85R2569 KFF-D
	By: Allen	H.B. No. 397

	A BILL TO BE ENTITLED
	AN ACT
	relating to 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 824.7015 and 824.703 to read as follows:
	Sec. 824.7015.  ADJUSTMENT TO BENEFITS.  (a)
	Notwithstanding Section 824.702, the amount of a monthly service
	retirement benefit, disability retirement benefit, or death
	benefit paid under this chapter is increased to include a 10 percent
	adjustment in accordance with this section.
	(b)  The board of trustees shall recompute the amount of a
	benefit paid monthly under this chapter by applying the 10 percent
	adjustment to the monthly amount otherwise required to be paid as
	determined in accordance with the other applicable provisions of
	this chapter and other law.
	Sec. 824.703.  ANNUAL ADJUSTMENT FOR COST OF LIVING.  (a)
	Notwithstanding Section 824.702, the amount of a monthly service
	retirement benefit, disability retirement benefit, or death
	benefit paid under this chapter is increased to include a four
	percent annual cost-of-living adjustment in accordance with this
	section.
	(b)  The board of trustees shall recompute the amount of a
	benefit paid monthly under this chapter by applying the four
	percent adjustment to the monthly amount otherwise required to be
	paid as determined in accordance with the other applicable
	provisions of this chapter.
	SECTION 2.  (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 in January 2018 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
	greater of:
	(1)  $2,000; or
	(2)  the gross amount of the regular annuity payment to
	which the eligible annuitant is otherwise entitled for the month of
	December 2017.
	(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 December 2017, 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
	before September 1, 2016. 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 before September 1, 2016. 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 before September
	1, 2016. The supplemental payment is in addition to the guaranteed
	number of payments under Section 824.402(a)(3) or 824.204(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.
	(i)  The Teacher Retirement System of Texas shall pay the
	supplemental payment made under this section from the retired
	reserve account and may transfer to that account from the state
	contribution account any portion of the amount that exceeds the
	amount in the retired reserve account available to finance the
	supplemental payment and that is actuarially determined to be
	necessary to finance the supplemental payment. The supplemental
	payment under this section must comply with Section 821.006,
	Government Code.
	SECTION 3.  Sections 824.7015 and 824.703, Government Code,
	as added by this Act, apply only to a monthly benefit payment made
	by the Teacher Retirement System of Texas on or after September 1,
	2017.
	SECTION 4.  This Act takes effect September 1, 2017.