1-1                                   AN ACT
 1-2     relating to service credit in and benefits under certain public
 1-3     retirement systems.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter C, Chapter 803, Government Code, is
 1-6     amended by adding Section 803.203 to read as follows:
 1-7           Sec. 803.203.  REESTABLISHMENT OF SERVICE CREDIT BY FORMER
 1-8     MEMBER.  (a)  Except as provided by Subsection (g), a person who is
 1-9     a member of a retirement system participating in the program
1-10     provided by this chapter may reestablish service credit, including
1-11     prior service credit if applicable, previously canceled in another
1-12     retirement system that is participating in the program provided by
1-13     this chapter if the person:
1-14                 (1)  is not a current member of the system under which
1-15     the service was performed; or
1-16                 (2)  in the case of the Texas County and District
1-17     Retirement System, does not have an open account with the
1-18     subdivision for which the person performed the service for which
1-19     the credit is sought.
1-20           (b)  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 and a certification that
1-23     the applicant is currently a member of the certifying system.
1-24           (c)  Except as provided by Subsection (f), the retirement
1-25     system in which the service credit was originally credited shall
 2-1     grant the service credit after receiving an application and a
 2-2     certification required by Subsection (b) and:
 2-3                 (1)  to reestablish service credit other than in the
 2-4     Texas County and District Retirement System or the Texas Municipal
 2-5     Retirement System, a contribution in the amount generally required
 2-6     to reestablish service credit in the system, including any
 2-7     applicable interest and membership fees;
 2-8                 (2)  to reestablish service credit in the Texas County
 2-9     and District Retirement System or the Texas Municipal Retirement
2-10     System, a statement that the applicant does not wish to make a
2-11     contribution for the service credit; or
2-12                 (3)  at the applicant's option, to reestablish current
2-13     service credit in the Texas County and District Retirement System,
2-14     the actuarial present value of the additional standard service
2-15     benefits that would be attributable to the credit based on rates
2-16     and tables recommended by the actuary and adopted by the board of
2-17     trustees of the system.
2-18           (d)  A subdivision participating in the Texas County and
2-19     District Retirement System under Subchapter H, Chapter 844, or a
2-20     municipality participating in the Texas Municipal Retirement System
2-21     may make a one-time election to authorize the reestablishment of
2-22     service credit under this section by payment by an applicant of a
2-23     contribution in the amount provided by Section 843.003 or 853.003,
2-24     as applicable, for reestablishment of service credit generally in
2-25     the particular system.  If a subdivision or municipality makes an
2-26     election under this subsection, the applicant has the choice of
 3-1     reestablishing service credit under Subsection (c)(2), (c)(3), if
 3-2     applicable, or this subsection.
 3-3           (e)  Service credit reestablished in the Texas County and
 3-4     District Retirement System or the Texas Municipal Retirement System
 3-5     under Subsection (c)(2) may be used only to meet eligibility
 3-6     requirements for benefits.  Service credit reestablished in either
 3-7     system under Subsection (c)(3) or (d) has the same value as service
 3-8     credit performed for the particular subdivision or municipality at
 3-9     the time of deposit.  The credit is creditable to the member's and
3-10     employer's accounts in each subdivision or municipality for which
3-11     the service was performed.
3-12           (f)  To reestablish service credit in a public retirement
3-13     system for municipal employees that has elected under Section
3-14     803.101(f) to participate in the program provided by this chapter,
3-15     a person must pay the actuarial present value, as determined by the
3-16     appropriate system, of the additional standard service retirement
3-17     benefits that would be attributable to the credit.  A person who is
3-18     a member only of a system that has made an election under Section
3-19     803.101(f) must pay the actuarial present value, as determined by
3-20     the appropriate system, of the additional standard service
3-21     retirement benefits that would be attributable to the service
3-22     credit to be reestablished in any other public retirement system
3-23     participating in the program provided by this chapter.
3-24           (g)  Service credit may not be reestablished under this
3-25     section:
3-26                 (1)  if it is subject to Section 805.002(e); or
 4-1                 (2)  in a subdivision participating in the Texas County
 4-2     and District Retirement System or a municipality participating in
 4-3     the Texas Municipal Retirement System if the person who seeks to
 4-4     reestablish the credit is a member only of a retirement system that
 4-5     the subdivision or municipality excludes from participation in the
 4-6     proportionate retirement program under Section 803.103.
