By: Barrientos, Duncan S.B. No. 372
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the reestablishment of service credit in a public
1-3 retirement system participating in the proportionate retirement
1-4 program.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter C, Chapter 803, Government Code, is
1-7 amended by adding Section 803.203 to read as follows:
1-8 Sec. 803.203. REESTABLISHMENT OF SERVICE CREDIT BY FORMER
1-9 MEMBER. (a) Except as provided by Subsection (g), a person who is
1-10 a member of a retirement system participating in the program
1-11 provided by this chapter may reestablish service credit, including
1-12 prior service credit if applicable, previously canceled in another
1-13 retirement system that is participating in the program provided by
1-14 this chapter if the person:
1-15 (1) is not a current member of the system under which
1-16 the service was performed; or
1-17 (2) in the case of the Texas County and District
1-18 Retirement System, does not have an open account with the
1-19 subdivision for which the person performed the service for which
1-20 the credit is sought.
1-21 (b) A person may apply to reestablish service credit under
1-22 this section by filing an application with the retirement system in
1-23 which the service was originally credited and a certification that
1-24 the applicant is currently a member of the certifying system.
1-25 (c) Except as provided by Subsection (f), the retirement
2-1 system in which the service credit was originally credited shall
2-2 grant the service credit after receiving an application and a
2-3 certification required by Subsection (b) and:
2-4 (1) to reestablish service credit other than in the
2-5 Texas County and District Retirement System or the Texas Municipal
2-6 Retirement System, a contribution in the amount generally required
2-7 to reestablish service credit in the system, including any
2-8 applicable interest and membership fees;
2-9 (2) to reestablish service credit in the Texas County
2-10 and District Retirement System or the Texas Municipal Retirement
2-11 System, a statement that the applicant does not wish to make a
2-12 contribution for the service credit; or
2-13 (3) at the applicant's option, to reestablish current
2-14 service credit in the Texas County and District Retirement System,
2-15 the actuarial present value of the additional standard service
2-16 benefits that would be attributable to the credit based on rates
2-17 and tables recommended by the actuary and adopted by the board of
2-18 trustees of the system.
2-19 (d) A subdivision participating in the Texas County and
2-20 District Retirement System under Subchapter H, Chapter 844, or a
2-21 municipality participating in the Texas Municipal Retirement System
2-22 may make a one-time election to authorize the reestablishment of
2-23 service credit under this section by payment by an applicant of a
2-24 contribution in the amount provided by Section 843.003 or 853.003,
2-25 as applicable, for reestablishment of service credit generally in
2-26 the particular system. If a subdivision or municipality makes an
3-1 election under this subsection, the applicant has the choice of
3-2 reestablishing service credit under Subsection (c)(2), (c)(3), if
3-3 applicable, or this subsection.
3-4 (e) Service credit reestablished in the Texas County and
3-5 District Retirement System or the Texas Municipal Retirement System
3-6 under Subsection (c)(2) may be used only to meet eligibility
3-7 requirements for benefits. Service credit reestablished in either
3-8 system under Subsection (c)(3) or (d) has the same value as service
3-9 credit performed for the particular subdivision or municipality at
3-10 the time of deposit. The credit is creditable to the member's and
3-11 employer's accounts in each subdivision or municipality for which
3-12 the service was performed.
3-13 (f) To reestablish service credit in a public retirement
3-14 system for municipal employees that has elected under Section
3-15 803.101(f) to participate in the program provided by this chapter,
3-16 a person must pay the actuarial present value, as determined by the
3-17 appropriate system, of the additional standard service retirement
3-18 benefits that would be attributable to the credit. A person who is
3-19 a member only of a system that has made an election under Section
3-20 803.101(f) must pay the actuarial present value, as determined by
3-21 the appropriate system, of the additional standard service
3-22 retirement benefits that would be attributable to the service
3-23 credit to be reestablished in any other public retirement system
3-24 participating in the program provided by this chapter.
3-25 (g) Service credit may not be reestablished under this
3-26 section:
4-1 (1) if it is subject to Section 805.002(e); or
4-2 (2) in a subdivision participating in the Texas County
4-3 and District Retirement System or a municipality participating in
4-4 the Texas Municipal Retirement System if the person who seeks to
4-5 reestablish the credit is a member only of a retirement system that
4-6 the subdivision or municipality excludes from participation in the
4-7 proportionate retirement program under Section 803.103.
4-8 SECTION 2. This Act takes effect January 1, 2002.