H.B. No. 2118
1-1 AN ACT
1-2 relating to credit in the Teacher Retirement System of Texas for
1-3 certain military service.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter D, Chapter 823, Government Code, is
1-6 amended by adding Section 823.3021 to read as follows:
1-7 Sec. 823.3021. SPECIAL MILITARY SERVICE CREDIT. (a) An
1-8 eligible member may establish service credit in the retirement
1-9 system for special military service that is creditable under this
1-10 section.
1-11 (b) Special military service creditable in the retirement
1-12 system is active service in the armed forces of the United States
1-13 that terminated with an honorable discharge.
1-14 (c) A member eligible to establish credit under this section
1-15 is one who:
1-16 (1) is not eligible for federal military retirement
1-17 benefits;
1-18 (2) participated in a special separation benefits
1-19 program established under federal law;
1-20 (3) became a member not later than the fourth
1-21 anniversary of the date the person's military service terminated;
1-22 and
1-23 (4) is a classroom teacher employed by a school
1-24 district.
2-1 (d) A member eligible to establish credit under this section
2-2 may not qualify for insurance coverage under the Texas Public
2-3 School Retired Employees Group Insurance Act (Article 3.50-4,
2-4 Insurance Code) unless the member retires with 10 or more years of
2-5 membership service credit for actual service in public schools and
2-6 complies with any other requirements for coverage provided by that
2-7 article.
2-8 (e) A member may not establish credit under this section for
2-9 more than the lesser of the number of years of active service in
2-10 the armed forces of the United States that terminated with an
2-11 honorable discharge or one year less than the number of years of
2-12 service required to be eligible for federal military retirement
2-13 benefits.
2-14 (f) Not later than the first anniversary of the date the
2-15 person becomes a member of the retirement system, the member may
2-16 establish credit under this section by making a lump-sum deposit
2-17 with the retirement system of:
2-18 (1) the actuarial present value of the additional
2-19 standard service retirement benefit that would be attributable to
2-20 the credit under this section based on actuarial rates and tables
2-21 adopted by the board of trustees; and
2-22 (2) any membership fees that would have been paid had
2-23 the service for which credit is sought been performed as a member
2-24 of the retirement system.
2-25 (g) A member must submit an application and any appropriate
2-26 documents requested by the retirement system to establish service
2-27 credit under this section.
3-1 (h) After a member makes the deposit required by Subsection
3-2 (f), the retirement system shall grant the member one year of
3-3 service credit for each year of military service approved under
3-4 this section.
3-5 (i) The retirement system may not use credit established
3-6 under this section in computing retirement or death benefits until
3-7 the member has at least five years of service credit for actual
3-8 service in public schools performed after the date the military
3-9 service approved under this section was performed.
3-10 (j) A deposit made by a member under Subsection (f)(1) is
3-11 refundable to the member or, if applicable, to the member's
3-12 beneficiary if the member becomes eligible to receive federal
3-13 military retirement benefits, if the member's beneficiary becomes
3-14 eligible to receive federal military retirement benefits based on
3-15 the member's service, or if credit established under this section
3-16 is not used in determining benefits. Before paying a retirement or
3-17 death benefit that is computed using service credit established
3-18 under this section, the retirement system may require proof of
3-19 ineligibility to receive federal military retirement benefits.
3-20 (k) A person who receives any credit under this section may
3-21 not establish credit under Sections 823.301 and 823.302.
3-22 (l) This section expires on the earlier of:
3-23 (1) September 1, 2001; or
3-24 (2) the effective date of a federal law that permits
3-25 military retirement credit for state or local governmental service,
3-26 including public school service.
3-27 SECTION 2. Section 825.307(a), Government Code, is amended
4-1 to read as follows:
4-2 (a) The retirement system shall deposit in a member's
4-3 individual account in the member savings account:
4-4 (1) the amount of contributions to the retirement
4-5 system that is deducted from the member's compensation;
4-6 (2) the portion of a deposit made on or after
4-7 resumption of membership that represents the amount of retirement
4-8 benefits received;
4-9 (3) the portion of a deposit to reinstate service
4-10 credit previously canceled that represents the amount withdrawn or
4-11 refunded;
4-12 (4) the portion of a deposit to establish membership
4-13 service credit previously waived that is required by Section
4-14 823.202(b)(1);
4-15 (5) the portion of a deposit to establish membership
4-16 service credit for service performed after retirement that is
4-17 required by Section 823.502(c)(3) or (c)(5);
4-18 (6) the portion of a deposit to establish military
4-19 service credit required by Section 823.302(c);
4-20 (7) the portion of a deposit to establish equivalent
4-21 membership service credit required by Section 823.401(d), <or>
4-22 823.402(e)(1) or (e)(2), or 823.3021(f)(1); and
4-23 (8) interest earned on money in the account as
4-24 provided by Subsections (b) and (c) and Section 825.313(b)(1).
4-25 SECTION 3. Section 825.312(a), Government Code, is amended
4-26 to read as follows:
4-27 (a) The retirement system shall deposit in the expense
5-1 account:
5-2 (1) all membership fees required by this subtitle,
5-3 including the fees under Section 823.3021(f)(2); and
5-4 (2) money required to be deposited in the account by
5-5 Section 825.313(b)(3) or 825.313(c).
5-6 SECTION 4. This Act may not be interpreted as in any manner
5-7 limiting the authority of the board of trustees of the Teacher
5-8 Retirement System of Texas under Section 825.506, Government Code,
5-9 to take any action, including the deletion, with retroactive
5-10 effect, of any of the provisions of Section 823.3021, Government
5-11 Code, as added by this Act, the board of trustees determines is
5-12 necessary to maintain the qualification of the retirement system's
5-13 benefit plan under Section 401(a) of the Internal Revenue Code of
5-14 1986 (26 U.S.C. Section 401(a)).
5-15 SECTION 5. The importance of this legislation and the
5-16 crowded condition of the calendars in both houses create an
5-17 emergency and an imperative public necessity that the
5-18 constitutional rule requiring bills to be read on three several
5-19 days in each house be suspended, and this rule is hereby suspended,
5-20 and that this Act take effect and be in force from and after its
5-21 passage, and it is so enacted.