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. 2-30 * * * * *