By Longoria H.B. No. 1428
77R4081 GJH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the reestablishment of service credit in a public
1-3 retirement system participating in the proportionate retirement
1-4 program.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter C, Chapter 803, Government Code, is
1-7 amended by adding Section 803.203 to read as follows:
1-8 Sec. 803.203. REESTABLISHMENT OF SERVICE CREDIT FOR PREVIOUS
1-9 EMPLOYMENT. (a) Except as provided by Subsections (d) and (e), an
1-10 eligible member of a retirement system to which this chapter
1-11 applies may reestablish service credit, including prior service
1-12 credit if applicable, previously canceled in another retirement
1-13 system to which this chapter applies.
1-14 (b) A person eligible to reestablish service credit under
1-15 this section is one who terminated service covered by, and withdrew
1-16 contributions from, a retirement system to which this chapter
1-17 applies and began service in a position covered by another
1-18 retirement system to which this chapter applies and under which the
1-19 person currently holds a position.
1-20 (c) A person may apply to reestablish service credit under
1-21 this section by filing an application with the retirement system in
1-22 which the service was originally credited. The system shall grant
1-23 the service credit when the system receives from an eligible
1-24 applicant:
2-1 (1) a contribution in the amount required to
2-2 reestablish service credit in the retirement system generally,
2-3 including any applicable interest and membership fees; and
2-4 (2) a certification that the applicant currently holds
2-5 a position included in the membership of the certifying system.
2-6 (d) If service is reestablished under this section in the
2-7 Texas County and District Retirement System or the Texas Municipal
2-8 Retirement System, the service is creditable pro rata to the
2-9 account of each subdivision or municipality for which the service
2-10 was performed. Service credit may not be reestablished under this
2-11 section for service performed for a subdivision or municipality not
2-12 participating in the proportionate retirement program.
2-13 (e) Service credit to which Section 805.002(e) applies may
2-14 not be reestablished under this section.
2-15 SECTION 2. Sections 803.103(a) and (b), Government Code, are
2-16 amended to read as follows:
2-17 (a) Participation in the proportionate retirement program by
2-18 a subdivision participating in the Texas County and District
2-19 Retirement System or a municipality participating in the Texas
2-20 Municipal Retirement System does not include:
2-21 (1) participation with a retirement system described
2-22 by Section 803.0021(1) if the subdivision or municipality has
2-23 elected to so limit its participation and has not revoked the
2-24 election under Subsection (b); [or]
2-25 (2) participation with a retirement system described
2-26 by Section 803.0021(3); or
2-27 (3) participation with regard to the reestablishment
3-1 of service credit under Section 803.203 unless the subdivision or
3-2 municipality has elected to be covered by that section.
3-3 (b) A subdivision or municipality that has elected to limit
3-4 its participation in the proportionate retirement program may
3-5 revoke the election and remove the limitation on participation. A
3-6 subdivision or municipality also may elect to be covered by Section
3-7 803.203. An election under this subsection may be made by vote of
3-8 the governing body of the subdivision or municipality in the manner
3-9 required for official actions of the governing body. The governing
3-10 body shall send notice of an election under this subsection to the
3-11 board of trustees of the retirement system in which the subdivision
3-12 or municipality participates.
3-13 SECTION 3. This Act takes effect immediately if it receives
3-14 a vote of two-thirds of all the members elected to each house, as
3-15 provided by Section 39, Article III, Texas Constitution. If this
3-16 Act does not receive the vote necessary for immediate effect, this
3-17 Act takes effect September 1, 2001.