HB5322 - Relating to benefits paid by the Teacher Retirement System of Texas.

      By: Barry H.B. No. 5322       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.  (a)  Subject to Subsection (i) of this section   and Section 821.006, Government Code, 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   January 2026 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   lessor of          (1)  the gross amount of the regular annuity payment to which   the eligible annuitant is otherwise entitled for the calendar month   immediately prior to the calendar month in which the Teacher   Retirement System of Texas issues the one-time supplemental payment   in accordance with Subsection (b) of this section;          (2)  Or $3,000.          (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   calendar month immediately prior to the calendar month in which the   Teacher Retirement System of Texas issues the one-time supplemental   payment in accordance with Subsection (b) of this section, 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 December 31, 2024.  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 December 31, 2024.     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, 2024.  The supplemental payment is in addition to the   guaranteed number of payments under Section 824.204(c)(3) or (4),   Section 824.308(c)(3) or (4), or Section 824.402(a)(3), 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)  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 is required to   make a one-time supplemental payment of benefits under this section   only if the board of trustees of the Teacher Retirement System of   Texas finds that the legislature appropriated money to the   retirement system in an amount sufficient to provide the payment.     The amount appropriated by the legislature to provide the payment   must be in addition to the amount the state is required to   contribute to the retirement system under Section 825.404,   Government Code.  If the board of trustees of the Teacher Retirement   System of Texas finds that the legislature did not appropriate   money in an amount sufficient to provide a one-time supplemental   payment of benefits under this section, the retirement system may   not make the payment.          SECTION 2.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act.