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.