2023S0292-T 03/10/23
By: Huffman, et al. S.B. No. 10
A BILL TO BE ENTITLED
AN ACT
relating to benefits paid by the Teacher Retirement System of
Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 824, Government Code, is
amended by adding Section 824.704 to read as follows:
Sec. 824.704. COST-OF-LIVING ADJUSTMENT. (a) The
retirement system shall make a one-time cost-of-living adjustment
payable to annuitants receiving a monthly death or retirement
benefit annuity, as provided by this section.
(b) Subject to Subsections (c) and (d), to be eligible for
the adjustment, a person must be, on the effective date of the
adjustment and disregarding any forfeiture of benefits under
Section 824.601, an annuitant eligible to receive:
(1) a standard service or disability retirement
annuity payment;
(2) an optional service or disability retirement
annuity payment as either a retiree or beneficiary;
(3) an annuity payment under Section 824.402(a)(3) or
(4);
(4) an annuity payment under Section 824.502; or
(5) an alternate payee annuity payment under Section
804.005.
(c) If the annuitant:
(1) is a retiree, or is a beneficiary under an optional
retirement payment plan, to be eligible for the adjustment under
this section:
(A) the annuitant must be living on the effective
date of the adjustment; and
(B) the effective date of the retirement of the
member of the Teacher Retirement System of Texas must have been on
or before December 31, 2021;
(2) is a beneficiary under Section 824.402(a)(3) or
(4) or 824.502, to be eligible for the adjustment:
(A) the annuitant must be living on the effective
date of the adjustment; and
(B) the date of death of the member of the
retirement system must have been on or before December 31, 2021; or
(3) is an alternate payee under Section 804.005, the
annuitant is eligible for the adjustment only if the effective date
of the election to receive the annuity payment was on or before
December 31, 2021.
(d) An adjustment made under this section does not apply to
payments under:
(1) Section 824.203(d), relating to retirees who
receive a standard service retirement annuity in an amount fixed by
statute;
(2) Section 824.304(a), relating to disability
retirees with less than 10 years of service credit;
(3) Section 824.304(b)(2), relating to disability
retirees who receive a disability annuity in an amount fixed by
statute;
(4) Section 824.404(a), relating to active member
survivor beneficiaries who receive a survivor annuity in an amount
fixed by statute;
(5) Section 824.501(a), relating to retiree survivor
beneficiaries who receive a survivor annuity in an amount fixed by
statute; or
(6) Section 824.804(b), relating to participants in
the deferred retirement option plan with regard to payments from
their deferred retirement option plan accounts.
(e) An adjustment under this section must be made beginning
with an annuity payable for the month of September 2023.
(f) The amount of the adjustment provided under this section
is calculated by multiplying the amount of the first monthly
benefit subject to the adjustment by a percentage determined as
follows:
(1) for annuitants described by Subsection (c)(1):
(A) if the retiree's effective date of retirement
was before September 1, 2013, an adjustment of four percent; and
(B) if the retiree's effective date of retirement
was on or after September 1, 2013, but before January 1, 2022 an
adjustment of two percent;
(2) for annuitants described by Subsection (c)(2):
(A) if the member's date of death was before
September 1, 2013, an adjustment of four percent; and
(B) if the member's date of death was on or after
September 1, 2013, but before January 1, 2022, an adjustment of two
percent; and
(3) for annuitants described by Subsection (c)(3):
(A) if the annuitant's date of election was
before September 1, 2013, an adjustment of four percent; and
(B) if the annuitant's date of election was on or
after September 1, 2013, but before January 1, 2022, an adjustment
of two percent.
(g) The board of trustees shall determine the eligibility
for and the amount of any adjustment in monthly annuities in
accordance with this section.
SECTION 2. (a) Subject to Subsection (i) of this section
and Section 821.006, Government Code, the Teacher Retirement System
of Texas shall make a one-time supplemental payment of a retirement
or death benefit, as provided by this section.
(b) The supplemental payment is payable not later than
February 2024 and, to the extent practicable, on a date or dates
that coincide with the regular annuity payment payable to each
eligible annuitant.
(c) The amount of the supplemental payment is $7,500.
(d) The supplemental payment is payable without regard to
any forfeiture of benefits under Section 824.601, Government Code.
The Teacher Retirement System of Texas shall make applicable tax
withholding and other legally required deductions before
disbursing the supplemental payment. A supplemental payment under
this section is in addition to and not in lieu of the regular
monthly annuity payment to which the eligible annuitant is
otherwise entitled.
(e) Subject to Subsection (f) of this section, to be
eligible for the supplemental payment, a person must be, for the
calendar month immediately prior to the calendar month in which the
Teacher Retirement System of Texas issues the one-time supplemental
payment in accordance with Subsection (b) of this section, and
disregarding any forfeiture of benefits under Section 824.601,
Government Code, an annuitant who is at least 75 years of age and
eligible to receive:
(1) a standard retirement annuity payment;
(2) an optional retirement annuity payment as either a
retiree or beneficiary;
(3) a life annuity payment under Section
824.402(a)(4), Government Code;
(4) an annuity for a guaranteed period of 60 months
under Section 824.402(a)(3), Government Code; or
(5) an alternate payee annuity payment under Section
804.005, Government Code.
(f) The supplemental payment is in addition to the
guaranteed number of payments under Section 824.204(c)(3) or (4),
Section 824.308(c)(3) or (4), or Section 824.402(a)(3), Government
Code, and may not be counted as one of the guaranteed monthly
payments.
(g) The supplemental payment does not apply to payments
under:
(1) Section 824.304(a), Government Code, relating to
disability retirees with less than 10 years of service credit;
(2) Section 824.804(b), Government Code, relating to
participants in the deferred retirement option plan with regard to
payments from their deferred retirement option plan accounts;
(3) Section 824.501(a), Government Code, relating to
retiree survivor beneficiaries who receive a survivor annuity in an
amount fixed by statute; or
(4) Section 824.404(a), Government Code, relating to
active member survivor beneficiaries who receive a survivor annuity
in an amount fixed by statute.
(h) The board of trustees of the Teacher Retirement System
of Texas shall determine the eligibility for and the amount and
timing of a supplemental payment and the manner in which the payment
is made.
(i) The Teacher Retirement System of Texas is required to
make a one-time supplemental payment of benefits under this section
only if the board of trustees of the Teacher Retirement System of
Texas finds that the legislature appropriated money to the
retirement system in an amount sufficient to provide the
payment. The amount appropriated by the legislature to provide the
payment must be in addition to the amount the state is required to
contribute to the retirement system under Section 825.404,
Government Code. If the board of trustees of the Teacher Retirement
System of Texas finds that the retirement system did not receive the
full amount appropriated by the legislature to provide a one-time
supplemental payment of benefits under this section, the retirement
system may not make the payment.
(j) If the board of trustees of the Teacher Retirement
System determines that the appropriation provided by the
legislature for the one-time supplemental payment of benefits is
different from the amount required to issue the one-time
supplemental payment of benefits under this section, the
comptroller, after the end of the fiscal year, shall make
adjustments in the teacher retirement fund and the general revenue
fund so that the total transfers during the year equal the total
amount of the funds required for the one-time supplemental payment
of benefits. This transfer of funds is in addition to and separate
from the amount the state is required to contribute to the
retirement system under Section 825.404, Government Code.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.