S.B. No. 102
AN ACT
1-1 relating to state employee contributions to the federal old age and
1-2 survivors insurance program.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 606.064, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 606.064. EMPLOYEE CONTRIBUTIONS <BY STATE AGENCY>.
1-7 (a) Each state employee, including a judge paid by the state, for
1-8 whom an agreement for social security coverage is in effect under
1-9 this subchapter shall pay contributions on wages in the amount of
1-10 the employee tax. <The state shall pay all contributions on wages
1-11 for social security coverage of a state employee except:>
1-12 <(1) as provided by Section 606.065; or>
1-13 <(2) the amount of the employee tax in excess of 5.85
1-14 percent of wages computed on a wage base of $16,500 in a calendar
1-15 year.>
1-16 (b) The obligation provided by this section is a condition
1-17 of employment or of holding office. <The legislature may provide
1-18 in the General Appropriations Act for a state contribution in
1-19 excess of the amount provided in Subsection (a)(2).>
1-20 <(c) A state employee is obligated to pay only the
1-21 difference between the amount the legislature provides and the
1-22 amount required by federal law.>
1-23 <(d) The contribution made by the state shall be paid from
1-24 the same fund from which an employee receives compensation.>
2-1 <(e) The comptroller may prorate the state's expected
2-2 contribution for an employee's employee tax over the portion of the
2-3 calendar year that the employee's salary is subject to the Federal
2-4 Insurance Contributions Act to equalize the employee's monthly
2-5 contributions during the portion of the year that the employee's
2-6 salary is subject to Federal Insurance Contributions Act taxes.>
2-7 SECTION 2. Subsection (a), Section 606.067, Government Code,
2-8 is amended to read as follows:
2-9 (a) For a state employee who is paid from the state
2-10 treasury, the legislature shall appropriate, from the same fund
2-11 from which the employee is paid, an amount equal to the <total of
2-12 the> state's contributions under Section 606.063 <and Section
2-13 606.064 or 606.065>.
2-14 SECTION 3. Chapter 659, Government Code, is amended by
2-15 adding Subchapter H to read as follows:
2-16 SUBCHAPTER H. BENEFIT REPLACEMENT PAY
2-17 Sec. 659.121. DEFINITIONS. In this subchapter:
2-18 (1) "Compensation" means, except as provided by
2-19 Section 659.124, salary or wages subject to tax under the Federal
2-20 Insurance Contributions Act.
2-21 (2) "Eligible state employee" means an individual who
2-22 was on August 31, 1995:
2-23 (A) employed by a state agency and eligible for
2-24 state payment of the employee tax under Section 606.064 as that
2-25 section existed on that date;
2-26 (B) using unpaid leave from a position with a
2-27 state agency, if the individual would have been eligible for state
3-1 payment of the employee tax under Section 606.064 as that section
3-2 existed on that date had the individual not been using unpaid leave
3-3 from the position; or
3-4 (C) not working for a state agency if:
3-5 (i) the individual was not working on that
3-6 date solely because the individual's employment with the agency
3-7 customarily does not include the summer months;
3-8 (ii) the individual had contracted with
3-9 the agency not later than that date for the individual to resume
3-10 working for the agency not later than September 2, 1995; and
3-11 (iii) the position held by the individual
3-12 on September 2, 1995, would have made the individual eligible for
3-13 state payment of the employee tax under Section 606.064 as that
3-14 section existed on August 31, 1995, if the employee had held the
3-15 position on that date.
3-16 (3) "Eligible state-paid judge" means an individual
3-17 who on August 31, 1995:
3-18 (A) held office; and
3-19 (B) was eligible for state payment of the
3-20 employee tax under Section 606.065 as that section existed on that
3-21 date.
3-22 (4) "Employee tax" means the tax that state employees
3-23 and state-paid judges pay under the Federal Insurance Contributions
3-24 Act.
3-25 (5) "Retirement contribution" means a mandatory
3-26 contribution by an eligible state employee or eligible state-paid
3-27 judge to a retirement system.
