Sec. 820.103. GAIN SHARING INTEREST ADJUSTMENT. (a) Each fiscal year and subject to Subsection (b), the retirement system shall compute the gain sharing interest rate applicable to the subsequent fiscal year by:
(1) determining the average return on the investment of the system's cash and securities during the preceding five fiscal years, expressed as a percentage rate;
(2) subtracting four percentage points from the percentage rate determined under Subdivision (1); and
(3) multiplying the sum determined under Subdivision (2) by 50 percent.
(b) Subject to Subsection (c), in addition to the amount deposited under Section 820.102, each fiscal year, the retirement system shall:
(1) deposit into each member's individual account in the employees saving account an amount equal to the gain sharing interest rate determined under Subsection (a) for the fiscal year multiplied by the member's accumulated account balance; and
(2) recalculate the annuity of a retiree or annuitant under this chapter by multiplying the annuity by an amount equal to the gain sharing interest rate determined under Subsection (a).
(c) The gain sharing interest rate applied under Subsection (b) may not be less than zero or more than three percent.
(d) Subsection (b) applies only to a retiree who is receiving a cash balance annuity under Section 820.053.
Added by Acts 2021, 87th Leg., R.S., Ch. 940 (S.B. 321), Sec. 21, eff. September 1, 2021.