1-1 By: Barrientos S.B. No. 256
1-2 (In the Senate - Filed January 25, 1999; January 28, 1999,
1-3 read first time and referred to Committee on State Affairs;
1-4 April 26, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; April 26, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 256 By: Shapleigh
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to reestablishment of service credit in a public
1-11 retirement system participating in the proportionate retirement
1-12 program.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Subchapter C, Chapter 803, Government Code, is
1-15 amended by adding Section 803.203 to read as follows:
1-16 Sec. 803.203. REESTABLISHMENT OF SERVICE CREDIT FOR PREVIOUS
1-17 EMPLOYMENT. (a) Except as provided by Subsections (d) and (e), an
1-18 eligible member of a retirement system to which this chapter
1-19 applies may reestablish service credit, including prior service
1-20 credit if applicable, previously canceled in another retirement
1-21 system to which this chapter applies.
1-22 (b) A person eligible to reestablish service credit under
1-23 this section is one who terminated service covered by, and withdrew
1-24 contributions from, a retirement system to which this chapter
1-25 applies and began service in a position covered by another
1-26 retirement system to which this chapter applies and under which the
1-27 person currently holds a position.
1-28 (c) A person may apply to reestablish service credit under
1-29 this section by filing an application with the retirement system in
1-30 which the service was originally credited. The system shall grant
1-31 the service credit when the system receives from an eligible
1-32 applicant:
1-33 (1) a contribution in the amount required to
1-34 reestablish service credit in the retirement system generally,
1-35 including any applicable interest and membership fees; and
1-36 (2) a certification that the applicant currently holds
1-37 a position included in the membership of the certifying system.
1-38 (d) If service is reestablished under this section in the
1-39 Texas County and District Retirement System or the Texas Municipal
1-40 Retirement System, the service is creditable pro rata to the
1-41 account of each subdivision or municipality for which the service
1-42 was performed. Service credit may not be reestablished under this
1-43 section for service performed for a subdivision or municipality not
1-44 participating in the proportionate retirement program.
1-45 (e) Service credit to which Section 805.002(e) applies may
1-46 not be reestablished under this section.
1-47 SECTION 2. Subsections (a) and (b), Section 803.103,
1-48 Government Code, are amended to read as follows:
1-49 (a) Participation in the proportionate retirement program by
1-50 a subdivision participating in the Texas County and District
1-51 Retirement System or a municipality participating in the Texas
1-52 Municipal Retirement System does not include:
1-53 (1) participation with a retirement system described
1-54 by Section 803.0021(1) if the subdivision or municipality has
1-55 elected to so limit its participation and has not revoked the
1-56 election under Subsection (b); [or]
1-57 (2) participation with a retirement system described
1-58 by Section 803.0021(3); or
1-59 (3) participation with regard to reestablishment of
1-60 service credit under Section 803.203 unless the subdivision or
1-61 municipality has elected to be covered by that section.
1-62 (b) A subdivision or municipality that has elected to limit
1-63 its participation in the proportionate retirement program may
1-64 revoke the election and remove the limitation on participation. A
2-1 subdivision or municipality also may elect to be covered by Section
2-2 803.203. An election under this subsection may be made by vote of
2-3 the governing body of the subdivision or municipality in the manner
2-4 required for official actions of the governing body. The governing
2-5 body shall send notice of an election under this subsection to the
2-6 board of trustees of the retirement system in which the subdivision
2-7 or municipality participates.
2-8 SECTION 3. The importance of this legislation and the
2-9 crowded condition of the calendars in both houses create an
2-10 emergency and an imperative public necessity that the
2-11 constitutional rule requiring bills to be read on three several
2-12 days in each house be suspended, and this rule is hereby suspended,
2-13 and that this Act take effect and be in force from and after its
2-14 passage, and it is so enacted.
2-15 * * * * *