By Tillery                                      H.B. No. 1876

      75R7417 ESH-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to service credit under the Teacher Retirement System of

 1-3     Texas for certain work experience of certified career and

 1-4     technology education teachers.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter E, Chapter 823, Government Code, is

 1-7     amended by adding Section 823.404 to read as follows:

 1-8           Sec. 823.404.  WORK EXPERIENCE BY CAREER OR TECHNOLOGY

 1-9     TEACHER.  (a)  An eligible member may establish equivalent

1-10     membership service credit for employment for which the member is

1-11     entitled to salary step credit under Section 21.403(b), Education

1-12     Code.

1-13           (b)  A member may establish credit under this section by

1-14     depositing with the retirement system for each year of service for

1-15     which credit is claimed an amount equal to the sum of:

1-16                 (1)  the rate of member contributions required during

1-17     the year of work experience claimed multiplied by the member's

1-18     annual rate of compensation during the member's first year of

1-19     creditable service following the year of work experience claimed;

1-20     and

1-21                 (2)  the amount the state would have contributed had

1-22     the member performed membership service during the year of work

1-23     experience claimed at the member's annual rate of compensation

1-24     during the member's first year of creditable service following the

 2-1     year of work experience claimed.

 2-2           (c)  After a member makes the deposits required by this

 2-3     section, the retirement system shall grant the member one year of

 2-4     equivalent membership service credit for each year of service

 2-5     approved.

 2-6           SECTION 2.  Section 823.004, Government Code, is amended to

 2-7     read as follows:

 2-8           Sec. 823.004.  COMPUTATION OF AND PAYMENT FOR CREDIT.  All

 2-9     credit for military service, out-of-state service, developmental

2-10     leave, service previously waived, work experience in a career or

2-11     technological field, and service transferred to the retirement

2-12     system under Chapter 805 shall be computed on a September 1 through

2-13     August 31 school year.  Payments for service described by this

2-14     section must be completed not later than the later of the member's

2-15     retirement date or the last day of the month in which the member

2-16     submits a retirement application.

2-17           SECTION 3.  Section 825.307(a), Government Code, is amended

2-18     to read as follows:

2-19           (a)  The retirement system shall deposit in a member's

2-20     individual account in the member savings account:

2-21                 (1)  the amount of contributions to the retirement

2-22     system that is deducted from the member's compensation;

2-23                 (2)  the portion of a deposit made on or after

2-24     resumption of membership that represents the amount of retirement

2-25     benefits received;

2-26                 (3)  the portion of a deposit to reinstate service

2-27     credit previously canceled that represents the amount withdrawn or

 3-1     refunded;

 3-2                 (4)  the portion of a deposit to establish membership

 3-3     service credit previously waived that is required by Section

 3-4     823.202(b)(1);

 3-5                 (5)  the portion of a deposit to establish membership

 3-6     service credit for service performed after retirement that is

 3-7     required by Section 823.502(c)(3) or (c)(5);

 3-8                 (6)  the portion of a deposit to establish military

 3-9     service credit required by Section 823.302(c);

3-10                 (7)  the portion of a deposit to establish equivalent

3-11     membership service credit required by Section 823.401(d),

3-12     823.402(e)(1) or (e)(2), 823.404(b), or 823.3021(f)(1); and

3-13                 (8)  interest earned on money in the account as

3-14     provided by Subsections (b) and (c) and Section 825.313(b)(1).

3-15           SECTION 4.  This Act takes effect September 1, 1997.

3-16           SECTION 5.  The importance of this legislation and the

3-17     crowded condition of the calendars in both houses create an

3-18     emergency and an imperative public necessity that the

3-19     constitutional rule requiring bills to be read on three several

3-20     days in each house be suspended, and this rule is hereby suspended.