By: Bonnen, Capriglione, Burns, et al. H.J.R. No. 2
A JOINT RESOLUTION
proposing a constitutional amendment limiting the contribution
rate of the members of the Teacher Retirement System of Texas,
authorizing the legislature to provide cost-of-living adjustments
or other benefit enhancements to eligible annuitants of the system,
and providing a one-time transfer of funds for benefit enhancements
and for contributions and actuarially determined payments to
eliminate the unfunded actuarial liabilities of the system.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 67(b)(3), Article XVI, Texas
Constitution, is amended to read as follows:
(3) The amount contributed by a person participating
in the Employees Retirement System of Texas or the Teacher
Retirement System of Texas shall be established by the legislature
but may not be less than six percent of current compensation nor for
a person participating in the Teacher Retirement System of Texas
more than nine percent of current compensation. The amount
contributed by the state may not be less than six percent nor more
than 10 percent of the aggregate compensation paid to individuals
participating in the system. In an emergency, as determined by the
governor, the legislature may appropriate such additional sums as
are actuarially determined to be required to fund benefits
authorized by law.
SECTION 2. 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) except as provided by Subsection (c) of this
section and subject to Subsection (d) of this section, the
legislature appropriates money in an amount sufficient to fully pay
for the benefit enhancement, as determined by the board of trustees
of the retirement system.
(c) Subsection (b)(2) of this section does not apply to a
continuing cost-of-living adjustment that is:
(1) authorized by general law; and
(2) payable only:
(A) if the return on the investment of the assets
of the Teacher Retirement System of Texas meets or exceeds a minimum
threshold prescribed by general law; and
(B) out of the return.
(d) In determining the amount that is sufficient to fully
pay for the benefit enhancement under Subsection (b)(2) of this
section, the board of trustees of the Teacher Retirement System of
Texas shall reduce that amount by the amount by which the actuarial
value of the system's assets exceeds the actuarial accrued
liability of the system.
SECTION 3. 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, authorizing the legislature to provide
cost-of-living adjustments or other benefit enhancements to
eligible annuitants of the Teacher Retirement System of Texas and
providing a one-time transfer of funds for contributions,
actuarially determined payments, and benefit enhancements.
(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 $1.9 billion from the
general revenue fund to the trust fund of the Teacher Retirement
System of Texas. Money transferred to the trust fund under this
temporary provision may be spent by the system only for the purposes
of providing contributions, actuarially determined payments, and
benefit enhancements to the system's annuitants, as provided by
general law. The transfer made under this temporary provision is
not an appropriation of state tax revenues for the purposes of
Section 22, Article VIII, of this constitution.
(c) This temporary provision expires January 1, 2056.
SECTION 4. 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 authorizing the
legislature to provide cost-of-living adjustments or other benefit
enhancements to eligible annuitants of the Teacher Retirement
System of Texas and providing a one-time transfer of $1.9 billion to
the retirement system for benefit enhancements and for
contributions and actuarially determined payments to eliminate the
unfunded accrued actuarial liabilities of the retirement system."