HBA-ATS H.B. 784 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 784
By: Walker
Pensions and Investments
2/23/1999
Introduced



BACKGROUND AND PURPOSE 

The standard service retirement annuity for a public school teacher is
computed using the following two-step formula.  Step one involves the
multiplication of the years of service credit by two percent. Step two
involves the multiplication of the average of a teacher's three highest
years of salary, whether or not consecutive, by the number from step one.
A similar formula is used to calculate the standard service retirement
annuity for a state employee, except that the years of service credit are
multiplied by 2.25 percent instead of two percent.  The discrepancy between
multiplier percentages is the result of overpayment into the Employees
Retirement System of Texas.  Public school educators feel that the
multiplier percentage used to calculate their annuities should equal the
multiplier percentages used to calculate the annuities of state employees,
given that salary schedules for public school teachers offer no additional
benefits beyond twenty years of service. 

H.B. 784 establishes a new formula to compute the standard service
retirement annuity payable for a member who has at least 20 years of credit
service as a teacher, by increasing the multiplier percentage from two
percent to 2.25 percent.  This bill also defines who is a "teacher"
eligible to benefit from the new formula. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 824.203, Government Code, by amending Subsection
(a) and adding Subsection (f), as follows: 

(a) Includes Subsection (f) among the subsections that provide exceptions
to the operation of Subsection (a).  Makes a nonsubstantive change. 

(f) Defines "teacher" for purposes of this subsection.  Establishes the
formula used to compute the standard service retirement annuity payable for
a member who has at least 20 years of credit service as a teacher.
Provides that if the member is a teacher immediately before retirement,
service credit for state personal or sick leave under Section 823.403
(Credit for Accumulated Personal or Sick Leave) is service credit as a
teacher, for purposes of this subsection. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.