Bill Text: TX HB205 | 2021 | 87th Legislature 2nd Special Session | Introduced
Bill Title: Relating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas, including a related study.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2021-08-27 - Referred to Appropriations [HB205 Detail]
Download: Texas-2021-HB205-Introduced.html
| By: Muñoz, Jr. | H.B. No. 205 | |
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| relating to a cost-of-living adjustment applicable to certain | ||
| benefits paid by the Teacher Retirement System of Texas, including | ||
| a related study. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter H, Chapter 824, Government Code, is | ||
| amended by adding Section 824.703 to read as follows: | ||
| Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT. (a) | ||
| Notwithstanding Section 824.702 and subject to Section 821.006, 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 retirement system must have been after August 31, | ||
| 2004, and on or before August 31, 2015; | ||
| (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 after August 31, 2004, and on or | ||
| before August 31, 2015; 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 after August 31, | ||
| 2004, and on or before August 31, 2015. | ||
| (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: | ||
| (1) must be made as soon as practicable after the board | ||
| of trustees finds that payment of the adjustment would not violate | ||
| Section 821.006; and | ||
| (2) is limited to the lesser of: | ||
| (A) an amount equal to three percent of the | ||
| monthly benefit subject to the increase; or | ||
| (B) $100 a month. | ||
| (f) 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) Using existing resources, the Teacher | ||
| Retirement System of Texas shall conduct a study on the possibility | ||
| of providing future cost-of-living adjustments payable to an | ||
| annuitant receiving a monthly death or retirement annuity, | ||
| including projections on future cost-of-living adjustments, a | ||
| review of structural changes affecting cost-of-living adjustments, | ||
| and the feasibility of offering an alternative annuity payment | ||
| option to retirees under which the standard service retirement | ||
| annuity provided under Subchapter C, Chapter 824, Government Code, | ||
| is payable on a graduated scale with annuity payments increasing on | ||
| an annual basis. In conducting a study under this section, the | ||
| retirement system shall only consider alternative annuity payment | ||
| options that are projected by the retirement system's actuary to | ||
| have no fiscal impact to the state. | ||
| (b) Not later than September 1, 2022, the Teacher Retirement | ||
| System of Texas shall submit to the legislature a written report on | ||
| the results of the study and any recommendations for legislative or | ||
| other action. | ||
| (c) This section expires September 1, 2023. | ||
| 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. | ||
