BILL ANALYSIS


                                                         S.B. 520
                                                     By: Montford
                                      Intergovernmental Relations
                                                         02-22-95
                                       Committee Report (Amended)
BACKGROUND

At present, 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

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

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. 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
(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 of 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,
     Texas Government Code.
     
SECTION 4. Effective date:  September 1, 1995.

SECTION 5. Emergency clause.