H.B. No. 1393
AN ACT
relating to an optional service retirement annuity that provides an
increasing annuity under the Employees Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 814, Government Code, is
amended by adding Section 814.110 to read as follows:
Sec. 814.110. INCREASING ANNUITY OPTION. (a) A member who
is eligible for a service retirement annuity not reduced because of
age may select a standard retirement annuity or an optional service
retirement annuity described by Section 814.108 together with the
option for an increasing annuity as described by this section.
(b) The retirement system shall provide the increasing
annuity option by reducing the member's annuity for an appropriate
implementation period beginning immediately after the member's
retirement and annually increasing the amount of the annuity by two
percent or by another percentage rate, as determined by the system
under Subsection (c), for each year during the applicable
implementation period.
(c) The retirement system may offer other increasing
annuity options similar to the option described by Subsection (b),
including increasing annuity options providing a different
percentage rate of increase or a different implementation period.
(d) If a member elects to receive an increasing annuity
option under this section, the member's annuity must be calculated
to reflect the option selected and be actuarially equivalent to a
standard or optional service retirement annuity, as applicable,
that the member would have been entitled to had the member not
elected to receive the option. The annuity must be computed to
result in no actuarial loss to the retirement system.
(e) The increasing annuity option under this section may be
elected only once by a member and may not be elected by a retiree. A
member retiring under the proportionate retirement program under
Chapter 803 is not eligible for the option.
(f) This section does not apply to:
(1) a disability retirement annuity; or
(2) an annuity based on service credited in the
elected class.
(g) Before a retiring member selects an increasing annuity
option under this section, the retirement system must provide a
written notice to the member of the amount by which the member's
annuity will be reduced and the implementation period applicable
because of that selection. The retirement system shall maintain a
copy of the notice required under this subsection that is signed by
the member.
(h) The board of trustees may adopt rules for the
implementation of this section.
SECTION 2. Section 814.110, Government Code, as added by
this Act, applies only to a retirement that occurs on or after
September 1, 2024.
SECTION 3. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1393 was passed by the House on April
26, 2023, by the following vote: Yeas 148, Nays 0, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1393 on May 17, 2023, by the following vote: Yeas 143, Nays 0,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1393 was passed by the Senate, with
amendments, on May 15, 2023, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor