bill sending retired teachers a one-time extra check

The text as introduced · 820 words

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.