HBA-SEB S.B. 256 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 256 By: Barrientos Pensions and Investments 5/19/1999 Engrossed BACKGROUND AND PURPOSE Currently, the seven statewide retirement systems which offer proportionate retirement have different rules and regulations as to who is eligible to reestablish service credit. Because these rules and regulations lack uniformity, some member employees have mistakenly terminated membership in a retirement system. S.B. 256 authorizes an eligible member of a retirement system participating in a proportionate retirement program to reestablish service credit previously canceled in another retirement system participating in such a program. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 803, Government Code, by adding Section 803.203, as follows: Sec. 803.203. REESTABLISHMENT OF SERVICE CREDIT FOR PREVIOUS EMPLOYMENT. (a) Authorizes an eligible member of a retirement system to which this chapter (Proportionate Retirement Program) applies to reestablish service credit previously canceled in another retirement system to which this chapter applies, including prior service credit if applicable. Provides that Subsections (d) and (e) are exceptions to this section. (b) Establishes the conditions by which a person becomes eligible to reestablish service credit under this section. (c) Authorizes a person to reestablish service credit by filing an application with the retirement system in which the service was originally credited. Requires the system to grant the service credit upon receipt of a specific contribution and a certification that the applicant currently holds a position included in the membership of the certifying system. (d) Provides that if service is reestablished under this section in the Texas County and District Retirement System (TCDRS) or the Texas Municipal Retirement System, the service is creditable pro rata to the account of each subdivision or municipality for which the service was performed. Prohibits reestablishment of service credit under this section for service performed for a subdivision or municipality not participating in the proportionate retirement program. (e) Prohibits service credit to which Section 805.002(e) (relating to the reinstatement of service credit canceled by a termination of membership that occurred after August 31, 1993) applies from being reestablished under this section. SECTION 2. Amends Sections 803.103(a) and (b), Government Code, to provide that participation in the proportionate retirement program by a subdivision participating in TCDRS or a municipality participating in the Texas Municipal Retirement System does not include participation with regard to reestablishment of service credit under Section 803.203 unless the subdivision or municipality has elected to be covered by that section. Authorizes a subdivision or municipality to elect to be covered by that section. SECTION 3.Emergency clause. Effective date: upon passage.