Bill Text: TX HB398 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to certain benefits paid by the Employees Retirement System of Texas.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-05-01 - Left pending in committee [HB398 Detail]
Download: Texas-2017-HB398-Introduced.html
85R2568 KFF-D | ||
By: Allen | H.B. No. 398 |
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relating to certain benefits paid by the Employees Retirement | ||
System of Texas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter G, Chapter 814, Government Code, is | ||
amended by adding Sections 814.605 and 814.606 to read as follows: | ||
Sec. 814.605. ADJUSTMENT TO BENEFITS. (a) The amount of a | ||
monthly service retirement benefit, disability retirement benefit, | ||
or death benefit paid under this chapter to a retiree or beneficiary | ||
for service credited in the employee class 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 this chapter. | ||
Sec. 814.606. ANNUAL COST-OF-LIVING ADJUSTMENT. (a) The | ||
amount of a monthly service retirement benefit, disability | ||
retirement benefit, or death benefit paid under this chapter to a | ||
retiree or beneficiary for service credited in the employee class | ||
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 this chapter. | ||
SECTION 2. (a) The Employees Retirement System of Texas | ||
shall make a one-time supplemental payment of a retirement or death | ||
benefit, as provided by this section. | ||
(b) A 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 | ||
lesser 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 Employees 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 Subsections (f) and (g) of this section, to | ||
be eligible for the supplemental payment, a person must be, for the | ||
month of December 2017, an annuitant eligible to receive: | ||
(1) a standard retirement annuity payment; | ||
(2) an optional service retirement annuity payment as | ||
either a retiree or beneficiary under Section 814.108, Government | ||
Code; | ||
(3) a standard or occupational disability retirement | ||
annuity payment; | ||
(4) a death benefit annuity payment under Section | ||
814.305, 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 Employees Retirement System of Texas must have been on | ||
or 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 on or before September 1, 2016. The supplemental payment | ||
is in addition to the guaranteed number of payments under Section | ||
814.108, 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 814.103 or 814.205, Government Code, | ||
relating to retirees or disability retirees from the elected class | ||
of membership; | ||
(2) a subtitle other than Subtitle B, Title 8, | ||
Government Code, except as provided by Subsection (e)(5) of this | ||
section; or | ||
(3) Section 814.304, Government Code, relating to | ||
retiree survivor beneficiaries who receive a survivor annuity as | ||
the surviving spouse of a member of the elected class. | ||
(h) Except as provided by this section, the board of | ||
trustees of the Employees 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 supplemental payment is subject solely to the | ||
availability of appropriated funds. The supplemental payment must | ||
comply with Section 811.006, Government Code. | ||
SECTION 3. Section 814.604, Government Code, is repealed. | ||
SECTION 4. Sections 814.605 and 814.606, Government Code, | ||
as added by this Act, apply only to a monthly benefit payment made | ||
by the Employees Retirement System of Texas on or after September 1, | ||
2017. | ||
SECTION 5. This Act takes effect September 1, 2017. |