Bill Text: TX HB388 | 2017 | 85th Legislature 1st Special Session | Introduced


Bill Title: Relating to the computation of the standard service retirement annuity for members of the Teacher Retirement System of Texas enrolled in the Texas Public School Employees Group Insurance Program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-08-08 - Filed [HB388 Detail]

Download: Texas-2017-HB388-Introduced.html
  85S11283 TSR-D
 
  By: Muñoz, Jr. H.B. No. 388
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the computation of the standard service retirement
  annuity for members of the Teacher Retirement System of Texas
  enrolled in the Texas Public School Employees Group Insurance
  Program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 824.203(a), Government Code, is amended
  to read as follows:
         (a)  Except as provided by Subsections (c) and (d), and
  subject to Section 824.2035, the standard service retirement
  annuity is an amount computed on the basis of the member's average
  annual compensation for the five years of service, whether or not
  consecutive, in which the member received the highest annual
  compensation, times 2.3 percent for each year of service credit in
  the retirement system.
         SECTION 2.  Subchapter C, Chapter 824, Government Code, is
  amended by adding Section 824.2035 to read as follows:
         Sec. 824.2035.  STANDARD SERVICE RETIREMENT BENEFITS:
  ADJUSTMENT OF PERCENTAGE FACTOR. (a) In this section, "group
  program" and "health benefit plan" have the meanings assigned by
  Section 1575.002, Insurance Code.
         (b)  The board of trustees shall:
               (1)  study the out-of-pocket costs paid and projected
  to be paid by annuitants for health benefit plan coverage provided
  under the group program, including premiums, deductibles, and
  prescription drug costs; and
               (2)  based on the board's findings under Subdivision
  (1) and notwithstanding any other law, by rule adopt a method or
  formula for increasing the percentage factor used in the
  computation of the standard service retirement annuity under
  Section 824.203(a) for annuitants enrolled in the group program in
  order to mitigate the impact projected out-of-pocket costs have on
  the annuitants' service retirement annuities.
         SECTION 3.  Not later than December 31, 2018, the board of
  trustees of the Teacher Retirement System of Texas shall complete
  the study and adopt the rule required by Section 824.2035,
  Government Code, as added by this Act.
         SECTION 4.  The changes in law made by this Act apply:
               (1)  to a person who is an annuitant of the Teacher
  Retirement System of Texas on or after September 1, 2019,
  regardless of whether the person became an annuitant before, on, or
  after that date; and
               (2)  beginning with the first annuity payable on or
  after September 1, 2019.
         SECTION 5.  This Act takes effect December 1, 2017.
feedback