Bill Text: TX HB177 | 2021 | 87th Legislature 2nd Special Session | Introduced
Bill Title: Relating to certain benefits paid by the Teacher Retirement System of Texas.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-08-23 - Referred to Appropriations [HB177 Detail]
Download: Texas-2021-HB177-Introduced.html
87S20458 BDP-F | ||
By: Dominguez | H.B. No. 177 |
|
||
|
||
relating to certain benefits paid by the Teacher Retirement System | ||
of Texas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. (a) Subchapter H, Chapter 824, Government Code, | ||
is amended by adding Section 824.703 to read as follows: | ||
Sec. 824.703. COST-OF-LIVING ADJUSTMENTS FOR INFLATION; | ||
ANNUAL DETERMINATION. (a) Notwithstanding any other law, the | ||
amount of a service retirement benefit, disability retirement | ||
benefit, or death benefit paid under this chapter is adjusted in | ||
accordance with this section as necessary to reflect inflation. | ||
(b) Each year, during the last seven days of October, the | ||
board of trustees shall set the rate of the adjustment for the next | ||
calendar year to equal the annual percentage increase, if any, in | ||
the Consumer Price Index for Urban Wage Earners and Clerical | ||
Workers (CPI-W) published by the Bureau of Labor Statistics of the | ||
United States Department of Labor as determined by the commissioner | ||
of social security under 42 U.S.C. Section 415(i) for purposes of | ||
providing an annual cost-of-living increase to social security | ||
benefit payments payable in the next calendar year. | ||
(c) Subject to Subsection (d), the board of trustees shall | ||
increase the amount of a benefit payable under this chapter by | ||
applying the adjustment rate set by the board of trustees under | ||
Subsection (b) to the amount otherwise required to be paid as | ||
determined in accordance with the other applicable provisions of | ||
this chapter. | ||
(d) The board of trustees may not pay a benefit increase | ||
under this section in any calendar year unless the board finds that | ||
the retirement system is actuarially sound and has money available | ||
to pay increased benefits in that year. If the board of trustees | ||
finds that the retirement system is actuarially sound, but that the | ||
amount of money available is not sufficient to pay the full amount | ||
of the adjustment under Subsection (b), the board shall compute the | ||
largest rate of adjustment possible for the amount of money | ||
available while maintaining the actuarial soundness of the system | ||
and shall use that rate in increasing benefits under Subsection (c) | ||
for that calendar year. | ||
(b) This section applies only to a benefit paid by the | ||
Teacher Retirement System of Texas on or after January 1, 2023. | ||
SECTION 2. (a) Subject to 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 | ||
January 2022 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 equal to the | ||
lesser of: | ||
(1) the gross amount of the regular annuity payment to | ||
which the eligible annuitant is otherwise entitled 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; or | ||
(2) $2,400. | ||
(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 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) If the annuitant is a retiree or a beneficiary under an | ||
optional retirement payment plan, to be eligible for the | ||
supplemental payment, the effective date of the retirement of the | ||
member of the Teacher Retirement System of Texas must have been on | ||
or before July 31, 2021. If the annuitant is a beneficiary under | ||
Section 824.402(a)(3) or (4), Government Code, to be eligible for | ||
the supplemental payment, the date of death of the member of the | ||
retirement system must have been on or before July 31, 2021. The | ||
supplemental payment shall be made to an alternate payee who is an | ||
annuitant under Section 804.005, Government Code, only if the | ||
annuity payment to the alternate payee commenced on or before July | ||
31, 2021. 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) Except as provided by this section, 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. | ||
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 on the 91st day after the last day of the | ||
legislative session. |