By: Ogden H.B. No. 2118
73R5199 SOS-F
A BILL TO BE ENTITLED
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 10 U.S.C. Section 1174a; and
1-20 (3) became a member not later than the second
1-21 anniversary of the date the person's military service terminated.
1-22 (d) An eligible member does not qualify for insurance
1-23 coverage until the member has 10 or more years of membership
1-24 service credit.
2-1 (e) A member may not establish credit under this section for
2-2 more than one year less than the number of years of service
2-3 required to be eligible for federal military retirement benefits.
2-4 (f) Not later than the first anniversary of the date the
2-5 person becomes a member of the retirement system, the member may
2-6 establish credit under this section by making a lump-sum deposit
2-7 with the retirement system of:
2-8 (1) the actuarial present value of the additional
2-9 standard service retirement benefit that would be attributable to
2-10 the credit under this section based on actuarial rates and tables
2-11 adopted by the board of trustees; and
2-12 (2) any membership fees that would have been paid had
2-13 the service for which credit is sought been performed as a member
2-14 of the retirement system.
2-15 (g) A member must submit an application and any appropriate
2-16 documents requested by the retirement system to establish service
2-17 credit under this section.
2-18 (h) After a member makes the deposit required by Subsection
2-19 (f), the retirement system shall grant the member one year of
2-20 service credit for each year of military service approved under
2-21 this section.
2-22 (i) The retirement system may not use credit established
2-23 under this section in computing retirement or death benefits until
2-24 the member has at least five years of service credit for actual
2-25 service in public schools.
2-26 (j) A deposit made by a member under Subsection (f)(1) is
2-27 refundable to the member or, if applicable, to the member's
3-1 beneficiary if the member becomes eligible to receive federal
3-2 military retirement benefits, if the member's beneficiary becomes
3-3 eligible to receive federal military retirement benefits based on
3-4 the member's service, or if credit established under this section
3-5 is not used in determining benefits. Before paying a retirement or
3-6 death benefit that is computed using service credit established
3-7 under this section, the retirement system may require proof of
3-8 ineligibility to receive federal military retirement benefits.
3-9 (k) A person who receives credit under this section may not
3-10 establish credit under Sections 823.301 and 823.302 for the same
3-11 service.
3-12 (l) This section expires on the earlier of:
3-13 (1) September 1, 2001; or
3-14 (2) the effective date of a federal law that permits
3-15 military retirement credit for state or local governmental service,
3-16 including public school service.
3-17 SECTION 2. Section 825.307(a), Government Code, is amended
3-18 to read as follows:
3-19 (a) The retirement system shall deposit in a member's
3-20 individual account in the member savings account:
3-21 (1) the amount of contributions to the retirement
3-22 system that is deducted from the member's compensation;
3-23 (2) the portion of a deposit made on or after
3-24 resumption of membership that represents the amount of retirement
3-25 benefits received;
3-26 (3) the portion of a deposit to reinstate service
3-27 credit previously canceled that represents the amount withdrawn or
4-1 refunded;
4-2 (4) the portion of a deposit to establish membership
4-3 service credit previously waived that is required by Section
4-4 823.202(b)(1);
4-5 (5) the portion of a deposit to establish membership
4-6 service credit for service performed after retirement that is
4-7 required by Section 823.502(c)(3) or (c)(5);
4-8 (6) the portion of a deposit to establish military
4-9 service credit required by Section 823.302(c);
4-10 (7) the portion of a deposit to establish equivalent
4-11 membership service credit required by Section 823.401(d), <or>
4-12 823.402(e)(1) or (e)(2), or 823.3021(f)(1); and
4-13 (8) interest earned on money in the account as
4-14 provided by Subsections (b) and (c) and Section 825.313(b)(1).
4-15 SECTION 3. Section 825.308, Government Code, is amended to
4-16 read as follows:
4-17 Sec. 825.308. STATE CONTRIBUTION ACCOUNT. The retirement
4-18 system shall deposit in the state contribution account:
4-19 (1) all state contributions to the retirement system
4-20 required by Section 825.404;
4-21 (2) amounts from the interest account as provided by
4-22 Section 825.313(b)(5);
4-23 (3) retirement annuities waived or forfeited in
4-24 accordance with Section 824.601 or 824.004;
4-25 (4) fees collected under Section 825.403(h);
4-26 (5) fees and interest for reinstatement of service
4-27 credit or establishment of membership service credit as provided by
5-1 Section 823.202, 823.501, or 823.502;
5-2 (6) the portion of a deposit required by Section
5-3 823.302 to establish military service credit that represents a fee;
5-4 and
5-5 (7) the portion of a deposit required by Section
5-6 823.401(e) or 823.3021(f)(2) <to establish out-of-state service
5-7 credit> that represents a fee.
5-8 SECTION 4. The importance of this legislation and the
5-9 crowded condition of the calendars in both houses create an
5-10 emergency and an imperative public necessity that the
5-11 constitutional rule requiring bills to be read on three several
5-12 days in each house be suspended, and this rule is hereby suspended,
5-13 and that this Act take effect and be in force from and after its
5-14 passage, and it is so enacted.