By Maxey                                              H.B. No. 1198
       74R4878 GCH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to service retirement of members of the employee class of
    1-3  the Employees Retirement System of Texas; providing for
    1-4  appropriation reductions.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subchapter B, Chapter 814, Government Code, is
    1-7  amended by adding Section 814.1041 to read as follows:
    1-8        Sec. 814.1041.  RETIREMENT INCENTIVE FOR EMPLOYEE CLASS.  (a)
    1-9  A member of the employee class may retire under this section if the
   1-10  member has at least a minimum amount of service credit required by
   1-11  Section 814.104 and is not more than five years younger than the
   1-12  minimum age required under that section for eligibility for service
   1-13  retirement with that amount of service credit.
   1-14        (b)  A member of the employee class who has at least the
   1-15  minimum amount and type of service credit required for service
   1-16  retirement with an annuity computed under Section 814.107 may
   1-17  retire under this section and receive an annuity under that section
   1-18  that is not actuarially reduced, if the member is not more than
   1-19  five years younger than the minimum age required under that section
   1-20  to avoid actuarial reduction of the annuity.
   1-21        (c)  A member eligible to retire under this section is one
   1-22  who:
   1-23              (1)  meets minimum age and service requirements under
   1-24  Section 814.104 except as provided by Subsection (a) of this
    2-1  section;
    2-2              (2)  applies for service retirement;
    2-3              (3)  holds a position included in the employee class on
    2-4  the date the application is filed; and
    2-5              (4)  designates an effective date of retirement that is
    2-6  after August 31, 1995, but before September 1, 1997, and is the
    2-7  later of September 30, 1995, or the earliest date that the member's
    2-8  retirement may become effective.
    2-9        (d)  The retirement system shall report to the comptroller
   2-10  the name of each person who retires under this section, the
   2-11  effective date of the person's retirement, the entity by which the
   2-12  person was employed immediately before retirement, and the amount
   2-13  of compensation paid to the person for the last month of
   2-14  employment, excluding any amount paid for unused accumulated leave.
   2-15  The retirement system shall submit reports under this subsection at
   2-16  the times and in the manner the comptroller provides.
   2-17        (e)  Except as provided by Subsection (f), the comptroller
   2-18  shall reduce the total amount of legislative appropriations to the
   2-19  entity by which the retiring member was employed immediately before
   2-20  retirement by the amount of the reported compensation multiplied by
   2-21  the number of months remaining in the fiscal biennium.
   2-22        (f)  The comptroller may not reduce appropriations under
   2-23  Subsection (e) if the total legislative appropriations to the
   2-24  entity for the fiscal year in which the employee retires, or for
   2-25  any subsequent fiscal year in the biennium, are less than $1
   2-26  million.
   2-27        (g)  This section expires September 1, 1997.
    3-1        SECTION 2.  Section 812.203(a), Government Code, is amended
    3-2  to read as follows:
    3-3        (a)  The retirement system shall suspend annuity payments to
    3-4  a retiree for service that was credited to the retiree in the
    3-5  employee class if the retiree holds a position included in the
    3-6  employee class <for more than nine months in any one fiscal year>:
    3-7              <(1)  until the retiree no longer holds a position
    3-8  included in the employee class; or>
    3-9              <(2)  until the next fiscal year, whichever comes
   3-10  first>.
   3-11        SECTION 3.  Sections 812.202(b) and 812.203(b), Government
   3-12  Code, are repealed.
   3-13        SECTION 4.  The importance of this legislation and the
   3-14  crowded condition of the calendars in both houses create an
   3-15  emergency and an imperative public necessity that the
   3-16  constitutional rule requiring bills to be read on three several
   3-17  days in each house be suspended, and this rule is hereby suspended,
   3-18  and that this Act take effect and be in force from and after its
   3-19  passage, and it is so enacted.