SEG C.S.S.B. 1209 75(R)BILL ANALYSIS


PENSIONS & INVESTMENTS
C.S.S.B. 1209
By: Barrientos (Kubiak)
5-8-97
Committee Report (Substituted)


BACKGROUND 

Currently, participation in the proportionate retirement program for
public employees is contingent upon the fulfillment of specific
qualifications. This bill provides amended guidelines for the
participation process in the proportionate retirement programs for public
employees. 

PURPOSE

As proposed, C.S.S.B. 1209 provides guidelines for the participation
process in the proportionate retirement programs for public employees. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 803.0021, Government Code, to provide that this
chapter applies to a retirement system that makes an election under
Section 803.101(f), Government Code, among other provisions.  Makes a
conforming change. 

SECTION 2. Amends Section 803.101, Government Code, by amending Subsection
(a) and adding Subsection (f).  

(a) Makes a conforming change.

(f)  Authorizes the governing body of a public retirement system in this
state for general municipal employees that is a qualified plan under
Section 401(a) of the Internal Revenue Code of 1986 (26 U.S.C. Section
401) to elect to participate in the proportionate retirement program
through an adoption of a resolution to that effect.  Prohibits the
adoption of a resolution without the approval of the governing body's
municipality that finances the retirement system.  Requires the governing
body of the retirement system to notify all other participating retirement
systems of the election. Provides that the effective date of participation
in the proportionate retirement program by a retirement system for which
an election is made as the first day of the third month after the month in
which notice is given under this subsection. 

SECTION 3. Amends Section 803.103(a), Government Code, to provide that
participation in the proportionate retirement program by certain entities
does not include participation with a retirement system described by
Section 803.0021(1), if one of the entities has elected to limit its
participation and has not revoked the election under Subsection (b). Also
does not include participation described under Section 803.0021(3).  


SECTION 4. Effective date:  September 1, 1997.

SECTION 5. Emergency clause.



 

COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 2 removes the stipulation that a participating municipality must
have a population of not less than 55,000. 

SECTION 3 allows for the inclusion of Section 803.0021(1), with
limitations, and removes the limitations for  Section 803.0021(3).