1-1 By: Linebarger (Senate Sponsor - Armbrister) H.B. No. 1581
1-2 (In the Senate - Received from the House April 13, 1993;
1-3 April 14, 1993, read first time and referred to Committee on State
1-4 Affairs; April 26, 1993, reported favorably by the following vote:
1-5 Yeas 8, Nays 0; April 26, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Harris of Dallas x
1-9 Rosson x
1-10 Carriker x
1-11 Henderson x
1-12 Leedom x
1-13 Lucio x
1-14 Luna x
1-15 Nelson x
1-16 Patterson x
1-17 Shelley x
1-18 Sibley x
1-19 West x
1-20 Whitmire x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to certain employment of disability retirees of the
1-24 Teacher Retirement System of Texas.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Section 824.602, Government Code, is amended to
1-27 read as follows:
1-28 Sec. 824.602. Exceptions. (a) The retirement system may
1-29 not, under Section 824.601, withhold a monthly benefit payment if
1-30 the retiree is employed in a Texas public educational institution:
1-31 (1) as a substitute only with pay not more than the
1-32 daily rate of substitute pay established by the employer, if the
1-33 employment has not exceeded a total of 120 days in the school year
1-34 or, for a disability retiree, 90 days in the school year;
1-35 (2) in a position, other than as a substitute, on no
1-36 more than a one-half time basis for the month; <or>
1-37 (3) in one or more positions on as much as a full-time
1-38 basis, if:
1-39 (A) the work occurs in a school year that begins
1-40 after the retiree's effective date of retirement;
1-41 (B) the work occurs in no more than six months
1-42 of the school year; and
1-43 (C) the retiree executes on a form and within
1-44 any deadline prescribed by the retirement system a written election
1-45 to have this exception apply for the school year in determining
1-46 whether benefits are to be suspended for employment after
1-47 retirement; or
1-48 (4) in a position, other than as a substitute, on no
1-49 more than a one-half time basis for no more than 90 days in the
1-50 school year, if the retiree is a disability retiree.
1-51 (b) Working <as a substitute> any portion of a day counts as
1-52 working a full day for the purposes of Subsection (a)(1) or (a)(4).
1-53 (c) Working any portion of a month counts as working a full
1-54 month for the purposes of Subsection (a)(3).
1-55 (d) A retiree who has elected to avoid loss of monthly
1-56 benefits in a school year pursuant to Subsection (a)(3) is not
1-57 eligible during that school year for any other exceptions to loss
1-58 of benefits provided in this section. If a retiree elects the
1-59 exemption provided in Subsection (a)(3) for a school year, the
1-60 retirement system must include any previous employment during the
1-61 school year, including any employment that relied upon the
1-62 exemptions in Subsection (a)(1) or (a)(2), in determining whether
1-63 and when the retiree has exceeded six months of employment in the
1-64 school year.
1-65 (e) A retiree working as a substitute in a month is not
1-66 eligible for an exception to a loss of benefits for that month
1-67 pursuant to Subsection (a)(2) or (a)(4) for that or any other
1-68 employment in a public educational institution.
2-1 (f) The retirement system shall include any employment
2-2 during the school year, including any employment that relied on the
2-3 exemption provided by Subsection (a)(1) or (a)(4), in determining
2-4 whether and when a disability retiree has exceeded 90 days of
2-5 employment in the school year.
2-6 (g) The exceptions provided by Subsections (a)(2) and (a)(3)
2-7 do not apply to disability retirees. The retirement system
2-8 nevertheless may not withhold a monthly benefit payment under
2-9 Section 824.601 if:
2-10 (1) a disability retiree is employed in a Texas public
2-11 educational institution in a position, other than as a substitute,
2-12 for a period not to exceed three consecutive months of the school
2-13 year;
2-14 (2) the work occurs in a period, designated by the
2-15 disability retiree, of no more than three consecutive months of a
2-16 school year;
2-17 (3) the disability retiree executes on a form and at a
2-18 time prescribed by the retirement system a written election to have
2-19 this exception apply on a one-time trial basis in determining
2-20 whether benefits are to be suspended for the months of employment
2-21 after retirement and in determining whether a disability retiree is
2-22 no longer mentally or physically incapacitated for the performance
2-23 of duty; and
2-24 (4) the disability retiree has not previously elected
2-25 to avoid loss of monthly benefits in a school year under this
2-26 subsection.
2-27 (h) <(g)> A disability retiree is not entitled to service
2-28 credit for service during a trial period under Subsection (g) <(f)>
2-29 if the retiree is restored to active service.
2-30 (i) <(h)> Section 824.005(b), concerning revocation of
2-31 retirement on certain reemployment, applies to employment described
2-32 in Subsection (a) or (g) <(f)>.
2-33 (j) <(i)> The board of trustees shall adopt rules governing
2-34 the employment of a substitute and defining "one-half time basis."
2-35 (k) <(j)> The actuary designated by the board of trustees
2-36 shall, in investigating the experience of the members of the
2-37 system, note any significant increase in early age retirements and
2-38 determine the extent to which any increase has been caused by the
2-39 exception to loss of benefits for employment after retirement
2-40 provided by Subsection (a)(3). If the actuary certifies in writing
2-41 to the retirement system that sound actuarial funding of the
2-42 retirement system's benefits is endangered by continuation of this
2-43 exception, the board of trustees may determine that no further
2-44 elections of the exception will be accepted from retirees, other
2-45 than from those who have previously relied on the exception in
2-46 retiring under this subtitle. A retiree may be considered to have
2-47 relied on this exception only if retirement occurred on or after
2-48 May 31, 1985, but before the date the board of trustees
2-49 acknowledges receipt of such certification and if the retiree has
2-50 first elected to receive benefits under the exception not later
2-51 than two years after the retiree's effective date of retirement.
2-52 SECTION 2. The importance of this legislation and the
2-53 crowded condition of the calendars in both houses create an
2-54 emergency and an imperative public necessity that the
2-55 constitutional rule requiring bills to be read on three several
2-56 days in each house be suspended, and this rule is hereby suspended,
2-57 and that this Act take effect and be in force from and after its
2-58 passage, and it is so enacted.
2-59 * * * * *
2-60 Austin,
2-61 Texas
2-62 April 26, 1993
2-63 Hon. Bob Bullock
2-64 President of the Senate
2-65 Sir:
2-66 We, your Committee on State Affairs to which was referred H.B.
2-67 No. 1581, have had the same under consideration, and I am
2-68 instructed to report it back to the Senate with the recommendation
2-69 that it do pass and be printed.
2-70 Harris of
3-1 Dallas, Chairman
3-2 * * * * *
3-3 WITNESSES
3-4 No witnesses appeared on H.B. No. 1581.