By Marchant H.B. No. 1376
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to credit and benefits for legislative members of the
1-3 Employees Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 812, Government Code, is
1-6 amended by amending Section 812.001 and adding Section 812.0021 to
1-7 read as follows:
1-8 Sec. 812.001. MEMBERSHIP CLASSES. The three [
1-9 of membership in the retirement system are the elected class, the
1-10 elected class plan two, and the employee class.
1-11 Sec. 812.0021. MEMBERSHIP IN ELECTED CLASS PLAN TWO. (a)
1-12 Notwithstanding Section 812.002, a person who would otherwise
1-13 become a member of the elected class is eligible only to become a
1-14 member of the elected class plan two if the person after December
1-15 31, 1998, takes the oath of office as a member of the legislature
1-16 and is not currently and has not previously been a member of the
1-17 elected class.
1-18 (b) Membership in the elected class plan two also includes a
1-19 member of the legislature who is a member of the elected class and
1-20 who files an election with the retirement system to transfer
1-21 membership and service credit from the elected class to the elected
1-22 class plan two.
1-23 (c) A provision of this subtitle that applies to members of
1-24 the elected class or to all members of the retirement system
2-1 applies to a member of the elected class plan two unless a contrary
2-2 provision applicable to the elected class plan two is provided by
2-3 this subtitle.
2-4 SECTION 2. Section 812.203(d), Government Code, is amended
2-5 to read as follows:
2-6 (d) If a retiree takes the oath for a position included in
2-7 the elected class or the elected class plan two [ of membership],
2-8 the retirement system shall suspend annuity payments to the person
2-9 for service that was credited in either [ that] class, until the
2-10 person no longer holds that position.
2-11 SECTION 3. Section 812.204(b), Government Code, is amended
2-12 to read as follows:
2-13 (b) Before a retiree from the elected class or the elected
2-14 class plan two [ of membership] takes the oath of office for a
2-15 position included in either [ that] class, the retiree shall notify
2-16 the retirement system in writing of the taking of a position and
2-17 the projected dates of service.
2-18 SECTION 4. Chapter 813, Government Code, is amended by
2-19 adding Subchapter G to read as follows:
2-20 SUBCHAPTER G. PROVISIONS APPLICABLE TO ELECTED CLASS PLAN TWO
2-21 Sec. 813.601. MAXIMUM SERVICE CREDIT FOR MEMBERSHIP SERVICE.
2-22 A member of the elected class plan two may not establish more than
2-23 144 months of service credit in the retirement system for
2-24 membership service performed in an office included in that class,
2-25 including service performed as a member of the elected class. A
2-26 member who has the maximum service credit described by this section
2-27 is not required to continue making contributions while in office,
3-1 and the state shall discontinue contributions based on the service.
3-2 Sec. 813.602. EQUIVALENT MEMBERSHIP SERVICE. (a) A member
3-3 of the elected class plan two may establish equivalent membership
3-4 service credit in that class for military service performed in the
3-5 armed forces of the United States, in a national or state guard
3-6 unit, or in a reserve or auxiliary unit of a branch of the armed
3-7 forces of the United States, or, except as provided by Subsection
3-8 (d), for service performed as an officer or employee of the state
3-9 or a political subdivision of this state.
3-10 (b) A member may establish service credit under this section
3-11 for military service in the manner provided for members of the
3-12 elected class. Except as provided by Subsection (f), a member may
3-13 establish service credit under this section for service as an
3-14 officer or employee of the state or a political subdivision by
3-15 depositing with the retirement system:
3-16 (1) a contribution computed on the compensation
3-17 received for the period of service at the combined rate of state
3-18 and legislative member contributions for a member of the system
3-19 during the period of service;
3-20 (2) interest computed on the basis of the state fiscal
3-21 year at an annual rate of 10 percent from the date the service was
3-22 performed to the date of deposit; and
3-23 (3) any membership fees required of members of the
3-24 system during the period beginning on the date the service was
3-25 performed and ending on the date of deposit.
