HBA-MPM H.B. 2170 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2170
By: Maxey
Pensions & Investments
4/8/2001
Introduced



BACKGROUND AND PURPOSE 

Current law entitles career and technology education teachers to salary
step credit for up to two years of work experience.  Prior to the 76th
Legislature, these teachers could not purchase credit in the Teacher
Retirement System of Texas (TRS) for the years for which they were given
salary step credit.  During the 76th legislative session, a bill was
enacted that made it possible for career and technology teachers to buy
service credit for their private sector experience and authorized TRS to
set the rate at which service credit could be purchased.  The rate set by
TRS was prohibitively expensive for the teachers, and the majority of
teachers to whom service credit was available did not purchase it.  House
Bill 2170 modifies the formula for the purchase of service credit in TRS by
career and technology teachers. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2170 amends the Government Code to authorize a career or
technology teacher to establish equivalent membership service credit in the
Teacher Retirement System of Texas (TRS) by depositing with TRS for each
year of service an amount equal to the sum of the member's contributions to
TRS during the first year of membership service after the equivalent
membership service and a fee of eight percent compounded annually of the
required contribution computed from the date of first eligibility to the
date of deposit. 

EFFECTIVE DATE

September 1, 2001.