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.
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