By Turner of Coleman H.B. No. 1204
76R3397 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to credit in the Teacher Retirement System of Texas for
1-3 service performed as a United States Peace Corps volunteer.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 823, Government Code, is
1-6 amended by adding Section 823.404 to read as follows:
1-7 Sec. 823.404. PEACE CORPS SERVICE. (a) An eligible member
1-8 may establish equivalent membership service credit for service
1-9 performed as a United States Peace Corps volunteer.
1-10 (b) A member eligible to establish service credit under this
1-11 section is one who is an employee, has at least five years of
1-12 service credit in the retirement system for service in public
1-13 schools, and performed at least two years of service as a United
1-14 States Peace Corps volunteer.
1-15 (c) A member may establish credit under this section by
1-16 filing an application with the retirement system, submitting proof
1-17 of eligibility satisfactory to the system, and depositing with the
1-18 system for each year of service claimed an amount equal to:
1-19 (1) the member's contributions to the retirement
1-20 system during the most recent full year of membership service that
1-21 preceded the peace corps service, if the peace corps service was
1-22 performed while the person was a member of the retirement system;
1-23 or
1-24 (2) the member's contributions to the retirement
2-1 system during the first full year of membership service, if the
2-2 peace corps service was performed before the person became a member
2-3 of the retirement system.
2-4 (d) In addition to the contribution required by Subsection
2-5 (c), a member claiming credit for service under this section must
2-6 pay a fee of eight percent, compounded annually, of the required
2-7 contribution from the date of first eligibility to the date of
2-8 deposit.
2-9 (e) After a member makes the deposits required by this
2-10 section, the retirement system shall grant the member one year of
2-11 credit for each year of peace corps service approved, except that a
2-12 member may not establish more than five years of service credit
2-13 under this section.
2-14 SECTION 2. Section 825.307(a), Government Code, is amended
2-15 to read as follows:
2-16 (a) The retirement system shall deposit in a member's
2-17 individual account in the member savings account:
2-18 (1) the amount of contributions to the retirement
2-19 system that is deducted from the member's compensation;
2-20 (2) the portion of a deposit made on or after
2-21 resumption of membership that represents the amount of retirement
2-22 benefits received;
2-23 (3) the portion of a deposit to reinstate service
2-24 credit previously canceled that represents the amount withdrawn or
2-25 refunded;
2-26 (4) the portion of a deposit to establish membership
2-27 service credit previously waived that is required by Section
3-1 823.202(b)(1);
3-2 (5) the portion of a deposit to establish membership
3-3 service credit for service performed after retirement that is
3-4 required by Section 823.502(c)(3) or (c)(5);
3-5 (6) the portion of a deposit to establish military
3-6 service credit required by Section 823.302(c);
3-7 (7) the portion of a deposit to establish equivalent
3-8 membership service credit required by Section 823.401(d),
3-9 823.402(e)(1) or (e)(2), [or] 823.3021(f)(1), or 823.404(c); and
3-10 (8) interest earned on money in the account as
3-11 provided by Subsections (b) and (c) and Section 825.313(b)(1).
3-12 SECTION 3. Section 825.308, Government Code, is amended to
3-13 read as follows:
3-14 Sec. 825.308. STATE CONTRIBUTION ACCOUNT. The retirement
3-15 system shall deposit in the state contribution account:
3-16 (1) all state contributions to the retirement system
3-17 required by Section 825.404;
3-18 (2) amounts from the interest account as provided by
3-19 Section 825.313(b)(5);
3-20 (3) retirement annuities waived or forfeited in
3-21 accordance with Section 824.601 or 824.004;
3-22 (4) fees collected under Section 825.403(h);
3-23 (5) fees and interest for reinstatement of service
3-24 credit or establishment of membership service credit as provided by
3-25 Section 823.202, 823.501, or 823.502;
3-26 (6) the portion of a deposit required by Section
3-27 823.302 to establish military service credit that represents a fee;
4-1 and
4-2 (7) the portion of a deposit required by Section
4-3 823.401(e) or 823.404(d) to establish equivalent membership
4-4 [out-of-state] service credit that represents a fee.
4-5 SECTION 4. This Act takes effect September 1, 1999.
4-6 SECTION 5. The importance of this legislation and the
4-7 crowded condition of the calendars in both houses create an
4-8 emergency and an imperative public necessity that the
4-9 constitutional rule requiring bills to be read on three several
4-10 days in each house be suspended, and this rule is hereby suspended.