By: Barrientos S.B. No. 256
A BILL TO BE ENTITLED
AN ACT
1-1 relating to reestablishment of service credit in a public
1-2 retirement system participating in the proportionate retirement
1-3 program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter C, Chapter 803, Government Code, is
1-6 amended by adding Section 803.203 to read as follows:
1-7 Sec. 803.203. REESTABLISHMENT OF SERVICE CREDIT FOR PREVIOUS
1-8 EMPLOYMENT. (a) Except as provided by Subsections (d) and (e), an
1-9 eligible member of a retirement system to which this chapter
1-10 applies may reestablish service credit, including prior service
1-11 credit if applicable, previously canceled in another retirement
1-12 system to which this chapter applies.
1-13 (b) A person eligible to reestablish service credit under
1-14 this section is one who terminated service covered by, and withdrew
1-15 contributions from, a retirement system to which this chapter
1-16 applies and began service in a position covered by another
1-17 retirement system to which this chapter applies and under which the
1-18 person currently holds a position.
1-19 (c) A person may apply to reestablish service credit under
1-20 this section by filing an application with the retirement system in
1-21 which the service was originally credited. The system shall grant
1-22 the service credit when the system receives from an eligible
1-23 applicant:
1-24 (1) a contribution in the amount required to
2-1 reestablish service credit in the retirement system generally,
2-2 including any applicable interest and membership fees; and
2-3 (2) a certification that the applicant currently holds
2-4 a position included in the membership of the certifying system.
2-5 (d) If service is reestablished under this section in the
2-6 Texas County and District Retirement System or the Texas Municipal
2-7 Retirement System, the service is creditable pro rata to the
2-8 account of each subdivision or municipality for which the service
2-9 was performed. Service credit may not be reestablished under this
2-10 section for service performed for a subdivision or municipality not
2-11 participating in the proportionate retirement program.
2-12 (e) Service credit to which Section 805.002(e) applies may
2-13 not be reestablished under this section.
2-14 SECTION 2. Subsections (a) and (b), Section 803.103,
2-15 Government Code, are amended to read as follows:
2-16 (a) Participation in the proportionate retirement program by
2-17 a subdivision participating in the Texas County and District
2-18 Retirement System or a municipality participating in the Texas
2-19 Municipal Retirement System does not include:
2-20 (1) participation with a retirement system described
2-21 by Section 803.0021(1) if the subdivision or municipality has
2-22 elected to so limit its participation and has not revoked the
2-23 election under Subsection (b); [or]
2-24 (2) participation with a retirement system described
2-25 by Section 803.0021(3); or
2-26 (3) participation with regard to reestablishment of
3-1 service credit under Section 803.203 unless the subdivision or
3-2 municipality has elected to be covered by that section.
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. A
3-6 subdivision or municipality also may elect to be covered by Section
3-7 803.203. An election under this subsection may be made by vote of
3-8 the governing body of the subdivision or municipality in the manner
3-9 required for official actions of the governing body. The governing
3-10 body shall send notice of an election under this subsection to the
3-11 board of trustees of the retirement system in which the subdivision
3-12 or municipality participates.
3-13 SECTION 3. The importance of this legislation and the
3-14 crowded condition of the calendars in both houses create an
3-15 emergency and an imperative public necessity that the
3-16 constitutional rule requiring bills to be read on three several
3-17 days in each house be suspended, and this rule is hereby suspended,
3-18 and that this Act take effect and be in force from and after its
3-19 passage, and it is so enacted.