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