Enrolled Bill Summary

            House Bill 1113 amends the Government Code to expand eligibility for restricted prior service credit in the Texas Municipal Retirement System to all former federal, state, and local government full-time employees. The act expands the definition of "amortization period" to accommodate any changes in actuarial methods or assumptions made by the system's board of trustees and requires cities to be able to fund their obligations to the retirement system before adopting updated service credits (a recalculation of member retirement credits due to salary increases). Cities may elect a higher municipal contribution rate if necessary to fund obligations to the retirement system within their amortization period.

            In addition, the act permits a member to receive a partial lump-sum distribution from the member's individual account upon retirement, not to exceed one-half of total contributions and accumulated interest. It removes a provision that limited annuity options to those approved by the board of trustees and certified as the actuarial equivalent of the annuity to which a retiree is entitled and provides an additional annuity option; it also increases benefits for those retiring after August 31, 1997, with a reduced retirement annuity if the beneficiary dies before the retiree. The act grants the board of trustees rulemaking authority allowing it to modify the retirement plan to maintain its status as a qualified plan in accordance with federal law.