Bill Summary – FastDemocracy

      
            88R19531 JCG-F
         
		By: Bonnen, Burns, Capriglione, et al.
            H.B. No. 600
         
            Substitute the following for H.B. No. 600:
         
            By:  Capriglione
            C.S.H.B. No. 600
         
               A BILL TO BE ENTITLED
            
               AN ACT
            
            relating to contributions to, benefits from, and the administration 
         
            of systems and programs administered by the Teacher Retirement 
         
            System of Texas.
         
                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         
                   SECTION 1.  Subchapter A, Chapter 821, Government Code, is 
         
            amended by adding Section 821.0065 to read as follows:
         
                   Sec. 821.0065.  ACTUARIAL SOUNDNESS FOR BENEFIT 
         
            ENHANCEMENTS.  For purposes of Section 67-a, Article XVI, Texas 
         
            Constitution, the retirement system is actuarially sound if, based 
         
            on the most recent actuarial valuation of the system, the amount of 
         
            contributions and actuarially determined payments to the system are 
         
            sufficient to cover the normal cost of the system and to amortize 
         
            the unfunded actuarial accrued liability of the system within 30 
         
            years.
         
                   SECTION 2.  Subchapter H, Chapter 824, Government Code, is 
         
            amended by adding Sections 824.703 and 824.704 to read as follows:
         
                   Sec. 824.703.  GAIN SHARING COST-OF-LIVING ADJUSTMENT.  (a)  
         
            For each fiscal year that begins on or after September 1, 2028, the 
         
            retirement system shall make a cost-of-living adjustment payable to 
         
            eligible annuitants receiving a retirement or death benefit annuity 
         
            payment only if the retirement system's average rate of return on 
         
            the investment of the system's assets during the preceding five 
         
            fiscal years, expressed as a percentage rate, is equal to or exceeds 
         
            seven percent.
         
                   (b)  Subject to Subsection (c), the amount of the 
         
            cost-of-living adjustment provided by Subsection (a) is an amount 
         
            equal to the annuitant's monthly annuity payment for the month the 
         
            adjustment is effective multiplied by a percentage rate that is 
         
            computed by:
         
                         (1)  determining the average rate of return on the 
         
            investment of the system's assets during the preceding five fiscal 
         
            years, expressed as a percentage rate;
         
                         (2)  subtracting five percentage points from the 
         
            percentage rate determined under Subdivision (1);
         
                         (3)  multiplying the resulting difference under 
         
            Subdivision (2) by 50 percent; and
         
                         (4)  rounding down to the nearest one-tenth of a 
         
            percent.
         
                   (c)  The amount of the cost-of-living adjustment provided by 
         
            Subsection (a) may not exceed two percent of an annuitant's monthly 
         
            annuity payment.
         
                   (d)  Except as provided by Subsection (f), a person is 
         
            eligible to receive a cost-of-living adjustment under this section 
         
            if the person is, on the effective date of the adjustment and 
         
            disregarding any forfeiture of benefits under Section 824.601, an 
         
            annuitant that:
         
                         (1)  is eligible to receive:
         
                               (A)  a standard service or disability retirement 
         
            annuity payment;
         
                               (B)  an optional service or disability retirement 
         
            annuity payment as either a retiree or beneficiary;
         
                               (C)  an annuity payment under Section 
         
            824.402(a)(3) or (4);
         
                               (D)  an annuity payment under Section 824.502; or
         
                               (E)  an alternate payee annuity payment under 
         
            Section 804.005;
         
                         (2)  became eligible to receive the annuity payment 
         
            described by Subdivision (1) at least three years before the first 
         
            day of the fiscal year in which the adjustment is made; and
         
                         (3)  is living on the effective date of the adjustment.
         
