SRC-JRN H.B. 1780 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1780
By: Greenberg (Armbrister)
State Affairs
5-13-97
Engrossed


DIGEST 

Currently, the Employees Retirement System and the Teacher Retirement
System both allow members to purchase creditable service in order to
increase the total number of years upon which a retirement benefit is
based.  Sometimes members may have difficulty in purchasing creditable
service under the current way these purchases are administered by either
retirement system.  This bill makes the process of purchasing creditable
service at either retirement system easier by increasing the time period
for purchasing creditable service and providing improved access to
information regarding the purchasing of creditable service. 

PURPOSE

As proposed, H.B. 1780 makes the process of purchasing creditable service
at either the Employees Retirement System or the Teacher Retirement System
easier by increasing the time period for purchasing creditable service and
providing improved access to information regarding the purchasing of
creditable service. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the board of trustees of the Employees
Retirement System in SECTION 1 (Section 813.104, Government Code) and to
the Teacher Retirement System in SECTION 4 (Section 825.411, Government
Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 813.104, Government Code, as follows:

Sec. 813.104. ALTERNATIVE PAYMENTS TO ESTABLISH OR REESTABLISH SERVICE
CREDIT.  Authorizes the board of trustees of the Employees Retirement
System (ERS) to adopt rules to provide procedures for making installment
payments to establish or reestablish credit in ERS as alternatives to
lump-sum payments otherwise authorized or required by this subtitle.
Provides that the methods may include payment by payroll deduction.
Deletes existing Subsections (a)-(c).  Prohibits certain payments from
being made under a rule adopted under this section.  Deletes existing
Subsection (g).  Makes conforming and nonsubstantive changes. 

SECTION 2. Amends Section 813.106, Government Code, to make a conforming
change. 

SECTION 3. Amends Section 813.510(d), Government Code, to make a
conforming change. 

SECTION 4. Amends Chapter 825E, Government Code, by adding Section
825.411, as follows: 

Sec. 825.411. PAYROLL DEDUCTIONS FOR SERVICE CREDIT.  Authorizes a
contributing member who is otherwise eligible to establish or reestablish
service creditable in the Teacher Retirement System (TRS) by making
certain payments.  Sets forth provisions regarding payments for service
credit.  Authorizes TRS to adopt rules to administer this section. 

SECTION 5. Repealer:  Section 813.105, Government Code (Payroll Deductions
to Establish or  Reestablish Service Credit). 

SECTION 6. Effective date: September 1, 1997.

SECTION 7. Emergency clause.