|
Senate Bill 1176 |
Senate Author: Armbrister |
|
Effective: See below |
House Sponsor: Eiland |
Senate Bill 1176 amends provisions of the Government and Insurance Codes relating to the Employees Retirement System of Texas (ERS). The bill continues the 90-day waiting period for membership of newly hired employees, raises the interest rate for purchasing refunded service from five to 10 percent, and prohibits former employees who participate in the optional retirement program and do not have an open ERS account from purchasing service credits. It reduces from 60 months to 36 months the amount of service credit a member may purchase without performing additional employment. The bill allows ERS to make a lump-sum payment to a retiree or beneficiary if the actuarial value of the annuity does not exceed $20,000, restricts disability annuity and death benefit retirement eligibility to members who are currently contributing to ERS, and allows ERS to reduce an annuity for a nonoccupational disability retirement based on actuarial tables adopted by the ERS board for members who retire before they reach the eligible age. The bill makes other administrative changes.
Senate Bill 1176 allows a member with at least 25 years of service credit who has served as executive head of a legislative agency to elect to retire in the elected class and requires that such election be made before September 1, 2008.
The bill's general provisions take effect September 1, 2005, except that the reduction in service credit that may be purchased and a reduced computation of insurance contributions for part-time employees take effect January 1, 2006, and the increased interest rate for purchasing refunded service takes effect September 1, 2006.