Increasing longevity pay for state employees was one of the many benefit issues addressed by the 79th Texas Legislature.

Lawmakers raised longevity pay from $20 per month for every three years of state service to $20 per month for every two years, according to William Kimble, benefits supervisor in the University of Houston Department of Human Resources.

The Legislature also altered some policies of the Teacher Retirement System of Texas (TRS). These changes, however, are waived for TRS members who are at least 50 years old or have at least 25 years of service credit or their years of service and age equal 70 or more, Kimble said.

New legislation also calls for the final average salary at retirement to be determined by the member’s highest salary for five years instead of three years, Kimble explained. Average salaries are one part of the formula used to determine annuity payments at retirement.

Additionally, to withdraw a lump sum of money from their annuities, retirees now will be required to meet the state’s Rule of 90 — years of service and age must equal at least 90. Changes will take effect Thursday, Sept. 1.

One of the modifications involves retirement. Faculty and staff hired as of Sept. 1, 2007 may still retire at age 55 with five years of service or at any age with at least 30 years of service. However, annuities will be reduced if faculty or staff retire before the age of 60. Current employees will not be affected by this change.

Francine Parker
fparker@central.uh.edu