By: Bonnen, et al. (Senate Sponsor - Huffman) H.J.R. No. 2
(In the Senate - Received from the House May 1, 2023;
May 2, 2023, read first time and referred to Committee on Finance;
May 19, 2023, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 17, Nays 0; May 19, 2023,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.J.R. No. 2 By: Huffman
HOUSE JOINT RESOLUTION
proposing a constitutional amendment limiting the authority of the
legislature to provide cost-of-living adjustments or other benefit
enhancements to certain annuitants of the Teacher Retirement System
of Texas and providing a one-time transfer of funds to the
retirement system to provide a cost-of-living adjustment.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article XVI, Texas Constitution, is amended by
adding Section 67-a to read as follows:
Sec. 67-a. (a) Only as authorized by this section, the
legislature by general law may provide one or more cost-of-living
adjustments or supplemental payments as benefit enhancements to
annuitants of the Teacher Retirement System of Texas who are
eligible for the enhancements, as determined by that law.
(b) The legislature may provide a benefit enhancement as
described by this section and, as necessary, direct the comptroller
of public accounts to transfer funds to the Teacher Retirement
System of Texas for the payment of the benefit enhancement only if:
(1) the retirement system is actuarially sound, as
determined by general law; and
(2) subject to Subsection (c) of this section, the
legislature appropriates money in an amount sufficient to ensure
that providing the benefit enhancement does not increase the
unfunded actuarial liabilities of the retirement system, as
determined by the board of trustees of the retirement system.
(c) In determining the amount that is sufficient to ensure
that providing a benefit enhancement does not increase the unfunded
actuarial liabilities of the Teacher Retirement System of Texas
under Subsection (b)(2) of this section, the board of trustees of
the retirement system shall reduce that amount by the amount by
which the actuarial value of the retirement system's assets exceeds
the actuarial accrued liability of the retirement system.
SECTION 2. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by the 88th Legislature,
Regular Session, 2023, limiting the authority of the legislature to
provide cost-of-living adjustments or other benefit enhancements
to certain annuitants of the Teacher Retirement System of Texas and
providing a one-time transfer of funds to the retirement system to
provide a cost-of-living adjustment.
(b) As soon as practicable after the effective date of the
amendment to which this temporary provision applies, the
comptroller of public accounts shall transfer $3.323 billion from
the general revenue fund to an account in the trust fund of the
Teacher Retirement System of Texas established for that purpose.
Money transferred to an account under this temporary provision may
be spent by the retirement system only for the purpose of providing
a cost-of-living adjustment of not less than two percent and not
more than four percent of each eligible annuitant's annuity, as
provided by general law. The transfer made under this temporary
provision is not:
(1) an appropriation of state tax revenues for the
purposes of Section 22, Article VIII, of this constitution; or
(2) a contribution by the state to the retirement
system under Section 67(b)(3), Article XVI, of this constitution,
or any other law.
(c) This temporary provision expires on the earlier of:
(1) the date all money transferred to an account in the
trust fund of the Teacher Retirement System of Texas under this
temporary provision has been expended; or
(2) the date on which:
(A) no annuitants who are eligible for the
cost-of-living adjustment authorized under this temporary
provision remain; and
(B) any unexpended balance has been transferred
to the general revenue fund under Subsection (d) of this temporary
provision.
(d) If no annuitants who are eligible for the cost-of-living
adjustment authorized under this temporary provision remain, the
board of trustees of the Teacher Retirement System of Texas shall
notify the comptroller and the comptroller shall transfer any
unexpended money to the general revenue fund.
SECTION 3. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 7, 2023.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment limiting the authority
of the legislature to provide cost-of-living adjustments or other
benefit enhancements to certain annuitants of the Teacher
Retirement System of Texas and providing a one-time transfer of
funds to the retirement system to provide a cost-of-living
adjustment."
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