 4-7           SECTION 2.  Subchapter B, Chapter 833, Government Code, is
 4-8     amended by adding Section 833.106 to read as follows:
 4-9           Sec. 833.106.  CREDIT FOR YEAR IN WHICH ELIGIBLE FOR OFFICE.
4-10     (a)  A member who has not retired may establish service credit in
4-11     the retirement system for any calendar year during which the
4-12     member:
4-13                 (1)  held an office included in the membership of the
4-14     retirement system; or
4-15                 (2)  was eligible to take the oath for an office
4-16     included in the membership of the retirement system.
4-17           (b)  A member may establish service credit under this section
4-18     by depositing with the retirement system a contribution computed
4-19     for each month of credit claimed at the rate of six percent of the
4-20     member's current monthly salary, plus, if the member does not
4-21     establish credit before the first anniversary of the date of first
4-22     eligibility, interest computed on the basis of the state fiscal
4-23     year at an annual rate of 10 percent from the date of first
4-24     eligibility to the date of deposit.
4-25           SECTION 3.  Subsection (b), Section 834.102, Government Code,
4-26     is amended to read as follows:
 5-1           (b)  The retirement system shall increase by 10 percent of
 5-2     the amount of the applicable state salary under Subsection (a) or
 5-3     (d)[,] the annuity of a member who on the effective date of
 5-4     retirement:
 5-5                 (1)  has not been out of judicial office for more than
 5-6     one year; or
 5-7                 (2)  has served as a visiting judge in this state and
 5-8     the first anniversary of the last day of that service has not
 5-9     occurred.
5-10           SECTION 4.  Section 835.101, Government Code, is amended by
5-11     amending Subsection (a) and adding Subsection (c) to read as
5-12     follows:
5-13           (a)  Except as provided by Subsection (c), each [Each] month
5-14     the payroll officer responsible for paying the state compensation
5-15     of a judicial officer who is a member of the retirement system
5-16     shall deduct from the state compensation of the judicial officer a
5-17     contribution computed at the rate required of a member of the
5-18     employee class of the Employees Retirement System of Texas.
5-19           (c)  A member who accrues 20 years of service credit in the
5-20     retirement system ceases making contributions under this section.
5-21           SECTION 5.  Subchapter B, Chapter 838, Government Code, is
5-22     amended by adding Section 838.106 to read as follows:
5-23           Sec. 838.106.  CREDIT FOR YEAR IN WHICH ELIGIBLE FOR OFFICE.
5-24     (a)  A contributing member may establish service credit in the
5-25     retirement system for any calendar year during which the member:
5-26                 (1)  held an office included in the membership of the
 6-1     retirement system; or
 6-2                 (2)  was eligible to take the oath for an office
 6-3     included in the membership of the retirement system.
 6-4           (b)  A member may establish service credit under this section
 6-5     by depositing with the retirement system a contribution computed
 6-6     for each month of credit claimed at the rate of six percent of the
 6-7     member's current monthly salary, plus, if the member does not
 6-8     establish credit before the first anniversary of the date of first
 6-9     eligibility, interest computed on the basis of the state fiscal
6-10     year at an annual rate of 10 percent from the date of first
6-11     eligibility to the date of deposit.
6-12           SECTION 6.  Subsection (b), Section 839.102, Government Code,
6-13     is amended to read as follows:
6-14           (b)  The retirement system shall increase by 10 percent of
6-15     the amount of the applicable state salary under Subsection (a) or
6-16     (c) the annuity of a member who on the effective date of
6-17     retirement:
6-18                 (1)  has not been out of judicial office for more than
6-19     one year; or
6-20                 (2)  has served as a visiting judge in this state and
6-21     the first anniversary of the last day of that service has not
6-22     occurred.
6-23           SECTION 7.  This Act takes effect January 1, 2002.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 372 passed the Senate on
         April 25, 2001, by a viva-voce vote; and that the Senate concurred
         in House amendment on May 26, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 372 passed the House, with
         amendment, on May 23, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor