1-1     By:  Barrientos, Duncan                                S.B. No. 372
 1-2           (In the Senate - Filed January 24, 2001; January 25, 2001,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     April 20, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 9, Nays 0; April 20, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 372               By:  Armbrister
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the reestablishment of service credit in a public
1-11     retirement system participating in the proportionate retirement
1-12     program.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Subchapter C, Chapter 803, Government Code, is
1-15     amended by adding Section 803.203 to read as follows:
1-16           Sec. 803.203.  REESTABLISHMENT OF SERVICE CREDIT BY FORMER
1-17     MEMBER.  (a)  Except as provided by Subsection (g), a person who is
1-18     a member of a retirement system participating in the program
1-19     provided by this chapter may reestablish service credit, including
1-20     prior service credit if applicable, previously canceled in another
1-21     retirement system that is participating in the program provided by
1-22     this chapter if the person:
1-23                 (1)  is not a current member of the system under which
1-24     the service was performed; or
1-25                 (2)  in the case of the Texas County and District
1-26     Retirement System, does not have an open account with the
1-27     subdivision for which the person performed the service for which
1-28     the credit is sought.
1-29           (b)  A person may apply to reestablish service credit under
1-30     this section by filing an application with the retirement system in
1-31     which the service was originally credited and a certification that
1-32     the applicant is currently a member of the certifying system.
1-33           (c)  Except as provided by Subsection (f), the retirement
1-34     system in which the service credit was originally credited shall
1-35     grant the service credit after receiving an application and a
1-36     certification required by Subsection (b) and:
1-37                 (1)  to reestablish service credit other than in the
1-38     Texas County and District Retirement System or the Texas Municipal
1-39     Retirement System, a contribution in the amount generally required
1-40     to reestablish service credit in the system, including any
1-41     applicable interest and membership fees;
1-42                 (2)  to reestablish service credit in the Texas County
1-43     and District Retirement System or the Texas Municipal Retirement
1-44     System, a statement that the applicant does not wish to make a
1-45     contribution for the service credit; or
1-46                 (3)  at the applicant's option, to reestablish current
1-47     service credit in the Texas County and District Retirement System,
1-48     the actuarial present value of the additional standard service
1-49     benefits that would be attributable to the credit based on rates
1-50     and tables recommended by the actuary and adopted by the board of
1-51     trustees of the system.
1-52           (d)  A subdivision participating in the Texas County and
1-53     District Retirement System under Subchapter H, Chapter 844, or a
1-54     municipality participating in the Texas Municipal Retirement System
1-55     may make a one-time election to authorize the reestablishment of
1-56     service credit under this section by payment by an applicant of a
1-57     contribution in the amount provided by Section 843.003 or 853.003,
1-58     as applicable, for reestablishment of service credit generally in
1-59     the particular system.  If a subdivision or municipality makes an
1-60     election under this subsection, the applicant has the choice of
1-61     reestablishing service credit under Subsection (c)(2), (c)(3), if
1-62     applicable, or this subsection.
1-63           (e)  Service credit reestablished in the Texas County and
1-64     District Retirement System or the Texas Municipal Retirement System
 2-1     under Subsection (c)(2) may be used only to meet eligibility
 2-2     requirements for benefits.  Service credit reestablished in either
 2-3     system under Subsection (c)(3) or (d) has the same value as service
 2-4     credit performed for the particular subdivision or municipality at
 2-5     the time of deposit.  The credit is creditable to the member's and
 2-6     employer's accounts in each subdivision or municipality for which
 2-7     the service was performed.
 2-8           (f)  To reestablish service credit in a public retirement
 2-9     system for municipal employees that has elected under Section
2-10     803.101(f) to participate in the program provided by this chapter,
2-11     a person must pay the actuarial present value, as determined by the
2-12     appropriate system, of the additional standard service retirement
2-13     benefits that would be attributable to the credit.  A person who is
2-14     a member only of a system that has made an election under Section
2-15     803.101(f) must pay the actuarial present value, as determined by
2-16     the appropriate system, of the additional standard service
2-17     retirement benefits that would be attributable to the service
2-18     credit to be reestablished in any other public retirement system
2-19     participating in the program provided by this chapter.
2-20           (g)  Service credit may not be reestablished under this
2-21     section:
2-22                 (1)  if it is subject to Section 805.002(e); or
2-23                 (2)  in a subdivision participating in the Texas County
2-24     and District Retirement System or a municipality participating in
2-25     the Texas Municipal Retirement System if the person who seeks to
2-26     reestablish the credit is a member only of a retirement system that
2-27     the subdivision or municipality excludes from participation in the
2-28     proportionate retirement program under Section 803.103.
2-29           SECTION 2.  This Act takes effect January 1, 2002.
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