BILL ANALYSIS


                                                         H.B. 795
                                           By: Hightower (Turner)
                                                    State Affairs
                                                          5- 9-95
                              Senate Committee Report (Unamended)
BACKGROUND

In 1993, the 73rd legislature passed S.B. 1181 authorized persons
who have credit in the Employees or Teacher Retirement System and
have performed service in the other system to transfer all credit
to either system, if they have at least three years credit in the
system to which they are transferring.  The surviving spouse of a
member who is eligible to make any of these changes can also make
them if the member dies before having the opportunity.

S.B. 1181 was signed by the governor on June 18, 1993, and the
transfer provisions took effect then for purposes of adoption of
rules and procedures by the two systems.  the bill, however, in
another section, limited the transfer provisions to retirements or
deaths which occurred on or after August 31, 1993.  Persons
contemplating retirement could plan their actions to take advantage
of the bill on or after August 31st.  A relatively small number of
persons, approximately 13, died during the time between the bill's
signature and August 31st.  Surviving spouses of those members were
not allowed to take advantage of S.B. 1181's transfer provisions.

PURPOSE

As proposed, H.B. 795 entitles the surviving spouse of a person who
died on or after June 18, 1993, to take advantage of the retirement
credit transfer provisions authorized under S.B. 1181, 73rd
Legislature, Regular Session.

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) Entitles a surviving spouse eligible to receive an
annuity as a result of the death of a member of the Employees
Retirement System of Texas (ERST) or the Teacher Retirement System
of Texas (TRST) that occurred on or after June 18, 1993, to
reinstate, purchase, or transfer eligible service credit under
Chapter 805, Government Code, as if this Act had been in effect at
the time of death.

     (b) Requires the ERST or the TRST to recompute and begin
     payment on any annuity for which the annuitant takes action
     and make any necessary transfers of money.
     
     (c) Requires a lump sum death benefit that has been made to be
     returned as a condition of this section applying. 
SECTION 2. Emergency clause.
           Effective date: upon passage.