1-1 By: Longoria (Senate Sponsor - Barrientos) H.B. No. 1428 1-2 (In the Senate - Received from the House May 7, 2001; 1-3 May 7, 2001, read first time and referred to Committee on State 1-4 Affairs; May 11, 2001, reported favorably by the following vote: 1-5 Yeas 8, Nays 0; May 11, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the reestablishment of service credit in a public 1-9 retirement system participating in the proportionate retirement 1-10 program. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter C, Chapter 803, Government Code, is 1-13 amended by adding Section 803.203 to read as follows: 1-14 Sec. 803.203. REESTABLISHMENT OF SERVICE CREDIT BY FORMER 1-15 MEMBER. (a) Except as provided by Subsection (g), a person who is 1-16 a member of a retirement system participating in the program 1-17 provided by this chapter may reestablish service credit, including 1-18 prior service credit if applicable, previously canceled in another 1-19 retirement system that is participating in the program provided by 1-20 this chapter if the person: 1-21 (1) is not a current member of the system under which 1-22 the service was performed; or 1-23 (2) in the case of the Texas County and District 1-24 Retirement System, does not have an open account with the 1-25 subdivision for which the person performed the service for which 1-26 the credit is sought. 1-27 (b) A person may apply to reestablish service credit under 1-28 this section by filing an application with the retirement system in 1-29 which the service was originally credited and a certification that 1-30 the applicant is currently a member of the certifying system. 1-31 (c) Except as provided by Subsection (f), the retirement 1-32 system in which the service credit was originally credited shall 1-33 grant the service credit after receiving an application and a 1-34 certification required by Subsection (b) and: 1-35 (1) to reestablish service credit other than in the 1-36 Texas County and District Retirement System or the Texas Municipal 1-37 Retirement System, a contribution in the amount generally required 1-38 to reestablish service credit in the system, including any 1-39 applicable interest and membership fees; 1-40 (2) to reestablish service credit in the Texas County 1-41 and District Retirement System or the Texas Municipal Retirement 1-42 System, a statement that the applicant does not wish to make a 1-43 contribution for the service credit; or 1-44 (3) at the applicant's option, to reestablish current 1-45 service credit in the Texas County and District Retirement System, 1-46 the actuarial present value of the additional standard service 1-47 benefits that would be attributable to the credit based on rates 1-48 and tables recommended by the actuary and adopted by the board of 1-49 trustees of the system. 1-50 (d) A subdivision participating in the Texas County and 1-51 District Retirement System under Subchapter H, Chapter 844, or a 1-52 municipality participating in the Texas Municipal Retirement System 1-53 may make a one-time election to authorize the reestablishment of 1-54 service credit under this section by payment by an applicant of a 1-55 contribution in the amount provided by Section 843.003 or 853.003, 1-56 as applicable, for reestablishment of service credit generally in 1-57 the particular system. If a subdivision or municipality makes an 1-58 election under this subsection, the applicant has the choice of 1-59 reestablishing service credit under Subsection (c)(2), (c)(3), if 1-60 applicable, or this subsection. 1-61 (e) Service credit reestablished in the Texas County and 1-62 District Retirement System or the Texas Municipal Retirement System 1-63 under Subsection (c)(2) may be used only to meet eligibility 1-64 requirements for benefits. Service credit reestablished in either 2-1 system under Subsection (c)(3) or (d) has the same value as service 2-2 credit performed for the particular subdivision or municipality at 2-3 the time of deposit. The credit is creditable to the member's and 2-4 employer's accounts in each subdivision or municipality for which 2-5 the service was performed. 2-6 (f) To reestablish service credit in a public retirement 2-7 system for municipal employees that has elected under Section 2-8 803.101(f) to participate in the program provided by this chapter, 2-9 a person must pay the actuarial present value, as determined by the 2-10 appropriate system, of the additional standard service retirement 2-11 benefits that would be attributable to the credit. A person who is 2-12 a member only of a system that has made an election under Section 2-13 803.101(f) must pay the actuarial present value, as determined by 2-14 the appropriate system, of the additional standard service 2-15 retirement benefits that would be attributable to the service 2-16 credit to be reestablished in any other public retirement system 2-17 participating in the program provided by this chapter. 2-18 (g) Service credit may not be reestablished under this 2-19 section: 2-20 (1) if it is subject to Section 805.002(e); or 2-21 (2) in a subdivision participating in the Texas County 2-22 and District Retirement System or a municipality participating in 2-23 the Texas Municipal Retirement System if the person who seeks to 2-24 reestablish the credit is a member only of a retirement system that 2-25 the subdivision or municipality excludes from participation in the 2-26 proportionate retirement program under Section 803.103. 2-27 SECTION 2. This Act takes effect January 1, 2002. 2-28 * * * * *