By Bernsen                                             S.B. No. 474
         77R4319 GJH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to service credit in the Teacher Retirement System of
 1-3     Texas for accumulated personal or sick leave.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 823.403, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 823.403.  CREDIT FOR ACCUMULATED PERSONAL OR SICK LEAVE.
 1-8     (a)  A member who retires from an employer as defined by Section
 1-9     821.001(7) based on service or a disability is entitled to
1-10     membership service credit in the retirement system for the member's
1-11     state personal or sick leave that has accumulated and is unused on
1-12     the last day of employment pursuant to the terms of this section.
1-13     State personal or sick leave is creditable in the retirement system
1-14     in the amount of one year of service credit for 50 days or more, or
1-15     400 hours or more, of accumulated state personal or sick leave.  An
1-16     accumulation of less than 50 days is not creditable.  Not more than
1-17     five days of unused state personal or sick leave may be accumulated
1-18     per year.  Credit established under this section may be used only
1-19     for the purpose of calculating benefits under Section 824.203.
1-20           (b)  The employer shall, under rules adopted by the
1-21     retirement system, certify the amount of a member's accumulated
1-22     state personal or sick leave on the last day of employment before
1-23     retirement.
1-24           (c)  On receipt of a certification under Subsection (b) [and
 2-1     payment under Subsection (d) of this section], the retirement
 2-2     system shall grant any credit to which a retiree who is a subject
 2-3     of the certification is entitled.  The increase in the annuity
 2-4     payment begins with the first payment that becomes due after
 2-5     certification [and payment].
 2-6           [(d)  In order to receive credit, the member shall pay to the
 2-7     retirement system at the time service credit is granted under this
 2-8     section the actuarial present value of the additional standard
 2-9     retirement annuity benefits under the option selected by the member
2-10     that would be attributable to the conversion of the unused state
2-11     personal or sick leave into the service credit based on rates and
2-12     tables recommended by the actuary and adopted by the board of
2-13     trustees.]
2-14           [(e)  In accordance with local policy, the employer from
2-15     which the retiring member was compensated on the member's last day
2-16     of employment may reimburse an employee for all or part of the cost
2-17     of purchasing service credit under this section.]
2-18           SECTION 2.  This Act takes effect September 1, 2001.