SRC-SEW H.B. 1428 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1428
77R12217 GJH-DBy: Longoria (Barrientos)
State Affairs
5/10/2001
Engrossed


DIGEST AND PURPOSE 

Currently, statewide retirement systems that offer proportionate retirement
have different rules and regulations as to who is eligible to buy back
service credit. Because the rules lack uniformity, some member employees
may have mistakenly terminated membership in a retirement system and lost
prior established service credit. H.B. 1428 establishes a uniform policy
regarding purchasing prior service credit and sets forth provisions for the
reestablishment of service credit previously canceled.  

RULEMAKING AUTHORITY

This bill does not expressly 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  
 
Sec. 803.203.  REESTABLISHMENT OF SERVICE CREDIT BY FORMER MEMBER. Sets
forth guidelines regarding a person who is a member of a retirement system
participating in the program provided by this chapter reestablishing
service credit, including prior service credit if applicable, previously
canceled in another retirement system that is participating in the program
provided by this chapter.  Sets forth guidelines regarding a subdivision
participating in the Texas County and District Retirement System under
Chapter 844H, or a municipality participating in the Texas Municipal
Retirement System electing to authorize the reestablishment of service
credit under this section.  Sets forth guidelines regarding the use and
value of certain service credit reestablished in the Texas County and
District Retirement System or the Texas Municipal Retirement System, and
provides that such credit is creditable to the member's and employer's
accounts in each subdivision or municipality for which the service was
performed. Prohibits service credit from being reestablished under this
section under certain conditions.   
 
SECTION 2.  Effective date:  January 1, 2002.