Bill Text: TX HB2795 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to a one-time supplemental annuity payment to certain retirees and beneficiaries of the Teacher Retirement System of Texas.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2019-03-12 - Referred to Pensions, Investments & Financial Services [HB2795 Detail]
Download: Texas-2019-HB2795-Introduced.html
86R6145 TSR-F | ||
By: Huberty | H.B. No. 2795 |
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relating to a one-time supplemental annuity payment to certain | ||
retirees and beneficiaries of the Teacher Retirement System of | ||
Texas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 824, Government Code, is | ||
amended by adding Section 824.010 to read as follows: | ||
Sec. 824.010. SUPPLEMENTAL PAYMENT. (a) Notwithstanding | ||
Section 821.006, the retirement system may make a one-time | ||
supplemental payment as provided by this section to an annuitant | ||
eligible to receive a monthly retirement, disability, or death | ||
benefit annuity under this subchapter. A supplemental payment made | ||
under this section: | ||
(1) is in addition to the regular monthly annuity | ||
payment; and | ||
(2) must be made using earnings the system makes on | ||
investments as provided by this section. | ||
(b) The retirement system shall pay the supplemental | ||
payment in January following the fiscal year in which the actual | ||
rate of return on the investment of the system's cash and securities | ||
exceeds the assumed rate of return used in the actuarial valuation | ||
prepared by the system for that fiscal year. | ||
(c) The retirement system shall determine the aggregate | ||
supplemental payment amount available for making supplemental | ||
payments under this section by: | ||
(1) requiring the system's actuary to determine the | ||
value of the system's investment returns that represent the amount | ||
by which the actual rate of return exceeds the assumed rate of | ||
return under Subsection (d); and | ||
(2) multiplying that value by 50 percent. | ||
(d) The board of trustees shall, based on the aggregate | ||
supplemental payment amount, determine: | ||
(1) who is eligible to receive the supplemental | ||
payment based on years of service, effective date of retirement or | ||
death, as applicable, and other reasonable criteria; | ||
(2) the amount of each annuitant's supplemental | ||
payment; and | ||
(3) the manner in which the payment is made. | ||
(e) This section expires on the second anniversary of the | ||
date on which the supplemental payment authorized under this | ||
section is made. | ||
SECTION 2. 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, 2019. |