                   (e)  Notwithstanding Subsection (d)(2), a beneficiary 
         
            eligible to receive an optional service or disability retirement 
         
            annuity payment on the effective date of a cost-of-living 
         
            adjustment under this section is eligible to receive the adjustment 
         
            if:
         
                         (1)  the beneficiary meets the requirements of 
         
            Subsections (d)(1) and (d)(3); and
         
Statutes affected: 
Introduced: Government Code 825.402, Government Code 825.404 (Government Code 825)
House Committee Report: Government Code 825.402 (Government Code 825)

	88R19531 JCG-F

	By: Bonnen, Burns, Capriglione, et al.	H.B. No. 600

	Substitute the following for H.B. No. 600:

	By: Capriglione	C.S.H.B. No. 600



	A BILL TO BE ENTITLED
	AN ACT
	relating to contributions to, benefits from, and the administration
	of systems and programs administered by the Teacher Retirement
	System of Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter A, Chapter 821, Government Code, is
	amended by adding Section 821.0065 to read as follows:
	Sec. 821.0065. ACTUARIAL SOUNDNESS FOR BENEFIT
	ENHANCEMENTS. For purposes of Section 67-a, Article XVI, Texas
	Constitution, the retirement system is actuarially sound if, based
	on the most recent actuarial valuation of the system, the amount of
	contributions and actuarially determined payments to the system are
	sufficient to cover the normal cost of the system and to amortize
	the unfunded actuarial accrued liability of the system within 30
	years.
	SECTION 2. Subchapter H, Chapter 824, Government Code, is
	amended by adding Sections 824.703 and 824.704 to read as follows:
	Sec. 824.703. GAIN SHARING COST-OF-LIVING ADJUSTMENT. (a)
	For each fiscal year that begins on or after September 1, 2028, the
	retirement system shall make a cost-of-living adjustment payable to
	eligible annuitants receiving a retirement or death benefit annuity
	payment only if the retirement system's average rate of return on
	the investment of the system's assets during the preceding five
	fiscal years, expressed as a percentage rate, is equal to or exceeds
	seven percent.
	(b) Subject to Subsection (c), the amount of the
	cost-of-living adjustment provided by Subsection (a) is an amount
	equal to the annuitant's monthly annuity payment for the month the
	adjustment is effective multiplied by a percentage rate that is
	computed by:
	(1) determining the average rate of return on the
	investment of the system's assets during the preceding five fiscal
	years, expressed as a percentage rate;
	(2) subtracting five percentage points from the
	percentage rate determined under Subdivision (1);
	(3) multiplying the resulting difference under
	Subdivision (2) by 50 percent; and
	(4) rounding down to the nearest one-tenth of a
	percent.
	(c) The amount of the cost-of-living adjustment provided by
	Subsection (a) may not exceed two percent of an annuitant's monthly
	annuity payment.
	(d) Except as provided by Subsection (f), a person is
	eligible to receive a cost-of-living adjustment under this section
	if the person is, on the effective date of the adjustment and
	disregarding any forfeiture of benefits under Section 824.601, an
	annuitant that:
	(1) is eligible to receive:
	(A) a standard service or disability retirement
	annuity payment;
	(B) an optional service or disability retirement
	annuity payment as either a retiree or beneficiary;
	(C) an annuity payment under Section
	824.402(a)(3) or (4);
	(D) an annuity payment under Section 824.502; or
	(E) an alternate payee annuity payment under
	Section 804.005;
	(2) became eligible to receive the annuity payment
	described by Subdivision (1) at least three years before the first
	day of the fiscal year in which the adjustment is made; and
	(3) is living on the effective date of the adjustment.
	(e) Notwithstanding Subsection (d)(2), a beneficiary
	eligible to receive an optional service or disability retirement
	annuity payment on the effective date of a cost-of-living
	adjustment under this section is eligible to receive the adjustment
	if:
	(1) the beneficiary meets the requirements of
	Subsections (d)(1) and (d)(3); and
	Statutes affected: Introduced: Government Code 825.402, Government Code 825.404 (Government Code 825) House Committee Report: Government Code 825.402 (Government Code 825)