Summary of the 1999 Legislative Session

The Legislature granted most state employees a $100 per month salary increase, however, certain state employees in the public safety received a pay increase of $250 per month. The Legislature also required state agencies to gather information on their use of contract or temporary workers. The number of temporary employees agencies hire could affect the full-time equivalent (FTE) cap that the Legislature has placed on state agencies.

Before the 1999 Legislature, employers could have been held liable for disclosing or withholding certain information about current or former employees to a prospective employer.

HB 341 amended the law so that employers now have immunity from civil liability if they disclose information they believe is truthful. If an employer releases information they know is false, they can still be found liable.

HB 3089 authorizes the Employees Retirement System of Texas and the Teacher Retirement System of Texas to establish group long-term care insurance coverage for: current or retired employees, the spouse of current or retired employees, the parent or grandparent of current or retired employees, and the parent of a spouse of current or retired employees. This bill also authorized hiring a firm to administer the programs.

SB 1128 increased the standard service retirement annuity multiplier for current and future retirees with the Teacher Retirement System of Texas (TRS) from 2.0 percent to 2.20 percent for each year of service credit.

SB 1128 and SB 1130 implemented an optional Deferred Retirement Option Plan (DROP) for members of the Employees Retirement System of Texas (ERS) and changed the DROP program that TRS already operated. These two bills mean employees of both systems can choose upon retirement to receive a partial lump-sum payment in exchange for a reduced lifetime annuity. In the past, TRS required active members to sign a contract to continue working for a set period of time, while they accumulated funds in a special account to be distributed in a lump-sum payment upon actual retirement.

Interim committee charges

The Senate Committee on Finance will review employee benefit issues facing the Employees Retirement System of Texas and the Teacher Retirement System of Texas. The review will cover: funding contingencies, the projected funding needs of TRS-Care, HMO competition and the cost of providing health plans, and the issues surrounding providing an Optional Retirement System or other alternatives for state employees.