed by
59	59	statute;
60	60	(4) Section 824.404(a), relating to active member
61	61	survivor beneficiaries who receive a survivor annuity in an amount
62	62	fixed by statute;
63	63	(5) Section 824.501(a), relating to retiree survivor
64	64	beneficiaries who receive a survivor annuity in an amount fixed by
65	65	statute; or
66	66	(6) Section 824.804(b), relating to participants in
67	67	the deferred retirement option plan with regard to payments from
68	68	their deferred retirement option plan accounts.
69	69	(e) An adjustment under this section:
70	70	(1) must be made beginning with an annuity payable for
71	71	the month of September 2023; and
72	72	(2) is limited to the lesser of:
73	73	(A) an amount equal to six percent of the monthly
74	74	benefit subject to the increase; or
75	75	(B) $100 a month.
76	76	(f) The board of trustees shall determine the eligibility
77	77	for and the amount of any adjustment in monthly annuities in
78	78	accordance with this section.
79	79	SECTION 2. (a) Using existing resources, the Teacher
80	80	Retirement System of Texas shall conduct a study on the possibility
81	81	of providing future cost-of-living adjustments payable to an
82	82	annuitant receiving a monthly death or retirement annuity,
83	83	including projections on future cost-of-living adjustments, a
84	84	review of structural changes affecting cost-of-living adjustments,
85	85	and the feasibility of offering an alternative annuity payment
86	86	option to retirees under which the standard service retirement
87	87	annuity provided under Subchapter C, Chapter 824, Government Code,
88	88	is payable on a graduated scale with annuity payments increasing on
89	89	an annual basis. In conducting a study under this section, the
90	90	retirement system shall only consider alternative annuity payment
91	91	options that are projected by the retirement system's actuary to
92	92	have no fiscal impact to the state.
93	93	(b) Not later than September 1, 2024, the Teacher Retirement
94	94	System of Texas shall submit to the legislature a written report on
95	95	the results of the study and any recommendations for legislative or
96	96	other action.
97	97	(c) This section expires September 1, 2025.
98	98	SECTION 3. This Act takes effect immediately if it receives
99	99	a vote of two-thirds of all the members elected to each house, as
100	100	provided by Section 39, Article III, Texas Constitution. If this
101	101	Act does not receive the vote necessary for immediate effect, this
102	102	Act takes effect September 1, 2023.