Bill Text: TX SB7 | 2021 | 87th Legislature 1st Special Session | Engrossed
Bill Title: Relating to a one-time supplemental payment of benefits under the Teacher Retirement System of Texas.
Spectrum: Moderate Partisan Bill (Republican 14-3)
Status: (Engrossed - Dead) 2021-07-13 - Reported engrossed [SB7 Detail]
Download: Texas-2021-SB7-Engrossed.html
| By: Huffman, et al. | S.B. No. 7 | |
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| relating to a one-time supplemental payment of benefits under the | ||
| Teacher Retirement System of Texas. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. (a) Subject to Subsection (i) of this section | ||
| and Section 821.006, Government Code, 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) The supplemental payment is payable not later than | ||
| January 2022 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, 2020. 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, 2020. | ||
| 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, 2020. 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 Teacher Retirement System of Texas is required to | ||
| make a one-time supplemental payment of benefits under this section | ||
| only if the board of trustees of the Teacher Retirement System of | ||
| Texas finds that the legislature appropriated money to the | ||
| retirement system in an amount sufficient to provide the | ||
| payment. The amount appropriated by the legislature to provide the | ||
| payment must be in addition to the amount the state is required to | ||
| contribute to the retirement system under Section 825.404, | ||
| Government Code. If the board of trustees of the Teacher Retirement | ||
| System of Texas finds that the legislature did not appropriate | ||
| money in an amount sufficient to provide a one-time supplemental | ||
| payment of benefits under this section, the retirement system may | ||
| not make the payment. | ||
| SECTION 2. 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 on the 91st day after the last day of the | ||
| legislative session. | ||
