Bill Text: TX HB3901 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-20 - Referred to Pensions, Investments & Financial Services [HB3901 Detail]

Download: Texas-2023-HB3901-Introduced.html

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88R13127 BDP-D
By: Burns H.B. No. 3901

A BILL TO BE ENTITLED
AN ACT
relating to a cost-of-living adjustment applicable to certain
benefits paid by the Teacher Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 824, Government Code, is
amended by adding Sections 824.703 and 824.704 to read as follows:
Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT.
(a) Notwithstanding Section 824.702 and subject to Section
821.006, the retirement system shall make a cost-of-living
adjustment payable to annuitants receiving a monthly death or
retirement benefit annuity, as provided by this section.
(b) Subject to Subsections (c) and (d), to be eligible for
the adjustment, a person must be, on the effective date of the
adjustment and disregarding any forfeiture of benefits under
Section 824.601, an annuitant eligible to receive:
(1) a standard service or disability retirement
annuity payment;
(2) an optional service or disability retirement
annuity payment as either a retiree or beneficiary;
(3) an annuity payment under Section 824.402(a)(3) or
(4);
(4) an annuity payment under Section 824.502; or
(5) an alternate payee annuity payment under Section
804.005.
(c) If the annuitant:
(1) is a retiree or is a beneficiary under an optional
retirement payment plan, to be eligible for the adjustment under
this section:
(A) the annuitant must be living on the effective
date of the adjustment; and
(B) the effective date of the retirement of the
member of the retirement system must have been on or before August
31, 2021;
(2) is a beneficiary under Section 824.402(a)(3) or
(4) or 824.502, to be eligible for the adjustment:
(A) the annuitant must be living on the effective
date of the adjustment; and
(B) the date of death of the member of the
retirement system must have been on or before August 31, 2021; or
(3) is an alternate payee under Section 804.005, the
annuitant is eligible for the adjustment only if the effective date
of the election to receive the annuity payment was on or before
August 31, 2021.
(d) An adjustment made under this section does not apply to
payments under:
(1) Section 824.203(d), relating to retirees who
receive a standard service retirement annuity in an amount fixed by
statute;
(2) Section 824.304(a), relating to disability
retirees with less than 10 years of service credit;
(3) Section 824.304(b)(2), relating to disability
retirees who receive a disability annuity in an amount fixed by
statute;
(4) Section 824.404(a), relating to active member
survivor beneficiaries who receive a survivor annuity in an amount
fixed by statute;
(5) Section 824.501(a), relating to retiree survivor
beneficiaries who receive a survivor annuity in an amount fixed by
statute; or
(6) Section 824.804(b), relating to participants in
the deferred retirement option plan with regard to payments from
their deferred retirement option plan accounts.
(e) An adjustment under this section:
(1) must be made beginning with an annuity payable for
the month of September 2023; and
(2) is limited to the lesser of:
(A) an amount equal to six percent of the monthly
benefit subject to the increase; or
(B) $100 a month.
(f) The board of trustees shall determine the eligibility
for and the amount of any adjustment in monthly annuities in
accordance with this section.
Sec. 824.704. RECURRING SIX-YEAR COST-OF-LIVING
ADJUSTMENT. (a) Notwithstanding Sections 824.702 and 824.703,
subject to Section 821.006 and an appropriation of money for that
purpose, the amount of a monthly service retirement benefit,
disability retirement benefit, or death benefit described by
Section 824.703(b) is increased to include a recurring
cost-of-living adjustment in accordance with this section.
(b) Effective September 1 of each sixth year, the board of
trustees shall recompute the amount of a monthly benefit described
by Section 824.703(b) for each annuitant who was eligible for the
benefit on August 31 of the state fiscal year preceding the date of
the adjustment. The amount of the adjustment made under this
section is equal to the adjustment prescribed by Section
824.703(e)(2).
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 September 1, 2023.