By: Bonnen, et al. (Senate Sponsor - Huffman) H.J.R. No. 2
         (In the Senate - Received from the House May 1, 2023;
  May 2, 2023, read first time and referred to Committee on Finance;
  May 19, 2023, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 17, Nays 0; May 19, 2023,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.J.R. No. 2 By:  Huffman
 
 
HOUSE JOINT RESOLUTION
 
 
  proposing a constitutional amendment limiting the authority of the
  legislature to provide cost-of-living adjustments or other benefit
  enhancements to certain annuitants of the Teacher Retirement System
  of Texas and providing a one-time transfer of funds to the
  retirement system to provide a cost-of-living adjustment.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  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)  subject to Subsection (c) of this section, the
  legislature appropriates money in an amount sufficient to ensure
  that providing the benefit enhancement does not increase the
  unfunded actuarial liabilities of the retirement system, as
  determined by the board of trustees of the retirement system.
         (c)  In determining the amount that is sufficient to ensure
  that providing a benefit enhancement does not increase the unfunded
  actuarial liabilities of the Teacher Retirement System of Texas
  under Subsection (b)(2) of this section, the board of trustees of
  the retirement system shall reduce that amount by the amount by
  which the actuarial value of the retirement system's assets exceeds
  the actuarial accrued liability of the retirement system.
         SECTION 2.  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, limiting the authority of the legislature to
  provide cost-of-living adjustments or other benefit enhancements
  to certain annuitants of the Teacher Retirement System of Texas and
  providing a one-time transfer of funds to the retirement system to
  provide a cost-of-living adjustment.
         (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 $3.323 billion from
  the general revenue fund to an account in the trust fund of the
  Teacher Retirement System of Texas established for that purpose.
  Money transferred to an account under this temporary provision may
  be spent by the retirement system only for the purpose of providing
  a cost-of-living adjustment of not less than two percent and not
  more than four percent of each eligible annuitant's annuity, as
  provided by general law. The transfer made under this temporary
  provision is not:
               (1)  an appropriation of state tax revenues for the
  purposes of Section 22, Article VIII, of this constitution; or
               (2)  a contribution by the state to the retirement
  system under Section 67(b)(3), Article XVI, of this constitution,
  or any other law.
         (c)  This temporary provision expires on the earlier of:
               (1)  the date all money transferred to an account in the
  trust fund of the Teacher Retirement System of Texas under this
  temporary provision has been expended; or
               (2)  the date on which:
                     (A)  no annuitants who are eligible for the
  cost-of-living adjustment authorized under this temporary
  provision remain; and
                     (B)  any unexpended balance has been transferred
  to the general revenue fund under Subsection (d) of this temporary
  provision.
         (d)  If no annuitants who are eligible for the cost-of-living
  adjustment authorized under this temporary provision remain, the
  board of trustees of the Teacher Retirement System of Texas shall
  notify the comptroller and the comptroller shall transfer any
  unexpended money to the general revenue fund.
         SECTION 3.  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 limiting the authority
  of the legislature to provide cost-of-living adjustments or other
  benefit enhancements to certain annuitants of the Teacher
  Retirement System of Texas and providing a one-time transfer of
  funds to the retirement system to provide a cost-of-living
  adjustment."
 
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