By: Menéndez S.B. No. 1833
 
 
 
   
 
 
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), (d), and (e) 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 if the amortization period for the unfunded actuarial
  liabilities of the retirement system does not exceed 30 years by one
  or more years after payment of the supplemental payment.
         (e)  The retirement system may make a supplemental payment
  under Subsection (c) at any time during the period beginning
  September 1 and ending December 31 only on a finding by the board of
  trustees that, as determined by an actuarial valuation made August
  31 of that year, the payment can be made in conformance with the
  requirements of Subsection (d).  Subsections (c) and (d) and this
  subsection expire January 1, 2017.
         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 Section 821.006, Government Code, as
  amended by this Act, and this section.
         (b)  The supplemental payment is payable not later than
  December 31, 2016, 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 2015; 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 2015, 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 August 31, 2013.  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 August 31, 2013.  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
  August 31, 2013.  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 3.  This Act takes effect September 1, 2015.