SRC-JBJ S.B. 372 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 372
77R4081 GJH-FBy: Barrientos
State Affairs
4/5/2001
As Filed


DIGEST AND PURPOSE 

The Texas Proportionate Retirement System (system) was created in 1981 in
recognition of the increased mobility of public employees transferring
among governmental entities.  As proposed, S.B. 372 amends provisions
relating to the system to allow employees of a participating retirement
system to re-establish service credit that was previously canceled in any
other participating system without returning to the system from which the
employee withdrew service credit. 

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 follows: 

Sec. 803.203.  REESTABLISHMENT OF SERVICE CREDIT FOR PREVIOUS EMPLOYMENT.
(a)  Authorizes an eligible member of a retirement system to which this
chapter applies to reestablish service credit, including prior service
credit if applicable, previously canceled in another retirement system to
which this chapter applies, except as provided by Subsections (d) and (e). 

(b)  Provides that a person eligible to reestablish service credit under
this section is one who terminated service covered by, and withdrew
contributions from, a retirement system to which this chapter applies and
began service in a position covered by another retirement system to which
this chapter applies and under which the person currently holds a position. 

(c)  Authorizes a person to apply to reestablish service credit under this
section by filing an application with the retirement system in which the
service was originally credited. Requires the system to grant the service
credit when the system receives from an eligible applicant certain items. 

(d)  Provides that if service is reestablished under this section in the
Texas County and District Retirement System or the Texas Municipal
Retirement System, the service is creditable pro rata to the account of
each subdivision or municipality for which the services was performed.
Prohibits service credit from being reestablished under this section for
service performed for a subdivision or municipality not participating in
the proportionate retirement program. 

(e)  Prohibits service credit to which Section 805.002(e) applies from
being reestablished under this section. 

SECTION 2.  Amends Sections 803.103(a) and (b), Government Code, as follows:
 
(a)  Provides that participation in the proportionate retirement program by
a subdivision participating in the Texas County and District Retirement
System or a municipality participating in the Texas Municipal Retirement
System does not include certain participation, including participation with
regard to the reestablishment of service credit under Section 803.203
unless the subdivision or municipality has elected to be covered by that
section. 

 (b)  Authorizes a subdivision or municipality to elect to be covered by
Section 803.203. 

SECTION 3.  Effective date: upon passage or September 1, 2001.