4-1 (6) "Retirement system" means the Teacher Retirement
4-2 System of Texas, the Employees Retirement System of Texas, the
4-3 optional retirement program governed by Chapter 830, the Judicial
4-4 Retirement System of Texas Plan One, or the Judicial Retirement
4-5 System of Texas Plan Two.
4-6 (7) "State agency" has the meaning assigned by Section
4-7 606.061.
4-8 Sec. 659.122. INCLUSION OF BENEFIT REPLACEMENT PAY. The
4-9 salary or wages paid after December 31, 1995, to an eligible state
4-10 employee or an eligible state-paid judge includes benefit
4-11 replacement pay in the amount provided by Section 659.123.
4-12 Sec. 659.123. AMOUNT OF BENEFIT REPLACEMENT PAY.
4-13 (a) Except as provided by Section 659.124, the benefit replacement
4-14 pay of an eligible state employee or an eligible state-paid judge
4-15 for a pay period is equal to the sum of:
4-16 (1) 5.85 percent of the compensation earned by the
4-17 employee or judge during the pay period, subject to the limit
4-18 provided by Subsection (b); and
4-19 (2) an additional amount equal to the retirement
4-20 contribution paid by the employee or judge because of the benefit
4-21 replacement pay provided by this subsection.
4-22 (b) The amount paid to an eligible state employee or an
4-23 eligible state-paid judge under Subsection (a)(1) may not exceed
4-24 $965.25 each calendar year.
4-25 Sec. 659.124. AMOUNT OF BENEFIT REPLACEMENT PAY FOR HIGHER
4-26 EDUCATION EMPLOYEES. (a) For a state employee employed by an
4-27 institution of higher education, the benefit replacement pay is an
5-1 increase in compensation equal to the sum of:
5-2 (1) 5.85 percent of the employee's compensation as of
5-3 October 31, 1995, subject to the limit provided by Subsection (b);
5-4 and
5-5 (2) an additional amount equal to the retirement
5-6 contribution paid by the employee because of the benefit
5-7 replacement pay provided by this subsection.
5-8 (b) The amount paid to an eligible state employee of an
5-9 institution of higher education under Subsection (a)(1) may not
5-10 exceed $965.25.
5-11 (c) In this section, "compensation" means annualized base
5-12 salary or wages, including longevity and hazardous duty pay.
5-13 Sec. 659.125. PAYING BENEFIT REPLACEMENT PAY IN EQUAL
5-14 INSTALLMENTS. (a) Unless prohibited by a state agency under
5-15 Subsection (b), an eligible state employee or an eligible
5-16 state-paid judge may choose for the benefit replacement pay that
5-17 the employee or judge is eligible to receive in a calendar year to
5-18 be paid in equal installments in that year. The employee or judge
5-19 must exercise this option before the beginning of the year. This
5-20 subsection applies only to an eligible state employee or an
5-21 eligible state-paid judge whose benefit replacement pay under
5-22 Section 659.123(a)(1) will be $965.25 during that year if the
5-23 employee or judge remains in the position at the same compensation
5-24 during the year.
5-25 (b) A state agency may prohibit an eligible state employee
5-26 or an eligible state-paid judge from exercising the option
5-27 described by Subsection (a) if the agency pays the employee's or
6-1 judge's compensation.
6-2 (c) An eligible state employee or an eligible state-paid
6-3 judge who exercises the option described by Subsection (a) for a
6-4 calendar year and who terminates employment or leaves office before
6-5 the end of that year is ineligible to be paid the difference
6-6 between the benefit replacement pay received by the employee or
6-7 judge and the benefit replacement pay the employee or judge would
6-8 have received had the employee or judge not exercised the option
6-9 described by Subsection (a).
6-10 Sec. 659.126. LOSS OF ELIGIBILITY TO RECEIVE BENEFIT
6-11 REPLACEMENT PAY. (a) An eligible state employee who leaves state
6-12 employment after August 31, 1995, for at least 12 consecutive
6-13 months, on returning to state employment or on assuming a state
6-14 office, is ineligible to receive benefit replacement pay.
