By Maxey H.B. No. 633
75R2719 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to retirement of members of the employee class of the
1-3 Employees Retirement System of Texas; providing for appropriation
1-4 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 or 814.107 except as provided by Subsection (a) or
2-1 (b) of this section, as applicable;
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, 1997, but before September 1, 1999, and is the
2-7 later of September 30, 1997, 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 used in computing the person's annuity. The
2-14 retirement system shall submit reports under this subsection at the
2-15 times and in the manner the comptroller provides.
2-16 (e) Except as provided by Subsection (f), the comptroller
2-17 shall reduce the total amount of legislative appropriations to the
2-18 entity by which the retiring member was employed immediately before
2-19 retirement by the amount of the reported compensation multiplied by
2-20 the number of months remaining in the fiscal biennium.
2-21 (f) The comptroller may not reduce appropriations under
2-22 Subsection (e) if the total legislative appropriations to the
2-23 entity for the fiscal year in which the employee retires, or for
2-24 any subsequent fiscal year in the biennium, are less than $1
2-25 million.
2-26 (g) This section expires September 1, 1999.
2-27 SECTION 2. Section 812.202, Government Code, is amended to
3-1 read as follows:
3-2 Sec. 812.202. BENEFITS NOT AFFECTED. [(a)] The payment of
3-3 benefits to a retiree is not affected by:
3-4 (1) the retiree's taking a position included in a
3-5 class of membership other than a class from which the person
3-6 retired; or
3-7 (2) the retiree's serving the state as an independent
3-8 contractor, except as provided by Section 812.203(a).
3-9 [(b) The payment of benefits to a retiree for service
3-10 credited in the employee class of membership is not affected by the
3-11 retiree's taking, for nine months or less within any fiscal year, a
3-12 position included in the employee class.]
3-13 SECTION 3. Section 812.203(a), Government Code, is amended
3-14 to read as follows:
3-15 (a) The retirement system shall suspend annuity payments to
3-16 a retiree for service that was credited to the retiree in the
3-17 employee class for any period during which [if] the retiree holds a
3-18 position included in the employee class or serves the state as an
3-19 independent contractor [for more than nine months in any one fiscal
3-20 year:]
3-21 [(1) until the retiree no longer holds a position
3-22 included in the employee class; or]
3-23 [(2) until the next fiscal year, whichever comes
3-24 first].
3-25 SECTION 4. Chapter 2252, Government Code, is amended by
3-26 adding Subchapter Z to read as follows:
3-27 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
4-1 Sec. 2252.901. SERVICE CONSULTANT PROHIBITION. (a) A state
4-2 agency may not contract with a retiree of the Employees Retirement
4-3 System of Texas to provide personal services before the first
4-4 anniversary of the retiree's effective date of retirement.
4-5 (b) In this section, "state agency" means a board,
4-6 commission, department, or other unit of state government and
4-7 includes an "institution of higher education," as that term is
4-8 defined by Section 61.003, Education Code.
4-9 SECTION 5. Section 812.203(b), Government Code, is repealed.
4-10 SECTION 6. Section 2252.901, Government Code, as added by
4-11 this Act, applies only to services under a contract entered into on
4-12 or after the effective date of this Act.
4-13 SECTION 7. This Act takes effect September 1, 1997.
4-14 SECTION 8. The importance of this legislation and the
4-15 crowded condition of the calendars in both houses create an
4-16 emergency and an imperative public necessity that the
4-17 constitutional rule requiring bills to be read on three several
4-18 days in each house be suspended, and this rule is hereby suspended.