This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

 
 
  S.B. No. 1846
 
 
 
 
AN ACT
  relating to funding for, and benefits provided under, the Teacher
  Retirement System of Texas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 825.402, Government Code, is amended to
  read as follows:
         Sec. 825.402.  RATE OF MEMBER CONTRIBUTIONS.  (a)  The rate
  of contributions for each member of the retirement system is:
               (1)  five percent of the member's annual compensation
  or $180, whichever is less, for service rendered after August 31,
  1937, and before September 1, 1957;
               (2)  six percent of the first $8,400 of the member's
  annual compensation for service rendered after August 31, 1957, and
  before September 1, 1969;
               (3)  six percent of the member's annual compensation
  for service rendered after August 31, 1969, and before the first day
  of the 1977-78 school year;
               (4)  6.65 percent of the member's annual compensation
  for service rendered after the last day of the period described by
  Subdivision (3) and before September 1, 1985; and
               (5)  6.4 percent of the member's annual compensation
  for service rendered after August 31, 1985, subject to Subsection
  (b).
         (b)  Subject to Subsection (c), the board of trustees may by
  order require that the rate of contributions for each member of the
  retirement system under Subsection (a) is increased to not more
  than 6.58 percent of the member's annual compensation for service
  rendered after the date of the order if:
               (1)  the legislature by law requires or authorizes the
  board of trustees to pay a supplemental payment to specified
  annuitants; and
               (2)  the board of trustees finds, as of the time the
  payment is to be made, that after the payment is made the
  amortization period for the unfunded actuarial liabilities of the
  retirement system would exceed 30 years by one or more years.
         (c)  Notwithstanding any other law, the board of trustees may
  not make a supplemental payment required or authorized by the
  legislature by law, and may not impose an increase in the rate of
  contributions under Subsection (b), if the board of trustees finds
  that after making the payment and imposing the increase the
  amortization period for the unfunded actuarial liabilities of the
  retirement system would exceed 30 years by one or more years.
         (d)  Notwithstanding any other law, the board of trustees may
  delay making a supplemental payment required or authorized by the
  legislature by law as necessary to make the determinations required
  under Subsections (b) and (c).
         SECTION 2.  Section 825.404, Government Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  During each fiscal year, the state shall contribute to
  the retirement system an amount equal to at least six and not more
  than 10 percent of the aggregate annual compensation of all members
  of the retirement system during that fiscal year. The amount of the
  state contribution made under this section may not be less than the
  amount contributed by members during that fiscal year in accordance
  with Section 825.402.
         (a-1)  During each fiscal year of the state fiscal biennium
  beginning September 1, 2007, the state shall contribute to the
  retirement system an amount equal to 6.58 of the aggregate annual
  compensation of all members of the retirement system during that
  fiscal year.  This subsection expires September 1, 2009.
         SECTION 3.  Subsection (e), Section 825.4092, Government
  Code, is amended to read as follows:
         (e)  The amounts required to be paid under Subsections (b)
  and (c) are not required to be paid by a reporting employer for a
  retiree who retired from [was reported under] the retirement system
  [rules in effect for the report month of January 2005 by:
               [(1)  that reporting employer; or
               [(2)     another employer, if both employers are school
  districts that consolidated into a consolidated school district on
  or] before September 1, 2005.
         SECTION 4.  Subsection (b), Section 1575.204, Insurance
  Code, is amended to read as follows:
         (b)  Each state fiscal year, each employer who reports to the
  retirement system under Section 824.6022, Government Code, the
  employment of a retiree who is enrolled in the group program shall
  contribute to the fund the difference, if any, between the
  contribution amount that the reported retiree is required to pay
  for the retiree and any enrolled dependents to participate in the
  group program and the full cost of the retiree's and enrolled
  dependents' participation in the group program, as determined by
  the trustee. The amounts required to be paid under this subsection
  are not required to be paid by a reporting employer for a retiree
  who retired from the [was reported by that employer under]
  retirement system before September 1, [rules in effect for the
  report month of January] 2005.
         SECTION 5.  (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 2007 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 2007; 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 2007, 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 Subdivision (4),
  Subsection (a), Section 824.402, Government Code;
               (4)  an annuity for a guaranteed period of 60 months
  under Subdivision (3), Subsection (a), Section 824.402, 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, 2006. If the annuitant is a beneficiary
  under Subdivision (3) or (4), Subsection (a), Section 824.402,
  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, 2006. 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, 2006.  The
  supplemental payment is in addition to the guaranteed number of
  payments under Subdivision (3), Subsection (a), Section 824.402,
  Government Code, Subdivision (3) or (4), Subsection (c), Section
  824.204, Government Code, or Subdivision (3) or (4), Subsection
  (c), Section 824.308, 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)  Subsection (a), Section 824.304, Government Code,
  relating to disability retirees with less than 10 years of service
  credit;
               (2)  Subsection (b), Section 824.804, Government Code,
  relating to participants in the deferred retirement option plan
  with regard to payments from their deferred retirement option plan
  accounts;
               (3)  Subsection (a), Section 824.501, Government Code,
  relating to retiree survivor beneficiaries who receive a survivor
  annuity in an amount fixed by statute; or
               (4)  Subsection (a), Section 824.404, 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 6.  Subsection (a), Section 825.404, Government
  Code, as amended by this Act, applies beginning with the fiscal year
  that begins September 1, 2007.
         SECTION 7.  Section 825.4092, Government Code, as amended by
  this Act, applies only to an employer contribution required to be
  made under that section on or after September 1, 2007. An employer
  contribution required to be made before September 1, 2007, is
  governed by the law as it existed at the time the contribution was
  required to be made, and that law is continued in effect for that
  purpose.
         SECTION 8.  This Act takes effect September 1, 2007.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1846 passed the Senate on
  May 2, 2007, by the following vote:  Yeas 22, Nays 8;
  May 24, 2007, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 26, 2007, House
  granted request of the Senate; May 27, 2007, Senate adopted
  Conference Committee Report by the following vote:  Yeas 29,
  Nays 1.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1846 passed the House, with
  amendments, on May 23, 2007, by the following vote:  Yeas 146,
  Nays 0, one present not voting; May 26, 2007, House granted request
  of the Senate for appointment of Conference Committee;
  May 27, 2007, House adopted Conference Committee Report by the
  following vote:  Yeas 147, Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor