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 15-8)
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 |
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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. |