SRC-ARR S.B. 256 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 256
76R1688 GCH-DBy: Barrientos
State Affairs
4/20/1999
As Filed


DIGEST 

Currently, Texas law authorizes the legislature to provide a program of
proportionate  benefits to qualified  members of more than one retirement
system. All statewide retirement systems, the City of Austin Retirement
System, and certain other cities not covered by the Municipal Retirement
System are eligible to participate in the proportional retirement program.
S.B. 256 would authorize an active member of a retirement system in the
proportional retirement program to purchase services previously  canceled
by a refund from another retirement system in the proportional program
without having to go back to work under the original system. 

PURPOSE

As proposed, S.B. 256 reestablishes service credits in a public retirement
system participating in the proportionate retirement program. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 803C, Government Code, by adding Section 803.203,
as follows: 

Sec. 803.203. REESTABLISHMENT OF SERVICE CREDIT FOR PREVIOUS EMPLOYMENT.
Authorizes an eligible member of a retirement system to which this chapter
applies to reestablish service credit, including prior service credit if
applicable, previously canceled in another retirement system to which this
chapter applies, except as provided by Subsections (d) and (e). Sets forth
the eligibility for persons to reestablish service credits under this
section. Authorizes a person to apply to reestablish service credit under
this section by filing an application with the retirement system in which
the service was originally credited. Requires a system to grant the service
credit when the system receives from an eligible applicant certain
contributions and certifications.  Provides that the service is creditable
pro rata to the account of each subdivision or municipality for which the
service was performed, if service is reestablished in certain retirement
systems.  Prohibits service credit from being reestablished for service
performed for a subdivision or municipality not participating in the
proportionate retirement program. Prohibits service credit to which Section
805.002(e) from being reestablished. 

SECTION 2. Emergency clause.
                      Effective date: upon passage.