83R10501 SGA-D
	By: Collier	H.B. No. 3821

	A BILL TO BE ENTITLED
	AN ACT
	relating to two supplemental payments for retirees of the Teacher
	Retirement System of Texas and the unfunded actuarial liabilities
	allowed under that system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  This Act is not intended to supplant the power or
	discretion of the legislature to provide supplemental payments to
	annuitants of the Teacher Retirement System of Texas. This Act
	provides an additional tool by which the legislature, in enacting
	this law, may provide those annuitants with two much-needed
	supplemental payments without requesting additional funds from
	general revenue.
	SECTION 2.  Section 821.006, Government Code, is amended by
	adding Subsections (c), (d), and (e) to read as follows:
	(c)  Notwithstanding Subsections (a) and (b), the retirement
	system may provide two supplemental payments to 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);
	(4)  an annuity for a guaranteed period of 60 months
	under Section 824.402(a)(3); or
	(5)  an alternate payee annuity payment under Section
	804.005.
	(d)  A supplemental payment under Subsection (c) is
	authorized, even if the amortization period for the unfunded
	actuarial liabilities of the retirement system exceeds 30 years by
	one or more years, only if the board of trustees determines that at
	the time of the supplemental payment the payment can be made while
	preserving the ability of the retirement system to meet at least 80
	percent of the system's pension obligations.
	(e)  The funding for the two supplemental payments under
	Subsection (c) must come from the earnings the retirement system
	makes on its investments as provided by this subsection. The
	supplemental payments may be made at any time during the period
	beginning September 1, 2013, and ending December 31, 2015, only if,
	during the preceding fiscal year, the return on investments, as
	provided by the actuarial valuation on August 31 of that year,
	exceeds eight percent by an amount sufficient to pay for the
	supplemental payments. Subsections (c) and (d) and this subsection
	expire January 1, 2016.
	SECTION 3.  Section 825.402, Government Code, is amended by
	adding Subsection (c-1) to read as follows:
	(c-1)  Subsection (c) does not apply to a supplemental
	payment authorized by Sections 821.006(c), (d), and (e).  This
	subsection expires January 1, 2016.
	SECTION 4.  (a)  The Teacher Retirement System of Texas shall
	make two supplemental payments of a retirement or death benefit, as
	provided by Section 821.006, Government Code, as amended by this
	Act, and this section.
	(b)  The supplemental payments are payable not later than
	December 31, 2015, 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 each 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 month of
	August 2013; or
	(2)  $2,000.
	(d)  The supplemental payments are 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 payments, a person must be, for the
	month of August 2013, 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 payments, the effective date of the retirement of the
	member of the Teacher Retirement System of Texas must have been on
	or before December 31, 2010. If the annuitant is a beneficiary
	under Section 824.402(a)(3) or (4), Government Code, to be eligible
	for the supplemental payments, the date of death of the member of
	the retirement system must have been on or before December 31, 2010.
	The supplemental payments 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
	December 31, 2010.  The supplemental payments are in addition to the
	guaranteed number of payments under Section 824.402(a)(3),
	824.204(c)(3) or (4), or 824.308(c)(3) or (4), Government Code, and
	may not be counted as one of the guaranteed monthly payments.
	(g)  The supplemental payments do 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 each supplemental
	payment and the manner in which the payment is made.
	SECTION 5.  This Act takes effect September 1, 2013.