82R8177 SGA-D
	By: Eiland	H.B. No. 2150

	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) and (d) 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 payment can be made while preserving
	the ability of the retirement system to meet at least 80 percent of
	the system's pension obligations. Subsection (c) and this
	subsection expire September 1, 2013.
	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) and (d).  This subsection
	expires September 1, 2013.
	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)  The supplemental payment is payable not later than
	September 2011 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.