BILL ANALYSIS



S.B. 520
By: Montford (Telford)
03-28-95
Committee Report (Unamended)


BACKGROUND

Currently, a municipal employee can retire at any age after 25
years of service.  Because of job stress, other law enforcement and
non-law enforcement opportunities, and for personal reasons, many
police officers would like to take a reduced benefit and retire
after 20 years of service. 

PURPOSE

S.B. 520 authorizes a member who meets certain requirements to be
eligible for retirement benefits under the Texas Municipal
Retirement System.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1: Amends Section 854.102, Government Code, by adding
Subsection (g), to provide that a member is eligible to retire and
receive a service retirement annuity if the member has at least 20
years of credited service in the Texas Municipal Retirement System
performed for one or more municipalities that have adopted a
similar provision under Section 854.202(g).

SECTION 2: Amends 854.202, Government Code, by adding Subsection
(g), to authorize a governing body to allow a member to retire and
receive a service retirement benefit if the member has at least 20
years of credited service performed for one or more municipalities
that have authorized eligibility under this subsection.

SECTION 3: Amends Section 854.202, Government Code, by adding
Subsections (h) and (i), as follows:

     (h)   Requires the governing body to prepare an actuarial
analysis od member retirement annuities at 20 years of service and
hold a public hearing before electing to authorize a member to
retire pursuant to Subsection (g).

     (i)   Requires the public hearing to be held pursuant to the
notice provisions of the Texas Open Meetings Act, Chapter 551,
Government Code.

SECTION 4: Effective date:  September 1, 1995.

SECTION 5: Emergency clause

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance to the rules and a public
hearing was held on March 20, 1995.

The following persons testified for the bill:
     Ron DeLord representing CLEAT

The bill was referred to a subcommittee consisting of the following
members:  McCall-Chair, Willis & Wilson.  On March 23, 1995, the
subcommittee met in a formal meeting and voted to report the
measure without amendments.

On March 27, 1995, the full committee voted to report SB 520 to the
House without amendments with the recommendation that it do pass by
a record vote of 8 ayes, 0 nays, 0 pnv and 1 absent.