Texas 2023 - 88th Regular

Texas Senate Bill SB10 Compare Versions

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1	1	S.B. No. 10
2	2
3	3
4	4	AN ACT
5	5	relating to certain benefits paid by the Teacher Retirement System
6	6	of Texas.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subchapter H, Chapter 824, Government Code, is
9	9	amended by adding Section 824.703 to read as follows:
10	10	Sec. 824.703. COST-OF-LIVING ADJUSTMENT: JANUARY 2024.
11	11	(a) The retirement system shall make a one-time cost-of-living
12	12	adjustment payable to annuitants receiving a monthly death or
13	13	retirement benefit annuity, as provided by this section.
14	14	(b) Subject to Subsection (c) and except as provided by
15	15	Subsection (d), to be eligible for the adjustment, a person must be,
16	16	on the effective date of the adjustment and disregarding any
17	17	forfeiture of benefits under Section 824.601, an annuitant eligible
18	18	to receive:
19	19	(1) a standard service or disability retirement
20	20	annuity payment;
21	21	(2) an optional service or disability retirement
22	22	annuity payment as either a retiree or beneficiary;
23	23	(3) an annuity payment under Section 824.402(a)(3) or
24	24	(4);
25	25	(4) an annuity payment under Section 824.502; or
26	26	(5) an alternate payee annuity payment under Section
27	27	804.005.
28	28	(c) If the annuitant:
29	29	(1) is a retiree, or is a beneficiary under an optional
30	30	service or disability retirement payment plan, to be eligible for
31	31	the adjustment under this section:
32	32	(A) the annuitant must be living on the effective
33	33	date of the adjustment; and
34	34	(B) the effective date of the retirement of the
35	35	member of the retirement system on whose service the annuity is
36	36	based must have been on or before August 31, 2020;
37	37	(2) is a beneficiary under Section 824.402(a)(3) or
38	38	(4) or 824.502, to be eligible for the adjustment:
39	39	(A) the annuitant must be living on the effective
40	40	date of the adjustment; and
41	41	(B) the date of death of the member of the
42	42	retirement system on whose service the annuity is based must have
43	43	been on or before August 31, 2020; or
44	44	(3) is an alternate payee under Section 804.005, to be
45	45	eligible for the adjustment:
46	46	(A) the annuitant must be living on the effective
47	47	date of the adjustment; and
48	48	(B) the effective date of the annuitant's
49	49	election to receive the annuity payment was on or before August 31,
50	50	2020.
51	51	(d) An adjustment made under this section does not apply to
52	52	payments under:
53	53	(1) Section 824.203(d), relating to retirees who
54	54	receive a standard service retirement annuity in an amount fixed by
55	55	statute;
56	56	(2) Section 824.304(a), relating to disability
57	57	retirees with less than 10 years of service credit;
58	58	(3) Section 824.304(b)(2), relating to disability
59	59	retirees who receive a disability annuity in an amount fixed by
60	60	statute;
61	61	(4) Section 824.404(a), relating to active member
62	62	survivor beneficiaries who receive a survivor annuity in an amount
63	63	fixed by statute;
64	64	(5) Section 824.501(a), relating to retiree survivor
65	65	beneficiaries who receive a survivor annuity in an amount fixed by
66	66	statute; or
67	67	(6) Section 824.804(b), relating to participants in
68	68	the deferred retirement option plan with regard to payments from
69	69	their deferred retirement option plan accounts.
70	70	(e) An adjustment under this section must be made beginning
71	71	with an annuity payable for the month of January 2024.
