Enrolled Bill Summary

Senate Bill 729	Senate Author:  Huffman et al.
Effective:  5-19-23	House Sponsor:  Bonnen

            Senate Bill 729 amends the Government Code to revise and clarify certain provisions relating to the cash balance benefit for new members of the Employees Retirement System of Texas hired or taking office on or after September 1, 2022. Among other provisions, the bill, without amending the current benefit structure, does the following:

·        gives a retiring member who is in the cash balance benefit group the option of electing to receive an optional cash balance annuity as an alternative to receiving the standard cash balance annuity;

·        gives a cash balance group member who retired and selected an optional lifetime cash balance annuity the option of changing the annuity to a standard cash balance annuity;

·        authorizes a member who is eligible for a cash balance annuity to select a standard cash balance annuity or an optional cash balance annuity together with a partial lump‑sum distribution;

·        revises provisions relating to the gain sharing interest adjustment for annuitants of a cash balance benefit; and

·        sets out provisions regarding the reestablishment by a cash balance group member of previously canceled service credit.