6-15 (b) An eligible state-paid judge who leaves office after
6-16 August 31, 1995, for at least 12 consecutive months, on return to
6-17 state office or on accepting a state employment, is ineligible to
6-18 receive benefit replacement pay.
6-19 Sec. 659.127. ADMINISTRATION. The comptroller may adopt
6-20 rules and establish procedures and reporting requirements to
6-21 administer this subchapter.
6-22 SECTION 4. Section 606.065, Government Code, is repealed.
6-23 SECTION 5. (a) The appropriations in the General
6-24 Appropriations Act for the state's contribution to the employee tax
6-25 assessed on compensation paid after December 31, 1995, and before
6-26 September 3, 1997, are canceled and may not take effect. The
6-27 appropriations for the state's matching contribution are not
7-1 affected by this section.
7-2 (b) In this section:
7-3 (1) "Compensation" means salary or wages subject to
7-4 tax under the Federal Insurance Contributions Act.
7-5 (2) "Employee tax" means the tax that state employees
7-6 and state-paid judges pay under the Federal Insurance Contributions
7-7 Act.
7-8 (c) This section expires September 3, 1997.
7-9 SECTION 6. (a) Notwithstanding Chapter 606, Government
7-10 Code, as it exists before Sections 1, 2, and 4 of this Act take
7-11 effect, the state is not obligated to pay any portion of the
7-12 employee tax for an individual who is not an eligible state
7-13 employee or an eligible state-paid judge.
7-14 (b) In this section:
7-15 (1) "Eligible state employee" means an individual who
7-16 was on August 31, 1995:
7-17 (A) employed by a state agency; and
7-18 (B) eligible for state payment of the employee
7-19 tax under Section 606.064, Government Code, as that section existed
7-20 on that date.
7-21 (2) "Eligible state-paid judge" means an individual
7-22 who on August 31, 1995:
7-23 (A) held office; and
7-24 (B) was eligible for state payment of the
7-25 employee tax under Section 606.065, Government Code, as that
7-26 section existed on that date.
7-27 (3) "Employee tax" means the tax that state employees
8-1 and state-paid judges pay under the Federal Insurance Contributions
8-2 Act.
8-3 (4) "State agency" has the meaning assigned by Section
8-4 606.061, Government Code.
8-5 (c) This section expires January 1, 1996.
8-6 SECTION 7. (a) This Act is contingent on the becoming law
8-7 of an appropriation for the fiscal biennium ending August 31, 1997,
8-8 made by the 74th Legislature, Regular Session, 1995, to pay benefit
8-9 replacement pay to every individual entitled to receive it under
8-10 Subchapter H, Chapter 659, Government Code, as added by this Act.
8-11 (b) A general increase in salaries for state employees and
8-12 state-paid judges that does not include amounts appropriated
8-13 specifically to compensate for the reductions in net pay resulting
8-14 from Sections 1, 2, 4, and 5 of this Act does not satisfy the
8-15 contingency of Subsection (a) of this section.
8-16 (c) Before January 1, 1996, the comptroller shall determine
8-17 whether an appropriation described by Subsection (a) of this
8-18 section has become law and publish a finding in that regard in the
8-19 Texas Register. If an appropriation described by that subsection
8-20 does not become law, as determined by the comptroller, this Act has
8-21 no effect.
8-22 (d) This section expires January 1, 1996.
8-23 SECTION 8. (a) Sections 1, 2, and 4 of this Act take effect
8-24 December 1, 1995, and apply only to compensation paid after
8-25 December 31, 1995. Compensation paid before January 1, 1996, is
8-26 subject to Subchapter C, Chapter 606, Government Code, as it exists
8-27 on November 30, 1995, and that law is continued in effect for that
9-1 purpose.
9-2 (b) Section 5 of this Act takes effect December 1, 1995.
9-3 (c) The remainder of this Act takes effect September 1,
9-4 1995.
9-5 SECTION 9. The importance of this legislation and the
9-6 crowded condition of the calendars in both houses create an
9-7 emergency and an imperative public necessity that the
9-8 constitutional rule requiring bills to be read on three several
9-9 days in each house be suspended, and this rule is hereby suspended.