Bill Text: TX SB1333 | 2011-2012 | 82nd Legislature | Introduced


Bill Title: Relating to a supplemental payment for retirees of the Teacher Retirement System of Texas and the unfunded actuarial liabilities allowed under that system.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-03-22 - Referred to State Affairs [SB1333 Detail]

Download: Texas-2011-SB1333-Introduced.html
  82R10355 SGA-D
 
  By: Deuell S.B. No. 1333
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a supplemental payment for retirees of the Teacher
  Retirement System of Texas and the unfunded actuarial liabilities
  allowed under that system.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 821.006, Government Code, is amended by
  adding Subsections (c), (d), and (e) 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, even if the amortization period for the unfunded
  actuarial liabilities of the retirement system exceeds 30 years by
  one or more years, only if the board of trustees determines that at
  the time of the supplemental payment the payment can be made while
  preserving the ability of the retirement system to meet at least 80
  percent of the system's pension obligations.
         (e)  The funding for a supplemental payment under Subsection
  (c) must come from the earnings the retirement system makes on its
  investments as provided by this subsection. A supplemental payment
  may be made at any time during the period beginning on September 1
  and ending on December 31 only if, during the preceding fiscal year,
  the return on investments, as provided by the actuarial valuation
  on August 31 of that year, exceeds eight percent by an amount
  sufficient to pay for the supplemental payment. Subsections (c)
  and (d) and this subsection expire January 1, 2014.
         SECTION 2.  Section 825.402, Government Code, is amended by
  adding Subsection (c-1) to read as follows:
         (c-1)  Subsection (c) does not apply to a supplemental
  payment authorized by Sections 821.006(c), (d), and (e).  This
  subsection expires January 1, 2014.
         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 Section 821.006, Government Code, as
  amended by this Act, and this section.
         (b)  The supplemental payment is payable not later than
  December 31, 2013, 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 month of
  August 2011; 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
  month of August 2011, 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, 2008. 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, 2008.
  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, 2008.  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.
         (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)  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 4.  This Act takes effect September 1, 2011.
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