Bill Text: TX HB4491 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to contributions to, benefits from, and the administration of systems and programs administered by the Teacher Retirement System of Texas, including a one-time supplemental payment for retirees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-26 - Referred to Pensions, Investments & Financial Services [HB4491 Detail]
Download: Texas-2019-HB4491-Introduced.html
86R13746 LED-F | ||
By: Herrero | H.B. No. 4491 |
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relating to contributions to, benefits from, and the administration | ||
of systems and programs administered by the Teacher Retirement | ||
System of Texas, including a one-time supplemental payment for | ||
retirees. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. (a) Section 821.006, Government Code, is | ||
amended by adding Subsections (c) and (d) to read as follows: | ||
(c) Notwithstanding Subsections (a) and (b), the retirement | ||
system may provide a one-time supplemental payment 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 one-time supplemental payment under Subsection (c) is | ||
authorized if the amortization period for the unfunded actuarial | ||
liabilities of the retirement system does not exceed 30 years by one | ||
or more years after payment of the supplemental payment. | ||
(b) The Teacher Retirement System of Texas shall make a | ||
one-time supplemental payment of a retirement or death benefit, as | ||
provided by Section 821.006, Government Code, as amended by this | ||
Act, and this section. | ||
(c) The supplemental payment is payable not later than | ||
September 2019 and, to the extent practicable, on a date or dates | ||
that coincide with the regular annuity payment payable to each | ||
eligible annuitant. | ||
(d) The amount of the 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 2019; or | ||
(2) $2,400. | ||
(e) The supplemental payment is 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. | ||
(f) Subject to Subsection (g) of this section, to be | ||
eligible for the supplemental payment, a person must be, for the | ||
month of August 2019, 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. | ||
(g) If the annuitant is a retiree or a beneficiary under an | ||
optional retirement payment plan, to be eligible for the | ||
supplemental payment, the effective date of the retirement of the | ||
member of the Teacher Retirement System of Texas must have been on | ||
or before August 31, 2015. If the annuitant is a beneficiary under | ||
Section 824.402(a)(3) or (4), Government Code, to be eligible for | ||
the supplemental payment, the date of death of the member of the | ||
retirement system must have been on or before August 31, 2015. The | ||
supplemental payment 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 | ||
August 31, 2015. The supplemental payment is 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. | ||
(h) The supplemental payment does 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. | ||
(i) 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 a supplemental | ||
payment and the manner in which the payment is made. | ||
SECTION 2. (a) Sections 824.601(b-1) and (f), Government | ||
Code, are amended to read as follows: | ||
(b-1) Subsection (b) does not apply to a retiree: | ||
(1) under Section 824.202 whose effective date of | ||
retirement is on or before August 31, 2018; or | ||
(2) who commits a minor violation of a provision of | ||
this subchapter, including a minor violation of an exception | ||
provided by Section 824.602, unless the violation occurs frequently | ||
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(f) The system shall [ |
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administering this subchapter, including rules necessary to | ||
implement Subsection (b-1)(2). | ||
(b) A person who resumed employment after retirement and | ||
whose benefit payments were suspended under Section 824.601, | ||
Government Code, as that section existed before amendment by this | ||
Act, is entitled to the resumption of monthly benefit payments if | ||
the person meets the requirements of Section 824.601(b-1), | ||
Government Code, as amended by this Act. | ||
(c) The Teacher Retirement System of Texas shall resume | ||
making monthly benefit payments to a person described by Subsection | ||
(b) of this section on the first payment date occurring on or after | ||
the effective date of this Act. | ||
(d) A person who is entitled to the resumption of monthly | ||
benefit payments under this section is not entitled to recover | ||
benefit payments not made during the period the person's benefit | ||
was suspended under Section 824.601, Government Code, as that | ||
section existed before amendment by this Act. | ||
SECTION 3. (a) Section 824.602, Government Code, is | ||
amended by amending Subsection (a) and adding Subsection (c) to | ||
