Bill Text: TX HB80 | 2017 | 85th Legislature 1st Special Session | Engrossed


Bill Title: Relating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas, including a related study.

Spectrum: Slight Partisan Bill (Republican 14-9)

Status: (Engrossed - Dead) 2017-08-12 - Left pending in committee [HB80 Detail]

Download: Texas-2017-HB80-Engrossed.html
 
 
  By: Darby, Guillen, Oliveira, Guerra, et al. H.B. No. 80
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a cost-of-living adjustment applicable to certain
  benefits paid by the Teacher Retirement System of Texas, including
  a related study.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter H, Chapter 824, Government Code, is
  amended by adding Section 824.703 to read as follows:
         Sec. 824.703.  ADDITIONAL COST-OF-LIVING ADJUSTMENT.
  (a)  Notwithstanding Section 824.702 and subject to Section
  821.006, the retirement system shall make a one-time cost-of-living
  adjustment payable to annuitants receiving a monthly death or
  retirement benefit annuity, as provided by this section.
         (b)  Subject to Subsections (c) and (d), to be eligible for
  the adjustment, a person must be, on the effective date of the
  adjustment and disregarding any forfeiture of benefits under
  Section 824.601, an annuitant eligible to receive:
               (1)  a standard service or disability retirement
  annuity payment;
               (2)  an optional service or disability retirement
  annuity payment as either a retiree or beneficiary;
               (3)  an annuity payment under Section 824.402(a)(3) or
  (4);
               (4)  an annuity payment under Section 824.502; or
               (5)  an alternate payee annuity payment under Section
  804.005.
         (c)  If the annuitant:
               (1)  is a retiree or is a beneficiary under an optional
  retirement payment plan, to be eligible for the adjustment under
  this section:
                     (A)  the annuitant must be living on the effective
  date of the adjustment; and
                     (B)  the effective date of the retirement of the
  member of the retirement system must have been after August 31,
  2004, and on or before August 31, 2015;
               (2)  is a beneficiary under Section 824.402(a)(3) or
  (4) or 824.502, to be eligible for the adjustment:
                     (A)  the annuitant must be living on the effective
  date of the adjustment; and
                     (B)  the date of death of the member of the
  retirement system must have been after August 31, 2004, and on or
  before August 31, 2015; or
               (3)  is an alternate payee under Section 804.005, the
  annuitant is eligible for the adjustment only if the effective date
  of the election to receive the annuity payment was after August 31,
  2004, and on or before August 31, 2015.
         (d)  An adjustment made under this section does not apply to
  payments under:
               (1)  Section 824.203(d), relating to retirees who
  receive a standard service retirement annuity in an amount fixed by
  statute;
               (2)  Section 824.304(a), relating to disability
  retirees with less than 10 years of service credit;
               (3)  Section 824.304(b)(2), relating to disability
  retirees who receive a disability annuity in an amount fixed by
  statute;
               (4)  Section 824.404(a), relating to active member
  survivor beneficiaries who receive a survivor annuity in an amount
  fixed by statute;
               (5)  Section 824.501(a), relating to retiree survivor
  beneficiaries who receive a survivor annuity in an amount fixed by
  statute; or
               (6)  Section 824.804(b), relating to participants in
  the deferred retirement option plan with regard to payments from
  their deferred retirement option plan accounts.
         (e)  An adjustment under this section:
               (1)  must be made as soon as practicable after the board
  of trustees finds that payment of the adjustment would not violate
  Section 821.006; and
               (2)  is limited to the lesser of:
                     (A)  an amount equal to three percent of the
  monthly benefit subject to the increase; or
                     (B)  $100 a month.
         (f)  The board of trustees shall determine the eligibility
  for and the amount of any adjustment in monthly annuities in
  accordance with this section.
         SECTION 2.  (a)  Using existing resources, the Teacher
  Retirement System of Texas shall conduct a study on future
  cost-of-living adjustments payable to an annuitant receiving a
  monthly death or retirement annuity, including projections on
  future cost-of-living adjustments
  and a review of structural
  changes affecting cost-of-living adjustments, including the
  feasibility of offering an alternative annuity payment option to
  retirees under which the standard service retirement annuity
  provided under Subchapter C, Chapter 824, Government Code, is
  payable on a graduated scale with annuity payments increasing on an
  annual basis. In conducting a study under this section, the
  retirement system shall only consider alternative annuity payment
  options that are projected by the retirement system's actuary to
  have no fiscal impact to the state.
         (b)  Not later than September 1, 2018, the Teacher Retirement
  System of Texas shall submit to the legislature a written report on
  the results of the study and any recommendations for legislative or
  other action.
         (c)  This section expires September 1, 2019.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect December 1, 2017.
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