1-1 By: Ogden (Senate Sponsor - Ratliff) H.B. No. 2118
1-2 (In the Senate - Received from the House May 13, 1993;
1-3 May 14, 1993, read first time and referred to Committee on
1-4 Education; May 28, 1993, reported favorably by the following vote:
1-5 Yeas 8, Nays 2; May 28, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Ratliff x
1-9 Haley x
1-10 Barrientos x
1-11 Bivins x
1-12 Harris of Tarrant x
1-13 Luna x
1-14 Montford x
1-15 Shapiro x
1-16 Sibley x
1-17 Turner x
1-18 Zaffirini x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to credit in the Teacher Retirement System of Texas for
1-22 certain military service.
1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-24 SECTION 1. Subchapter D, Chapter 823, Government Code, is
1-25 amended by adding Section 823.3021 to read as follows:
1-26 Sec. 823.3021. SPECIAL MILITARY SERVICE CREDIT. (a) An
1-27 eligible member may establish service credit in the retirement
1-28 system for special military service that is creditable under this
1-29 section.
1-30 (b) Special military service creditable in the retirement
1-31 system is active service in the armed forces of the United States
1-32 that terminated with an honorable discharge.
1-33 (c) A member eligible to establish credit under this section
1-34 is one who:
1-35 (1) is not eligible for federal military retirement
1-36 benefits;
1-37 (2) participated in a special separation benefits
1-38 program established under federal law;
1-39 (3) became a member not later than the fourth
1-40 anniversary of the date the person's military service terminated;
1-41 and
1-42 (4) is a classroom teacher employed by a school
1-43 district.
1-44 (d) A member eligible to establish credit under this section
1-45 may not qualify for insurance coverage under the Texas Public
1-46 School Retired Employees Group Insurance Act (Article 3.50-4,
1-47 Insurance Code) unless the member retires with 10 or more years of
1-48 membership service credit for actual service in public schools and
1-49 complies with any other requirements for coverage provided by that
1-50 article.
1-51 (e) A member may not establish credit under this section for
1-52 more than the lesser of the number of years of active service in
1-53 the armed forces of the United States that terminated with an
1-54 honorable discharge or one year less than the number of years of
1-55 service required to be eligible for federal military retirement
1-56 benefits.
1-57 (f) Not later than the first anniversary of the date the
1-58 person becomes a member of the retirement system, the member may
1-59 establish credit under this section by making a lump-sum deposit
1-60 with the retirement system of:
1-61 (1) the actuarial present value of the additional
1-62 standard service retirement benefit that would be attributable to
1-63 the credit under this section based on actuarial rates and tables
1-64 adopted by the board of trustees; and
1-65 (2) any membership fees that would have been paid had
1-66 the service for which credit is sought been performed as a member
1-67 of the retirement system.
1-68 (g) A member must submit an application and any appropriate
2-1 documents requested by the retirement system to establish service
2-2 credit under this section.
2-3 (h) After a member makes the deposit required by Subsection
2-4 (f), the retirement system shall grant the member one year of
2-5 service credit for each year of military service approved under
2-6 this section.
2-7 (i) The retirement system may not use credit established
2-8 under this section in computing retirement or death benefits until
2-9 the member has at least five years of service credit for actual
2-10 service in public schools performed after the date the military
2-11 service approved under this section was performed.
2-12 (j) A deposit made by a member under Subsection (f)(1) is
2-13 refundable to the member or, if applicable, to the member's
2-14 beneficiary if the member becomes eligible to receive federal
2-15 military retirement benefits, if the member's beneficiary becomes
2-16 eligible to receive federal military retirement benefits based on
2-17 the member's service, or if credit established under this section
2-18 is not used in determining benefits. Before paying a retirement or
2-19 death benefit that is computed using service credit established
2-20 under this section, the retirement system may require proof of
2-21 ineligibility to receive federal military retirement benefits.
2-22 (k) A person who receives any credit under this section may
2-23 not establish credit under Sections 823.301 and 823.302.