read as follows: | ||
(a) Subject to Subsection (c) and Section 825.506, the | ||
retirement system may not, under Section 824.601, withhold a | ||
monthly benefit payment if the retiree is employed in a Texas public | ||
educational institution: | ||
(1) as a substitute only with pay not more than the | ||
daily rate of substitute pay established by the employer and, if the | ||
retiree is a disability retiree, the employment has not exceeded a | ||
total of 90 days in the school year; | ||
(2) in a position, other than as a substitute, on no | ||
more than a one-half time basis for the month; | ||
(3) in one or more positions on as much as a full-time | ||
basis, if the retiree has been separated from service with all Texas | ||
public educational institutions for at least 12 full consecutive | ||
months after the retiree's effective date of retirement; or | ||
(4) in a position, other than as a substitute, on no | ||
more than a one-half time basis for no more than 90 days in the | ||
school year, if the retiree is a disability retiree. | ||
(c) An exception provided by Subsection (a)(2) or (4) | ||
continues to apply to a retiree who exceeds a limitation prescribed | ||
by the subsection because of an event or other circumstance that is | ||
beyond the retiree's control, including a weather-related event. | ||
The board of trustees shall adopt rules necessary to implement this | ||
subsection. | ||
(b) Section 824.602, Government Code, as amended by this | ||
Act, applies only to a benefit payment made by the Teacher | ||
Retirement System of Texas that becomes payable on or after the | ||
effective date of this Act. | ||
SECTION 4. The heading to Section 825.4035, Government | ||
Code, is amended to read as follows: | ||
Sec. 825.4035. EMPLOYER CONTRIBUTIONS [ |
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SECTION 5. Sections 825.4035(a) and (b), Government Code, | ||
are amended to read as follows: | ||
(a) This section[ |
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retirement system under Section 825.403 the employment of a member | ||
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(b) Except as provided in Subsection (c), for each member | ||
an [ |
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contribute monthly to the retirement system for each such member[ |
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(1) [ |
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(2) [ |
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equal to 1.5 percent reduced by one-tenth of one percent for each | ||
one-tenth of one percent that the state contribution rate for the | ||
fiscal year to which the report month relates is less than the state | ||
contribution rate established for the 2015 fiscal year. | ||
SECTION 6. (a) Subchapter F, Chapter 825, Government Code, | ||
is amended by adding Section 825.521 to read as follows: | ||
Sec. 825.521. DEADLINE TO APPEAL. A period established by | ||
law or rule during which a member or retiree may appeal an | ||
administrative decision of an employee of the retirement system, | ||
including the executive director, may not begin before the eighth | ||
day after the date the employee notifies the member or retiree of | ||
the decision. The notice required by this section must be made in | ||
accordance with rules of the board of trustees. | ||
(b) As soon as practicable after the effective date of this | ||
Act, the board of trustees of the Teacher Retirement System of Texas | ||
shall adopt rules necessary to implement the change in law made by | ||
Section 825.521, Government Code, as added by this Act. | ||
(c) The change in law made by Section 825.521, Government | ||
Code, as added by this Act, applies only to the appeal of an | ||
administrative decision of an employee of the Teacher Retirement | ||
System of Texas made on or after January 1, 2020. An appeal of a | ||
decision made before January 1, 2020, is governed by the law as it | ||
existed immediately before the effective date of this Act and that | ||
law is continued in effect for that purpose. | ||
SECTION 7. Section 1575.202(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) Each state fiscal year, the state shall contribute to | ||
the fund an amount equal to a percentage [ |
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salary of each active employee as follows: | ||
(1) for the 2020 and 2021 fiscal years, 2.25 percent; | ||
(2) for the 2022 fiscal year, 2.5 percent; | ||
(3) for the 2023 fiscal year, 2.75 percent; | ||
(4) for the 2024 fiscal year, three percent; | ||
(5) for the 2025 fiscal year, 3.25 percent; | ||
(6) for the 2026 fiscal year, 3.5 percent; | ||
(7) for the 2027 fiscal year, 3.75 percent; | ||
(8) for the 2028 fiscal year, four percent; and | ||
(9) for the 2029 fiscal year, and each subsequent | ||
fiscal year, 4.25 percent. | ||
SECTION 8. This Act takes effect September 1, 2019. |