Bill Text: TX HB2936 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to an optional service retirement annuity of the Employees Retirement System of Texas.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2021-05-12 - Referred to Finance [HB2936 Detail]
Download: Texas-2021-HB2936-Introduced.html
| 87R7542 JCG-D | ||
| By: Frank | H.B. No. 2936 | |
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| relating to an optional service retirement annuity of the Employees | ||
| Retirement System of Texas. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 814, Government Code, is | ||
| amended by adding Section 814.109 to read as follows: | ||
| Sec. 814.109. COST-OF-LIVING ADJUSTMENTS OPTION. (a) A | ||
| member who is eligible for an unreduced service retirement annuity | ||
| may select a standard retirement annuity or an optional service | ||
| retirement annuity described by Section 814.108 together with the | ||
| option for cost-of-living adjustments as described by this section. | ||
| (b) The retirement system shall provide the cost-of-living | ||
| adjustments by reducing benefits for an appropriate period | ||
| beginning immediately after the member's retirement and | ||
| periodically increasing the amount of the benefits, as determined | ||
| by the system, during the period the member or designated | ||
| beneficiary is entitled to service retirement benefits. | ||
| (c) The service retirement annuity selected by the member | ||
| must be calculated to reflect the cost-of-living adjustments to be | ||
| provided under this section and be actuarially equivalent to a | ||
| standard or optional service retirement annuity, as applicable. | ||
| The annuity and adjustments must be computed to result in no | ||
| actuarial loss to the retirement system. | ||
| (d) The cost-of-living adjustments option under this | ||
| section may be elected only once by a member and may not be elected | ||
| by a retiree. A member retiring under the proportionate retirement | ||
| program under Chapter 803 is not eligible for the partial lump-sum | ||
| option. | ||
| (e) This section does not apply to a disability retirement | ||
| annuity. | ||
| (f) Before a retiring member selects the cost-of-living | ||
| adjustments option under this section, the retirement system must | ||
| provide a written notice to the member of the amount by which the | ||
| member's annuity will be reduced and the period of the reduction | ||
| because of that selection. The retirement system shall maintain a | ||
| copy of the notice under this subsection signed by the member. | ||
| (g) The board of trustees may adopt rules for the | ||
| implementation of this section. | ||
| SECTION 2. Section 814.109, Government Code, as added by | ||
| this Act, applies only to a retirement that occurs on or after | ||
| January 1, 2022. | ||
| SECTION 3. This Act takes effect September 1, 2021. | ||
