Bill Text: TX HJR2 | 2023-2024 | 88th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Proposing a constitutional amendment authorizing the 88th Legislature to provide a cost-of-living adjustment to certain annuitants of the Teacher Retirement System of Texas.
Spectrum: Slight Partisan Bill (Republican 16-6)
Status: (Passed) 2023-05-30 - Filed with the Secretary of State [HJR2 Detail]
Download: Texas-2023-HJR2-Engrossed.html
Bill Title: Proposing a constitutional amendment authorizing the 88th Legislature to provide a cost-of-living adjustment to certain annuitants of the Teacher Retirement System of Texas.
Spectrum: Slight Partisan Bill (Republican 16-6)
Status: (Passed) 2023-05-30 - Filed with the Secretary of State [HJR2 Detail]
Download: Texas-2023-HJR2-Engrossed.html
By: Bonnen, Capriglione, Burns, et al. | H.J.R. No. 2 |
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proposing a constitutional amendment limiting the contribution | ||
rate of the members of the Teacher Retirement System of Texas, | ||
authorizing the legislature to provide cost-of-living adjustments | ||
or other benefit enhancements to eligible annuitants of the system, | ||
and providing a one-time transfer of funds for benefit enhancements | ||
and for contributions and actuarially determined payments to | ||
eliminate the unfunded actuarial liabilities of the system. | ||
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 67(b)(3), Article XVI, Texas | ||
Constitution, is amended to read as follows: | ||
(3) The amount contributed by a person participating | ||
in the Employees Retirement System of Texas or the Teacher | ||
Retirement System of Texas shall be established by the legislature | ||
but may not be less than six percent of current compensation nor for | ||
a person participating in the Teacher Retirement System of Texas | ||
more than nine percent of current compensation. The amount | ||
contributed by the state may not be less than six percent nor more | ||
than 10 percent of the aggregate compensation paid to individuals | ||
participating in the system. In an emergency, as determined by the | ||
governor, the legislature may appropriate such additional sums as | ||
are actuarially determined to be required to fund benefits | ||
authorized by law. | ||
SECTION 2. Article XVI, Texas Constitution, is amended by | ||
adding Section 67-a to read as follows: | ||
Sec. 67-a. (a) Only as authorized by this section, the | ||
legislature by general law may provide one or more cost-of-living | ||
adjustments or supplemental payments as benefit enhancements to | ||
annuitants of the Teacher Retirement System of Texas who are | ||
eligible for the enhancements, as determined by that law. | ||
(b) The legislature may provide a benefit enhancement as | ||
described by this section and, as necessary, direct the comptroller | ||
of public accounts to transfer funds to the Teacher Retirement | ||
System of Texas for the payment of the benefit enhancement only if: | ||
(1) the retirement system is actuarially sound, as | ||
determined by general law; and | ||
(2) except as provided by Subsection (c) of this | ||
section and subject to Subsection (d) of this section, the | ||
legislature appropriates money in an amount sufficient to fully pay | ||
for the benefit enhancement, as determined by the board of trustees | ||
of the retirement system. | ||
(c) Subsection (b)(2) of this section does not apply to a | ||
continuing cost-of-living adjustment that is: | ||
(1) authorized by general law; and | ||
(2) payable only: | ||
(A) if the return on the investment of the assets | ||
of the Teacher Retirement System of Texas meets or exceeds a minimum | ||
threshold prescribed by general law; and | ||
(B) out of the return. | ||
(d) In determining the amount that is sufficient to fully | ||
pay for the benefit enhancement under Subsection (b)(2) of this | ||
section, the board of trustees of the Teacher Retirement System of | ||
Texas shall reduce that amount by the amount by which the actuarial | ||
value of the system's assets exceeds the actuarial accrued | ||
liability of the system. | ||
SECTION 3. The following temporary provision is added to | ||
the Texas Constitution: | ||
TEMPORARY PROVISION. (a) This temporary provision applies | ||
to the constitutional amendment proposed by the 88th Legislature, | ||
Regular Session, 2023, authorizing the legislature to provide | ||
cost-of-living adjustments or other benefit enhancements to | ||
eligible annuitants of the Teacher Retirement System of Texas and | ||
providing a one-time transfer of funds for contributions, | ||
actuarially determined payments, and benefit enhancements. | ||
(b) As soon as practicable after the effective date of the | ||
amendment to which this temporary provision applies, the | ||
comptroller of public accounts shall transfer $1.9 billion from the | ||
general revenue fund to the trust fund of the Teacher Retirement | ||
System of Texas. Money transferred to the trust fund under this | ||
temporary provision may be spent by the system only for the purposes | ||
of providing contributions, actuarially determined payments, and | ||
benefit enhancements to the system's annuitants, as provided by | ||
general law. The transfer made under this temporary provision is | ||
not an appropriation of state tax revenues for the purposes of | ||
Section 22, Article VIII, of this constitution. | ||
(c) This temporary provision expires January 1, 2056. | ||
SECTION 4. This proposed constitutional amendment shall be | ||
submitted to the voters at an election to be held November 7, 2023. | ||
The ballot shall be printed to permit voting for or against the | ||
proposition: "The constitutional amendment authorizing the | ||
legislature to provide cost-of-living adjustments or other benefit | ||
enhancements to eligible annuitants of the Teacher Retirement | ||
System of Texas and providing a one-time transfer of $1.9 billion to | ||
the retirement system for benefit enhancements and for | ||
contributions and actuarially determined payments to eliminate the | ||
unfunded accrued actuarial liabilities of the retirement system." |