By Cuellar of Webb H.B. No. 1889
74R2863 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to purchase or reinstatement of membership service credit
1-3 in the Teacher Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 823, Government Code, is
1-6 amended by adding Section 823.004 to read as follows:
1-7 Sec. 823.004. ROLLOVER TO ESTABLISH SERVICE CREDIT. (a)
1-8 The distributee of an eligible rollover distribution under the
1-9 Internal Revenue Code of 1986 (Title 26, United States Code) from
1-10 an eligible retirement plan other than the retirement system who is
1-11 also a member of the retirement system may elect to have the
1-12 eligible rollover distribution paid to the retirement system in the
1-13 form of a direct trustee-to-trustee transfer, for the purpose of
1-14 establishing or reinstating membership service credit in the
1-15 retirement system for which the member is eligible under other
1-16 provisions of this subtitle.
1-17 (b) A member may not make an election under this section
1-18 until the retirement system receives notification from the Internal
1-19 Revenue Service that the transfer is an eligible rollover
1-20 distribution to and from an eligible retirement plan. The
1-21 retirement system shall seek notification from the Internal Revenue
1-22 Service about eligible transfers as soon as practicable and shall
1-23 file any notice received from that agency with the secretary of
1-24 state for publication in the Texas Register.
2-1 (c) Terms used in this section have the meanings assigned by
2-2 the Internal Revenue Code of 1986.
2-3 SECTION 2. Section 823.202, Government Code, is amended by
2-4 amending Subsection (a) and adding Subsection (d) to read as
2-5 follows:
2-6 (a) An employee who has previously executed and filed a
2-7 waiver of membership in the retirement system, including an
2-8 election under Section 830.102, and who, after the waiver, becomes
2-9 a member may establish membership service credit for service as an
2-10 employee that would have been creditable as membership service when
2-11 performed except for the waiver.
2-12 (d) Credit may not be established under this section for
2-13 service for which contributions remain in the optional retirement
2-14 program established by Chapter 830.
2-15 SECTION 3. The importance of this legislation and the
2-16 crowded condition of the calendars in both houses create an
2-17 emergency and an imperative public necessity that the
2-18 constitutional rule requiring bills to be read on three several
2-19 days in each house be suspended, and this rule is hereby suspended,
2-20 and that this Act take effect and be in force from and after its
2-21 passage, and it is so enacted.