BILL ANALYSIS C.S.H.B. 795 By: Hightower March 7, 1995 Committee Report (Substituted) BACKGROUND In 1993, the Legislature authorized the transfer of service credit between the Employees Retirement System and the Teacher Retirement System. Due to the date the bill was signed by the Governor, the terms of the bill only applied to those who died or retired on or after August 31, 1993. Because this bill did not take immediate effect, it cut out those who died during this window of time (June 18 to August 31, 1993). PURPOSE HB 795 takes into consideration the case of those individuals who died and their spouses were left out of the ability to transfer, purchase or reinstate service between ERS and TRS. The effective date is changed to allow those specific individuals, who died after the bill was passed, but before it was signed by the Governor, to participate. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1: (a) Specifies the provision that this bill applies to deaths occurring on or after June 18, 1993, regardless of Section 30, Chapter 791, Acts of the 73rd Legislature, 1993, and allows a surviving spouse to purchase, reinstate or transfer service credit of a retirement under Chapter 805, Government Code. (b) Requires the Employees Retirement System or the Teacher Retirement System to recompute the annuity benefit for those individuals as outlined in Subsection (b); and the recomputed annuity payment shall be made by the first payment after the new benefit payment is calculated; and requires any necessary money transfers to be made in accordance with Chapter 805, Government Code. (c) Requires that if a lump sum death benefit has been made, the lump sum must be returned for this section to apply. SECTION 2: Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute limits the applicability of this bill to only those who died during the time of June 18, 1993 and August 31, 1993. The substitute also states that if a lump sum death benefit has already been paid, then the lump sum must be returned for this bill to apply. SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance to the rules and a public hearing was held on February 27, 1995. Rep. Allen Hightower testified for the bill as the bill's author. The following persons testified neutrally on the bill: Charles D. Travis representing the Employees Retirement System Randy Mercer representing the Teacher Retirement System The bill was referred to a subcommittee consisting of the following members: Rangel, Telford & Johnson. On March 1, 1995, the subcommittee met in a formal meeting and voted to report the measure as substituted. On March 6, 1995, the full committee voted to report HB 795 as substituted with the recommendation that it do pass by a record vote of 5 ayes, 0 nays, 0 pnv & 4 absent.