| 1 | 1 | | H.B. No. 2464 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to optional annuity increases for certain retirees and |
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| 6 | 6 | | beneficiaries of the Texas Municipal Retirement System. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 853.404, Government Code, is amended by |
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| 9 | 9 | | adding Subsections (f) and (f-1) to read as follows: |
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| 10 | 10 | | (f) Subject to Subsection (f-1) and notwithstanding |
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| 11 | 11 | | conflicting provisions of Subsection (c) or Section 854.203, the |
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| 12 | 12 | | governing body of a participating municipality that adopts an |
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| 13 | 13 | | ordinance under Section 854.203 providing for increased annuities |
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| 14 | 14 | | effective January 1 of 2024, 2025, or 2026 may elect to compute the |
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| 15 | 15 | | annuity increase, including an annual annuity increase authorized |
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| 16 | 16 | | under Subsection (c), as the sum of prior and current service |
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| 17 | 17 | | annuities, as increased in subsequent years under Section 854.203 |
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| 18 | 18 | | or Subsection (c), of the person on whose service the annuities are |
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| 19 | 19 | | based on the effective date of the annuity increase, multiplied by: |
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| 20 | 20 | | (1) the percentage change in the Consumer Price Index |
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| 21 | 21 | | for All Urban Consumers, published by the Bureau of Labor |
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| 22 | 22 | | Statistics of the United States Department of Labor, during the |
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| 23 | 23 | | 12-month period ending in December of the year that is 13 months |
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| 24 | 24 | | before the effective date of the ordinance providing the increase; |
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| 25 | 25 | | and |
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| 26 | 26 | | (2) 30 percent, 50 percent, or 70 percent, as |
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| 27 | 27 | | specified by the governing body in the ordinance. |
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| 28 | 28 | | (f-1) Subsection (f) applies only with respect to: |
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| 29 | 29 | | (1) a participating municipality that as of January 1, |
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| 30 | 30 | | 2023: |
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| 31 | 31 | | (A) does not provide by ordinance an annual |
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| 32 | 32 | | annuity increase under Subsection (c) because the municipality: |
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| 33 | 33 | | (i) passed an ordinance before January 1, |
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| 34 | 34 | | 2023, that rescinded a previous ordinance authorizing annual |
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| 35 | 35 | | increases under Subsection (c); or |
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| 36 | 36 | | (ii) has not passed an ordinance |
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| 37 | 37 | | authorizing annual increases under Subsection (c); or |
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| 38 | 38 | | (B) does provide by ordinance an annual annuity |
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| 39 | 39 | | increase under Subsection (c) if the governing body of the |
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| 40 | 40 | | municipality elects to provide increased annuities recomputed in |
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| 41 | 41 | | accordance with Subsection (f) for purposes of maintaining or |
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| 42 | 42 | | increasing the amount of the annuity increase otherwise authorized |
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| 43 | 43 | | by the ordinance; and |
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| 44 | 44 | | (2) the annuity of: |
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| 45 | 45 | | (A) a retiree who retired not later than the last |
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| 46 | 46 | | day of December of the year that is 13 months before the effective |
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| 47 | 47 | | date of the ordinance providing the increase; or |
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| 48 | 48 | | (B) a beneficiary of a deceased retiree whose |
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| 49 | 49 | | death occurred not later than the last day of December of the year |
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| 50 | 50 | | that is 13 months before the effective date of the ordinance |
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| 51 | 51 | | providing the increase. |
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| 52 | 52 | | SECTION 2. This Act takes effect immediately if it receives |
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| 53 | 53 | | a vote of two-thirds of all the members elected to each house, as |
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| 54 | 54 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 55 | 55 | | Act does not receive the vote necessary for immediate effect, this |
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| 56 | 56 | | Act takes effect September 1, 2023. |
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| 57 | 57 | | ______________________________ ______________________________ |
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| 58 | 58 | | President of the Senate Speaker of the House |
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| 59 | 59 | | I certify that H.B. No. 2464 was passed by the House on April |
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| 60 | 60 | | 27, 2023, by the following vote: Yeas 148, Nays 0, 1 present, not |
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| 61 | 61 | | voting. |
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| 62 | 62 | | ______________________________ |
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| 63 | 63 | | Chief Clerk of the House |
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| 64 | 64 | | I certify that H.B. No. 2464 was passed by the Senate on May |
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| 65 | 65 | | 15, 2023, by the following vote: Yeas 29, Nays 2. |
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| 66 | 66 | | ______________________________ |
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| 67 | 67 | | Secretary of the Senate |
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| 68 | 68 | | APPROVED: _____________________ |
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| 69 | 69 | | Date |
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| 70 | 70 | | _____________________ |
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| 71 | 71 | | Governor |
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