Bill Text: TX HB1393 | 2023-2024 | 88th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to an optional service retirement annuity that provides an increasing annuity under the Employees Retirement System of Texas.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2023-06-09 - Effective on 9/1/23 [HB1393 Detail]
Download: Texas-2023-HB1393-Engrossed.html
Bill Title: Relating to an optional service retirement annuity that provides an increasing annuity under the Employees Retirement System of Texas.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2023-06-09 - Effective on 9/1/23 [HB1393 Detail]
Download: Texas-2023-HB1393-Engrossed.html
| 88R18865 JCG-D | ||
| By: Frank, Capriglione | H.B. No. 1393 | |
|
|
||
|
|
||
| relating to an optional service retirement annuity that provides an | ||
| increasing annuity under the Employees Retirement System of Texas. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 814, Government Code, is | ||
| amended by adding Section 814.110 to read as follows: | ||
| Sec. 814.110. INCREASING ANNUITY OPTION. (a) A member who | ||
| is eligible for a service retirement annuity not reduced because of | ||
| age may select a standard retirement annuity or an optional service | ||
| retirement annuity described by Section 814.108 together with the | ||
| option for an increasing annuity as described by this section. | ||
| (b) The retirement system shall provide the increasing | ||
| annuity option by reducing the member's annuity for an appropriate | ||
| implementation period beginning immediately after the member's | ||
| retirement and annually increasing the amount of the annuity by two | ||
| percent or by another percentage rate, as determined by the system | ||
| under Subsection (c), for each year during the applicable | ||
| implementation period. | ||
| (c) The retirement system may offer other increasing | ||
| annuity options similar to the option described by Subsection (b), | ||
| including increasing annuity options providing a different | ||
| percentage rate of increase or a different implementation period. | ||
| (d) If a member elects to receive an increasing annuity | ||
| option under this section, the member's annuity must be calculated | ||
| to reflect the option selected and be actuarially equivalent to a | ||
| standard or optional service retirement annuity, as applicable, | ||
| that the member would have been entitled to had the member not | ||
| elected to receive the option. The annuity must be computed to | ||
| result in no actuarial loss to the retirement system. | ||
| (e) The increasing annuity option under this section may be | ||
| elected only once by a member and may not be elected by a retiree. A | ||
| member retiring under the proportionate retirement program under | ||
| Chapter 803 is not eligible for the option. | ||
| (f) This section does not apply to: | ||
| (1) a disability retirement annuity; or | ||
| (2) an annuity based on service credited in the | ||
| elected class. | ||
| (g) Before a retiring member selects an increasing annuity | ||
| option under this section, the retirement system must provide a | ||
| written notice to the member of the amount by which the member's | ||
| annuity will be reduced and the implementation period applicable | ||
| because of that selection. The retirement system shall maintain a | ||
| copy of the notice required under this subsection that is signed by | ||
| the member. | ||
| (h) The board of trustees may adopt rules for the | ||
| implementation of this section. | ||
| SECTION 2. Section 814.110, Government Code, as added by | ||
| this Act, applies only to a retirement that occurs on or after | ||
| January 1, 2024. | ||
| SECTION 3. This Act takes effect September 1, 2023. | ||
