Bill Text: TX SB10 | 2023-2024 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to certain benefits paid by the Teacher Retirement System of Texas.
Spectrum: Moderate Partisan Bill (Republican 45-13)
Status: (Passed) 2023-06-14 - See remarks for effective date [SB10 Detail]
Download: Texas-2023-SB10-Introduced.html
Bill Title: Relating to certain benefits paid by the Teacher Retirement System of Texas.
Spectrum: Moderate Partisan Bill (Republican 45-13)
Status: (Passed) 2023-06-14 - See remarks for effective date [SB10 Detail]
Download: Texas-2023-SB10-Introduced.html
2023S0292-T 03/10/23 | ||
By: Huffman, et al. | S.B. No. 10 |
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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. |