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


Senate Research CenterC.S.S.B. 372
77R12217 GJH-DBy: Barrientos
State Affairs
4/18/2001
Committee Report (Substituted)


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.  C.S.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 certain other
participating systems 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 BY FORMER MEMBER. (a)
Authorizes a person who is a member of a retirement system participating in
the program provided by this chapter, except as provided by Subsection (g),
to reestablish service credit, including prior service credit if
applicable, previously canceled in another retirement system that is
participating in the program provided by this chapter if the person meets
certain criteria. 

(b)  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 and a certification that the applicant is
currently a member of the certifying system.   

(c)  Requires the retirement system in which the service credit was
originally credited, except as provided by Subsection (f), to grant the
service credit after receiving an application and certification required by
Subsection (b) and other certain items under certain conditions. 

(d)  Authorizes a subdivision participating in the Texas County and
District Retirement System under Chapter 844H, or a municipality
participating in the Texas Municipal Retirement System to make a one-time
election to authorize the reestablishment of service credit under this
section by payment by an applicant of a contribution in the amount provided
by Section 843.003 or 853.003, as applicable, for reestablishment of
service credit generally in the particular system.  Provides that if a
subdivision or municipality makes election under this subsection, the
applicant has the choice of reestablishing service credit under Subsection
(c)(2), (c)(3), if applicable, or this subsection. 

(e) Authorizes service credit reestablished in the Texas County and
District Retirement System or the Texas Municipal Retirement System under
Subsection (c)(2) to be used only to meet eligibility requirements for
benefits.  Provides that service credit  reestablished in either system
under Subsection (c)(3) or (d) has the same value as service credit
performed for the particular subdivision or municipality at the time of
deposit.  Provides that the credit is creditable to the member's and
employer's accounts in each subdivision or municipality for which the
service was performed. 

(f)  Requires a person, to reestablish service credit in a public
retirement system for municipal employees that has elected under Section
803.101(f) to participate in the program provided by this chapter, to pay
the actuarial present value, as determined by the appropriate system, of
the additional standard service retirement benefits that would be
attributable to the credit.  Requires a person who is a member only of a
system that has made an election under Section 803.101(f) to pay the
actuarial present value, as determined by the appropriate system, of the
additional standard service retirement benefits that would be attributable
to the service credit to be reestablished in any other public retirement
system participating in the program provided by this chapter. 

(g)  Prohibits service credit from being reestablished under this section
under certain conditions. 

SECTION 2.  Effective date:  January 1, 2002.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  Differs from the original by amending previously proposed
provisions regarding the procedures and eligibility for reestablishment of
service credit by certain persons. 

Deletes previously proposed SECTION 2 which amended Section 803.103,
Government Code, and renumbers previously proposed SECTION 3 as SECTION 2
with the following change: 

SECTION 2.  Differs from the original by changing the effective date of
this Act from upon passage or September 1, 2001, to January 1, 2002.