By: Haley S.B. No. 194
73R2503 SOS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to purchase of service credit in the Teacher Retirement
1-3 System of Texas by vocational teachers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 823, Government Code, is
1-6 amended by adding Section 823.404 to read as follows:
1-7 Sec. 823.404. VOCATIONAL WORK EXPERIENCE. (a) An eligible
1-8 member may establish equivalent membership service credit for
1-9 vocational work experience that is creditable in the retirement
1-10 system.
1-11 (b) Vocational work experience creditable in the retirement
1-12 system is work, other than work for which an individual receives
1-13 academic credit from an institution of higher education, that is
1-14 required under rules of the State Board of Education for
1-15 certification as a vocational teacher.
1-16 (c) A member eligible to establish credit under this section
1-17 is one who at the time credit is sought:
1-18 (1) is employed by a public school as a vocational
1-19 teacher;
1-20 (2) has from an institution of higher education a
1-21 degree that includes academic credit for at least 14 semester hours
1-22 of vocational education courses; and
1-23 (3) has at least 10 years of service credit in the
1-24 retirement system for actual service in public schools.
2-1 (d) A member may establish credit under this section by
2-2 depositing with the retirement system for each year of vocational
2-3 work experience claimed a contribution computed at the rate of 12
2-4 percent of the member's annual rate of compensation during the
2-5 beginning year of employment as a vocational teacher.
2-6 (e) In addition to the contribution required by Subsection
2-7 (d), a member claiming credit under this section must pay a fee of
2-8 eight percent of the required contribution compounded annually from
2-9 the date of first eligibility to the date of deposit. A deposit
2-10 for at least one year of credit, including the fee, must be made
2-11 with an initial application for credit, and all payments for
2-12 service claimed under this section must be made before retirement.
2-13 (f) A member may not establish more than two years of
2-14 service credit under this section.
2-15 (g) After a member makes the deposits required by this
2-16 section, the retirement system shall grant the member one year of
2-17 equivalent membership service credit for each year of vocational
2-18 work experience approved. The retirement system may not use
2-19 service credit granted under this section in computing a member's
2-20 annual average compensation.
2-21 SECTION 2. Section 825.307(a), Government Code, is amended
2-22 to read as follows:
2-23 (a) The retirement system shall deposit in a member's
2-24 individual account in the member savings account:
2-25 (1) the amount of contributions to the retirement
2-26 system that is deducted from the member's compensation;
2-27 (2) the portion of a deposit made on or after
3-1 resumption of membership that represents the amount of retirement
3-2 benefits received;
3-3 (3) the portion of a deposit to reinstate service
3-4 credit previously canceled that represents the amount withdrawn or
3-5 refunded;
3-6 (4) the portion of a deposit to establish membership
3-7 service credit previously waived that is required by Section
3-8 823.202(b)(1);
3-9 (5) the portion of a deposit to establish membership
3-10 service credit for service performed after retirement that is
3-11 required by Section 823.502(c)(3) or (c)(5);
3-12 (6) the portion of a deposit to establish military
3-13 service credit required by Section 823.302(c);
3-14 (7) the portion of a deposit to establish equivalent
3-15 membership service credit required by Section 823.401(d), <or>
3-16 823.402(e)(1) or (e)(2), or 823.404(d); and
3-17 (8) interest earned on money in the account as
3-18 provided by Subsections (b) and (c) and Section 825.313(b)(1).
3-19 SECTION 3. Section 825.308, Government Code, is amended to
3-20 read as follows:
3-21 Sec. 825.308. State Contribution Account. The retirement
3-22 system shall deposit in the state contribution account:
3-23 (1) all state contributions to the retirement system
3-24 required by Section 825.404;
3-25 (2) amounts from the interest account as provided by
3-26 Section 825.313(b)(5);
3-27 (3) retirement annuities waived or forfeited in
4-1 accordance with Section 824.601 or 824.004;
4-2 (4) fees collected under Section 825.403(h);
4-3 (5) fees and interest for reinstatement of service
4-4 credit or establishment of membership service credit as provided by
4-5 Section 823.202, 823.501, or 823.502;
4-6 (6) the portion of a deposit required by Section
4-7 823.302 to establish military service credit that represents a fee;
4-8 <and>
4-9 (7) the portion of a deposit required by Section
4-10 823.401(e) to establish out-of-state service credit that represents
4-11 a fee; and
4-12 (8) the portion of a deposit required by Section
4-13 823.404 to establish vocational work experience service credit that
4-14 represents a fee.
4-15 SECTION 4. The importance of this legislation and the
4-16 crowded condition of the calendars in both houses create an
4-17 emergency and an imperative public necessity that the
4-18 constitutional rule requiring bills to be read on three several
4-19 days in each house be suspended, and this rule is hereby suspended,
4-20 and that this Act take effect and be in force from and after its
4-21 passage, and it is so enacted.