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.