3-26 (c) The retirement system shall require evidence
3-27 satisfactory to the system of eligibility to establish credit under
4-1 this section and relating to the amount of deposits required.
4-2 (d) A member may not establish credit under this section for
4-3 any service that is currently credited in another retirement
4-5 (e) The maximum amount of service creditable by a member
4-6 under this section for all equivalent membership service is 24
4-8 (f) In lieu of or in addition to establishing equivalent
4-9 membership service credit by making deposits under Subsection (b),
4-10 a member may establish service credit under this section, within
4-11 the maximum amount authorized by Subsection (e), by electing to
4-12 transfer service credit from the employee class to the elected
4-13 class plan two or, if otherwise eligible under Chapter 805, by
4-14 electing to transfer service credit from the Teacher Retirement
4-15 System of Texas to the elected class plan two.
4-16 Sec. 813.603. OTHER CREDITABLE SERVICE. A member of the
4-17 elected class plan two may establish service credit in the employee
4-18 class for service creditable in that class, other than service
4-19 performed as a member of the elected class plan two. A member of
4-20 the elected class plan two may not transfer credit from the
4-21 employee class to the elected class plan two except as provided by
4-22 Section 813.602(f).
4-23 SECTION 5. Section 814.002, Government Code, is amended to
4-24 read as follows:
4-25 Sec. 814.002. BENEFITS FROM MORE THAN ONE [ BOTH] MEMBERSHIP
4-26 CLASS [ CLASSES]. (a) If a member has service credit in more than
4-27 one class [ both classes] of membership, is eligible to retire from
5-1 one class, and does not hold a position included in either [ the]
5-2 other class, the member may retire from all [ both] classes and
5-3 receive benefits based on all service credited in the retirement
5-5 (b) If a member is retiring and uses service credited in a
5-6 class of membership to meet a length-of-service requirement for
5-7 retirement, the member must retire from that class.
5-8 SECTION 6. Chapter 814, Government Code, is amended by
5-9 adding Subchapter H to read as follows:
5-10 SUBCHAPTER H. PROVISIONS APPLICABLE TO ELECTED CLASS PLAN TWO
5-11 Sec. 814.701. ELIGIBILITY FOR SERVICE RETIREMENT. A member
5-12 of the elected class plan two is eligible to retire and receive a
5-13 service retirement annuity if the member:
5-14 (1) is at least 65 years old and has six years of
5-15 service credit in that class; or
5-16 (2) is at least 60 years old and has 10 years of
5-17 service credit in that class.
5-18 Sec. 814.702. SERVICE RETIREMENT BENEFITS. (a) The
5-19 standard service retirement annuity for service credited in the
5-20 elected class plan two is an amount equal to the number of years of
5-21 service credit in that class, times five percent of the average
5-22 salary paid in this state during the preceding school year to a
5-23 person employed as a classroom teacher in the public schools of
5-24 this state in the person's initial year of teaching.
5-25 (b) The retirement system annually shall determine the
5-26 average statewide salary of public school classroom teachers in
5-27 their initial teaching year. An average shall include the minimum
6-1 salary required by the state and the supplemental salary paid by
6-2 school districts. The commissioner of education shall cooperate
6-3 with the retirement system in the making of its annual
6-5 (c) As soon as practicable after the system adopts its
6-6 annual teacher salary determinations, the system shall recompute
6-7 the annuities attributable to service in the elected class plan two
6-8 and begin payments of the annuities as recomputed.
6-9 SECTION 7. This Act takes effect September 1, 1997.
6-10 SECTION 8. The importance of this legislation and the
6-11 crowded condition of the calendars in both houses create an
6-12 emergency and an imperative public necessity that the
6-13 constitutional rule requiring bills to be read on three several
6-14 days in each house be suspended, and this rule is hereby suspended.