Bill Text: TX HB593 | 2019-2020 | 86th Legislature | 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.
Sponsorship: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2019-02-20 - Referred to Pensions, Investments & Financial Services [HB593 Detail]
Download: Texas-2019-HB593-Introduced.html
| By: Muñoz, Jr. | H.B. No. 593 | |
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| 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, 2020, 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, 2021, | ||
| 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, 2021. | ||
| SECTION 5. This Act takes effect September 1, 2019. | ||
