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.