Texas 2023 - 88th Regular

Texas House Bill HB3901 Compare Versions

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Old	New	Differences
1	1	88R13127 BDP-D
2	2	By: Burns H.B. No. 3901
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.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter H, Chapter 824, Government Code, is
11	11	amended by adding Sections 824.703 and 824.704 to read as follows:
12	12	Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT.
13	13	(a) Notwithstanding Section 824.702 and subject to Section
14	14	821.006, the retirement system shall make a cost-of-living
15	15	adjustment payable to annuitants receiving a monthly death or
16	16	retirement benefit annuity, as provided by this section.
17	17	(b) Subject to Subsections (c) and (d), to be eligible for
18	18	the adjustment, a person must be, on the effective date of the
19	19	adjustment and disregarding any forfeiture of benefits under
20	20	Section 824.601, an annuitant eligible to receive:
21	21	(1) a standard service or disability retirement
22	22	annuity payment;
23	23	(2) an optional service or disability retirement
24	24	annuity payment as either a retiree or beneficiary;
25	25	(3) an annuity payment under Section 824.402(a)(3) or
26	26	(4);
27	27	(4) an annuity payment under Section 824.502; or
28	28	(5) an alternate payee annuity payment under Section
29	29	804.005.
30	30	(c) If the annuitant:
31	31	(1) is a retiree or is a beneficiary under an optional
32	32	retirement payment plan, to be eligible for the adjustment under
33	33	this section:
34	34	(A) the annuitant must be living on the effective
35	35	date of the adjustment; and
36	36	(B) the effective date of the retirement of the
37	37	member of the retirement system must have been on or before August
38	38	31, 2021;
39	39	(2) is a beneficiary under Section 824.402(a)(3) or
40	40	(4) or 824.502, to be eligible for the adjustment:
41	41	(A) the annuitant must be living on the effective
42	42	date of the adjustment; and
43	43	(B) the date of death of the member of the
44	44	retirement system must have been on or before August 31, 2021; or
45	45	(3) is an alternate payee under Section 804.005, the
46	46	annuitant is eligible for the adjustment only if the effective date
47	47	of the election to receive the annuity payment was on or before
48	48	August 31, 2021.
49	49	(d) An adjustment made under this section does not apply to
50	50	payments under:
51	51	(1) Section 824.203(d), relating to retirees who
52	52	receive a standard service retirement annuity in an amount fixed by
53	53	statute;
54	54	(2) Section 824.304(a), relating to disability
55	55	retirees with less than 10 years of service credit;
56	56	(3) Section 824.304(b)(2), relating to disability
57	57	retirees who receive a disability annuity in an amount fixed by
58	58	statute;
59	59	(4) Section 824.404(a), relating to active member
60	60	survivor beneficiaries who receive a survivor annuity in an amount
61	61	fixed by statute;
62	62	(5) Section 824.501(a), relating to retiree survivor
63	63	beneficiaries who receive a survivor annuity in an amount fixed by
64	64	statute; or
65	65	(6) Section 824.804(b), relating to participants in
66	66	the deferred retirement option plan with regard to payments from
67	67	their deferred retirement option plan accounts.
68	68	(e) An adjustment under this section:
69	69	(1) must be made beginning with an annuity payable for
70	70	the month of September 2023; and
71	71	(2) is limited to the lesser of:
72	72	(A) an amount equal to six percent of the monthly
73	73	benefit subject to the increase; or
74	74	(B) $100 a month.
75	75	(f) The board of trustees shall determine the eligibility
76	76	for and the amount of any adjustment in monthly annuities in
77	77	accordance with this section.
78	78	Sec. 824.704. RECURRING SIX-YEAR COST-OF-LIVING
79	79	ADJUSTMENT. (a) Notwithstanding Sections 824.702 and 824.703,
80	80	subject to Section 821.006 and an appropriation of money for that
81	81	purpose, the amount of a monthly service retirement benefit,
82	82	disability retirement benefit, or death benefit described by
83	83	Section 824.703(b) is increased to include a recurring
84	84	cost-of-living adjustment in accordance with this section.
85	85	(b) Effective September 1 of each sixth year, the board of
86	86	trustees shall recompute the amount of a monthly benefit described
87	87	by Section 824.703(b) for each annuitant who was eligible for the
88	88	benefit on August 31 of the state fiscal year preceding the date of
89	89	the adjustment. The amount of the adjustment made under this
90	90	section is equal to the adjustment prescribed by Section
91	91	824.703(e)(2).
92	92	SECTION 2. This Act takes effect immediately if it receives
93	93	a vote of two-thirds of all the members elected to each house, as
94	94	provided by Section 39, Article III, Texas Constitution. If this
95	95	Act does not receive the vote necessary for immediate effect, this
96	96	Act takes effect September 1, 2023.