By Rangel H.B. No. 1701
75R4540 CAS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to service credit in the Teacher Retirement System of
1-3 Texas for accumulated personal or sick leave.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 823.403, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 823.403. CREDIT FOR ACCUMULATED PERSONAL OR SICK LEAVE.
1-8 (a) A member who is eligible to retire under Section 824.202(a)
1-9 and who retires from an employer as defined by Section 821.001(7)
1-10 based on service or a disability is entitled to membership service
1-11 credit in the retirement system for the member's state personal or
1-12 sick leave that has accumulated and is unused on the last day of
1-13 employment pursuant to the terms of this section. State personal
1-14 or sick leave is creditable in the retirement system in the amount
1-15 of one year of service credit for 50 days or more, or 400 hours or
1-16 more, of accumulated state personal or sick leave. An accumulation
1-17 of less than 50 days is not creditable. Not more than five days of
1-18 unused state personal or sick leave may be accumulated per year.
1-19 Credit established under this section may be used only for the
1-20 purpose of calculating benefits under Section 824.203.
1-21 (b) The employer shall, under rules adopted by the
1-22 retirement system, certify the amount of a member's accumulated
1-23 state personal or sick leave on the last day of employment before
1-24 retirement.
2-1 (c) On receipt of a certification under Subsection (b) [and
2-2 payment under Subsection (d) of this section], the retirement
2-3 system shall grant any credit to which a retiree who is a subject
2-4 of the certification is entitled. The increase in the annuity
2-5 payment begins with the first payment that becomes due after
2-6 certification [and payment].
2-7 [(d) In order to receive credit, the member shall pay to the
2-8 retirement system at the time service credit is granted under this
2-9 section the actuarial present value of the additional standard
2-10 retirement annuity benefits under the option selected by the member
2-11 that would be attributable to the conversion of the unused state
2-12 personal or sick leave into the service credit based on rates and
2-13 tables recommended by the actuary and adopted by the board of
2-14 trustees.]
2-15 [(e) In accordance with local policy, the employer from
2-16 which the retiring member was compensated on the member's last day
2-17 of employment may reimburse an employee for all or part of the cost
2-18 of purchasing service credit under this section.]
2-19 SECTION 2. This Act takes effect September 1, 1997.
2-20 SECTION 3. The importance of this legislation and the
2-21 crowded condition of the calendars in both houses create an
2-22 emergency and an imperative public necessity that the
2-23 constitutional rule requiring bills to be read on three several
2-24 days in each house be suspended, and this rule is hereby suspended.