2-24 (l) This section expires on the earlier of:
2-25 (1) September 1, 2001; or
2-26 (2) the effective date of a federal law that permits
2-27 military retirement credit for state or local governmental service,
2-28 including public school service.
2-29 SECTION 2. Section 825.307(a), Government Code, is amended
2-30 to read as follows:
2-31 (a) The retirement system shall deposit in a member's
2-32 individual account in the member savings account:
2-33 (1) the amount of contributions to the retirement
2-34 system that is deducted from the member's compensation;
2-35 (2) the portion of a deposit made on or after
2-36 resumption of membership that represents the amount of retirement
2-37 benefits received;
2-38 (3) the portion of a deposit to reinstate service
2-39 credit previously canceled that represents the amount withdrawn or
2-40 refunded;
2-41 (4) the portion of a deposit to establish membership
2-42 service credit previously waived that is required by Section
2-43 823.202(b)(1);
2-44 (5) the portion of a deposit to establish membership
2-45 service credit for service performed after retirement that is
2-46 required by Section 823.502(c)(3) or (c)(5);
2-47 (6) the portion of a deposit to establish military
2-48 service credit required by Section 823.302(c);
2-49 (7) the portion of a deposit to establish equivalent
2-50 membership service credit required by Section 823.401(d), <or>
2-51 823.402(e)(1) or (e)(2), or 823.3021(f)(1); and
2-52 (8) interest earned on money in the account as
2-53 provided by Subsections (b) and (c) and Section 825.313(b)(1).
2-54 SECTION 3. Section 825.312(a), Government Code, is amended
2-55 to read as follows:
2-56 (a) The retirement system shall deposit in the expense
2-57 account:
2-58 (1) all membership fees required by this subtitle,
2-59 including the fees under Section 823.3021(f)(2); and
2-60 (2) money required to be deposited in the account by
2-61 Section 825.313(b)(3) or 825.313(c).
2-62 SECTION 4. This Act may not be interpreted as in any manner
2-63 limiting the authority of the board of trustees of the Teacher
2-64 Retirement System of Texas under Section 825.506, Government Code,
2-65 to take any action, including the deletion, with retroactive
2-66 effect, of any of the provisions of Section 823.3021, Government
2-67 Code, as added by this Act, the board of trustees determines is
2-68 necessary to maintain the qualification of the retirement system's
2-69 benefit plan under Section 401(a) of the Internal Revenue Code of
2-70 1986 (26 U.S.C. Section 401(a)).
3-1 SECTION 5. The importance of this legislation and the
3-2 crowded condition of the calendars in both houses create an
3-3 emergency and an imperative public necessity that the
3-4 constitutional rule requiring bills to be read on three several
3-5 days in each house be suspended, and this rule is hereby suspended,
3-6 and that this Act take effect and be in force from and after its
3-7 passage, and it is so enacted.
3-8 * * * * *
3-9 Austin,
3-10 Texas
3-11 May 28, 1993
3-12 Hon. Bob Bullock
3-13 President of the Senate
3-14 Sir:
3-15 We, your Committee on Education to which was referred H.B.
3-16 No. 2118, have had the same under consideration, and I am
3-17 instructed to report it back to the Senate with the recommendation
3-18 that it do pass and be printed.
3-19 Ratliff,
3-20 Chairman
3-21 * * * * *
3-22 WITNESSES
3-23 FOR AGAINST ON
3-24 ___________________________________________________________________
3-25 Name: Walter Hinojosa x
3-26 Representing: TX Federation of Teachers
3-27 City: Austin
3-28 -------------------------------------------------------------------
3-29 Name: Bill Hobby x
3-30 Representing: Self
3-31 City: Austin
3-32 -------------------------------------------------------------------
3-33 Name: Charmaine Rhodes x
3-34 Representing: Teacher Retirement System
3-35 City: Austin
3-36 -------------------------------------------------------------------
3-37 Name: Katherine S. Lowry x
3-38 Representing: Self
3-39 City: Austin
3-40 -------------------------------------------------------------------