77R12283 GJH-D
By King of Uvalde H.B. No. 3407
Substitute the following for H.B. No. 3407:
By Tillery C.S.H.B. No. 3407
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to credit in the Teacher Retirement System of Texas that
1-3 is required by a court order.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 823, Government Code, is
1-6 amended by adding Section 823.4045 to read as follows:
1-7 Sec. 823.4045. COURT-ORDERED CREDIT. (a) In this section,
1-8 "court order" means a court order that:
1-9 (1) finds that a school district wrongfully terminated
1-10 a member;
1-11 (2) requires the school district to reemploy the
1-12 member; and
1-13 (3) requires the establishment of credit in the
1-14 retirement system for all of the service credit the member would
1-15 have otherwise established during the period between the date of
1-16 the wrongful termination and the date of the reemployment.
1-17 (b) A member may establish equivalent membership service
1-18 credit for credit required by a court order.
1-19 (c) A member may establish credit under this section by
1-20 depositing with the retirement system, for each year of service,
1-21 the actuarial present value, at the time of deposit, of the
1-22 additional standard retirement benefits that would be attributable
1-23 to the service credit as determined by the retirement system.
1-24 (d) After a member makes the deposits required by this
2-1 section, the retirement system shall grant the member one year of
2-2 equivalent membership service credit for each year of credit
2-3 required under the court order. The retirement system may not use
2-4 service credit granted under this section in computing a member's
2-5 annual average compensation.
2-6 SECTION 2. Section 823.004(a), Government Code, is amended to
2-7 read as follows:
2-8 (a) All credit for military service, out-of-state service,
2-9 developmental leave, service previously waived, work experience in
2-10 a career or technological field, court-ordered credit, and service
2-11 transferred to the retirement system under Chapter 805 shall be
2-12 computed on a September 1 through August 31 school year. Payments
2-13 for service described by this section must be completed not later
2-14 than the later of the member's retirement date or the last day of
2-15 the month in which the member submits a retirement application.
2-16 SECTION 3. Section 825.307(a), Government Code, is amended to
2-17 read as follows:
2-18 (a) The retirement system shall deposit in a member's
2-19 individual account in the member savings account:
2-20 (1) the amount of contributions to the retirement
2-21 system that is deducted from the member's compensation;
2-22 (2) the portion of a deposit made on or after
2-23 resumption of membership that represents the amount of retirement
2-24 benefits received;
2-25 (3) the portion of a deposit to reinstate service
2-26 credit previously canceled that represents the amount withdrawn or
2-27 refunded;
3-1 (4) the portion of a deposit to establish membership
3-2 service credit previously waived that is required by Section
3-3 823.202(b)(1);
3-4 (5) the portion of a deposit to establish membership
3-5 service credit for service performed after retirement that is
3-6 required by Section 823.502(c)(3);
3-7 (6) the portion of a deposit to establish military
3-8 service credit required by Section 823.302(c);
3-9 (7) the portion of a deposit to establish equivalent
3-10 membership service credit required by Section 823.401(d),
3-11 823.402(e)(1) or (e)(2), 823.404(c), [or] 823.3021(f)(1), or
3-12 823.4045(c); and
3-13 (8) interest earned on money in the account as
3-14 provided by Subsections (b) and (c) and Section 825.313(c).
3-15 SECTION 4. Section 825.410(a), Government Code, is amended to
3-16 read as follows:
3-17 (a) Payments to establish special service credit as
3-18 authorized in Sections 805.002, 823.302, 823.304, 823.401, 823.501,
3-19 823.4045, and 825.403 may be made in a lump sum by a monthly
3-20 payroll deduction in an amount not less than one-twelfth of the
3-21 contribution required to establish at least one year of service
3-22 credit, or in equal monthly installments over a period not to
3-23 exceed the lesser of the number of years of credit to be purchased
3-24 or 60 months. Installment and payroll deduction payments are due
3-25 on the first day of each calendar month in the payment period. If
3-26 an installment or payroll deduction payment is not made in full
3-27 within 60 days after the due date, the retirement system may refund
4-1 all installment or payroll deduction payments less fees paid on the
4-2 lump sum due when installment or payroll deduction payments began.
4-3 Partial payment of an installment or payroll deduction payment may
4-4 be treated as nonpayment. A check returned for insufficient funds
4-5 or a closed account shall be treated as nonpayment. When two or
4-6 more consecutive monthly payments have a returned check, a refund
4-7 may be made. If the retirement system refunds payments pursuant to
4-8 this subsection, the member is not permitted to use the installment
4-9 method of payment or the payroll deduction method, as applicable,
4-10 for the same service for three years after the date of the refund.
4-11 A member who requests and receives a refund of installment or
4-12 payroll deduction payments also is not permitted to use the same
4-13 method of payment for the same service for three years after the
4-14 date of the refund.
4-15 SECTION 5. This Act takes effect September 1, 2001, and
4-16 applies to court-ordered credit regardless of whether the
4-17 proceeding occurred before, on, or after that date.