72	72	(f) The amount of the adjustment provided under this section
73	73	is calculated by multiplying the amount of the monthly benefit
74	74	subject to the adjustment by the following percentage rate, as
75	75	applicable:
76	76	(1) for annuitants described by Subsection (c)(1):
77	77	(A) if the retiree's effective date of retirement
78	78	was on or before August 31, 2001, six percent;
79	79	(B) if the retiree's effective date of retirement
80	80	was after August 31, 2001, but on or before August 31, 2013, four
81	81	percent; and
82	82	(C) if the retiree's effective date of retirement
83	83	was after August 31, 2013, but on or before August 31, 2020, two
84	84	percent;
85	85	(2) for annuitants described by Subsection (c)(2):
86	86	(A) if the member's date of death was on or before
87	87	August 31, 2001, six percent;
88	88	(B) if the member's date of death was after
89	89	August 31, 2001, but on or before August 31, 2013, four percent; and
90	90	(C) if the member's date of death was after
91	91	August 31, 2013, but on or before August 31, 2020, two percent; and
92	92	(3) for annuitants described by Subsection (c)(3):
93	93	(A) if the effective date of the annuitant's
94	94	election was on or before August 31, 2001, six percent;
95	95	(B) if the effective date of the annuitant's
96	96	election was after August 31, 2001, but on or before August 31,
97	97	2013, four percent; and
98	98	(C) if the effective date of the annuitant's
99	99	election was after August 31, 2013, but on or before August 31,
100	100	2020, two percent.
101	101	(g) The board of trustees shall determine the eligibility
102	102	for and the amount of any adjustment in monthly annuities in
103	103	accordance with this section.
104	104	SECTION 2. (a) Subject to Subsections (e) and (i) of this
105	105	section and Section 821.006, Government Code, and except as
106	106	provided by Subsection (g) of this section, the Teacher Retirement
107	107	System of Texas shall make a one-time supplemental payment of a
108	108	retirement or death benefit, as provided by this section.
109	109	(b) The supplemental payment is payable not later than
110	110	September 2023 and, to the extent practicable, on a date or dates
111	111	that coincide with the regular annuity payment payable to each
112	112	eligible annuitant.
113	113	(c) The amount of the supplemental payment is equal to:
114	114	(1) $7,500, if the annuitant is at least 75 years of
115	115	age on any day of the calendar month before the calendar month in
116	116	which the Teacher Retirement System of Texas issues the
117	117	supplemental payment; or
118	118	(2) $2,400, if the annuitant is:
119	119	(A) at least 70 years of age but younger than 75
120	120	years of age on any day of the calendar month before the calendar
121	121	month in which the Teacher Retirement System of Texas issues the
122	122	supplemental payment; and
123	123	(B) not subject to Subdivision (1) of this
124	124	subsection.
125	125	(d) The supplemental payment is payable without regard to
126	126	any forfeiture of benefits under Section 824.601, Government Code.
127	127	The Teacher Retirement System of Texas shall make applicable tax
128	128	withholding and other legally required deductions before
129	129	disbursing the supplemental payment. A supplemental payment under
130	130	this section is in addition to and not in lieu of the regular
131	131	monthly annuity payment to which the eligible annuitant is
132	132	otherwise entitled.
133	133	(e) To be eligible for the supplemental payment, a person
134	134	must be, for the calendar month immediately prior to the calendar
135	135	month in which the Teacher Retirement System of Texas issues the
136	136	one-time supplemental payment in accordance with Subsection (b) of
137	137	this section, an annuitant who is:
138	138	(1) at least 70 years of age; and
139	139	(2) eligible to receive:
140	140	(A) a standard retirement annuity payment;
141	141	(B) an optional retirement annuity payment as
142	142	either a retiree or beneficiary;
143	143	(C) a life annuity payment under Section
144	144	824.402(a)(4), Government Code;
145	145	(D) an annuity for a guaranteed period of 60
146	146	months under Section 824.402(a)(3), Government Code; or
147	147	(E) an alternate payee annuity payment under
148	148	Section 804.005, Government Code.
149	149	(f) The supplemental payment is in addition to the
150	150	guaranteed number of payments under Section 824.204(c)(3) or (4),
151	151	Section 824.308(c)(3) or (4), or Section 824.402(a)(3), Government
152	152	Code, and may not be counted as one of the guaranteed monthly
153	153	payments.
