By: Barrientos S.B. No. 1209
A BILL TO BE ENTITLED
AN ACT
1-1 relating to participation in the proportionate retirement program
1-2 for public employees.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 803.0021, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 803.0021. APPLICATION OF CHAPTER. This chapter applies
1-7 only to:
1-8 (1) a retirement system for general municipal
1-9 employees in a municipality with a population of not less than
1-10 460,000 nor more than 500,000; [and]
1-11 (2) the Employees Retirement System of Texas, the
1-12 Teacher Retirement System of Texas, the Judicial Retirement System
1-13 of Texas Plan One, the Judicial Retirement System of Texas Plan
1-14 Two, the Texas County and District Retirement System, and the Texas
1-15 Municipal Retirement System; and
1-16 (3) a retirement system that makes an election under
1-17 Section 803.101(f).
1-18 SECTION 2. Section 803.101, Government Code, is amended by
1-19 amending Subsection (a) and adding Subsection (f) to read as
1-20 follows:
1-21 (a) Except as provided by Subsections [Subsection] (b) and
1-22 (f), each retirement system to which this chapter applies is
1-23 required to participate in the program of proportionate retirement
2-1 benefits provided by this chapter.
2-2 (f) The governing body of a public retirement system in this
2-3 state for general municipal employees that is a qualified plan
2-4 under Section 401(a) of the Internal Revenue Code of 1986 (26
2-5 U.S.C. Section 401) and that is in a municipality with a population
2-6 of not less than 55,000 may elect to participate in the
2-7 proportionate retirement program by adopting a resolution to that
2-8 effect. A resolution may not be adopted under this subsection
2-9 without the approval of the governing body of the municipality that
2-10 finances the retirement system. The governing body of the
2-11 retirement system shall notify all other participating retirement
2-12 systems of the election. The effective date of participation in
2-13 the proportionate retirement program by a retirement system for
2-14 which an election is made under this subsection is the first day of
2-15 the third month after the month in which notice is given under this
2-16 subsection.
2-17 SECTION 3. Section 803.103, Government Code, is amended to
2-18 read as follows:
2-19 Sec. 803.103. LIMITATION OF PARTICIPATION BY RETIREMENT
2-20 SYSTEMS. (a) Participation in the proportionate retirement
2-21 program by a subdivision participating in the Texas County and
2-22 District Retirement System or a municipality participating in the
2-23 Texas Municipal Retirement System does not include participation
2-24 with a retirement system described by Section 803.0021(3)
2-25 [803.0021(1)] if the subdivision or municipality elects [has
3-1 elected] to so limit its participation and has not revoked the
3-2 election under Subsection (b).
3-3 (b) A subdivision or municipality that has elected to limit
3-4 its participation in the proportionate retirement program may
3-5 revoke the election and remove the limitation on participation.
3-6 (c) An election under this section [subsection] may be made
3-7 by vote of the governing body of the subdivision or municipality in
3-8 the manner required for official actions of the governing body.
3-9 The governing body shall send notice of an election under this
3-10 subsection to the board of trustees of the retirement system in
3-11 which the subdivision or municipality participates. An election
3-12 under Subsection (a) must be filed before the effective date of a
3-13 public retirement system's participation in the program, as
3-14 provided by Section 803.101(f), or the right of election under
3-15 Subsection (a) is waived.
3-16 (d) [(c)] The effective date of a removal of a limitation on
3-17 participation in the proportionate retirement program by a
3-18 subdivision or municipality electing under Subsection (b) is the
3-19 first day of the month after the month in which the appropriate
3-20 board of trustees receives notice of the election.
3-21 SECTION 4. This Act takes effect September 1, 1997.
3-22 SECTION 5. The importance of this legislation and the
3-23 crowded condition of the calendars in both houses create an
3-24 emergency and an imperative public necessity that the
3-25 constitutional rule requiring bills to be read on three several
4-1 days in each house be suspended, and this rule is hereby suspended.