Bill Text: TX HB9 | 2019-2020 | 86th Legislature | Comm Sub


Bill Title: Relating to the contributions to and benefits under the Teacher Retirement System of Texas.

Spectrum: Moderate Partisan Bill (Republican 36-8)

Status: (Introduced) 2019-04-24 - Placed on Major State Calendar [HB9 Detail]

Download: Texas-2019-HB9-Comm_Sub.html
  86R17151 TSR-F
 
  By: Bonnen of Galveston, Murphy, H.B. No. 9
      González of El Paso, Meyer, Walle,
 
      et al.
 
  Substitute the following for H.B. 
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the contributions to and benefits under the Teacher
  Retirement System of Texas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 825.402, Government Code, is amended to
  read as follows:
         Sec. 825.402.  RATE OF MEMBER CONTRIBUTIONS. The rate of
  contributions for each member of the retirement system is:
               (1)  five percent of the member's annual compensation
  or $180, whichever is less, for service rendered after August 31,
  1937, and before September 1, 1957;
               (2)  six percent of the first $8,400 of the member's
  annual compensation for service rendered after August 31, 1957, and
  before September 1, 1969;
               (3)  six percent of the member's annual compensation
  for service rendered after August 31, 1969, and before the first day
  of the 1977-78 school year;
               (4)  6.65 percent of the member's annual compensation
  for service rendered after the last day of the period described by
  Subdivision (3) and before September 1, 1985;
               (5)  6.4 percent of the member's annual compensation
  for service rendered after August 31, 1985, and before September 1,
  2014;
               (6)  6.7 percent of the member's annual compensation
  for service rendered after August 31, 2014, and before September 1,
  2015;
               (7)  7.2 percent of the member's annual compensation
  for service rendered after August 31, 2015, and before September 1,
  2016;
               (8)  7.7 percent of the member's annual compensation
  for service rendered after August 31, 2016, and before September 1,
  2017; [and]
               (9)  for compensation paid [service rendered] on or
  after September 1, 2017, and before September 1, 2019, the lesser
  of:
                     (A)  7.7 percent of the member's annual
  compensation; or
                     (B)  a percentage of the member's annual
  compensation equal to 7.7 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 compensation 
  [service] relates is less than the state contribution rate
  established for the 2015 fiscal year; and
               (10)  for compensation paid on or after September 1,
  2019, the lesser of:
                     (A)  7.7 percent of the member's annual
  compensation; or
                     (B)  a percentage of the member's annual
  compensation equal to 7.7 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 compensation
  relates is less than the state contribution rate established for
  that fiscal year under Section 825.404(a-2).
         SECTION 2.  Section 825.404, Government Code, is amended by
  amending Subsections (a) and (a-1) and adding Subsection (a-2) to
  read as follows:
         (a)  Except as provided by Subsection (a-1) and subject to
  Subsection (a-2), during each fiscal year, the state shall
  contribute to the retirement system an amount equal to at least six
  and not more than 10 percent of the aggregate annual compensation of
  all members of the retirement system during that fiscal year.
         (a-1)  In computing the amount owed by the state under this
  section [Subsection (a)], the compensation of members who are
  employed by public junior colleges or public junior college
  districts shall be included in the aggregate annual compensation as
  follows:
               (1)  50 percent of the eligible creditable compensation
  of employees who:
                     (A)  otherwise are eligible for membership in the
  retirement system; and
                     (B)  are instructional or administrative
  employees whose salaries may be fully paid from funds appropriated
  under the General Appropriations Act, regardless of whether such
  salaries are actually paid from appropriated funds; and
               (2)  none of the eligible creditable compensation of
  all other employees who:
                     (A)  do not meet the requirements of Subdivision
  (1)(B) but are otherwise eligible for membership in the retirement
  system; or
                     (B)  cannot be included as a qualifying employee
  under Subdivision (1) by application of Subsection (b-1).
         (a-2)  The state contribution required by Subsection (a) is:
               (1)  for the fiscal year beginning on September 1,
  2019, 7.8 percent of the aggregate annual compensation of all
  members of the retirement system during that fiscal year;
               (2)  for the fiscal year beginning on September 1,
  2020, 8.05 percent of the aggregate annual compensation of all
  members of the retirement system during that fiscal year;
               (3)  for the fiscal year beginning on September 1,
  2021, 8.3 percent of the aggregate annual compensation of all
  members of the retirement system during that fiscal year;
               (4)  for the fiscal year beginning on September 1,
  2022, 8.55 percent of the aggregate annual compensation of all
  members of the retirement system during that fiscal year; and
               (5)  for the fiscal year beginning on September 1,
  2023, and each subsequent fiscal year, 8.8 percent of the aggregate
  annual compensation of all members of the retirement system during
  that fiscal year.
         SECTION 3.  (a)  The Teacher Retirement System of Texas
  shall make a one-time supplemental payment of a retirement or death
  benefit, as provided by this section.
         (b)  Subject to Subsection (i) of this section, the
  supplemental payment is payable not later than September 2020 and,
  to the extent practicable, on a date or dates that coincide with the
  regular annuity payment payable to each eligible annuitant.
         (c)  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 calendar
  month immediately prior to the calendar month in which the Teacher
  Retirement System of Texas issues the one-time supplemental payment
  in accordance with Subsection (b) of this section; or
               (2)  $2,400.
         (d)  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.
         (e)  Subject to Subsection (f) of this section, to be
  eligible for the supplemental payment, a person must be, for the
  calendar month immediately prior to the calendar month in which the
  Teacher Retirement System of Texas issues the one-time supplemental
  payment in accordance with Subsection (b) of this section, 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.
         (f)  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 December 31, 2018. 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 December 31, 2018.
  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
  December 31, 2018. The supplemental payment is in addition to the
  guaranteed number of payments under Section 824.204(c)(3) or (4),
  Section 824.308(c)(3) or (4), or Section 824.402(a)(3), Government
  Code, and may not be counted as one of the guaranteed monthly
  payments.
         (g)  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.
         (h)  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.
         (i)  The state shall appropriate to the Teacher Retirement
  System of Texas an amount equal to the cost of the one-time
  supplemental payment required by this section. This amount is in
  addition to the amount the state is required to contribute to the
  Teacher Retirement System of Texas under Section 825.404,
  Government Code. If the state does not transfer the appropriated
  amount described by this subsection, the Teacher Retirement System
  of Texas shall not issue the one-time supplemental payment required
  by this section.
         SECTION 4.  This Act takes effect September 1, 2019.
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