154	154	(g) The supplemental payment does not apply to payments
155	155	under:
156	156	(1) Section 824.304(a), Government Code, relating to
157	157	disability retirees with less than 10 years of service credit;
158	158	(2) Section 824.804(b), Government Code, relating to
159	159	participants in the deferred retirement option plan with regard to
160	160	payments from their deferred retirement option plan accounts;
161	161	(3) Section 824.501(a), Government Code, relating to
162	162	retiree survivor beneficiaries who receive a survivor annuity in an
163	163	amount fixed by statute; or
164	164	(4) Section 824.404(a), Government Code, relating to
165	165	active member survivor beneficiaries who receive a survivor annuity
166	166	in an amount fixed by statute.
167	167	(h) The board of trustees of the Teacher Retirement System
168	168	of Texas shall determine the eligibility for and the amount and
169	169	timing of a supplemental payment and the manner in which the payment
170	170	is made.
171	171	(i) The Teacher Retirement System of Texas is required to
172	172	make a one-time supplemental payment of benefits under this section
173	173	only if the board of trustees of the Teacher Retirement System of
174	174	Texas finds that the legislature appropriated money to the
175	175	retirement system in an amount sufficient to provide the
176	176	supplemental payment. The amount appropriated by the legislature
177	177	to provide the supplemental payment must be in addition to the
178	178	amount the state is required to contribute to the retirement system
179	179	under Section 825.404, Government Code.
180	180	(j) If the board of trustees of the Teacher Retirement
181	181	System of Texas determines that the appropriation provided by the
182	182	legislature for the one-time supplemental payment of benefits under
183	183	this section is different from the amount required to issue the
184	184	supplemental payment, the comptroller, after the end of the fiscal
185	185	year, shall make adjustments in the teacher retirement fund and the
186	186	general revenue fund so that the total transfers during the year
187	187	equal the total amount of the funds required for the supplemental
188	188	payment. This transfer of funds is in addition to and separate from
189	189	the amount the state is required to contribute to the retirement
190	190	system under Section 825.404, Government Code.
191	191	SECTION 3. (a) Except as provided by Subsection (b) of this
192	192	section, this Act takes effect immediately if it receives a vote of
193	193	two-thirds of all the members elected to each house, as provided by
194	194	Section 39, Article III, Texas Constitution. If this Act does not
195	195	receive the vote necessary for immediate effect, this Act takes
196	196	effect September 1, 2023.
197	197	(b) Section 1 of this Act takes effect January 1, 2024, but
198	198	only if the constitutional amendment proposed by the 88th
199	199	Legislature, Regular Session, 2023, authorizing the 88th
200	200	Legislature to provide a cost-of-living adjustment to certain
201	201	annuitants of the Teacher Retirement System of Texas is approved by
202	202	the voters. If that constitutional amendment is not approved by the
203	203	voters, Section 1 of this Act has no effect.
204	204	______________________________ ______________________________
205	205	President of the Senate Speaker of the House
206	206	I hereby certify that S.B. No. 10 passed the Senate on
207	207	March 29, 2023, by the following vote: Yeas 31, Nays 0;
208	208	May 4, 2023, Senate refused to concur in House amendments and
209	209	requested appointment of Conference Committee; May 5, 2023, House
210	210	granted request of the Senate; May 27, 2023, Senate adopted
211	211	Conference Committee Report by the following vote: Yeas 31,
212	212	Nays 0.
213	213	______________________________
214	214	Secretary of the Senate
215	215	I hereby certify that S.B. No. 10 passed the House, with
216	216	amendments, on May 1, 2023, by the following vote: Yeas 144,
217	217	Nays 0, one present not voting; May 5, 2023, House granted request
218	218	of the Senate for appointment of Conference Committee;
219	219	May 28, 2023, House adopted Conference Committee Report by the
220	220	following vote: Yeas 145, Nays 0, one present not voting.
221	221	______________________________
222	222	Chief Clerk of the House
223	223	Approved:
224	224	______________________________
225	225	Date
226	226	______________________________
227	227	Governor