By Dunnam H.B. No. 3486
76R4093 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 for a private school or institution of higher education.
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. SERVICE FOR PRIVATE SCHOOL OR INSTITUTION OF
1-8 HIGHER EDUCATION. (a) In this section:
1-9 (1) "Accredited private institution of higher
1-10 education" means an institution that:
1-11 (A) offers a postsecondary course of instruction
1-12 leading to a degree;
1-13 (B) is not operated by a governmental entity;
1-14 and
1-15 (C) is accredited by a regional accrediting
1-16 agency or group that is recognized by a nationally recognized
1-17 accreditation board.
1-18 (2) "Accredited private school" means a school that:
1-19 (A) offers a course of instruction for students
1-20 in one or more grades from kindergarten through grade 12;
1-21 (B) is not operated by a governmental entity;
1-22 and
1-23 (C) is accredited by a generally recognized
1-24 accrediting organization.
2-1 (b) An eligible member may establish equivalent membership
2-2 service credit for employment with an accredited private school or
2-3 institution of higher education.
2-4 (c) A member eligible to establish credit under this section
2-5 is one who has at least 10 years of service credit in the
2-6 retirement system for actual service in public schools, at least
2-7 one of which is for service performed after the service for which
2-8 credit is sought under this section.
2-9 (d) A member may establish credit under this section by
2-10 depositing with the retirement system for each year of service
2-11 claimed a contribution computed at the rate of 12 percent of the
2-12 full-time rate of the member's annual compensation, determined as
2-13 provided by Section 822.201, during the first year of service for
2-14 which the member received membership credit in the retirement
2-15 system that is after the service for which credit is sought.
2-16 (e) In addition to the contribution required by Subsection
2-17 (d), a member claiming credit under this section must pay a fee of
2-18 eight percent, compounded annually, of the required contribution
2-19 from the date of first eligibility to the date of deposit. A
2-20 deposit for at least one year of credit, including the fee, must be
2-21 made with an initial application for credit, and all payments for
2-22 service claimed under this section must be made before retirement.
2-23 (f) The amount of service credit a member may establish
2-24 under this section may not exceed 10 years.
2-25 (g) After a member makes the deposits required by this
2-26 section, the retirement system shall grant the member one year of
2-27 equivalent membership service credit for each year of service
3-1 approved. The retirement system may not use service credit granted
3-2 under this section in computing a member's annual average
3-3 compensation.
3-4 (h) In determining the amount of a contribution under
3-5 Subsection (d) required of a member who did not work full time or
3-6 worked fewer days or months than full-time employees in similar
3-7 positions, the retirement system shall compute an annual rate of
3-8 compensation from the member's reported compensation.
3-9 SECTION 2. This Act takes effect September 1, 1999.
3-10 SECTION 3. The importance of this legislation and the
3-11 crowded condition of the calendars in both houses create an
3-12 emergency and an imperative public necessity that the
3-13 constitutional rule requiring bills to be read on three several
3-14 days in each house be suspended, and this rule is hereby suspended.